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New Globe SMS rates stay despite NTC order


Globe Telecom on Tuesday said it will not suspend its latest unlimited text service due to legal constraints, despite the National Telecommunications Commission order released Monday that it revert to its old Unlimitxt service. "There are legal and other compelling reasons why we can't comply with the order. We will file a motion for reconsideration tomorrow (Wednesday)," said Globe senior vice president Rodolfo Salalima. The NTC ordered Globe on Monday to suspend its new mobile phone SMS rates and restore its old buffet texting promotional prices, pending a public hearing to be conducted by the regulatory body. The order was in response to a complaint by consumer group TxtPower that the new service was a veiled rate hike. Salilima said it is "legally impossible" for Globe to terminate the subscriptions of the prepaid subscribers who have signed up for the 'Unlimited Texting.' "Contracts binding on Globe have already been generated. In fact, payment has already been received by Globe. Even Congress can tell us to do away with the contracts. We can be held liable for punitive damages," Salalima said. Last February 1, Globe announced that the company's four-day Unlimitxt now costs P80, compared to the previous charge of P50 for five days of the old Unlimitxt. The new promo also includes options for day time unlimited texting which stretches from 8 a.m. to 5 p.m. and costs P10, and nighttime unlimited texting which also costs P10 and covers 10 p.m. to 7:59 a.m. of the following day. Globe consumer business group head Ferdinand de la Cruz said there are 500,000 prepaid subscribers who register every day for the new unlimited SMS offer, which started February 1. "It is the same level as our 'Unlimitxt.' There are already half a million who subscribe to the 'Unlimited Texting' on a daily basis," Cruz said. Acting on the complaint of consumer group TXTPower, the NTC ordered the suspension of 'Unlimited Texting' five days after the service was implemented. TXTPower said the modified unlimited service resulted in a 100-percent increase in unlimited texting rates. For instance, for P50 of five days of unlimited texting, the rate has gone up to P80 for four days of unlimited SMS. "We hope the NTC makes sure Globe follows the order and rolls back to the previous rates immediately. We will prepare for a public hearing to demolish Globe's arguments and show why keeping unlimited text messaging rates at the lowest possible levels is a legitimate pro-consumer and pro-business move," TXTPower spokesperson Anthony Ian Cruz said. The Globe official will also question the legality of the NTC order. An order from the telecoms regulator is typically signed by the commissioner and two deputy commissioners but the February 5 was signed only by commissioner Abraham Abesamis. "That is one of the reasons also. We will follow the established legal process," Salalima said. -GMANews.TV

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