Globe: Isn’t telecoms a deregulated industry?

Still on government matters, I did get a lot of e-mails from that consumer group that calls itself TxtPower, complaining about the hike in Globe Telecom’s unlimited texting rates. Somehow, the National Telecommunications Commission (NTC), in a knee-jerk reaction to that e-mail and text messages sent by TxtPower, immediately ordered Globe Telecom to rollback its rates back to pre-Feb. 5 levels. This is what we call shooting from the hip, with a foot in the mouth!

The official statement coming from Globe Telecom is that there was no legal basis for NTC to order a rollback, as due process was not observed, which means there should be prior notice and hearing. Call this a technicality if you wish, but Globe Telecom is right, there was no hearing hence there could never be a legal order to cease and desist!

Moreover, Globe also insisted that the NTC has no authority to impose a specific tariff for the text service. Indeed, Globe’s position paper was virtually a reminder to the NTC that the Supreme Court had, in a case filed by Globe Telecom against the NTC several years ago, affirmed that the text messaging service was classified as a special feature of the network, and therefore deregulated under NTC Memorandum Circular 14-7-2000. Telecom carriers are authorized to fix their own rates for deregulated services, and need only notify the Commission of their new rates but do not need the Commission’s approval.

Now, as far as Globe subscribers are concerned, the Telecoms industry is truly a deregulated industry where there is a free market of ideas and the spirit of competition is alive and well. Globe Telecom knows too well the risks they are taking in making such low-priced promos for pre-paid subscribers, as they can easily migrate to another telecom firm giving lower rates. Some of these subscribers even have two cellphones.

In truth, there’s no brand loyalty from these subscribers who would never hesitate to desert their current service provider and sign up with a competitor that can offer cheaper rates. But then, it should be told that cheaper rates doesn’t translate to quality service, which Globe Telecom always gives to postpaid subscribers.
INSIDE CEBU By Bobit S. Avila - The Philippine Star