January 12, 2007

The Commissioner and Deputy Commissioners
National Telecommunications Commission
BIR Road, Diliman, Quezon City

RE: URGENT REQUEST TO STOP PILTEL AND SMART FROM IMPOSING EXPIRY DATES ON FREE TEXT ALLOCATIONS AND FREE AIRTIME LOAD STARTING JANUARY 15, 2007

Dear Commissioner and Deputy Commissioners:

We are co-convenors of TXTPower, a consumer advocacy group founded in August 2001, with the goal of protecting and asserting the rights and welfare of consumers and end-users of telecommunication services.

We are writing to respectfully request the Commission to stop Pilipino Telephone Corporation (Piltel) and Smart Communications (Smart) from implementing on January 15, 2007 the contents of their advertisements that were published in the Manila Bulletin and Philippine Daily
Inquirer, respectively, on January 8, 2007.

Full text of the Piltel advertisement is as follows:

“NOTICE TO THE PUBLIC

“In our continuing effort to provide all our subscribers with the best possible wireless service, we would like to encourage all PILTEL prepaid subscribers to totally use-up the FREE text messages and FREE airtime allocated to them with each load.

“As authorized by the NTC, all FREE text messages will now have an expiration date effective January 15, 2007. The said expiration will coincide with the expiration of the airtime balance.

“All Talk N Text retailers are likewise informed that the 300 SMS incentive credited to them will not expire within 40 days, effective January 15, 2007.

“PILIPINO TELEPHONE CORPORATION”

The advertisement of Smart also contained the same thought.

On behalf of prepaid subscribers of Smart and Talk N Text, we in TXTPower ask the Commission to consider the following:

1. The imposition of expiry dates on free text allocations violates the right of Smart and Talk N Text subscribers to make full use of the value of the prepaid load they buy from both companies. The value of any prepaid load bought by subscribers includes these so-called free
text allocations and free airtime. Smart and Piltel must respect the manner by which subscribers opt to use their prepaid load, including the free text allocations and free airtime.

2. At a time when the industry is moving towards bulk pricing, and in the face of growing consumer demand for the lifting of expiry dates of both prepaid load and prepaid SIM cards, the twin moves of Smart and Piltel look like a sore thumb. (May we add that Smart and Piltel have stopped offering unlimited texting services within their network.)

3. If left unchecked, the similar plans of Smart and sister company Piltel will adversely affect millions of subscribers, considering that these two companies operate the largest wireless network used by the most number of mobile telephony users.

4. The advertisements put out by Smart and Piltel are obviously not enough to adequately inform all their prepaid subscribers. Their January 8, 2007 announcements were small and plain, compared to their usual advertisements that are whole page or multi-page and in full color. If the objective of the latter is to attract attention, the former seems to aim to be ignored. We denounce such disrespect for the basic consumer right to information.

We urge the Commission to grant our request.

We may be reached through 9266636 or through the mobile phone number
of the undersigned at 0917-8928277.

Thank you very much.

Truly yours,
ANTHONY IAN M. CRUZ
Spokesperson

Last Modified : January 12th, 2007
Filed under : News
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