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Automatic refunds set for telco service disruptions

Automatic refunds for outages lasting 24 hours.

The House of Representatives has passed a bill that puts pressure on telcos and internet service providers to step up their game. Under House Bill 178, companies will now be required to issue automatic refunds or bill adjustments if customers experience service outages lasting at least 24 hours in a month.

The refunds will be pro-rated, meaning subscribers only pay for the service they actually get. What’s good here is that the adjustment will be automatic, which means there’s no need for customers to file a request. Of course, disputes can still be raised if the refund amount doesn’t add up.

Telcos and ISPs that fail to comply face fines ranging from ₱50,000 to ₱200,000 per violation. Repeat offenders could even lose their license or franchise. The measure also requires providers to waive pre-termination fees for affected subscribers and release any remaining credits caused by excessive downtime.

Lawmakers say the bill is meant to protect consumers and hold providers accountable for poor service. Outages caused by scheduled maintenance, natural disasters, or third-party issues won’t be penalized.

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For consumers, these measures mean better protection and fairer billing. For telcos, it’s a clear signal to improve service quality or face penalties. The hope is that stricter rules will push providers to deliver more reliable internet. Stay tuned for updates.

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Bryan Rilloraza has been a fixture in the local tech scene for over a decade, sharing his perspective as a tech enthusiast and industry veteran. Backed by an MBA from De La Salle University, a Bachelor’s Degree from the University of the Philippines, and 20 years of corporate experience in the telecommunications and banking sectors, Bryan provides a practical, real-world analysis of how technology serves the consumer.

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