MANILA — A ranking member of the House of Representatives has asked the Committee on Legislative Franchises to investigate Globe Telecom for its failure to provide quality and reliable service to the public.
In House Resolution 1858, Deputy Majority Leader Magtanggol T. Gunigundo I (2nd District, Valenzuela City) said Globe Telecom is expected to provide excellent and dependable service to its subscribers being a public utility, that was granted a legislative franchise on March 13, 1992 under Republic Act No. 7229.
Globe Telecom reported it has a total of 40.7 million subscribers as of end of March 2014, a 16 percent increase from its 35.1 million subscribers during the same period in 2013.
“Notwithstanding the increase in its number of subscribers, Globe Telecom fails to provide reliable and quality service expected of a public utility, apparent from complaints of many of its subscribers, which range from dropped calls, delayed text messages, slow mobile data speed and poor customer service,” Gunigundo said.
The revenues of Globe Telecom also improved by 8 percent to Php 18.5 billion during the first quarter despite the poor service, Gunigundo declared.
“With Globe Telecom’s high subscription and increase revenues amidst poor service, it can be surmised that Globe Telecom gained too much profit from its inefficient service,” Gunigundo said.
According to Gunigundo, Globe Telecom, as a public utility, has a responsibility to maintain reliable and quality service to the public citing Section 19 of the Public Service Act, which states that “it shall be unlawful for any public service to provide or maintain any service that is unsafe, improper or inadequate.”
He said Globe Telecom, as a legislative franchise grantee, is within the power of Congress to regulate.
“As held in Lim v Pacquing (G.R. No. 115044, January 27, 1995), ‘it should be remembered that a franchise is not in the strict sense a simple contract but rather is, more importantly, a mere privilege specially in matters which are within the government’s power to regulate and even prohibit through the exercise of the police power,” Gunigundo said.