Cell phone loads like GCs?

Ask Juan de la Cruz on the street and he will tell you that the single most important tool of technology advancement now is the cell phone. And with good reason too, which is probably why even the marginalized have cell phones. And in this sector, they make do with pre-paid loads because of the prohibitive cost of post-paid loads and the stricter screening of post-paid phone applicants by the telcos.

The National Telecommunications Commission (NTC) has been mulling the lifting of the expiry dates on those pre-paid load cards, the cheapest of which costs about P10. As far back as 2009, this move already made the news, but the telcos balked, and the NTC backed down a little. Instead of altogether removing the expiry dates, these were instead extended: the P10-15 loads which expired in one day were extended to three days; the P11–P50 loads to 15 days; the P100 load to 30, P300 for 75 days and P500 for 120 days. Unused pre-paid cards are valid for one year.

The public sentiment softened somewhat with this development and the telcos welcomed the solomonic decision. However, the NTC likewise ordered that the unused credits be added to the new credits. The new validity periods would thus be based on the new cumulative credits.

Three years later, and inspired by the Department of Trade & Industry’s (DTI) decision to remove all expiry dates on gift checks (which took effect in July of this year), the NTC is again reviving the issue. The agency seems bent on following DTI’s move to protect the consumers, citing technical and economic issues that need to be addressed.

On the technical issue, NTC’s Common Carrier Authorization Department’s chief, Director Edgardo Cabarios, explained that cell phone numbers are actually very limited. The NTC has allocated only one hundred network access codes, from 0900 to 0999. Of this, Smart now has 18 of these access codes, while Globe has 10. Out of a possible 100 codes, a total of 44 is now being utilized. 

Director Cabarios further explained that a cell phone number cannot be reassigned—it will be there forever, and if a cell phone number is discarded, as is usually the case with pre-paid loads, these numbers are likewise discarded. “If there is no expiration of pre-paid loads, it will be there forever,” the director explained. 

One other issue that the agency is looking at is security. “There is a possibility that one user can have 10, 20 SIM cards because pre-paid SIM cards are not registered. You can buy these SIM cards anywhere.” With this scenario, the task of tracing scams and nefarious activities is made harder, so the agency is also looking at having all SIM cards registered. That should have some limiting effect on SIM cards, many of which end up being discarded, especially by these lawless elements.

Senator Bong Revilla is chairman of the Committee on Public Services and he seems bent on expediting the process. He apparently feels the NTC is sitting on the issue too long and has been asked to explain to the Senate committee what the delay is all about. Sen. Revilla’s main concern is the economic issue—these consumers pay hard-earned money for these loads, why should telcos be allowed to have the unused portions of these pre-paid loads expire?

The NTC agrees in principle to this issue, and further adds the plight of the small retailer, the sari-sari stores on small shops in the “tiangges” who have to shoulder the costs of expired unsold loads. “If loads do not expire, then turnover will be longer. It is the small retailers who suffer,” according to director Cabarios.

But apparently, it isn’t a simple matter to settle with the telephone companies. Apparently, the telcos have “carrying costs” for these pre-paid loads, so who now will absorb these “carrying costs”? These are similar to what the banks charge for, say, accounts that fall below the maintaining balance or for dormant accounts. There is a service charge that these banks pass on to their depositors to cover for their “carrying costs”. Assuming that the NTC agrees to recognize these “carrying costs”, the question is whether or not the telcos will be allowed to pass on these charges to the consumers if the expiration dates on pre-paid loads will finally be removed by the NTC and legislated by the Senate.

For now, Senator Bong is also looking at various complaints from consumers about illegal charges on their cell phones for missed calls or failed messages. There is a watchdog called the Cellphone Owners and Users of the Philippines which has taken on the cause of monitoring these concerns including access problems. The NTC says consumer complaints which range from lost phones (which are blocked), to spam, are to vanishing loads are forwarded to the telcos which are supposed to act on the complaints within 24 to 48 hours. If the consumer disagrees with the telcos’ decision, mediation is initiated. If still no agreeable solution is reached, the issue is forwarded to NTC’s legal division for resolution. The good news is, according to director Cabarios, over 90 percent of these issues are resolved favorably either directly with the telcos or through mediation and less than 10 percent make it to the legal division. The number to call is 920 OSPAC (926-7722). OSPAC stands for One Stop Public Assistance Center or they can e-mail the agency: ospac @ntc.com.ph.

The telcos are expected to submit their position on this move of the NTC to totally do away with the expiry dates very soon and hearings are already on-going. The Commissioner is expected to come out with a ruling shortly. There is also nothing definite yet on the implementation of pulse-metering on calls which the agency is seeking to replace the per-minute charges. With this new pulse-metering the rate would be per six seconds. Likewise, hearings are ongoing with regard to the move to lower charges on text messages, but director Cabarios assured us that the commissioner is expected to rule on this very soon.

Mabuhay!!! Be proud to be a Filipino.

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