Published — February 20, 2019
The following post does not create a lawyer-client relationship between Alburo Alburo and Associates Law Offices (or any of its lawyers) and the reader. It is still best for you to engage the services of your own lawyer to address your legal concerns, if any.
Also, the matters contained in the following were written in accordance with the law, rules, and jurisprudence prevailing at the time of writing and posting, and do not include any future developments on the subject matter under discussion.
Read also: Outlawing monopolies and promoting market competition
Due to the increase of demand in communication services and the realization of the Government in the role of communication in nation-building and its dominating impact on the business of telecommunication service providers, Republic Act. No. 11202 (RA No. 11202) or the Mobile Number Portability Act was enacted. This is also in line with the mandate of the Philippine Constitution which states that the State shall give priority for the enactment of measures to protect, enhance and regulate the rights of people in the acquisition, ownership, use and disposition of property (1987 Constitution, Article 13, Section 11). Such mandate could also be done through regulation and prohibition of monopolies when the public interest so requires, and enactment of laws providing for strict proscription on combinations in restraint of trade or unfair competition (1987 Constitution, Article 12, Section 19).
Communication and Global Commerce
Communication plays a vital role in shaping the world for a better future, without it, the world will remain undeveloped as the people will remain isolated and unable to exchange or convey ideas. It overrides and pervade in business and all human endeavors (Nwachuku, Kenneth, GLOBALIZATION THROUGH COMMUNICATION, August 10, 2010) . As globalization arises, communication now becomes more cohesive and paperless, this is shown through the utilization of electronic devices such as mobiles and telephones. Through these tools, efficient communication is conveyed.
The efficiency of communication through mobile and telephone devices made room for telecommunication providers to emerge. Major players on the field of telecommunication business in the Philippines include Globe Telecom Inc, PLDT, Inc. and Smart Comm Inc., and Philippine Telegraph and Telephone Corp. (PT&T). Admittedly, the business of communication service providers does not actually deliver different services, they basically provide similar services on the same technological conduit, as such, the business is prone to restrictions in competition. In fact, the competition on the field of telecommunication business in our country is on the brink of collapse, and the government remedied the situation through the mobile portability law. The government believes that through the enactment of RA No. 11202, new players in the field of telecommunication services will appear and compete with the larger incumbent players (Read here).
Mobile Number Portability Act (RA No. 11202)
Consumer Welfare
The basic premise of RA No. 11202 is to promote consumer welfare through Mobile Number Portability. Mobile Number Portability refers to the retention of a consumer’s existing mobile number whenever a user changes mobile services providers or subscription plans, example of which is a change of a mobile phone user from Globe Telecom Subscription to Smart Communications Subscription, or vice versa.
In case the subscriber has no existing financial obligations to his current service provider, he or she can immediately file for Porting Application. If there is an existing financial obligation, the mobile phone user shall clear his or her financial obligations within three (3) days from receipt of the notice to settle such obligations. Within twenty-four (24) hours from receipt of clearance from the original service provider stating that the old subscriber has cleared his or her outstanding obligation, the new service provider shall activate the account (Sections 7 and 8 of RA No. 11202). A summary of the basic procedure is provided as follows:
Encourage Competition
Aside from the consumer beneficial effects of mobile portability law, a short provision of the said law destroys the restriction on competition and persuade or influence other business to engage in communication service business. Particularly, Section 9 of RA No. 11202 provides:
“Sec. 9. Non-imposition of Interconnection Fee or Charge. – Consistent with the basic premise of this legislation to promote consumer welfare by fostering freedom of choice, no interconnection fee or charge shall be imposed by any mobile service provider for domestic calls and SMS made by a subscriber after effectivity of this Act.”
If a person is a cellphone user, he or she probably has at least two subscriptions and subscriber identification module (SIM) cards because higher fees are imposed on communication between one carrier network to a different network carrier. Such practice can now be eliminated since the law expressly states that, mobile service providers can no longer charge “interconnection fees” for domestic calls and texts made by a mobile phone user.
The practice of subscribing to multiple networks in order to affordably communicate with other persons with different network is now removed, and in effect, the dominant communication providers can no longer hinder, delay connection, degrade quality or even charge higher fees for communication. This gives the telecommunication service providers to improve and develop their services and effectively compete with the existing and new telecommunication service providers.
Penalties
A fine not exceeding ten-thousand pesos (PhP10,000.00) is imposed when mobile number portability is not performed on time but delivered by the service provider on or before a complaint was filed.
Service providers that violate the law or refuse to implement mobile number portability will face various fines to be imposed by the National Telecommunications Commission (NTC) depending on the number of times the offense was committed. A table of penalty is herein provided as follows:
The NTC is also authorized to award the subscriber damages amounting to forty thousand pesos (Php 40,000.00). (Section 10 of RA No. 11202)
OTHER SOURCES:
Marcelo, Patrizia, Number portability attractive to ‘3rd player’ — DICT., BusinessWorld Official Website, May 1, 2018, https://www.bworldonline.com/number-portability-attractive-to-3rd-player-dict/, Last Accessed: February 20, 2019
Alburo Alburo and Associates Law Offices specializes in business law and labor law consulting. For inquiries, you may reach us at info@alburolaw.com, or dial us at (02)7745-4391/0917-5772207.
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