MEMBER LOGIN





NTC orders telcos to refund text overcharge

from May 8, 2014 04:00 pm to May 8, 2014 04:00 pm

By Miguel R. Camus

Philippine Daily Inquirer

8:13 am | Thursday, May 8th, 2014

http://business.inquirer.net/169941/ntc-orders-telcos-to-refund-text-overcharge#ixzz315dW4xoF

 

MANILA, Philippines—Mobile phone consumers should be getting soon some reprieve in their ever-rising cellular bills after the National Telecommunications Commission (NTC) ordered Wednesday a sweeping refund covering several years of text-message charges between telco providers.

 

Showing some teeth against the powerful and politically influential telco firms, the NTC ordered the Ayala-led Globe Telecom and Philippine Long Distance Telephone Co. (PLDT) units, Smart Communications and Digital Mobile Phil. (Sun Cellular) to slash their short message service (SMS) rate to “other networks” to 80 centavos from P1.

 

The P0.20-per-text-message “excess charge” should then be refunded to subscribers in what would likely trigger legal action from telco players facing declining profit margins in text and calls as mobile subscribers gradually shift to services like WhatsApp and social networking sites like Facebook.

 

Indeed, the final amount of refunds could reach “billions of pesos” as the order became effective last Dec. 1, 2011, said NTC Director for Regulations Edgardo Cabrios.

 

The NTC decision, which also penalized the telcos with a P200 daily fine until they comply, was dated May 7 and was meant to resolve appeals filed by the telcos on Dec. 5, 2012, questioning the constitutional basis of the NTC decision.

 

Cabarios said the NTC decision is expected to be contested by Globe and PLDT, which control 30 percent and 70 percent of the cellular market, respectively.

 

“It’s going to be a huge amount of refunds … they [Globe and PLDT] might go to the Court of Appeals,” he said.

 

Cabarios said the NTC estimates there are about two billion text messages sent every day, with 2 percent of these, or 40 million text messages, not under a “bucket pricing plan,” seen to be covered by the order.

 

At a 20-centavo refund, that translates to about P8 million in industry-wide refunds for each day for the last two years and five months.

 

Spokespersons for Globe and PLDT declined to comment on those figures while adding that their legal teams have yet to receive the NTC’s order as of late afternoon Wednesday.



 

Click for ANCW Facebook account 


 

VIDEOS

 

 

 

Labor Day Message of the ALU National Executive Vice President

 

 

 

 

 UNI FINANCE VIDEO - CALL FOR STRONG UNIONS FOR TODAY AND TOMORROW

 

 

 

 

 

Labor force insist on 13th-month pay as deferment contemplated

 

 

 

 

 

 

13th month pay ng ilang empleyado nanganganib dahil sa pandemya: grupo

 

 

 

 

 

 

Sa Totoo lang, Mayo 1, 2020

 

 

More Videos....

 

SITE VISITS

No. Of Guests On Pages