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The SC says the NTC circular did not require a cut in SMS retail rates, only a reduction in interconnection charges for off-net texts from P0.35 to P0.15
MANILA, Philippines – The Supreme Court has upheld a Court of Appeals ruling that blocked the National Telecommunications Commission (NTC) from enforcing its 2012 order for telecommunications firms to refund subscribers more than P17 billion in alleged excessive text messaging charges.
The CA had stopped NTC’s November 20, 2012 and May 7, 2014 orders, which had required Globe Telecom, Smart Communications and Digitel Mobile Philippines to reduce SMS interconnection rates from P1 to a maximum of P0.80 per text. The directive stemmed from NTC Memorandum Circular No. 02-10-2011, issued in October 2011 and known as the Interconnection Circular.
The NTC had also ordered a refund of P0.20 per off-net text overcharged from the circular’s effectivity, and set interconnection fees between networks at P0.15 per message, down from P0.35, citing lower costs, stronger competition, and more affordable SMS rates.
