EXHIBIT 7
 PHILIPPINE LONG DISTANCE TELEPHONE COMPANY
Calculation of Ratio of Earnings to Fixed Charges
For the years 2006 through 2010
 2010(1)
    
    
    2010
    
    
    2009
    
    
    2008
    
    
    2007
    
    
    2006(in millions, except ratio of earnings to fixed charges)Earnings: Income before income taxPre-tax income from continuing operations before
adjustment for non-controlling interest in
consolidated subsidiaries or income or loss from equity
investees subsidiaries
    
    US$
    1,225
    
    
    
    Php53,685
    
    
    
    Php54,839
    
    
    
    Php54,049
    
    
    
    Php58,081
    
    
    
    Php38,249Add (Deduct):Fixed Charges(see b below)
    
    
    194
    
    
    
    8,514
    
    
    
    8,273
    
    
    
    7,831
    
    
    
    8,051
    
    
    
    10,874Amortization of capitalized interest
    
    
    36
    
    
    
    1,594
    
    
    
    1,544
    
    
    
    1,543
    
    
    
    1,559
    
    
    
    1,490Capitalized interest
    
    
    (16
    )
    
    
    (710
    )
    
    
    (691
    )
    
    
    (778
    )
    
    
    (542
    )
    
    
    (549
    )Total Earnings(a)
    
    US$
    1,439
    
    
    
    Php63,083
    
    
    
    Php63,965
    
    
    
    Php62,645
    
    
    
    Php67,149
    
    
    
    Php50,064Fixed Charges(b)Interest on loans and related items
    
    US$
    125
    
    
    
    Php5,471
    
    
    
    Php5,317
    
    
    
    Php5,083
    
    
    
    Php5,714
    
    
    
    Php7,359Capitalized interest
    
    
    16
    
    
    
    710
    
    
    
    691
    
    
    
    778
    
    
    
    542
    
    
    
    549Amortization of debt issuance costs and debt discount
    
    
    23
    
    
    
    1,010
    
    
    
    913
    
    
    
    751
    
    
    
    874
    
    
    
    2,214Estimated financing component of rent expense(3)
    
    
    30
    
    
    
    1,323
    
    
    
    1,352
    
    
    
    1,219
    
    
    
    921
    
    
    
    752Total Fixed Charges
    
    US$
    194
    
    
    
    Php8,514
    
    
    
    Php8,273
    
    
    
    Php7,831
    
    
    
    Php8,051
    
    
    
    Php10,874Ratio (a/b)(2)
    
    
    7.4
    
    
    
    7.4
    
    
    
    7.7
    
    
    
    8.0
    
    
    
    8.3
    
    
    
    4.6
 
 (1)
    
    We maintain our accounts in Philippine pesos, the functional and presentation currency
under IFRS. For convenience, the Philippine peso financial information as at and for the year
ended December 31, 2010 has been translated into U.S. dollars at the exchange rate of Php43.81
to US$1.00, the Philippine peso-dollar rate as quoted through the Philippine Dealing System as
at December 31, 2010.(2)
    
    For purposes of this ratio, Earnings consist of: (a) pre-tax income from continuing
operations before adjustment for non-controlling interest in consolidated subsidiaries or
income or loss from equity investees, (b) fixed charges, (c) amortization of capitalized
interest, (d) distributed income of equity investees, and (e) share of pre-tax losses of
equity investees for which charges arising from guarantees are included in fixed charges; less
the sum of the following: (1) capitalized interest, (2) preference security dividend
requirements of consolidated subsidiaries, and (3) the non-controlling interests in pre-tax
income of subsidiaries that have not incurred fixed charges.Fixed charges consist of interest expense and capitalized interest, amortized premiums,
discounts and capitalized expenses related to indebtedness, an estimate of interest within rental
expense, and preference security dividend requirements of consolidated subsidiaries.(3)
    
    Rent expense substantially represents payments for the satellite circuits leased by PLDT.
Historically, PLDT has been using one-third of rent expense as a reasonable estimate of the
financing component of rent expense, since it is impracticable to determine the actual
financing component of rent expense. 300