Smart, Sun, Globe appeal NTC order to refund customers, reduce SMS rates

Three major telecom providers filed separate motions before the National Telecommunications Commission appealing its earlier order directing them to lower text message fees by P0.20 and to refund subscribers who have been subsequently overcharged since December last year. PLDT subsidiaries Smart Communications Inc. and Digitel Mobile Philippines (Sun Cellular) and the Ayala-controlled Globe Telecom Inc. submitted their motions for reconsideration before the NTC on Dec. 5. On Nov. 20, the NTC announced its decision to penalize the companies for failing to comply with its Memorandum Circular No. 02-10-2011, which it issued in October 2011, directing them to reduce the interconnection charge between networks from P0.35 to P0.15 per message and thus lowering the fee for every off-net SMS message from P1 to P0.80. In its Nov. 20 decision, the NTC ordered the companies to comply with the circular as well as reimburse subscribers P0.20 for every off-net SMS message sent since Dec. 1, 2011. According to NTC director Edgardo Cabarios in an earlier interview, some 20 million to 30 million off-net SMS messages were sent every day in 2010. If the numbers remained similar for the period stipulated in the order (from Dec. 1, 2011 onwards), the telcos would have to pay around P4 million a day. The decision also includes a fine of P200 a day for every day since Dec. 1, 2011 until they comply with the order and refund the customers by either crediting prepaid loads (for prepaid subscribers) or reflecting the refund in the billing (for postpaid subscribers). In its 39-page motion, Smart urged NTC to reverse its order. “Smart in particular, stands to suffer grave losses which, will ultimately, have adverse and irreversible effects on, among others, its network; viability as a going business concern; and the quality of its service to the public,” it stated. It added that the importance and necessity of Smart's continued operations were “indisputable.” Digitel's 15-page motion and Globe's 47-page motion echoed Smart's request. The NTC issued three separate decisions in connection with Administrative Case Nos. 2011-098, 2011-099 and 2011-100 filed against Globe, Smart, and Digitel. — BM, GMA News