Consumer vigilance urged on prepaid Net card use

The problems which several prepaid Internet companies have reportedly been encountering have brought forth questions about using prepaid Internet connections.

Like its cellphone counterparts, prepaid Internet cards have gained popularity for making it easier and more convenient for consumers to avail themselves of essential Web services. Users no longer have to present documents like income statements, proofs of billing and other documents to subscribe to an Internet service. They don’t have to worry about paying monthly bills. All that is required of them are the hardware (in the case of the Internet, a computer with a modem and a telephone line) and a prepaid card.

Prepaid Internet cards have also given more people – especially those short on budget – the chance to access the World Wide Web. They are sold for as low as P100 for 10 hours of Internet time, while a 10-hour postpaid plan could cost users more than double that amount.

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, about 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 has advised users that it is shutting down operations.

So has Pocket Net and Speed. Though these companies sent out notices that contained telephone numbers and e-mail 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 them even if the company that sold them has shut down.

The National Telecommunications Commission (NTC) has created a Complaints Unit, which addresses complaints related to Internet connections. Common complaints on prepaid Internet cards are the inability or difficulty to connect, the discrepancy between the Internet time indicated in the card and 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 PISO board member, "users should consider ISPs 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 ISPs 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 Internet cards should be able to give users the flexibility they need in their Internet connections.

"Nitro, Moscom’s prepaid Internet cards, offers perhaps the earliest off-peak rates among all prepaid cards. Our off-peak hours start as early as 7 p.m. That means Nitro users can have more Internet time with their P100 card," said Dennis Guda, assistant vice president for sales of Moscom.

"Nitro users are given the choice of getting a faster connection of up to 56K, depending on their needs. So it’s really up to the user how to maximize their prepaid card," he added.