CASE STUDY

Prepared By:
Aga, Janicka P.
Datingginoo, Cris Diane G.
Odronia, Paula Marie G.
Pulga, April Joy G.
Romulo, Jelina Joy S.
Taeca, Mark Thomas S.

Submitted to:
Engr. Mary Gold N. Dela Cruz

February 22, 2016

SCENARIO:
TELCO A is a domestic corporation engaged in the business of
providing telecommunications and telephone services, for almost 2 decades
(19 years) it served the people of the City of Bian - Laguna for being the
sole service provider of basic telephone services in the municipality.
In the early years of service of TELCO A, the company only provides
the facility/service of a telephone system to Bian. But due to the uprising
popularity of internet which also the people of Bian demands due to its vast
and efficient role in communications, In 2007 TELCO A has become also the
Internet Provider of the said Municipality.
For quite some time the people of Bian is delighted because now they
can access the internet, but it didnt last for long as they have realized that
the service that the TELCO A offers is expensive, a lot of clients also
complains about the slow and intermittent connection. For this reason the
people of Bian began to look for other internet service provider to satisfy
their needs.
TELCO B is a company which offers the same service and is well-known
for its affordable yet satisfying and fast internet service. For quite a long time
the residents of Bian wonders about the seemingly inexistence of the
popular service provider in their vicinity. People start to inquire about the
service of the TELCO B. Unfortunately, TELCO B confirmed that the company
is incapable in providing such service within the city.

This news was widely spread to the residents of the city and people
starts to wonder why TELCO B cant offer the same service to their
municipality when the service is available in the nearby cities. The
unsatisfied clients is fired up and began bombarding TELCO A with complains
about the unsatisfactory, slow and incompetent service. An issue starts to
arise as numerous speculations by the residents have been formed. The core
of the issue centers mainly on the person behind the TELCO A, which also
has a big role in the local government of the Municipality.

POINT OF VIEW OF RESIDENTS:

In line with the issue regarding the poor service of TELCO A, an
unending blab circulates in the Municipality. Residents of the mentioned area
still state that they are still stuck with the unsatisfying and expensive service
of TELCO A. The people of Bian are dissatisfied with the way the company is
addressing their complaints, so they used the power of social media to have
an outlet for their disgust to the company, dragging the companys pride and
integrity.
The TELCO A is accused of being favored by the LGU of Bian, because
the CEO of the company is a cousin of the current mayor of the said
Municipality, the residents believe that the LGU and TELCO A is preventing
other telecommunication company to enter Bian to monopolize the
telecommunication business in the municipality.

TELCO As POINT OF VIEW:

TELCO A stated that as much as they want to lower the prices of the
internet services offered, their hands are really tied on that part since the
basis of pricing is on how much the bandwidth is being purchased. For short,
prices of bandwidth are really expensive. Regarding with the concerns and
complaints of the subscribers, TELCO A is assertive that the said matters has
already been addressed and is being resolved. Regarding the issue
concerning about the other prospective competitors, TELCO A denied on
having an involvement in preventing other telecommunication companies
from providing the same services in the Municipality, In fact they are
complaining that other telecommunication company sometimes make new
connections for subscribers without reporting or interconnecting with them.
And they believe that this is against with their franchise agreement, section
number 10.

ANALYSIS and CONCLUSION:

Analyzing the situation and both point of views of the Residents of
Bian and TELCO A, the group believes that the residents are entitled to
voice out their complaints and raise their issue regarding the services that

TELCO A has been providing them. TELCO A is obliged to respond and resolve
the complaints of its subscribers as stated in the Memorandum Circular No.
8-9-95 which Implements Rules and Regulations for Republic Act No. 7925
Re: An Act to Promote and Govern the Development of Philippine
Telecommunications and the Delivery of Public Telecommunications Services.
Under MC 8-9-95: Complaints, the TELCO A should have a mechanism to
inform all of its subscribers of the person or office and the telephone
numbers within its organization where its subscribers can file or phone in
their complaints. It is also said that the company should act on all the
complaints that they have received (in any form and manner) within thirty
(30) days from receipt of complaint. It is also stated that if the complainants
are dissatisfied with the action of the company they may bring the matter to
the Commission (National Telecommunication Commission).
There is truth in the statement of the TELCO A that the price of the
bandwidth

is

being

regulated

by

the

National

Telecommunication

Commission. The rates for the services of TELCO A are also influenced by the
commission as stated in the section 5 of RA8615 (Rates of services), section
5 states: The charges and rates for telecommunications services of the
grantee, except the rates and charges on those that may hereafter be
declared or considered as nonregulated services, whether flat rates or
measured rates or variation thereof, shall be subject to the approval of the
Commission. Furthermore the subscriber is still feeling that what they are
paying is not in good proportion to what service they have received, they can

still file a complaint to the company in reference to Memorandum Circular

No. 8-9-95.
In the case of other telecommunication companies who are using the
leased line of TELCO A in Bian, they may be sued by TELCO A, due to
violating the section 10 of RA 8615; an act granting TELCO A a franchise to
construct, establish, install, maintain, and operate local exchange network in
the municipality of Bian. Sec. 10 of RA 8615 or the right of interconnection
states: The grantee is hereby authorized to connect or demand connection
of its telecommunications systems to any other telecommunications systems
installed, operated and maintained by any other duly authorized person or
entity in the Philippines for the purpose of providing extended and improved
telecommunications services to the public under such terms and conditions
mutually agreed upon by the parties concerned and the same shall be
subject to the review or modification of the Commission.
section

10

that

other

telecommunication

company

It is clear in

should

have

an

agreement with Telco A which shall be submit and will be subjected to

modification by the NTC. For short without a proper agreement with the
TELCO A other companies is not allow to use the leased line of the franchise.
It is also clear that TELCO A as a Local Exchange Carrier is protected against
such acts of other telecommunication company as written in the Article no.
IV section 8 of RA7925. A local exchange operator shall be protected from
uncompensated

bypass

or

overlapping

operations

of

other

telecommunications entities in need of physical links or connections to its

customers in the area except when it is unable to provide, within a

reasonable period of time and at desired standard, the interconnection
arrangements required by TELCO A.
In conclusion the TELCO A should also be reminded of their franchising
agreement in RA8615 particularly on section 4 (Responsibility to the Public).
It is stated there that should the demand for the telephone service at any
time increase beyond the capacity thereof, the grantee shall increase the
same to meet such demand: Provided, that in case the total demand to be
satisfied by the expansion is less than the smallest viable local exchange
available in the market as determined by the Commission. If TELCO A will
continue to show its incompetency to meet the demand of the people of
Bian - Laguna, it is more likely that the resident will bombard them
complaints that may lead to a called meeting from NTC or worst a case
forwarded to the Legal Department.
With

regards

to

the

suspected

suppression

to

other

telecommunication company by the LGU and TELCO A further investigation

should be made. The official in question may be fired if proven that he has a
conflict of interest regarding the approval of other telecommunication
entity entering Bian. In finality our group recommends that the residents of
Bian should file their complaints formally instead of just posting their
speculations and protests in the social media.