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?

20 Comments on this Post

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

    • TacticalNinja

      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

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

  3. miongb

    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. 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

    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. 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

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

  10. yanyan

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

  11. Bighorn57

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

  13. kisuke

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

    • Yes. Parang Meralco. Iisa kasi ang may-ari

  14. Nephilim

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

  15. Hen-Sheen

    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

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

  1. […] 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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