Friday, March 29, 2024

Globe, Smart defend use of ‘unlimited’ term for data cap

By Tom Noda

Amid all the complaints on data capping or Fair Use Policy (FUP) that is being implemented by Globe Telecom and Smart Communications, top executives from the mobile operators have defended in classifying as “unlimited” their postpaid LTE plans.

Globe CEO Ernest Cu (right) with TV host and presidential sister Kris Aquino during the launch of Globe's ?wonderful ICT landscape for enterprises? at the Globe Tower in Fort Bonifacio Global City
Globe CEO Ernest Cu (right) with TV host and presidential sister Kris Aquino during the launch of Globe’s ?wonderful ICT landscape for enterprises? at the Globe Tower in Fort Bonifacio Global City

In separate interviews with Newsbytes.ph, Globe’s CEO and president Ernest Cu and Smart’s public affairs head Ramon Isberto both said there was nothing wrong with the use of the term ?unlimited?.

“No, it wasn’t a mistake,” Cu said. “At the beginning, [data] was truly unlimited and it was really meant to allow people to enjoy it unfettered. But as the demand went up, most telcos have to put that (FUP) there.”

Cu emphasized that data capping is not a legal issue.

“It’s more of a marketing issue and not legal one. Because it was always there in the contract, they (customers) signed with us that FUP will apply. We weren’t specific about the FUP, but it has to do with capping on a certain level of usage. It’s always been there,” Cu explained.

Cu made the remarks during the company?s launch of its ?wonderful ICT landscape for enterprises? at the Globe Towers in Fort Bonifacio Global City.

Meanwhile, Isberto shared Globe’s take on the issue, saying FUP is now being adjusted based on customer demand and usage of the network.

“It’s like building a new highway where there were only a few vehicles in the beginning. But now with more vehicles using it, you have to set up rules,” Isberto said.

He said Smart continues to study customer behavior to learn on how to deal more with changes.

“At first, customers were only browsing online but later on more and more went using different applications. What we’re doing now is we’re introducing more data thrifty apps that don’t consume a lot of bandwidth,” Isberto said.

Complaints on data capping recently made headlines when Globe began sending data usage warning via SMS to some of its LTE users reminding them of having reached their data cap limit and then downgrading them to a 2GB browsing speed. The company has been marketing its postpaid unlimited LTE plans of having Internet speeds of up to 42Mbps.

Globe recently said it’s data cap of 3GB per month or 1GB in one day is way bigger than in the US (2GB/month) and UK (500mb/day). For Smart’s part, the company reported it is allowing 1.5GB per month of mobile browsing.

Smart began implementing its postpaid data cap in 2010 while Globe enforced its own only last month. Globe’s data cap in 2010 covered only prepaid calls, texts, and data promos.

Although the National Telecommunications Commission (NTC) allows telcos to enforce FUPs, it asked Globe to submit copies of all its contracts with their “unlimited data” subscribers.

“We don’t regret doing it. It’s something that is a progression, it?s going to happen. Show me a place in the world where [data] is unfettered and it keeps going. There’s no way it doesn’t happen. Why do you expect the Philippines to be different is the question I asked,” Cu said.

More clear FUPs

In addressing the current customer displeasures, Smart and Globe are looking on the same direction in addressing the issue and that is to have a more clear and detailed FUPs.

According to Cu, Globe will be offering other options for people with bucket plans in the future, while Isberto said Smart will come up with different data packages that are time-based and volume-based.

“What will happen is you will have more different kinds of products, more choices. The terms of each product will be clear and the customer can decide,” Isberto said.

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