A class suit was filed on Aug. 30 by the Philippine League for Democratic Telecommunications Inc. (PLDTI), a consumer group known for its anti-call metering stand against telephone firm Philippine Long Distance Telephone Company (PLDT).
Judge Modesto Juatchon of Branch 216 of the Regional Trial Court of Quezon City today issued a 20-day temporary restraining order (TRO) against the planned reduction of text messages by mobile phone operators set to start next month.
The TRO effectively robbed the National Telecommunications Commission (NTC) of the chance to issue a ruling of its own to stop the planned cutback of text messages. The NTC was earlier urged by a congressional committee to come out with a ruling before the phone companies implement their planned reduction of free text messages for subscribers, starting Sept. 3.
"We're pretty elated by the court's decision. But this is only the start of our struggle since the TRO will only last for a limited period of time," said Jonathan Domingo, President of PLDTI.
Domingo, whose father, Rod, is the lead counsel for the class suit, said his group would be also seeking preliminary and permanent injunctions to prevent the implementation of the cellular companies' plans to reduce the monthly allocation of free SMS to subscribers.
The NTC, the regulatory body that oversees and sets policies in the local telecommunications sector, was also included as one of the respondents along with Globe Telecoms, Smart Communications, Pilipino Telephone Company (Piltel), and Islacom. Piltel is a sister firm of Smart as both are owned by PLDT while Islacom is a subsidiary of Ayala-owned Globe.
PLDTi's co-plaintiffs in the case are Gerardo Kaimo and Mylene dela Cruz (Globe subscribers) and Vicente F. Gambito and Adrian O. Sison (Smart subscribers).
In filing the case, PLDTi said "all five defendants acted in unison and in manifest conspiracy and collusion with one another thereby creating a 'cartel' or monopoly" in their decision to trim the monthly allocation of free SMS to their subscribers simultaneously.
PLDTi's counsel pointed out that there was a "clear breach of contract" committed by the cellular companies when they unilaterally reduced the number of free text messages they allocate to subscribers.
Gambito, one of the complainants in the case, stressed "collusion" was again evident when the two cellular companies announced the reduction of free text messages will be implemented in phases, starting next month until January 2002, after receiving numerous complaints from subscribers.
"Can you imagine that? Two companies that are supposed to be competitors have come out with the same solution for the same problem," he said.
Gambito said the reason given out by the telephone companies in justifying the text reduction is a sign of their "insensitivity" to the plight of the consumers. "For them to say the text cut is necessary to raise the funds needed for their expansion only shows the kind of concern they have for the public."
Ramon Isberto, head of public affairs of Smart Communications, said the class suit had no basis. "We believe the case is unnecessary since Congress and the NTC are already looking into the matter."
In its complaint, PLDTI cited a number of legal provisions that showed how and why the telcos involved have reneged on their own contracts to the detriment of millions of mobile phone subscribers and users.
It also argued that contrary to the term used by mobile phone operators, such allocated free SMS are not "free" at all, but bundled with the cost of monthly subscription or with each prepaid card.
Reported by , .com .
14:09 CST
(20010831/WIRES ONLINE, TELECOM, LEGAL, ASIA, BUSINESS/)
