Oreta hits cut in free text messages

Sen. Teresa Aquino-Oreta assailed yesterday plans by mobile phone operators to cut by 66 percent the number of free text messages allocated for subscribers.

Oreta asked why Globe, Smart, Piltel and Islacom need to cut free text when the companies already rake in much profit from the short message services.

"With these cellphone companies charging P1 for every text message outside the free allocation, why should they attempt to gain more profit at the expense of consumers, who depend on this cost-friendly service as a means of communication?" she asked.

According to studies, the country’s cellphone subscribers exchange some 150 million text messages a day, or about 20 per person.

Analysts say that the move to reduce free text messages assures companies of steady revenues since people will still continue to avail themselves of the service.

Globe reportedly plans to cut free text messages from 150 to 50 for pre-paid subscribers while rival Smart wants a reduction of 100 to 33 starting next month.

Similar reductions are expected to be implemented for post-paid subscribers.

Islacom, a sister company of Globe, and Piltel, which is affiliated with Smart, will also do the same.

The cellphone companies said they need text rate reductions to avoid imposing currency adjustments on voice calls.

However, Oreta urged the companies to reconsider their plan to cut the free text messages.

"With the advertising space they hog in print and television, anyone can see that these firms are earning huge profits despite an economic slowdown. The subscribers who will be deprived of a cheap method of communication are the same people responsible for their record profits," she said.