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May 09, 2014

How will telcos refund the Php7B they owe subscribers?

Fresh from the announcement of NTC that regular SMS rates should have been Php0.80 instead of Php1.00 since 2011, it has estimated that telcos owe prepaid/postpaid subscribers as much as Php7B worth of refunds.

So the next question is, how will subscribers get back that Php7 billion that they overpaid?

According to NTC, there are several ways:

Refunds could be in a form prepaid credits or through billing for postpaid subscribers according to Edgardo Cabarios, director for Common Carriers Authorization at NTC. Keep in mind that the charges only covers the inter-network and regular text messages not covered by promos like unlimited or combo-package offers.

Here are some likely methods we think they could do:

* Telcos can auto-credit each subscriber SIM with additional SMS load based on their average consumption in the last 3 months. The 25% (Php0.20/Php0.80) top-up will continue to be added every month for the next 4 years. Example — if you average 1000 SMS per month in the last 3 months, you get a free SMS top-up of 250 text messages next month.

* Reduce rates of all regular SMS from the supposed Php0.80 to Php0.60 until 2018. After that, they can return to the prescribed Php0.80 rate.

* Free regular SMS for the next 12 months. Though this is highly unlikely, telcos can waive all fees related to sending regular SMS in the next 12 months (representing 25% of the last 4 years).

Or, if it’s going to be really hard to compute the equitable sharing of refunds, why not just donate the entire amount of Php7 billion to charity or an academic institution or organization?

Telcos file appeal against Php7B SMS refund
Court of Appeals stops refund order of NTC

20 Responses to “How will telcos refund the Php7B they owe subscribers?”

  1. THEO says:

    My guess is that they won’t refund.. TELCOS are just too greedy.

    • TacticalNinja says:

      I agree. If they refuse to refund, they should at least use the money to improve customer service (e.g. Better cell towers, broader network/signal coverage, etc…)

    • archie says:

      They’re going to use 1 billion out of that 7 billion for marketing expenses to think of alibis to justify why they won’t refund that remaining 6 billion.

  2. JM says:

    Refund, and Philippine Telecom Providers?
    I don’t think both of them mix!

  3. miongb
    Twitter: miongb
    says:

    They wont refund. They will appeal the ntc decision and ultimately elevate this to the sc. Then it will take years. Then the people forget.

  4. drew says:

    Why did NTC waited for that long period of time? Why after 3 years? I think NTC does’nt have that enough power to control telcos..

  5. Diorarat says:

    Hindi naman cash irerefund nila. It shouldn’t be hard. Wala naman direct cost in their part pagnaghandle ng sms. Opportunity cost lang naman mawawala kung nagrefund sila via free text or credit.

  6. simon says:

    parang hindi rin makakatulong sa mga prepaid users na either expired or snatched na ung cellnumbers ung mga “ideas” ng reimbursement na nabanggit. better give it na lang sa charity, kung magbibigay nga ung mga telcos.

  7. Krypton says:

    2011 pa lang kung hindi na sinunod ng Telcos un regular SMS rate dapat may action na agad silang ginawa. After 3 years dun pa lang nila nakita na hindi sila sumusunod? Seriously? As if ibabalik nila yun eh ang dami ng subscribers ang nawala, maraming sim card na ang napalitan. Bulok talga kahit kelan.

  8. 6/55 says:

    refund?haha! mas may chance ka pa ata manalo sa lotto o matamaan ng kidlat kaysa makatanggap ng refund sa mga greedy telcos na yan.

  9. merx says:

    no refund will be issued.
    napasahod na nila un sa execs nila…

  10. yanyan says:

    Refund? Malayo at a mangyari yun.. Kung ibibigay sa Charity/ Organization bka nman bogus na Charity yun para palabasin na nrefund na..

  11. Bighorn57 says:

    Refund?? Bakit hindi kasuhan yang mga ganid na telcos na yan!!

    Bakit hindi nila nasusunod ang itinatakda ng NTC??
    At NTC ano ang ginagawa ninyo at hindi kayo sinusunod
    Nitong mga telcos na ‘to??

  12. xris says:

    mag hantay ka nalang ng puting uwak na dadapo sa harapan mo bago yan magbigay ng refund.

  13. kisuke says:

    philippine telco are too greedy for refund. smart specially.. too much greed.

  14. Nephilim says:

    Appeal ng appeal sa decision gagawin ng mga yan, puputi na buhok ko sa kilikili di ko parin makikita yang refund…

  15. Hen-Sheen says:

    They won’t. It’s the “Royalty Fees” that make them rich. Whether the service is Lousy or Awesome, for every customer that subscribes to any service (regardless or industry), they get a slice of the fortune. NTC at this time has Infinite money to spare…..

  16. metre9dmt says:

    no refunds will happen — inutil naman ang NTC and telcos will never admit their mistakes as they did with internet access and prices… :-(

  17. […] We wondered how telcos can possibly refund the multi-billion peso amount to the subscribers a few weeks ago, and we have an article dedicated for that right here. […]

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Abe is the founder and Editor-in-Chief of YugaTech. You Can follow him on Twitter @abeolandres.

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