Telecoms can expect Senate grilling over prepaid cards

TELECOMMUNICATIONS firms take the hot seat to day as the Senate looks into the legality of the “unused-value forfeiture policy.”

The Senate Committee on Public Service, chaired by Sen. Joker Arroyo, will conduct the inquiry based on the resolution filed by Sen. Manny Villar, who questions the practice of telecom companies to forfeit unused credits in prepaid cards.

Villar, president of the Nacionalista Party, stressed his point: “Forfeiting the unused value of prepaid cards of phone subscribers or users is unfair. A penalty may be imposed when credits are not used within a certain period of time. But the remaining value or some parts of it should be retained or refunded.”

Villar is calling on telecommunications companies to lengthen the consumption period or time limit of prepaid cards. “It should not be too short or restrictive. Prepaid cards should not be good or valid within a few weeks or months only, it should be good for a couple of years or for not less than a year.”

Globe has put a 15-day limit for P100-denominated prepaid card and a 60-day limit for P250-, P300-, P500- and P1,000-denominated prepaid cards. Smart Communications has set a 60-day limit for P300-, P500- and P1,000-denominated cards and a three-day limit for P30 auto load; six-day limit for P60 auto load, 12-day limit far P115 auto load and 30-day limit for P200 auto load.

Villar said the “unused value forfeiture policy” of telecom companies directly hit low-income earners with tight budget and can only afford to buy small-denominated prepaid cards.

“Prepaid-card users cannot prolong their usage of the call or text credits because the phone companies leave them with no choice since there is the risk of the unused value being forfeited. And they add these forfeited value or credits to their revenues,” added Villar.

The lawmakers advised telecom companies to invest on the smart card or chip technology so that prepaid cards could be rechargeable, rather than disposable.

“Phone subscribers can load up their prepaid cards, so that unused value are just carried over, may be even for an indefinite period of time.”