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Consumer group urges NTC abolition

By Paolo Montecillo
Philippine Daily Inquirer
First Posted 19:23:00 12/23/2009

Filed Under: Technology (general), Telecommunications Services, Government offices & agencies

MANILA, Philippines - A consumer group has criticized the National Telecommunications Commission (NTC) for looking after the interest of the companies it regulates instead of the public it is supposed to serve.

In a statement, the group TXTpower also called for a review of local telecommunications firms? franchises, saying these should be revoked if the companies are proven to be breaking the law in their implementation of the new per-pulse billing system.

?How the NTC has acted since issuing and attempting to implement its circular confirms the worst fears of consumers and members of Congress: That the NTC, the industry regulator, has apparently lost sight of its mandate and powers under law and allowed the telcos they are supposed to regulate to dictate telecom regulations in the country,? TXTpower president Antonio Cruz said.

The group?s calls come amid local mobile networks? defiance of an NTC memorandum ordering a switch to a new billing system that charges subscribers for every six-second pulse on a call. This will replace the prevailing per-minute charging that all companies use.

The new billing system was supposed to take effect last Dec. 16, but based on monitoring done by the NTC, none of the country?s three mobile brands had complied.

While Smart Communications and Globe Telecom have offered a per-pulse billing option to subscribers with the use of prefixes, the NTC said this was not enough to comply with the order, which mandated that per-pulse billing be the default system.

No sanctions have been imposed on any of the companies.

?As of today, Smart, Globe and Sun remain recalcitrant and unapologetic for violating the NTC circular. The default charging for calls remain per-minute, not per-pulse,? Cruz said.

He said one reason why companies have refused to implement the new billing system was because this would result in lower revenues for the Christmas season, when network traffic is expected to be at its heaviest.

Cruz said that although healthy competition among telecommunications companies was encouraged under law, particularly Republic Act No. 7925, this did not mean companies should be allowed to do whatever they want.

?The NTC admits through its action and inaction, that it is infected with a serious disease of Deregulation Complex. It always hides behind ?deregulation? to defend the telcos when consumers complain and when Congress raises the relevant questions,? Cruz said.

Cruz said the NTC should either be replaced or be given more powers to regulate local companies and better protect consumer interests.

?A regulator must be the champion of the interests of the ... people, not of the telcos they are supposed to regulate,? he added.

NTC officials could not be reached for comment.



Copyright 2012 Philippine Daily Inquirer. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.



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