Sunday, July 13, 2014

P50-M fine pushed for erring Internet service providers


MANILA -- An administrative fine of up to P50 million is being pushed for telecommunication companies that fail to comply with directives to improve Internet services.

According to House Deputy Minority Leader and LPG-MA Rep. Arnel Ty, they are pushing for a new legislation that will significantly increase financial punishment for telcos that are unable to provide the mandatory quality of service standards.

This, following widespread consumer complaints about slow "high-speed" Internet services provided by telcos.

The National Telecommunications Commission (NTC) currently imposes a fine of only up to P200 per day on telcos that do not meet quality benchmarks. This amount is based on the Public Service Act of 1936.

In a statement released on Sunday, Ty said broadband and high-speed Internet access should now be classified as a "basic service," similar to voice calls and text messaging.

“We are pushing for universal broadband service. Government’s goal should be to ensure that all citizens have access to high-speed Internet service at a fair price,” he said.

At present, broadband is considered a value-added service, with its speed and price dictated by the free market.

Ty previously filed House Resolution 186 calling for a congressional inquiry into the deteriorating services of telcos. He said the degrading services might be caused by "extreme congestion" in the telcos' networks.

“It would appear that telcos have been taking on an incremental number of subscribers every quarter, without building up their networks fast enough, their huge earnings notwithstanding,” Ty said.

source: www.abs-cbnnews.com