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.

6th Telecom Board Meeting

Republic of the Philippines
TELECOM BOARD
OLONGAPO CITY

6th Telecom Board Meeting
March 7, 2005, 9:00 PM
Session Hall


PRESENT:

Hon. Edwin J. Piano,Chairman
Hon. Marey Beth D. Marzan,Vice-Chairman, IT
Hon. Gina G. Perez,Vice-Chairman, Telecom
Mr. Leonardo C.Perez,Member (Telecommunications Expert)
Engr. German E. Ebue,Member (Electronics & Communications Expert)
Mr. Danilo J. Piano,Member (IT Expert)
Arch. Tony-Kar Balde III,Head, City Planning Office
Ms. Marlene D. Gaña,SAQ, Mohave Management Consultancy Inc.
Mr. Jerico Ballon,Secretariat

EXCERPTS FROM THE MINUTES OF MEETING

1. The meeting was called to order 9:15 Am.

2. Minutes of last Board meeting was adopted

3. The Chairman suggested to Hon. Gina Perez to incorporate in the Telecom and IT Board internal rules that Head or representatives of the following offices be included as honorary or ex-officio member of the Board: CPDO, Engineering Office, MIS Office, Legal Office, City Assessor, Business Permit, City Treasurer, PUD, City Administrator and Mr. Edgardo “Egay” Lorenzana

4. The Chairman instructed the Secretariat to set a meeting with Telecom Board lawyer to discuss Globe Telecom’s position on Draft Ordinance No. 05, Series of 2005

5. Arch. Balde requests copy of list of Towers of Telecom providers in Olongapo City and a list of new Cellsite applicants. He also reported to the Board that his office have issued Zoning Certificate to Mohave Management Consultancy Inc. for their application to construct and operate Cellsite Tower in Kalaklan.

6. Arch. Balde also inform the board that 40% of Cellsite tower applications falls in Forestry Zone and lot owner only possess MSA documents for their property. He further inform the body that in one month time they can provide the board with a map which indicates the location of existing Telecom towers in the city and their suggested location for new telecom towers.

7. Further more, Arch. Balde request for the Boards assistance for the license of Auto CAD software that is being use by CPDO. The Chairman acknowledges the need to secure license for the said software to avoid future problems with software developer. The Chairman also recognized that said software is essential for CPDO for their mapping and other projects. In this connection, the Chairman request Mr. Danny Piano to draft a letter addressed to the mayor for the said license.

8. Mr. Danny Piano request Arch. Balde to give him the list of where or what projects the software will be use for more justification of the said software, which cost more or less P200 Thousand Pesos.

9. The Chairman reported to the board that NTC have sent Forms for Cellphone complaints. Said forms are for blocking and Unblocking of Cellphone unit and complaints for malicious text. He further states that as per verbal agreement with NTC Regional Director Engr. Oliver C. Macaspac, complainants need not go to NTC Regional Office to file their complaint. The board can process these complaints and fax it to NTC Regional Office for their immediate action. CP Technicians must be advised to ensure that customers requesting for UNBLOCKING of cellphones must have approved unblocking documents before proceeding with the process.

10. The Chairman proposed that the body make a resolution expressing support to the Senate Bill filed by Sen. Gordon adding one peso / text to be use as Educational Fund. Engr. Ebue suggest that the board should suggest to the Sen. Gordon that the unconsumed load of subscriber that are being forfeited by service provider be transferred to Educational Fund instead of adding One Peso / text which will cost additional expenses to the subscriber. The Board seconded the idea and Chairman Piano volunteered to email Sen. Gordon to relay the board’s idea.

11. Ms. Gaña of Mohave Management Consultancy Inc. updates the board on their application to construct and operate Cellsite Towers in the City. The Chairman asked Ms. Gaña how much they are for paying for lot rental. She replied that they are paying fees that range from 5K /256 Sq. meter to 7K depending on lot area.

12. Ms. Gaña also inform the body that she is still acquiring necessary permits and clearances for their Cellsite application stipulated in City Council Resolution No. 13, Series of 2005. She also informed the board that she is ready to pay the ten thousand pesos (P10,000) application fee required for their Cellsite application.

13. Calendar of next meeting March 28, 2005

14. With no other matter to discuss, the meeting adjourned at 10:40 am.


Prepared by:


Jerico Ballon
Secretariat

NTC issues guidelines on mobile spam

The National Telecommunications Commission (NTC) vowed to crack down on unsolicited commercial messages sent through short message service (SMS) otherwise known as mobile spamming after the rules on broadcast messaging services were issued last week.

NTC chief Ronald Solis said the commission has adopted the "opt-in regime" where it is prohibited to send spam by SMS or multimedia services (MMS) without the consent of the subscriber.

A subscriber who has not opted-in shall not be charged for received spam messages, while subscribers who do not reply to these messages shall be considered to have opted-out and as such broadcast should be stopped.

Spam messages include commercial and promotional advertisements, surveys and even text-based games.

Solis said the NTC conducted a series of consultations with the public, telecom service providers and content providers in response to the numerous consumer complaints received by the commission.

The NTC chief said cellular subscribers are being charged P1 for every spam messages sent to them. Moreover, these unsolicited messages are sent even after midnight or early morning.

"Now, the cellular firms or the content providers should first wait for the consent of the subscriber. If they don’t receive a positive response then they should no longer send spam messages but if the subscriber wishes to avail of the service these messages should only be sent during a prescribed period," Solis said.

The rules, he added, clearly states that except on paid subscription services, broadcast/push messages shall not be sent between 9 pm and 7 am.

The NTC also required broadcast messages to display the names of the senders, as well as valid addresses or numbers to which subscribers can send their requests to cease broadcast messages.

Mobile companies are also ordered to act on spam-related complaints within 30 days after they are received from consumers.

Violators of the circular shall subject to the imposition of appropriate administrative and penal sanctions in accordance with law