MANILA. The National Telecommunications Commission (NTC) said its current directive suspending Globe Telecom's new unlimited short messaging promo (SMS) or text promo stays until they resolve the matter during a rescheduled public hearing on February 20.
But Globe insisted it would continue its Unlitxt promo until the company comes to a settlement with consumer group TXTPower, which filed the complaint that led to the suspension, Globe lawyer Rodolfo Salalima told reporters a few minutes after a closed-door meeting with the regulatory agency.

"We had a conciliation meeting, which is like a pretrial hearing that hopes to lead to a settlement. Globe said they were seriously considering entertaining the TXTPower suggestions" but have asked NTC to give them time to talk to their management, said lawyer Lucio Espinoza, Jr., chief of staff of NTC chairman Abraham Abesamis, during an impromptu press briefing.

Pressed by reporters if NTC's directive to suspend Globe's promo is still in effect, Espinoza was categorical with his reply: "The order stays."

He added that the conciliation meeting focused on a possible settlement but he declined to give details of the discussions.

Pressed if NTC would impose sanctions on Globe for its defiance despite a "show-cause order" that legally asked Globe to explain why it didn't suspend the promo despite an earlier order, Lorenzo, who appeared irked, replied, "For the nth time, we maintain that the order stays."

He added that the NTC is giving both TXTPower and Globe Telecom "an avenue to settle."

Hoping Globe and TXTPower would reach a settlement, the NTC opted for a conciliation meeting instead of the scheduled public hearing.

Lawyers of Globe met with the NTC commissioners first, followed by members of TXTPower, and then Globe again, in closed-door meetings that lasted for more than an hour.

After the meetings, NTC announced that it decided to give Globe Telecom until February 14 to submit its counterproposal.

Abesamis declined to comment further.

"I hope Globe Telecom will revert back to its original promo," said TXTPower co-convenor Anthony Ian Cruz.

In an earlier position paper submitted to the NTC, Globe said the agency had no legal basis to suspend its new text promo.

Globe said the order to revert to their pre-February 1 prices for unlimited texting violated the law and claimed the NTC had deprived the company of "due process by ordering it to reinstate its previous Unlimitxt rates without prior notice and hearing."

Following TXTPower's complaint, the NTC directed Globe on February 5 to suspend its Unlitxt promo.

Globe argued that its previous promotion had been withdrawn from the market with the approval of the NTC on January 31. The new rates were implemented on February 1 with the approval of the NTC, it said.

But in a letter to the NTC on February 5, 2007, TXTPower said the new promotion was a price increase, and therefore the agency should recall its approval.

TXTPower recently led a boycott on Globe following reports it had not suspended its new promotion despite the NTC order. The reports also prompted the agency to ask Globe on February 6 to explain why it had not complied with the directive to suspend the new promotion.

In its position paper, Globe explained that NTC could not suspend the new promotion since it would violate its contracts with subscribers to the new promotion. It also stressed that the agency could not order the reinstatement of promotional rates and contracts that had ceased to exist.

Globe said the two promotions were distinct offerings and that the new promotion had different mechanics and was not a price increase over the old promotion.

In determining whether a promotional rate for text is a price increase or not, Globe said the rates should be compared against the approved rate of P1 per text and not against the rates of the promotion that immediately preceded it.

"Otherwise, Globe claims, no carrier could ever implement a promotion that was different from the one that came before it, and this would deprive consumers of freedom of choice," it said in a statement along with a copy of the position paper it submitted to the NTC.

"Viewed in this manner, the new promotion at P 20 unlimited texting per day is still lower than the approved rate of P1 per day," Globe said.

Globe also pointed out that NTC had no authority to impose a specific tariff for the text service.

The operator said the NTC has affirmed years ago that the text messaging service was a deregulated service under NTC Memorandum Circular 14-7-2000. This authorizes carriers to fix their own rates for deregulated services. They only need only notify the NTC of their new rates but do not require the agency's approval.