House to probe cell phone firms

To prevent unfair competition in the telecommunications industry, the House of Representatives will conduct an inquiry into how cellular phone companies have been charging their customers, a congressman said yesterday.

Isabela Rep. Rodolfo Albano III said the investigation is meant to "encourage competition, prevent monopolist control or cartelization of the industry and protect the welfare of the consumers" by making sure mobile phone subscribers are "not overcharged."

The inquiry comes on the heels of separate but similar complaints filed by telecom giants Globe Telecom and Smart, which accused newcomer Sun Cellular of trying to kill the competition by offering low rates that could "eventually monopolize the industry."

"I condemn any and all efforts to kill competition in the telecommunications industry and to allow the monopoly by a virtual cartel of telecom giants. Congress must step in to protect the welfare of the consumers," Albano said in a privilege speech last week.

It is important, the lawmaker added, that the general public is not only given "freedom of choice in a competitive market but ensured greater access to affordable mobile phone services."

Globe and Smart have asked the National Telecommunications Commission last month to stop Sun Cellular from continuing its popular "24/7" unlimited service, which gives free rates for call and texts made to fellow Sun subscribers.

"Natakot yata ang mga higante sa unano. Parang ayaw nilang lumaban nang patas at tila gusto nila ang gobyerno ang tumiris sa unano na kanilang kinaiinisan (The giants seem afraid of the midget. It seems as if they do not want a level playing field and they want the government… to crush those firms that irritate them)," said Albano.

The two cell phone giants complained that Sun’s service is "below par," charging that customers have difficulty interconnecting.

Sun’s "poor" service alone, according to the complaints Globe-Smart filed, "should be reason enough for NTC to stop 24/7."

Piltel, a subsidiary of Smart, reported a profit of P7 billion in 2004 but complained that its rehabilitation will suffer significantly because of Sun’s low rates.

Sun Cellular, on the other hand, has been in the red since it became operational almost two years ago, mainly because it has been investing heavily in new cell sites to improve its service.

Globe and Smart control 95 percent of the market and both made P72 billion in the last three years altogether.