TXTPower complaint vs. Globe’s 100%-hike in unlimitxt rates

Posted: February 1st, 2007 | Author: TXTPower | Filed under: News | No Comments »

February 1, 2007

The Commissioner
National Telecommunications Commission
BIR Road, Diliman, Quezon City

Dear Commissioner:

In one-page newspaper advertisements published today, Globe Telecom announced a new promo replacing Globe Unlimitxt. Globe Telecom provided no explanations in their advertisements. In an article published by the website Mindanao Times, Globe Telecom predicated its announcement with this opener: “The National Telecommunications Commission (NTC) has approved Globe Telecom’s new unlimited texting promo specially designed to provide a wider range of choices to its mobile phone subscribers.”

We question and protest this rate hike by Globe Telecom and we ask the Commission to immediately suspend the implementation of the new promo pending a public hearing where subscribers, consumers groups and other interested parties may attend.

The replacement of Unlimitxt with the new promos (Unlitxt, Daytime Unlimited Texting, Nighttime Unlimited Texting, and TXTPlus) is arguably a rate hike. Previously under Unlimited, unlimited texting for five days was charged P50.00 (roughly P10.00 a day). Under the new promos, unlimited texting for four days would now cost P80.00 (or P20 a day). A close comparison of the previous and new unlimited texting rates would reveal that Globe Telecom has successfully obtained NTC approval for a 100 percent hike in bulk-prices for text messaging.

Indeed, the “wider choices” Globe Telecom supposedly provides subscribers come with more expensive price tags which we subscribers and consumers strongly protest.

We are doubtful whether Globe Unlimitxt resulted in net income losses on the part of Globe Telecom, and thus infer that the insatiable hunger for superprofits could be the ultimate reason for the rate increase. We find it unacceptable that it will come from a warrantless rate hike that goes against the current trend of cheap bulk-pricing. The continued advance of CMTS and GSM technology should result in further lowering of rates and prices.

The demise of Globe Unlimitxt, ironically touted earlier as “a permanent service”, exposes the arbitrary pricing of text messages in the country. Sun Cellular’s 24/7 Text Unlimited and Globe Unlimitxt proved to all and sundry that such bulk-pricing is possible (Mas mababa po pala talaga sa piso ang halaga ng isang text), good for both consumers and businesses, and is the natural result of developments in CMTS and GSM technologies.

If Globe Telecom needs fresh capital for any expansion plan (which we infer might be used by the company as one of the reasons for this rate hike), they should be able to quickly obtain loans from various sources on account of its good standing in the national and regional telecom sectors. Can’t Globe Telecom obtain fresh funds from its major stockholders and from Singapore Telecom? Anyway, we contend that subscribers whose loyalty and patronage helped Globe Telecom become the giant it is now should not shoulder any huge responsibility for raising new funds for the company.

Finally, Mr. Commissioner, we vehemently condemn the way subscribers are informed of such rate hikes. Globe Telecom came out with an announcement only today, and have not found it fit to inform their subscribers before hand. Indeed, we have to ask: Did the NTC actually approve and authorize this rate hike? Even the NTC overlooked informing the public of such a rate hike application and the Commission’s reason for approving it.

The Commission may reach us through the following contact points: Telefax No. 9266636, Mobile No. 0917-8928277 (Anthony Ian M. Cruz) and Email Addresses tonyo@txtpower.org and tonyocruz@gmail.com. WE RESPECTFULLY REQUEST A REPLY VIA EMAIL.

Hoping for your quick and positive response.

Very truly yours,

Anthony Ian M. Cruz
Spokesperson and Co-Convenor

Raymond Palatino
Co-Convenor

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