NTC seeks OSG help on text refund issue

MANILA, Philippines -  The National Telecommunications Commission (NTC) is seeking the help of the Office of the Solicitor General (OSG) to draw up a legal strategy as to the implementation of a multi-billion peso refund from telecommunications providers for alleged excess charges on text messages.

NTC Commissioner Gamaliel Cordoba said in a text message that the agency is now coordinating with the OSG to comply with the order of the appellate court with regards to the Writ of Preliminary Injunction being sought by Ayala-led Globe Telecom Inc.

“We already endorsed the CA (Court of Appeals) Resolution to the Office of the Solicitor General to comply with the order of the CA to explain why the application for a Writ of Preliminary Injuction should not be issued,” Cordoba said.

Documents showed that NTC director for legal Dennis Babaran wrote a letter dated Sept. 4 to Assistant Solicitor General Raul Mandin to seek legal assistance on the resolution issued by the CA.

 “We are forwarding herewith a copy of the Notice of Resolution dated Sept. 3 issued by the Court of Appeals, 16th Division, directing respondent, NTC to show cause, within 10 days from notice of Resolution, why the application for Writ of Preliminary Injunction prayed for by Globe Telecom should not be granted,” Babaran stated in the letter.

In November 2012, NTC issued an order directing Smart Communications Inc. and Digitel Philippines Inc. (Sun Cellualr) of dominant carrier Philippine Long Distance Telephone Co. (PLDT) as well as Globe to reduce their regular retail price for short messaging system (SMS) or text messages to other networks.

The regulator also directed the telco firms to reimburse their subscribers the excess charge of P0.20 per off-net SMS from effectivity of NTC Memorandum Circular (MC) No. 02-10-2011 in December 2011.

The NTC circular that took effect in December 2011 supposedly reduced the SMS or text interconnection charge to P0.15 from P0.35 for the purpose of making text messaging more affordable to the public pursuant to the directive of the Office of the President.

Last May 7, the NTC finally ssued separate orders denying the motions for reconsideration filed by Smart, Sun Cellular and Globe filed in December of 2012 seeking to reverse NTC’s order on the roll back of SMS rates to P0.80 from P1 in December 2011.

The companies were directed to refund or reimburse their subscribers the excess charge of P0.20 per off-net text messages sent from one network to another network from the effectivity of the circular until fully settled.

This prompted the telco providers to elevate the case to the CA last May 27.

So far, the Sixth Division of the CA has acted on the case of Digitel through the issuance of a 60-day temporary restraining order (TRO) stopping the NTC from implementing the memorandum circular issued December of 2011.

Digitel was asked to post a cash bond or surety bond of P500,000.