Press Release
July 21, 2009

Transcript of interview with Senate President Juan Ponce Enrile

ON TELCOS

SP Now, the reason for this meeting was that the content providers wrote me a letter asking me to intercede for them because on the 23rd, the National Telecommunication Commission will issue the necessary guidelines for its businesses. This is in connection with the problem of the telcos that Sen. Mar Roxas and I had been hearing, and the concern of the service providers that they might be put out of business.

I explained to them that it has never been the purpose or intention of government especially the Congress and the Senate to put anybody out of business. The purpose of the ongoing inquiry or investigation is simply that we want to solve the problem in order to protect public interest, and at the same time, serve the interest of the telcos and the service providers so that they can continue their business.

Now, when I received the letter, and the service providers wanted to meet with me, my office suggested to me that we also invite the officials of the National Telecommunications Commission to this meeting. Yesterday we asked NTC chairman Canobas if he could find time to be present in this meeting this afternoon. The meeting was held and there was a problem that should be addressed. The two parties agreed on some changes in the guidelines in order to clarify the issues better. The service providers agreed, in principle, that they will finally finish the whole thing tomorrow. The battle will be smoothened out.

We also requested the service providers to withdraw the cases that they filed in court so that we can solve the problem smoothly and for the sake of the public in general.

So all of you, including those in the media, who are concerned about their loads and the cost of their communications through phones will probably welcome the development because we will now have a solution to the problem. This leads to a legislation that we will have to introduce because we will have to grant the NTC and, at the same, time grant them enough powers to exercise in the event that there are aberrant operators in the business so that the business will thrive and the public will be protected.

Q: May we have some specifics on the agreement?

SP The basic problem raised was the fear that they might be closed any time by the NTC because of the original provision that their system will be shut off. I suggested to the good Commissioner that the content providers will be given a show cause notice why they should not be stopped from doing business in this kind of activity. If they don't show cause, then they will be shut off. Okay?

Canobas Well basically as is yung guidelines na aming pinalabas. We just clarify some of the provisions there that according to them are vague. So we will sit down again tomorrow to fine-tune the provisions of the new guidelines.

Q: Sir what are those provisions?

Canobas Paragraph 7 of the guidelines provides that they should be afforded due process before we sanction them in such as closure or disconnection.

Q: Are there any implications to their resistance?

Canobas No we will afford them the opportunity to explain why they should not be sanctioned. Why they should not be meted the penalty of closure or disconnection. So this is part of due process. We'll afford them the opportunity to be heard.

Q: Where there are violations?

Canobas No. Let's say may nag complain sa NTC. Yung complainant may ebidensya. And we feel, bago namin i-impose yung sanction sa content provider, bibigyan namin sila ng pagkakataong ipaliwanag bago sila isasanction.

SP Sasabihin ng NTC, you are hereby ordered to show cause within 5 days why you should not be shut off, why your access to the system should not be shut off. Tapos.

Q: Sir, is that fair?

SP That's fair.

Canobas Siguro tanungin natin yung mga content providers.

Q: Sir, yung mga problema sa load sa Globe?

Canobas No as I've said, in behalf of the content providers, we categorically deny that we are responsible for any vanishing load. This deduction in loads, it means probably may kind of subscription for some other kind of services that the telco provides.

Q: Sir nadiscuss na rin ba ng content provider how they get the numbers or yung mga phones na automatic will receive spam text without the consumer asking for it?

SP Hindi na namin tinalakay. Pag gawa namin ng batas, saka namin tatalakayin yan.

Q: Yung magiging decision to shut off the content providers is based on the content submitted?

Canobas Yes of course.

Q: Paano kung may basta-basta mag-complain?

Canobas Kaya nga may due process, mag-iimbistiga ang commission to ferret out the truth. Whether or not your allegations and complaint is sufficient to warrant the imposition of the sanction as prayed for in the complaint.

Q: So, sir, the July 23 will no longer hold?

Canobas That's different. We are talking of an actual case. That has nothing to do with the effectivity of the implementation of our guidelines.

SP July 23 will go on. That is the date set for the issuance of the guidelines that will govern the rule of action of the stakeholders. Should there be any violation, a complaint is made and they assess that the complaint is backed up with strong evidence, they will tell the violator to show cause why they should not be sanctioned. That's just the way it will operate.

Q: Everytime may magrereklamo? Not necessarily ngayon?

SP Of course. Basta may magrereklamo in the future. Yung nangyari, yun ang inaadress na natin ngayon.

Q: So July 23, ang issuance of the deadline?

Canobs Oo. Na-issue na yung guidelines, yung effectivity will be on the 23rd. Kasi 15 days after publication.

Q: So after the 23rd?

Canobas Effective na yung guidelines. No more push messages.

Q: Maybe we should clarify yung mga text spasms, baka yun ang tinatanong nila.

Canobas Kapag magsubscribe ka sa content provider ng bagong serbisyo, bagong promosyon, padadalhan ka.

Q: So pag hindi ka nagpadala?

Canobas Hindi na. Pinagbabawal na nung bagong guidelines. Halimbawa ngayon, na may aktibong kontrata sa content provider, let's say for one month, humihingi kayo na padalhan kayo ng kanilang serbisyo, ipagpapatuloy yun ng content provider. Unless, you opted out. Kasi kontrata nyo yan eh.

SP Sabi mo, opted out, ayoko na, tigil ko na.

Canobas. Ititigil nila yung serbisyo.

Q: Sir we are asked naman talaga whether we would like to subscribe or not. Just to say, wala nang ganon?

Canobas Sa 23, wala na.

Q: So pano kung nagsusubscribe ka, pano mo malalaman kung may mga services?

Canobas May mga advertisements sa radio, sa TV, sa dyaryo...

SP Tsaka kung may kontrata kayo sa mga content providers, continue, that's business. It's fine. They will honor that. It's a choice. Voluntary choice.

Q: Sir, sa SMART yung 211 nila, when you send alerts off, they send back OK tapos sasabihin nya disconnected ka na sa alert, then pag magload ka ulit ng P100, patuloy na naman.

SP Kasama yan. Sa July 23, titigil na yan.

Canobas Pagka persistent let us know we will call on them.

Q: So as of today, ilan na yung complaint na natatanggap nyo?

Canobas Wala kaming exact figure. We will share to you our data.

SP Siguro after this guidelines are issued, then they'll start making their statistics.

Q: Sa content providers, gaano kalaki ang impact sa business nito?

Canobas The telcos declared, kasi wala kaming updated access, ano? It's P5B. For total contet providers. So far yun ang total revenue ng telcos, so may share. Maliit lang ang napupunta sa content providers.

Q: In one year? Buong industriya na yan?

Canobas Buong industriya na yan, oo.

Q: Sir ilan ba yang content providers?

Canobas Mga 400 value added services providers.

SP 400, ang total generated revenue nila, ay P5B. Ang sharing ng telco, ng content provider, 30% sa content provider, except a few exceptions and 70% sa telco. Kaya yun ang isang problema na i-aaddress naming sa batas. Ang relasyon ng content provider sa telco, and independent contractors.

Q: Ilan ba kayo?

Canobas 400 ang fully registered but siguro mga 100 yung active.

Q: Wala pa kayong beinte eh.

Canobas Yun yung major but we have a lot of ancillary, yung maliliit. Kasi like kami, we represent Disney, yung mga ganun.

Q: How did we address yung issue nila na inilapit in the first place na may impact sa kanilang business, sir?

SP Ayun nga.

Canobas We have to clarify nga lang yung mga provision. And hopefully after the meeting tomorrow, everything is clarified, for the smooth implementation of our new guidelines.

Q: Magkano ang mawawala?

SP At this point hindi pa natin alam eh.

Canobas Malaki actually, very significant. At this point hindi ko mabigay yung number. Iba-iba depending on the size of the content providers. Ang estimate ko malaki na eh. Kasi sa aming grupo almost a hundred na eh.

Ang madidisplace? In the industry itself.

Well depende nga sa pag-uusapan. And so far, I'd like to take this opportunity to thank the Senator nga for bringing us together kasi at least na-ca-clarify. Hopefully we can come up to a very acceptable situation.

Q: Ano pong provision ang idadagdag nyo para ma-resolve ang issue na ito?

Canobas I think it's too early right now eh.

SP Alam mo, ang mangyayari dito eh you cannot anticipate all the problems. Kami rin sa batas, we cannot anticipate all the problems. So when these guidelines will be in operation, we will observe how the business behaves. So if there's a need to revise the guidelines eh the NTC will be open to rediscuss this whole thing. So we'll let the matter take effect. Let's see how it affects all the players in the industry.

Our purpose here with the industry is the least cost to the public, but to see that all the players will get a fair and reasonable income out of their operations.

Q: Sir yung withdrawal po ng cases is that part of this policy?

Canobas You better ask the TC.

Q: Let's just cite, specifically, ano yung case na ni-lodge ninyo?

Canobas It was more of a temporary restraining order kasi nga we wanted to get clarification. So if you noticed, napakalapit sa July 23, hinidi naming akalain na si Senator will respond.

SP That is within their rights to go to the courts. Constitutional right nila yun eh. So we have access to the courts. So they went to court to anticipate the enforcement of these guidelines that they thought would put them out of business. Since that was clarified today, they agreed to ask their lawyers to withdraw the cases instead of spending money. They will now withdraw it and it will be threshed out.

As we are threshing it out here tomorrow, they will finalize the matter.

Q: Ilan yung existing active na members ng content providers?

Canobas No kasi last week nag meeting kami, there were 43. Pero we are in the process of still inviting everyone. Kasi it is the first time in the history of the Philippines as far as content providers are concerned na we decided to group together. Dati kanya-kanyang lakad yan eh. So it's a work in progress, we've all agreed to establish this association so in the next 2 weeks magkakaroon ng formal...

SP Mabuti yan. You can have representation, you can liaise with the commission and the telcos.

Q: So yung mga content providers, iuurong nyo talaga yung kaso?

Canobas Yes.

Q: Ano yun sir, individually, fi-nile ng mga kumpanya? Anong klaseng case?

Canobas Well, TRO. Sabi ko last resort na naisip namin because when it was published, we were trying to find a solution tapos biglang lalapit, ang akala namin it was filed yesterday after lunch.

Q: Sa Quezon City?

Canobas Quezon City and Pasig. At this point kasi we are trying to come up with a solution.

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