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Sunday, June 01, 2008

 

Telecom companies told to lower rates


Telecommunication companies (telcos) were again asked to lower the cost of the their services “at least during these difficult times.”

House Speaker Prospero Nograles reiterated this appeal over the weekend, saying that the telcos have already “raked in billions in profit due to investment incentives and the blind patronage of millions of Filipinos.”

“I have 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, with the main objective of finding out possible amendments to bring down the cost of communication services, particularly text messaging which has become an essential communications tool among Filipinos including the poorest of the poor,” Nograles said in a statement.

“Many Filipinos, from ordinary students to business executives, rely on their cellular phones for their day-to-day transactions,” he added. 

Nograles also said RA 7925 may have “spoiled” the telcos with the removal of the 12-percent ceiling on return of investment and the three percent franchise tax on gross receipts which he added, could have placed the prices 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 the estimates, he added text messaging sending in the Philippines should be only at 25 centavos per text or should even be made free. Also, voice calls which costs P8 per minute should be charged not on per minute basis so that consumers will not pay for dropped calls.

The lawmaker also asked Santiago’s committee to review a measure filed during the 12th Congress, which would compel telcos to stop overcharging their customers by charging them on a “per-minute” basis on voice calls.

Nograles said 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.

The Davao City representative stressed that the practice of telcos 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.

“With the absence of a law which regulates the call rates of these mobile phone service providers, even the National Telecommunications Commission is helpless in protecting the subscribers.”                   
--Sammy  Martin

   
 

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