NTC rejects prepaid load’s ‘no expiration policy’

By , on May 30, 2014

Globe Telecommunications Building / Wikipedia Photo
Globe Telecommunications Building / Wikipedia Photo

MANILA – The National Telecommunications Commission rejects a senator’s proposal to remove the expiration period on prepaid credit’s validity, saying that mobile phone number maintenance in the system and the load of cards entails cost for telecommunication companies (telecos).

The rejection was made after Senator Ralph Recto filed a bill requiring telecommunication companies to remove expiration on unused prepaid call and text card’s validity.

NTC director Edgardo Cabarios said that following a study conducted in 2009, NTC only decided to issue a circular extending the life cards but did not impose a “no expiration policy.”

In the extension, expiration of P1.00 – P10.00 was made days, instead of 1 day while P50.00 load expires in 15 days, instead of 3 days, and P100.00 load expires in 30 days, instead of 15 days.

Meanwhile, Globe Legal Chief Froilan Castelo agrees with Cabarios’ statement saying that there is really a carrying cost in the maintenance of call and text cards in the system.

He argued that NTC’s earlier order to rationalize the load expiration is already sufficient adding that if a law is approved imposing “no expiration date” on prepaid load, it may cause tremendous cost that may eventually be passed on to subscribers in other forms.

Castelo  also compared the system to a system of room rentals where the load cards occupy a space where telcos invest in.

With reports from ABS-CBN News