In resolving the crisis, the National Telecommunications Center (NTC) ruled that the two giant telecommunications firms were very well within their rights to reduce free text messages. As a result, the public was forced to accept the reality that they would just have to dig deeper into their pockets whenever they had to use their indispensable cellular phones.
A related development that may raise concern by the public is the recent announcement of Globe to scrap all free text messaging for small- denominated prepaid cards effective last October. Only buyers of their prepaid cards worth P200 and up were spared. Well, at least for now.
By way of an explanation, Globe reasoned "it isn’t economical to give away free text messages as the value of the prepaid card goes down, regardless of usage." Apparently, the victims of this latest squeeze are the consuming public who can only afford to acquire the lower valued prepaid cards.
It is interesting to note that in the first half of the year, the wireless phone service industry raked in P21.6-billion in gross revenues. So it goes without saying that if text messages outnumber voice calls by about 10 to one, then "texting" or short message services (SMS) must be worth more than a few billion pesos.
It looks like by downplaying the SMS or "texting" as merely value-added service and not the main core business, the telecommunication companies have managed to put that side of the business beyond the regulatory reach of NTC.
The NTC, for example, cannot implement its own directive that ordered all prepaid and Subscriber Identification Module (SIM) cards to have a validity of at least two years from the date of issue. Globe and Smart were able to convince the court that text messages are a value-added service only of the telecommunication firms, and are therefore not subject to the NTC’s regulatory powers.
More recently, however, another blow was delivered to those who buy prepaid cards: low-priced prepaid cards that automatically expire after a set number of days after loading. For instance, a P30 pre-paid card expires in three days, while one costing P100 lapses just 15 days from activation.
In principle, putting expiry dates on prepaid cards is discriminatory to the customer who pays good money for a service that he is forced to use within a set prescribed time. It is downright oppressive to the average Filipino who is perennially handicapped with a limited budget when he is forced to use up his prepaid card before the set deadline. But worse, if he does not use up all his credits before the set deadline, whatever balance he has disappears in a big black hole.
It is not surprising that prepaid card users feel aggrieved while telecommunication companies are seen as happily cashing in hard-earned pesos from prepaid cards that have "expired".
Maybe it is time for telecommunication companies to rethink their advertising and promotional programs to towards gaining more "addicts"who are knowledgeable about the more productive use of "texting."
Mayor Atienza is also expecting a guaranty from the oil companies that the buffer zone created that now serves as park and playground is safe from toxic substances and soil pollution. What are the other concerns in the ongoing urban renewal of the City of Manila? Watch it.
Join us break barriers and gain more insights into how this additional tax burden is being used or misused. Watch it.
Should you wish to share any insights, write me at Link Edge, 4th Floor, 156 Valero Street, Salcedo Village, 1227 Makati City. Or e-mail me at reygamboa@linkedge.biz. If you wish to view the previous columns, you may visit my website at http://bizlinks.linkedge.biz.