NTC deliberates on contested promo of Smart, Piltel

Despite the lifting of the cease-and-desist order (CDO) against a promotional offering by Smart Communications and its wholly-owned subsidiary Pilipino Telephone Corp. (Piltel), the National Telecommunications Commission (NTC) will continue to deliberate on the administrative case filed by Globe Telecom against the two firms.

The NTC lifted the CDO on account of Smart and Piltel’s presentation and commitment that their "All Text and Call 20" promo is now only limited to Smart-to-Smart and Piltel-to-Piltel networks beginning Oct. 27, 2006.

At the hearing, Smart and Piltel already committed to abide by the NTC policy on non-discrimination and fair competition.

However, the NTC set a third hearing yesterday to gather evidence from all parties concerned and to resolve the charges made by Globe.

"If upon receipt of the evidence, the commission would find proof that in fact the subject promos are being offered off-net contrary to the respondents’ claim, then the commission will consider again any motion for the re-issuance of another cease and desist order for any off-net offering of the subject promos," the NTC said.

Globe regulatory affairs head Froilan Castelo pointed out that the recent commitment of Smart and Piltel to follow the NTC policy and the lifting of the NTC of the CDO did not legitimize the illegal offering of the questioned promo in the past nor allow the continued offering of the promo between Globe and Smart and vice-versa.

"The lifting of the CDO does not mean that they (Smart and Piltel) are already off the hook. They are still answerable to their past actions and they cannot go on with the promo," Castelo said.

Globe on Oct. 11 filed a motion for a CDO requesting the NTC to direct Smart and Piltel to immediately stop their "All Day Texting 258 Call+Text" and "All Text and Call 20" promos, or any of their derivatives.

Globe noted that while the NTC granted Piltel the authority to offer the "Load All Text 20" promo and "P10 and P15 flat rate service" promo from Oct. 11 to Nov. 9 only for its subscribers, Piltel also made the promo available to Smart subscribers.

The move, Globe said, is discriminatory since the service is not offered to other networks aside from those of Piltel and Smart.

Globe claimed Smart and Piltel have engaged in inter-corporate promotional offerings which are not in accordance with the NTC policy on non-discrimination and fair competition.