MANILA, Philippines—The recent case of disappearing phone loads or pre-paid airtime might have been prevented if local telecommunications companies allowed government to implement stronger rules on consumer protection.
This was pointed out by National Telecommunications Commission Commissioner Ruel Canobas in an interview, as he admitted that telecommunications companies had been blocking the implementation of a memorandum circular that provides guidelines for erring companies.
Senators on Tuesday condemned the country's mobile telecommunications providers for the alleged disappearance of prepaid card credits. A hearing was held by the joint Senate public service and trade and commerce to look into the supposed disappearances of phone credits.
Canobas said NTC Memorandum Circular No. 13-06-2000 was created in 2000 but was actively countered by the telecommunications companies, including Smart Communications and Globe Telecom.
The government rules cover sanctions against erring telecommunications companies, as well as rules that would require people to show identification whenever they’re buying prepaid SIM cards, mandatory billing statements for consumers, prepaid usage and interconnection.
A court injunction was later filed to prevent the NTC rules from being implemented.
Canobas said that the NTC is now seeking the lifting of the injunction.
"We've been fighting the telcos with the MC for years. Hopefully now the case would be discussed," Canobas said.
He said that if the telecommunication firms decide to lift the court injunction, there would be no need for any amendments in the laws governing telecommunications franchise, which is under Republic Act 7925.
A copy of the MC is available in the NTC website (http://portal.ntc.gov.ph:9081/wps/_mc/MC2000/MC-13-06-2000.pdf).
In light of the alleged disappearance of pre-paid airtimes, Senate President Juan Ponce Enrile has proposed laws that would strengthen the NTC.
Enrile said that one of the existing laws that would be reviewed is Executive Order 546 which created the NTC in 1979.
"This will take some time to investigate. I've outlined the problems to be discussed," Enrile said.
Enrile apparently was among the recent "victims" of the prepaid credit disappearance several weeks ago, after which he called for the hearing. He also claimed that many subscribers are suffering from similar problems.
Enrile uses a prepaid phone from Globe Telecom.
Senator Manuel Roxas II also warned that the Congress could interfere in the operations of the telecommunications providers if they continue to brush off complaints from mobile users.
"What you don't want is for Congress to start writing up your Operations Manual and imposing limits, including the number of minutes for lunch breaks or your pensions. We are resonating the public's complaint and if you stonewall these, we will take the necessary steps," Roxas said.
Senator Ramon Revilla Jr. also joined in the fray saying that he would personally spearhead the review of the telecommunications franchise if the companies are unable to explain disappearance of the credits.
"I would like to remind them that since a franchise is merely a privilege granted by the government through Congress, it would be tantamount to a gross violation of their franchise if such claims be proven true," warned Revilla, who chairs the Senate public service committee.
The telecommunications industry is governed under Republic Act 7925, which gives franchises to telecommunications companies. The NTC, which is now under the Commission on Information and Communications Technology (CICT), is the primary agency tasked to implement RA 7925.
During the hearing, NTC Deputy Commissioner Douglas Millillin reminded the lawmakers of of an existing billing guideline for the value-added services providers and the telecommunications companies.
He reiterated that Memorandum Circular 13-06-2000 was supposed to be implemented as early as 2000 but was held up due to an injunction imposed by the telecommunications firms.
In a separate interview, CICT Chairman Ray Anthony Roxas-Chua stressed that there could be technical issues with how people load their credits in their phones that could cause for the disappearance.
However, the problem could also be due to some glitches with the telecommunications infrastructure.
Roxas-Chua said the missing load controversy opened new opportunities for the government to review laws that govern the telecommunications companies.
"There are many issues that need to be addressed and the recent hearing is just the first step," Roxas-Chua said.
Two of the largest mobile telecommunications providers, Globe Telecom and Smart Communications, have yet to issue statements.