[January 17, 2012] Globe to offer 80 centavos per text message Tweet Jan 18, 2012 (The Manila Times - McClatchy-Tribune Information Services via COMTEX) -- IN A bid to comply with the directive of the government to lower the cost of short messaging services (SMS), Globe Telecom on Tuesday said it would offer a permanent promo of 80 centavos per text to all networks. The Ayala-led telco would be launching "SuperAllTxt80" that would allow its prepaid subscribers to send 100 SMS to all networks for P80, valid for 30 days. To avail the service, a Globe prepaid subscriber should text ATXT80 to 8888. Globe said it would offer the permanent promotional offering not later than January 31 this year. "This offering, which effectively translates to a rate of P0.80 per SMS, is in effect a substantial compliance with the supposed, albeit unwritten and non-existent, intent of the questioned circular to lower the regular retail text rate from P1 to P0.80," Globe said. The NTC's Memorandum Circular 02-10-2011 directed telecom companies to reduce the maximum interconnection charges for SMS between two separate networks to P0.15 from the existign P0.35 per text. The circular took effect on November 30 last year. Because of this, Globe said, "the show cause order ought to be of no force and effect for being moot and academic." On December 13, the NTC issued separate show cause orders against Smart Communications Inc., Digital Telecommunications Philippines Inc. and Globe to explain in writing within 15 days from receipt of order why they failed to cut rates despite the issuance of the said circular. Globe, however, stressed that reducing text charges and rate-fixing is not something that can be compelled by quasi-legislation. Globe added that the unlimited text offerings are in fact more than substantial compliance by all telco operators with the NTC circular. The circular orders the lowering of the interconnection rates between two networks to 035 centavos from P0.15 centavos. "Because of effective competition in the SMS offerings, particularly the unlimited text promos, it cannot be said that the consumers are damaged and prejudiced," Globe said. It added that there is absolutely nothing in the questioned circular that requires public telecommunications entities (PTEs) to reduce their SMS retail fee or text message servicing fee from P1 to P0.80 per text. "All that the circular requires is for said PTEs to reduce their interconnection charge from P0.35 to P0.15 per text, without more," Globe said. Edgardo Cabarios, NTC's director for Common Carrier and Authorization Department said that telcos should remove the "inconvenience" of enrolling to the unlimited and bucket promos to benefit all the subscribers. He said that there are about 4 percent or 3.4 million subscribers are not availing promos because of the "inconvenience." At present, the country's total mobile phone subscribers stood at about 93 million. Of the total, Smart had more than 47 million subscribers; Globe had 29.11 million subscribers and Sun Celluar, more than 16 million. Subscribers of Smart, Sun Cellular and Globe need to enroll to the promos bys sending prefix numbers before availing the services. The telcos unlimited and bucket pricing usually expired for one to two days. Earlier, Smart Communications Inc. and Digital Telecommunications Philippines Inc. said that there was no directive from the NTC to cut the rates of their SMS by at least 20 centavos. Smart and Digitel said the NTC circular clearly refers to interconnection charges and not the retail rates for SMS. "The wording of Section 1 is clear, specific and unambiguous as it expressly referred to the term interconnection charge and not retail rate, which are entirely distinct and not interchangeable," Smart said. Even assuming that the circular pertains to the lowering of SMS retail rates, Smart said the NTC has no authority to unilaterally impose or set the retail rates for SMS. "SMS is a value-added service, the rate for which are expressly deregulated under NTC MC No. 02-05-2008 and is exempt from any rate or tariff regulation in the presence of sufficient competition . . . There is no legal basis for the issuance of the show-cause order . . . alleging a presumptive violation by Smart of the NTC directive to lowe SMS rates," Smart said. ___ (c)2012 The Manila Times (Manila, Philippines) Visit The Manila Times (Manila, Philippines) at www.manilatimes.net Distributed by MCT Information Services [ Back To TMCnet.com's Homepage ]