DOJ prepares new advisory vs ‘deceptive’ ISP ads

Mick Basa

This is AI generated summarization, which may have errors. For context, always refer to the full article.

DOJ prepares new advisory vs ‘deceptive’ ISP ads
The Department of Justice-Office of Competition urges customers to report Internet Service Providers that do not deliver on their advertised promises

MANILA, Philippines – Telecommunication companies that continue to drumbeat their unlimited Internet services yet still shortchange subscribers will definitely be hearing again from the Department of Justice-Office for Competition (DOJ-OFC).

DOJ Assistant Secretary Geronimo Sy said the new advisory will be issued before the end of 2014.

“If a telco says it’s unlimited, it should be unlimited. You cannot say unlimited and then it’s subject to fair use,” Sy told the 5th Association of Southeast Asian Nations (ASEAN) “Leaderspeak” forum at the Asian Institute of Management on Tuesday, November 25.

Fair use is a ceiling on Internet bandwidth implemented by telecommunication companies, ideally to maintain stability of Internet speed particularly during peak hours.

For instance, Globe subscribers who are registered to an unlimited data promo breach the network’s fair use when they exceed the 1GB limit bandwidth a day.

Smart allocates 1.6 GB per month for its unlimited data subscribers. Once exceeded, subscribers’ data connection will be reduced from the networks 3G/HSPA connection to a lower bandwidth.

Such practice is called “bandwidth capping,” drawing flak among subscribers, and the DOJ is taking notice.

“Don’t say unlimited in the first place if it’s not unlimited. What’s that, deception?” Sy asked.

In September, the DOJ-OFC issued a 9-page advisory signed by Justice Secretary Leila de Lima stating that it will not hesitate to sanction Internet service providers (ISPs) that will shortchange their subscribers.

Any misrepresentation in their advertisements violates Republic Act (RA) No. 7394 or the Consumer Act, and RA 7925 or the Public Telecommunications Policy Act of 1995, DOJ-OFC warned.

The DOJ-OFC noted that most telecommunication companies are enticing consumers by showcasing their various offers, either bundled with gadgets with specific data usage.

“Such practice thus creates confusion among consumers. In reality, subscribers are short-changed because they are not guaranteed fast, consistent, and reliable Internet service but pay for a quality of service that is below par,” the DOJ-OFC said in an earlier statement.

On Tuesday, Sy urged the public to continue monitoring advertisements from telecommunication firms that state they provide unlimited Internet services and yet, do not deliver as promised.

“If you see advertisements that says ‘up to,’ but does not give the minimum, report to us. We will do what we can. These are unfair practices,” Sy stressed.

Early this month, the National Telecommunications Commission (NTC) summoned major telecommunication players to a public consultation on the minimum speed of broadband connections.

The NTC is pushing for legislation that would identify broadband as a basic service so that the government can regulate it.

The country’s broadband service cannot be regulated yet since it is classified as a value added service (VAS) under Republic Act 7925 or the Public Telecommunications Policy Act of 1995. Rappler.com

Add a comment

Sort by

There are no comments yet. Add your comment to start the conversation.

Summarize this article with AI

How does this make you feel?

Loading
Download the Rappler App!