NTC pins hope on Congress for new billing rules on calls

The National Telecommunications Commission (NTC) strongly urged lawmakers to legislate a bill that will revise, among others, the billing rules on cellular calls.

"If we are restrained from implementing the rules we crafted, then we might as well endorse favorably the Congressional bills filed by some lawmakers supporting the NTC’s new billing regulations on cellular and fixed-line services," NTC chief Ronald Solis said in an interview.

The NTC was supposed to enforce a new set of billing rules in 2000 but the telecom firms successfully secured a temporary restraining order from the Quezon City Regional Trial Court (QCRTC) in November 2000.

The NTC later went to the Court of Appeals (CA) after its motion for reconsideration was denied by the Quezon City court. The CA granted the NTC’s petition for certiorari and prohibition, as it nullified and set aside the preliminary injunction granted by the regional trial court. It also dismissed the petitioners’ complaints and referred them back to the NTC, which it said had jurisdiction over the case.

But the telecom firms filed a petition for review before the Supreme Court, saying the CA erred in its ruling. The High Tribunal then remanded the matter to the Quezon City Regional Trial Court Branch 77.

The NTC, through the through the Office of the Solicitor General (OSG), asked the Supreme Court to reverse, set aside and issue a new order affirming the CA’s decision dated October 9, 2001 and resolution dated January 10, 2002.

"We have been asking the OSG since then to expedite the case," Solis said. "We are in close coordination with the OSG. We recently filed a motion to expedite the case remanded to the QCRTC. The issue here is not the new billing rules but whether the NTC has the jurisdiction to enforce the new billing rules."

The billing circular of the NTC states that the unit of billing for prepaid and postpaid subscribers shall be reduced from one minute per pulse to six seconds per pulse, with authorized rates per minute thus being divided by 10.

The rules also stated that the validity of all prepaid cards and SIM packs sold from October 2000 and beyond shall be valid for at least two years from the date of first issue. At present, a validity of six months is being imposed.

Holders of prepaid SIM cards shall be given 45 days from the date the prepaid SIM card is fully consumed but not beyond two years and 45 days from the date of first issue to replenish the SIM card; otherwise the SIM card shall be rendered invalid.

The circular added that the validity of an invalid SIM card, however, should be installed upon the request of the customer at no additional charge except the presentation of a valid prepaid call card.

Also, the NTC wants the telecom firms to update their subscribers of the remaining value of their cards before the start of every call using the cards.

Globe Telecom, Philippine Long Distance Telephone Co., Smart Communications Inc., Pilipino Telephone Corp. and Isla Communications Inc. said the NTC has no jurisdiction to regulate the sale of consumer goods, arguing that this function belongs to the Department of Trade and Industry, under the Consumer Act of the Philippines.

They also said that the billing circular would result in the impairment of the viability of the prepaid cellular service by unduly prolonging the validity and expiration of the prepaid SIM cards and call cards.

The NTC, which argued that it has the sole supervision, regulation and control of the telecommunication industry, said in its motion for reconsideration that the Supreme Court should instead assume jurisdiction in deciding the case instead of remanding it to the trial court as this would only "unduly delay the implementation of the assailed circular to the detriment of the public who are awaiting for its enforcement."

"To allow the trial court to interfere into a purely regulatory function, which, by law, is vested in the herein respondent, would be tantamount to allowing the judicial system to exercise regulatory powers over the telecommunication industry which is not part and parcel of its functions," it said.

"Put differently, we admit that the courts may exercise their prerogative and power over purely judicial issues which however the case on hand is not. The herein respondent should therefore be given the power and authority to regulate the telecommunication industry by issuing such circulars as it may deem appropriate, including but not limited to the assailed circular."

"The interference of the trial courts should be rightly struck down by this Honorable Court for being in excess of their rightful functions. Hence, the reconsideration sought should therefore be granted," the NTC stated