DOJ to telcos: 'Unlimited' means unlimited

The Department of Justice (DOJ) has warned telecommunication companies against misleading subscribers with "unlimited" Internet connection that is however "throttled" or regulated when usage reaches a certain volume of data bits.

In a nine-page advisory, the DOJ declared that the imposition of fair usage policy (FUP) of telcos on unlimited Internet service is inconsistent with the provisions of the Consumer Act of the Philippines, particularly on fair packaging as well as misleading trade practice and advertisements.

Telecommunication companies have recently imposed FUP on all their Internet packages, including unlimited Internet promos. The DOJ said in effect, "the Internet connection is throttled when usage reaches a certain volume of data bits."

"While there is nothing wrong with advertisements and promotions, what is promised must be delivered," said Justice Secretary Leila de Lima. "Our laws require not only truth in advertising but also fairness in packaging and consistency in the provision of the service."

Assistant Secretary Geronimo L. Sy, head of the for Competition (OFC), compared the telcos' unlimited Internet services to eating in buffet restaurants.

"Restaurants cannot offer an 'eat all you can' promo and when a customer eats more than the average person, [they have the option] to actually stop him or not to honor the commitment," said Sy.

The DOJ said if the telcos really intend to put a cap on unlimited Internet packages, the service should instead be promoted as a consumable package and not as an unlimited plan.

The DOJ called on the Department of Trade and Industry (DTI) and the National Telecommunications Commission (NTC) to monitor and penalize non-compliant telcos.

The DOJ warned the telcos that if they are found to have committed this "deceptive business practice," they will be punished with a fine of "at least P500.00 but not more than P10,000 or imprisonment of at least five months to at most one year or both."

Non-compliance with the requisites of fair packaging is also subject to criminal penalties, which may be a fine of not less than P500.00 but not more than P20,000 or imprisonment of not less than three months but not more than two years or both, said the DOJ.

Last September, the DOJ had issued a separate advisory that warns telcos against highlighting "with speed up to (a certain number of) Mbps" just to lure subscribers. It said the companies should instead indicate the minimum speed of their internet services in their ads and promos.

Management techniques

The DOJ urged the telcos to utilize network management techniques that optimize data usage rather than restrict it.

"While capping of data usage is not strictly disallowed, the principle of net neutrality's operates to promote open access and transparency. It is understood that ISPs, due to traffic engineering, necessitate overseeing and managing the facility," said the DOJ.

'No torrent pls.'

While warning telcos, the DOJ also called on subscribers to become more responsible in their Internet usage and be mindful of their fellow subscribers, especially during peak hours when data speed tend to become slower.

"A responsible Internet user is one who respects the rights and privileges of other end-users... To avoid congesting the network further, subscribers must be conscious to limit their internet usage to priority or important purposes," the DOJ advised.

"All other heavy, unnecessary, and leisurely usage of the Internet such as torrent downloading must be done during off-peak hours," it added. —KBK, GMA News