Closure of prepaid Internet firms an eye-opener

The reported problems encountered by several prepaid Internet companies have brought forth questions about using prepaid Internet connections.

Like their cellphone counterparts, prepaid Internet cards have gained popularity for making easier and more convenient for consumers to avail of essential web services. Users no longer have to present documents like income statements, proofs of billing and other identification to subscribe to an Internet service. They do not have to worry about paying monthly bills. All that is required of users are a computer with a modem, a telephone line and a prepaid card.

Prepaid Internet cards have also given more people – especially those short on the budget – the chance to access the Net. They are sold by as low as P100 for 10 hours of Internet time, more than double the amount on a postpaid plan.

The affordability and accessibility of prepaid Internet have also contributed significantly to the growth of the industry. Reports say that of the estimated 4.5 million Internet users in the country, around 70 percent or 3.15 million connect to the Internet through prepaid cards.

The benefits offered by prepaid Internet access may, however, prove short-lived. Rebel, one of the more popular and affordable prepaid Internet cards in the market, has ceased selling prepaid Internet cards and transferred advised users that it is shutting down operations. So have Pocket Net and Speed. Though these companies sent out notices that contained telephone numbers and email addresses which users could contact in case of problems, many were still left at a loss, wondering whether they could refund unused cards or whether they could still use these cards has shut down.

The National Telecommunications Commission (NTC) has created a Complaints Unit, which addresses complaints related to Internet connections. Common complaints against prepaid Internet cards are the inability or difficulty to connect, the discrepancy of the Internet time indicated in the card and that of the actual time used up, and connections that repeatedly hang. The deregulated nature of the industry however has made it difficult for the NTC to keep a tight watch on prepaid Internet companies.

The best protection for prepaid Internet users is to be more circumspect in choosing prepaid cards. Members of the Philippine Internet Services Organization (PISO) agreed, in a meeting held recently to address the problems faced by the prepaid Internet market, that the best safeguard for consumers is to buy prepaid cards from stable providers and those that have proven track records.

According to Dr. William Torres, president of Mosaic Communications, Inc., the country’s first and largest Internet Service Provider (ISP) and board member of PISO, "users should consider ISP’s that also offer postpaid subscriptions and other services, not those that provide only prepaid Internet access. This way, they can be assured of a stable infrastructure."

Prepaid cards sold by stable ISP’s ensure users of reliable connections and technical support. In cases when users encounter problems with their connections, they can easily direct their complaints to the ISP and ask for assistance.

"Prepaid cards should be able to give users the flexibility they need in their Internet connections," Torres said.