PLDT bucks NTC plan to remove expiry date on phone cards

The Philippine Long Distance Telephone Co. (PLDT) has labeled as "highly impractical" a plan by the National Telecommunications Commission (NTC) to remove the expiration dates on phone cards.

PLDT presently uses two types of cards -- a payphone card whose expiration date is hard coded on the integrated circuit (IC) chip found in the card itself; and the prepaid touch card whose expiration date is resident on the service logic of the system.

The firm pointed out that aside from being impractical businesswise, to delete the expiration date would entail major system modifications.

In view of the rapid changes in technology, PLDT said it cannot afford to maintain equipment that service prepaid cards indefinitely for the sake of those prepaid cards whose call units have not been fully consumed.

Moreover, the telecom giant pointed out that the equipment being used to service the prepaid cards as well as the data retention ability of IC chip used on the cards has physical limitations in service life.

A system upgrade to accommodate additional features, on the other hand, would no longer be feasible due to database dependency on prepaid cards with no expiration dates. Thus, a carrier has to maintain on earlier version of the system to accommodate previously generated cards, it added.

According to PLDT, unless the issued cards are fully-consumed and deleted from the database, revenue from them could not be realized in view of the cost in maintaining the system that service the cards indefinitely.

Another important aspect of placing expiry dates on cards is security from fraud, PLDT said.

The company explained that the new generation IC cards emerging in the market enhances security.

"Prepaid cards bought are meant to be used. By purchasing a prepaid card, the buyer acquires the right to use it. The failure or neglect of a prepaid card buyer for an unreasonable period of time to do so warrants a presumption that he has either abandoned his right to use the card or has declined to assert it," PLDT said.