The NTC is preparing charges against Globe and Smart/Sun for not following its order to lower the rate for basic, non promo SMS rates in light of the numerous complaints that the regulator has received.

The NTC order requires the top three telcos to reduce the current SMS rate of P1.00 per send to .80 centavos, but since none complied, a refund approach is being considered. Note that implementing a nationwide refund covering all subscribers who send regular SMS (i.e. non UNLI) is a bitch to execute. The technical procedure as well as the recon will entail more labor vs. having just implemented the reduction order in the first place. Good luck telcos!

Antiquated NTC laws prescribe a P200 a day fine for each violation (So I guess if 1M subs were robbed of the new rates in a given day, the fine can go up to 200M). Other penalties include the cancellation, suspension or revocation of the authority to offer the SMS services.

Meanwhile, militant groups have demanded a refund of P111M for the one week that the telcos have failed to implement the new rates.

Atty. Froilan Castelo, Globe Telecom head of corporate and legal services:

“We maintain that Globe has complied with the NTC regulation on reduction of SMS access charges. Accordingly, Globe has amended its interconnection agreements with other carriers to this effect. SMS is a deregulated service and as such, carriers are authorized under the rules to set competitive pricing which resulted in the continuous lowering of its price in the market.”