3 Replies Latest reply on Jun 25, 2013 7:17 PM by ChitoReyes

    Call Rates

    jmrtlara

      I'm just wondering if a fraction of a minute (e.g., 30 seconds) is already billed as a minute? Sorry for this quick question.. thanks

        • Re: Call Rates
          ChitoReyes

          Yes it is already billed as a minute despite NTC memorandum circular 05-07-2009 where the maximum unit of billing for the cellular mobile telephone service (CMTS)--whether postpaid or prepaid--will be reduced to 6 seconds per pulse from the current one minute per pulse.

           

          Somehow our local telcos have managed to find loopholes in the well meaning order.

            • Re: Call Rates
              jmrtlara
              That's unfortunate. Oh well. Thanks for the clarification!
                • Re: Call Rates
                  ChitoReyes

                  To further understand Globe's position and a way to take advantage of a 6second pulse rate charging, I have lifted part of page 62 of Globe's Corporate Disclosure dated March 13, 2013 as presented in their Annual Stockholder's Meeting of April 16, 2013...

                   

                  On 23 July 2009, the NTC issued NTC Memorandum Circular (MC) No. 05-07-2009 (Guidelines
                  on Unit of Billing of Mobile Voice Service). The MC provides that the maximum unit of billing for
                  the cellular mobile telephone service (CMTS) whether postpaid or prepaid shall be six (6)
                  seconds per pulse. The rate for the first two (2) pulses, or equivalent if lower period per pulse is
                  used, may be higher than the succeeding pulses to recover the cost of the call set-up.


                  Subscribers may still opt to be billed on a one (1) minute per pulse basis or to subscribe to
                  unlimited service offerings or any service offerings if they actively and knowingly enroll in the
                  scheme. In compliance with NTC MC 05-07-2009, Globe refreshed and offered to the general
                  public its existing per-second rates that, it bears emphasizing, comply with the NTC
                  Memorandum Circular. Globe made per second charging for Globe-Globe/TM-TM/Globe
                  available for Globe Subscribers dialing prefix 232 (GLOBE) OR 803 plus 10-digit TM or Globe
                  number for TM subscribers. The NTC, however, contends that Globe’s offering does not comply
                  with the circular and with the NTC’s Order of 7 December 2009 which imposed a three-tiered rate
                  structure with a mandated flag-down of P3.00, a rate of P0.4375 for the 13th to the 160th second
                  of the first minute and P0.65 for every 6-second pulse thereafter. On 9 December 2009, the NTC
                  issued a Cease and Desist Order requiring the carriers to refrain from charging under the
                  previous billing system or regime and refund consumers.


                  Globe maintains that the Order of the NTC of 7 December 2009 and the Cease and Desist Order
                  are void as being without basis in fact and law and in violation of Globe’s rights to due process.
                  Globe, Smart, Sun and CURE all filed petitions before the Court of Appeals seeking the
                  nullification of the questioned orders of the NTC. On 18 February 2010, the Court of Appeals
                  issued a Temporary Restraining Order preventing the NTC from enforcing the disputed Order.
                  On 25 May 2010, the CA issued a writ of preliminary injunction directing the NTC to cease and
                  desist from enforcing their assailed Order/s. On 28 December 2010, the CA rendered a Decision
                  declaring the questioned decisions invalid for being violative of the Petitioners’ right to due
                  process, among others. The Petitioners and the NTC filed their respective Motions for Partial
                  Reconsideration. The motions were DENIED by the CA in an Order dated 19 January 2012. Due
                  to lack of material time, the NTC and the Petitioners seasonably filed their respective Motions for
                  Extension of Time to File Petition for Review with the Supreme Court. The Movants are expected
                  to file their respective petitions within the month of March 2012.


                  Globe believes that its legal position is strong and that its offering is compliant with the NTC’s
                  Memorandum Circular 05-07-2009, and therefore believes that it would not be obligated to make
                  a refund to its subscribers. If, however, Globe would be held as not being in compliance with the
                  circular, Globe may be contingently liable to refund to any complaining subscribers any charges it
                  may have collected in excess of what it could have charged under the NTC’s disputed Order of 7
                  December 2009, if indeed it is proven by any complaining party that Globe charged more with its
                  per second scheme than it could have under the NTC’s 6-second pulse billing scheme stated in
                  the disputed Order. Management has no estimate of what amount this could be at this time.