NTC extends prepaid load expiration

Great news to Prepaid Cell Phone owners! :-) 
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NTC extends prepaid load expiration

http://www.abs-cbnnews.com/business/07/03/09/ntc-issues-new-rules-prepaid-load-expiration

MANILA – The telecommunications industry regulator released on Friday the guidelines for a more consumer-friendly validity period for prepaid mobile phone credits.

The longer shelf life of prepaid credits, as detailed in memorandum circular 03-07-2009, will be effective 15 days after the National Telecommunications Commission publishes this in a national newspaper.

The new rates and validity period are:

• P10 or lower – 3 days
• over P10 to P50 – 15 days
• over P50 to P100 – 30 days
• over P100 to P150 – 45 days
• over P150 to P250 – 60 days
• over P250 to P300 – 75 days
• over P300 – 120 days

In addition to the extended expiry periods, the NTC ordered that unused credits in the previous top-ups would be added to new credits. The cumulative credits would then be the basis for the new validity period.

The NTC also required all mobile network operators to provide their subscribers call data records upon request free of charge. Mobile phone users should likewise be able to check their credit balance for free.

These new directives were made following a public uproar over "vanishing" prepaid phone credits. No less than Senate President Juan Ponce Enrile complained that his prepaid phone credits expired after a few days. Senate hearings on the issue were held, and consumer watchdogs had latched on the issue to hammer on complaints against the phone operators.

Consumer complaints

According to the Cellphone Owners and Users of the Philippines (COUP), mobile phone users have complained about charges that network providers "illegally" collect and pass on to consumers, including those for unsolicited messages, spam, interrrupted or dropped calls, missed calls, and failed messages.

Dulce said the CPU recently conducted an online mobile users’ survey to document cases and complaints regarding mobile use, which will be later presented to the NTC. The survey results (which can be accessed here) showed that half ofthe respondents complained of network access problem (sending and receiving messages, busy network on call attempt), lack of network coverage, expiring and disappearing load credits. The survey also recorded 28 percent of complaints on dropped calls. Inaccurate billing is also raised by about seven percent of the respondents.

"These are clear indications that even with huge profits, telcos still fail to satisfy mobile users," said Dulce. "Expiring and disappearing loads without valid reason is the same as robbing users with their hard-earned money."

Another consumer advocacy group TXTPower welcomed Friday a National Telecommunications Commission order extending the validity period of prepaid mobile phone credits but pointed out that the issue is just one of a myriad of mobile phone-related consumer complaints.

“We hope the Telcos will comply and not fight this order, and that the NTC sees to it that it is enforced,” Leon Dulce, TXTPower spokesperson and Data Visualization team head of the Computer Professionals’ Union (CPU), said in a press statement.

Profitable

Mobile phone usage in the country has leapfrogged from being an upper and business classes’ luxury in the late nineties, to a communication necessity among the country’s about 90 million population. Following decades of inefficient and monopolized landline-based phone services, deregulation of the telecommunications industry in the mid-1990’s led to the entry of several phone players. Among the firms that offered mobile phone services, text messaging service proved to be the "killer application" that enticed millions of Filipinos to subscribe.

The industry had several milestones thereafter. The introduction of prepaid services in the early part of the decade meant even those who have no proof credit-worthiness, as in the case of post-paid services, could already have access to the mobile service.

Not long after, leading mobile phone companies Smart Communications and Globe Telecom introduced ‘sachet’-like phone credits that could be shared over the airwaves. These low denomination phone credits, however, expired after a day or more to suit the phone companies’ financial and technical capacity to handle these high-volume-low-premium transactions.

As of December 2008, the country has 68 million subscribers, translating to a 76 percent penetration rate. By 2013, penetration rate is expected to hit more than 150 percent, meaning each Filipino will likely be subscribed to more than one phone operator.

Local mobile phone companies, which have been cashing in on the consistently growing number of subscribers, are some of the most profitable in the country. With a report from Zen Hernandez, ABS-CBN News

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