High Court asked to uphold NTC ruling that cut rates for text messaging

This prompted the NTC to order a refund to consumers pointing out that the reduction was the necessary consequence of the reduction in the interconnection charge.

In its petition, Bayan Muna agreed with the NTC that there must be a reducition in the text messaging rate, contrary to the ruling of the Court of Appeals.

“Respondents (three telecom companies) claim that interconnection charges do not form part of the SMS retail rate and lowering interconnection charge will not result in the lowering of the rates imposed on subscribers. This incredible claim lacks factual basis and should not have been used as the Court‘s basis for overturning the NTC Decision,” the petition stated.

It cited published reports quoting Globe Telecom which stated that the

The Supreme Court (SC) was asked the other day to uphold a 2012 ruling of the National Telecommunications Commission (NTC) that reduced the rate for cellular telephone text messaging from R1 to 80 centavos.

With the reduction, the SC was told that cellular telephone users are now entitled to a refund of more than R17.7 billion as of 2014 when the NTC ordered the return of the excess charges to consumers.

Covered by the NTC order were Globe Telecom, Smart Communications, Inc. and Digitel Philippines, Inc., which operates Sun Cellular.

These three companies were also named respondents in the petition, aside from the NTC.

In the petition, Bayan Muna Partylist wanted the SC to reverse a 2016 decision of the Court of Appeals (CA) which, in effect, stopped the NTC from implementing its order on the reduction of text messaging rate.

The petition was signed by former Rep. Neri Colmenares and incumbent Rep. Isagani Zarate.

In arriving at the R17.7-billion refund as of 2014, the petitioners cited a study done by the Computer Professionals Union (CPU) “for PLDT/Smart/SUN, the excessive amount collected daily from overcharged standard text message (both off-net and on-net is charged R1.00 per text message) is at least R17.5 million.”

They said the CPU study was “based from the 2013 PLDT report and the third quarter report of Globe for 2013. Using this CPU data, the amount of overcollection by Smart and Globe as of 11 September 2014 is not less than R17.7 billion.”

In the 2012 NTC order, the commission directed the three telecom firms to refund or reimburse their subscribers the excess charge of R0.20 per off-net SMS from the effectivity of Memorandum Circular (MC) No. 02-10-2011 in October 2011 until fully settled, by crediting the load of prepaid subscribers or effecting the refund through the respective bills for postpaid subscribers.

The NTC also issued Memorandum Circular (MC) No. 02-10-2011 that ordered the lowering of the interconnection charge between networks from 35 centavos to not more than 15 centavos. The three telecom companies accepted the order.

Despite the order, however, the NTC found that the telecom companies were still charging R1 for every regular off-net text message. lowering of interconnection rates is a factor in the lowering of text messaging rates.

On the telecom’s claim on expenses, the petition stated that “it is absurd for respondents to claim that while interconnection charge costs them billions in expenses they are so altruistic as to absorb these losses and not pass them on to the consumers.”

“The Court a quo (CA) instead of relying merely on the Respondents incredible claim, should have asked these telcos to prove this claim of spending billions to connect users to each other without charging these users for the interconnection,” it said.

At the same time, the petition stated that the CA erred in ruling that the telecom companies were not accorded due process when the NTC issued the assailed orders.

It noted that several hearings were conducted since 2008 where it was discussed that the issue of lowering interconnection charges will necessary cause the lowering of the text messaging rates.