Olongapo Telecom & Information Technology

Wednesday, March 23, 2005

PLDT, Globe tussle over call scheme

Philippine Long Distance Telephone Co. may file a complaint against Globe Telecom for defying the regulators’ rule on the prescribed 30-day promo period on unlimited intra-national direct distance (NDD) calls.

Globe on Monday resumed its Globe-to-Globe toll free NDD call promo offered to its more than 300,000 residential and business fixed-line subscribers.

Globeline subscribers would just have to subscribe to the fixed-line service to enjoy unlimited NDD calls. The monthly service fee varies from one service area to another. For residential subscribers, they have to pay P200 to 700 a month. For business subscribers, the monthly service fees ranges from P300 to P1,200. Calls from Globelines to cellular, such as Globe and Touch Mobile, remain at P12.50 per minute.

A source from PLDT said a complaint will be filed against Globe for offering free NDD “forever.”

“How can they offer it forever if their NTC approval is only for 30 days. That is blatant disregard of NTC rules. They should get approval first before coming out with ads and promises,” said a PLDT official.

Globe assistant vice president Froilan Castelo said the Globe-to-Globe toll free NDD call promo is available to new and existing subscribers for as long as they subscribe to the service.

“We have a go-ahead from the NTC to offer this. We are not saying that this is permanent. What the promo says is that subscribers will enjoy unlimited NDD calls for as long as he or she subscribe to the service,” he said.

It can be recalled that the National Telecommunications Commission (NTC) stopped Globe from offering Globe’s “One Country One Rate” (1C1R) scheme on grounds of predatory pricing and discriminatory rates filed by the Philippine Association of Private Telephone Companies (Paptelco) and PT&T.

The NTC issued a cease and desist order (CDO) in January but later on allowed Globe to offer its 1C1R on a promotional basis not longer than 30 days.

Globe said its promo does not constitute predatory pricing and discriminatory rates.

“The elements of predatory pricing are not present because the said proposal is not below cost and is sustainable. Second, Innove is not the dominant player in the wireline business,” Globe senior vice president Rodolfo Salalima said.

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