Speaker supports call to make text messaging free

MANILA, Philippines - Speaker Prospero C. Nograles said Friday that the House of Representatives will review the congressional franchises of the country’s mobile communications service providers in response to the call of Transportation and Communication Secretary Leandro Mendoza to make the short messaging system (SMS) or text messaging free. Mr. Nograles said that he will ask the House Committee on Legislative Franchises headed by Iloilo Rep. Ferjenel Biron, Committee on Information and Communications Technology chaired by Catanduanes Rep. Joseph Santiago and Oversight Committee headed by Quezon Rep. Danilo Suarez to scrutinize the legislative franchises of the country’s telecommunications companies engaged in mobile communications services to find out if they really are allowed to charge their customers for SMS usage. "A habitual texter and is known to send his press statements and media comments via SMS texting has become a necessity even among poor Filipinos who rely on this technology for their day-to-day personal and business communication requirement," Mr. Nograles said. "We have to review the specifications of their franchise. We are in the middle of a very difficult economic situation and it will be a great help if we can remove the use of SMS from their daily budget," he added. "I fully support Secretary Mendoza’s proposal to make SMS free of charge. I will immediately direct our committees on franchise, oversight and telecommunications to look into it and review the congressional franchises of these telecom companies," the Speaker said. According to Nograles, the House can also do something to amend the franchise of the country’s telecommunications companies to compel them to stop charging their customers for SMS use. "We have to check whether they are legally allowed to charge text messages. If their franchise allows them to do so, we can make corrective measures and file a resolution as soon as possible for the National Telecommunications Commission to address this concern," Mr. Nograles said. Mr. Nograles also pointed out that based on the return of investments, (ROI) telecoms companies have been earning billions in profit because they no longer pay the 3% franchise on gross receipts and have no longer subjected to 12% cap in terms of income but instead, they are required to pay the 12% EVAT which they conveniently pass on to their consumers. — Ma. Paola J. Syyap, BusinessWorld