Court stops cell firms from cutting free text

A Quezon City Judge stopped yesterday the four leading cellular phone companies from implementing a plan to reduce text messaging allocations for subscribers.

QC Regional Trial Court Judge Modesto Juanson of Branch 216 issued a temporary restraining order (TRO) preventing Globe, Islacom, Smart and Piltel from implementing their plan to cut their messaging service (SMS) allocations.

Juanson also ordered the National Telecommunications Commission (NTC), one of the respondents in a class suit filed by cellphone subscribers, to prevent phone companies from implementing the planned cuts and to maintain the status quo.

"After hearing the evidence and arguments of both the plaintiffs and the defendants, the court ordered Globe, Smart, Piltel and Islacom not to implement the intended reduction of free text (allocations)," Juanson ruled in open court.

"Considering that the text message fixing and deregulation is outside its jurisdiction, the defendant NTC is ordered to maintain status quo," the judge added, setting hearings on the case on Sept. 5, 6 and 7.

Juanson issued the TRO after a group of cellphone subscribers filed a class suit last Wednesday to stop cellular phone companies from implementing a plan to cut the allocation of free text messages by an average of 67 percent.

The TRO is effective for 20 days, within which the court would decide whether to issue a preliminary injunction or dismiss the case depending on the evidence to be presented by both parties.

Meanwhile, Senator Tessie Aquino Oreta said consumer groups have become more convinced of a cartel in the telecommunications industry after cell phone giants decided to implement the text cuts.

"These cell phone firms simultaneously announced the free text cutback plan by two-thirds. Following the public clamor to reconsider their move, the same companies announced they will all implement a two-step scheme to cut back on the free text allocations. Isn’t this acting in cartel fashion," Oreta asked.

She expressed dissatisfaction with the phased cutback, saying the cellphone companies should instead make good their promised free text allocations that have induced consumers to patronize them.

The cellphone firms have enjoyed very profitable operations, according to Oreta, who suggested they should concentrate on ways to improve their service. – With Manny Galvez