NTC eyes sanctions on telcos for noncompliance with per-pulse billing

Regulators have summoned mobile network operators to a hearing on Monday over their alleged failure to comply with the new billing system for mobile phone calls. On Friday, telecommunication firms were given a show-cause order requiring them to explain why they should not be sanctioned. On Dec. 6, the National Telecommunications Commission (NTC) ordered telcos to switch to the new per-pulse billing scheme, in which mobile phones should be charged for every six seconds instead of by the minute. The six seconds per pulse scheme should be the default billing, not just a special offer or promotion. Telcos, which had wanted to delay the implementation of the NTC order because of "technical difficulties," were found to be using "prefixes" to charge users per second or per pulse. With prefixes, subscribers must change the first digits of a phone number to avail themselves of per pulse billing. The next critical date is Dec. 16, when telcos will be required to adopt the per pulse billing for calls between two different networks. Only calls within the same were subjected to the new billing scheme starting Dec. 6. NTC Deputy Commissioner Douglas Michael N. Malilin said telcos may be penalized for not following the rule but added that regulators would "wait until the telecommunication companies explain their positions before any punishments could be handed down." Smart Communications, Inc. and Globe Telecoms, Inc. have said that prefixes were their temporary and technical means of complying with the order. In a statement, Smart Communications said that it has already published its prefixes for the information of subscribers, and noted that the order of the NTC is not yet "final and executory" because under the rules, telcos must be given 15 days to comment. "Despite the fact that the NTC order is not yet final and executory, as a gesture of good faith, Smart has completed the necessary adjustments in our billing system so that it has been able to put into effect the new pulse-rate billing rates effective Dec. 6. It has also published an advisory to its subscribers on the new rates and the procedure for availing [themselves] of the new rates in two newspapers of general circulation," the statement read. Smart Communications, the mobile unit of Philippine Long Distance Telephone (PLDT) Co., refused to comment any further. Globe Telecom head for corporate and regulatory affairs Caridad D. Gonzales told reporters last week the company was indeed issued a show-cause order. Digital Telecommunications Phils. Inc., owner of Sun Cellular, and Connectivity Unlimited Resources Enterprise, Inc., which runs Red Mobile, could not be contacted for a comment. The per pulse billing scheme is the latest of a string of new regulations for telcos in response to complaints early this year of "vanishing" mobile prepaid credits or "load" due to dropped calls and "spam" text messages, among others. Regulators imposed the per pulse billing so that subscribers are charged only for actual time consumed. Calls made within the same network should be charged with a flag-down rate of not more than P3.00 for the first 12 seconds or two pulses. In the first minute, each succeeding six-second pulse will be charged up to P0.56. Every pulse in the succeeding minutes will be charged up to P0.75. Charges for calls should not exceed P7.50 per minute, the highest prevailing rate among telcos. Mediaquest Holdings, Inc., a unit of the PLDT Beneficial Trust Fund, has a minority stake in BusinessWorld. — Emilia Narni J. David, BusinessWorld