High cellular phone rates alarm Councilor Labella

While the increase in the rates of mobile phone services has benefited the country's economy, councilor Edgardo Labella expressed concern that they have "comparatively higher" rates than their counterparts in neighboring countries.

Labella is calling on the National Telecommunications Commission to arrange with telecommunication giants Globe and Smart for a possible decrease in the rates of their services "to an appropriate and reasonable level" mandated by the Public Telecommunications Policy Act of the Philippines.

"Although it's good for the economy of the country that the business operations of the telecommunications industry are doing well, still, there is a need to look into the report that the text messaging and call rates imposed by the said telecommunication giants are comparatively higher than those in Singapore, Hong Kong and Malaysia-the raging economic bulls in Asia," Labella said.

Even the reported reduced service rates introduced by the two telecommunications companies months ago are still reportedly higher compared to those in the three countries.

Labella said it is ironic that users from a developing country like the Philippines are shouldering a rate scheme higher than the services enjoyed by cell phone users in affluent countries. There are more than 26 million cell phone subscribers in the country today.

Republic Act 7925, or the Public Telecommunications Policy Act, mandates the NTC to adopt an administrative process that would facilitate the entry of qualified service providers and adopt a pricing policy, which would generate sufficient returns to encourage service providers to render basic telecommunications services.

However, the same act also empowers the NTC to protect consumers from a telecommunication entity's monopoly or quasi-monopolistic powers by, but not limited to, the investigations of complaints and exacting compliance with service standards from such entities.

"While it is acknowledged that the private sector is the engine of the rapid and efficient growth in the telecommunications industry, yet, it would really do well if the Philippine franchise-holders of the said global telecommunications industry would be able to peek at the enlightened business policies of their overseas counterparts especially in the sphere of service pricing policies. - Joeberth M. Ocao