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Consumer group slams Globe for text-rate hike


Members of the consumer advocacy group TXTPower were up in arms Thursday over the decision of Globe Telecom to impose a 100 percent rate increase for its unlimited text services. The group emailed its complaint to the National Telecommunications to seek for the immediate suspension of the new promo pending a public hearing where subscribers, consumers groups and other interested parties can attend. Anthony Ian Cruz, TXTPower spokesman and co-convenor, said the complaint was sent through the NTC email addresses ospac@ntc.gov.ph and ntc@ntc.gov.ph. He said "no one was answering NTC phones to enable us to confirm receipt of the complaint." The group said based on newspaper advertisements published Thursday, Globe Telecom announced that the company’s four-day Unlimitxt now costs P80, compared to the previous charge of P50 for five days of the old Unlimitxt. It said the replacement of Unlimitxt with the new promos (Unlimitxt, Daytime Unlimited Texting, Nighttime Unlimited Texting, and TXTPlus) is obviously a rate hike. Previously under Unlimited, unlimited texting for five days was charged P50, roughly P10 a day. Under the new promos, unlimited texting for four days would now cost P80 or P20 a day. "This is tantamount to a 100 percent rate hike," said Cruz. He added: "We filed the complaint on behalf of those who texted us to decry the sudden and warrantless rate hike. We view this as a step backward for the telecom industry. The fast pace of technology should result in cheaper telecom services making this new rate hike questionable." He said no prior announcement was made by Globe. "The company just imposed the rate hike without regard to the rights of subscribers and consumers," said Cruz. The group also asked the NTC if it actually approved and authorized the rate hike. "Even the NTC overlooked its duty in informing the public of such a rate hike application and the commission's reason for approving it." They said the Feb. 1 Globe Telecom advertisement announced that the Unlimitxt has been replaced by four unlimited texting variants. "But the bottom line is that Globe Telecom treacherously raised rates – after proclaiming Unlimitxt as a permanent service and after cornering huge profits last year," said Cruz. TXTPower also said Globe Unlimitxt and rival Sun Cellular's 24/7 Text Unlimited "proved once and for all that text messages actually do not cost P1.00 each. The telcos resort to arbitrary pricing to the detriment of consumers." Meanwhile Globe, in an official statement issued, said: "We have enhanced the Unlimitxt service in order to continue providing our customers with services appropriate to their needs." It said that it is offering a variety of unlimited texting services “like daytime and nighttime services – for as low as P10 – to give our customers choices that will fit their budget and suit their lifestyle." “ It is also very important for us to keep a level of service that our customers require and balance this with the value of the services we provide." - GMANews.TV

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