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THE National Telecommunications Commission (NTC) has penalized the
wireless units of Philippine Long Distance Telephone Co. (PLDT) for
unfair rate discrimination practices against rival companies.
In a decision, the NTC said the promo pricing
structure of Smart Communications Inc. and Pilipino Telephone Corp.
(Piltel), namely “Gaan Talk P10/3 min Flat Rate,” and “Gaan
Text All Text P2 load” promos, are lower than the current access
charge regime for text messaging and voice calls.
“When tested against the [NTC’s] guidelines
and principles, it is clear that respondents are committing unfair
rate discrimination practices with respect to the implementation of
the [promos],” the NTC said.
The “Gaan Text Load All Text 20” promo for
short messaging system and the “Gaan Talk P10 and P15 Flat
Rate” are available off-net or from Piltel to Smart subscribers.
With the violations, Smart and Piltel were
ordered to pay P364,800 each.
In a separate decision, the NTC also ordered
Smart and Piltel to pay P51,000 for violation of rates
discrimination.
Globe alleged that the Smart and Piltel’s
“All Day Texting 258 Call + Text” promotional offering is priced
below cost and predatory, and so violates NTC rules on
anti-competitive behavior.
While the NTC dismissed this claim for lack of
merit, the regulator however found Piltel and Smart liable for
violating Section 210 of Memorandum Circular No. 8-9-95 prohibiting
rate discrimination with respect to interconnection between
carriers.
The NTC said Smart and Piltel’s access charge
agreement is definitely lower than the access charge arrangements
between Smart and non-allied operators including Globe.
The regulator also warned Smart and Piltel
against repeating the same or similar offense with respect to their
present, pending, and future promotional offerings.
-- Darwin G. Amojelar
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