Olongapo Telecom & Information Technology

Sunday, June 01, 2008

Nograles eyes lower texting service rates

HOUSE Speaker Prospero Nograles yesterday assured the public the House of Representatives is giving priority to lowering the cost of telecommunications in the country at least during these difficult times.

In a statement, Nograles appealed to telecommunication providers to repay the subscribers who have given them billions of pesos in profits by lowering the cost of their services.

The Speaker said the Lower House is dead serious on rationalizing telcos operations in the country in order to bring down the cost of communication services particularly “texting” that is putting additional strain on the day-to-day budget of Filipino households.

Nograles has already instructed the House committee on Information and Technology chaired by Rep. Joseph Santiago to revisit Republic Act 7925, otherwise known as the Public Telecommunications Policy Act of 1995.

The move aims to find out possible amendments to bring down the cost of telco services particularly texting, which has become an essential communication tool among Filipinos including the poor.

Nograles said that RA 7925 may have “spoiled” the telcos with the removal of the 12-percent ceiling on return of investment and the 3-percent franchise tax on gross receipts which he said, could have made the costs of telco services more reasonable.

“The removal of the cap gave telecoms too much discretionary opportunity to maximize profit as they prey on the eager Filipino texters,” he said.

Based on estimates, Nograles said that texting in the Philippines should be only at 25 centavos per text or should even be made free.

Nograles also asked Santiago’s committee to review a measure filed during the 12th Congress which would compel telcos to stop overcharging their customers on the so-called “per-minute” basis on voice calls.

Mobile phone service providers should only charge their subscribers on “per six seconds of usage” and should be compelled to issue billing statements even for pre-paid subscribers, Nograles said.

The practice of telecoms companies of charging their subscribers on a per-minute basis instead of the actual length of calls should be considered as a business malpractice and this should be immediately corrected, the Speaker added. By: Jester P. Manalastas - Journal online

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