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CA stops NTC order for Digitel Mobile to refund subscribers for over-priced SMS
(Updateed 7:23 p.m.) The Court of Appeals has stopped the government from making Digitel Mobile Philippines Inc. refund its customers, at least for now, for "excess" text messaging charges and lower interconnection charges.
In a resolution penned by Associate Justice Priscilla Baltazar-Padilla, the CA Sixth Division issued a temporary restraining order barring the National Telecommunications Commission (NTC) from enforcing a November 2012 order that required the telcos to refund their subscribers and lower their interconnection charges by P0.20 to P0.15 from P0.35.
Concurring with Baltazar-Padilla were Associate Justices Noel Tijam and Agnes Carpio.
Digitel declined to comment on its next move following the CA order, Philippine Long Distance Telephone Company (PLDT) public affairs head Ramon Isberto told GMA News Online. "We have yet to receive a copy of the court order and have our lawyers look at it," he said.
Digitel declined to comment on its next move following the CA order, Philippine Long Distance Telephone Company (PLDT) public affairs head Ramon Isberto told GMA News Online. "We have yet to receive a copy of the court order and have our lawyers look at it," he said.
Apart from the refund, the commission also told the telco, and its rival Globe Telecom Inc. and sister telco Smart Telecommunications Inc. to pay a fine of P200 per day until they are able complied with the order.
The CA resolution, however, covered only Digitel.
P7 billion is contestable
"To prevent any irremediable injury that petitioner may sustain in view of the enforcement of the impugned decision, it is prudent to preserve the status quo, pending the determination of the propriety of the issuance of the said judgment," the appeals court said.
"To prevent any irremediable injury that petitioner may sustain in view of the enforcement of the impugned decision, it is prudent to preserve the status quo, pending the determination of the propriety of the issuance of the said judgment," the appeals court said.
On May 27, Digitel and Smart asked the CA in separate petitions to stop the NTC from forcing them to refund customers for "excess" text messaging charges.
Globe, meanwhile, filed a "motion for extension of time to file petition for review" and eventually asked the CA to stop NTC from enforcing the refund.
While the case is still pending, the CA has ruled out the temporary restraining order on Globe, legal counsel Froilan Castelo told reporters in a briefing in Makati City.
He said the refund estimated at P7 billion for the three telcos is contestable. "Even Smart is contesting that. There's a lot of discussions on that amount," Castelo said.
P4M worth of daily text messages
The court agreed that petitioner Digitel has no way of knowing who its subscribers were based on the mobile identification numbers stored in its system.
The court agreed that petitioner Digitel has no way of knowing who its subscribers were based on the mobile identification numbers stored in its system.
The restraining order basically stopped the NTC, its officials and third party people, agencies and companies from enforcing the November 20, 2012 order and a separate resolution dated May 7, 2012
The CA, however, asked Digitel to post a P500,000 cash bond or surety bond in favor of its subscribers in case a later ruling should find the telco liable to pay all damages as ordered by NTC.
The restraining order is enforced against NTC for 60 days starting on the day the commission receives the CA ruling, or unless the appeals court decides to terminate the TRO at an earlier date.
The CA told the NTC "to show cause why application for writ of preliminary injunction should not be granted within 10 days from receipt of the resolution."
In 2010, an estimated 20 million off-net text messages were sent daily, according to the NTC. At the time, the commission said Digitel, Globe and Smart would have to refund their subscribers a combined P4 million per day.
The telcos asked the commission to reconsider its order, but the NTC on May 7 denied their respective appeals. – VS, GMA News
