CA Stops NTC Order to Telcos to Refund Subscribers

Manila (PNA) — The Court of Appeals (CA) has stopped the implementation of an order by the National Telecommunications Commission (NTC) directing the telecommunications companies (telcos) to refund to their subscribers the excess collection from text messages or the short message service (SMS).

The CA’s Sixth Division has issued a temporary restraining order (TRO) as prayed for in the petition filed by the Digitel Philippines Incorporated (Digitel).

In a four-page resolution dated Aug. 20, 2014, the CA stopped the implementation of the Nov. 7, 2012 and May 7, 2014 order of the NTC directing the telcos to make a refund to their subscribers because of excessive collection in their SMS rate.

In the assailed order, the NTC directed the telcos to refund 20 centavos which is an excess in their collection per “off-net SMS” because of their non-compliance of NTC Memorandum Circular 02-10-2011 issued in October 2011.

In the memorandum, the NTC ordered that from Php 1.00, the telcos should decrease to 80 centavos their collection per “off-net SMS” or text message sent through the other networks.

This was because the NTC had ordered that from a 35-centavo rate, the telcos should only impose a 15-centavo rate for the “interconnection charge.”

The TRO issued by the CA will be good for 60 days and it will only take effect upon payment by the Digitel of a bond amounting to Php 500,000.

Likewise, the CA gave the NTC a period of 10 days from notice to submit its comment on why the Court should not issue a writ of preliminary injunction which would mean the indefinite restraint in the implementation of the NTC order. (PNA) LAM/PTR