Telecom Billing Dispute for “No Service” (Globe Telecom, Philippines)

A comprehensive legal‑practice note (updated to 20 April 2025)

Scope & purpose – This article collects the full body of Philippine law, regulation, contract doctrine and practical procedure that govern disputes where a Globe subscriber is billed even though voice, SMS or data service is partially or totally unavailable (“no service”). It is written for private practitioners, in‑house counsel and advanced consumers. It is not legal advice; factual situations vary and the authorities below should be read in full.

1. Statutory & Regulatory Framework

Layer	Key issuances	Salient provisions for a “no‑service” billing dispute
Public Service / Telecoms	Commonwealth Act 146 (Public Service Act) as amended by RA 11659 (2022); RA 7925 (Public Telecommunications Policy); NTC Memorandum Circulars (e.g., MC 07‑07‑2011 on QoS benchmarks; MC 03‑05‑2022 increasing fines to ₱2 M per violation)	Classifies telcos as public utilities subject to a “public interest” standard; NTC may suspend tariffs, order refunds or impose administrative fines for sub‑par service or “unjust and unreasonable” charges.
Consumer Protection	RA 7394 (Consumer Act); DTI DAO 2‑2007 (Rules on Consumer Arbitration)	Declares it unlawful to impose “unfair or unconscionable sales acts,” including collection for unusable services; allows damages, refund, replacement and administrative fines (up to ₱300 k per act, doubled for recidivists).
Data & Privacy	RA 10173 (Data Privacy Act)	Billing data are “personal information.” In a dispute the telco must preserve CDRs, usage logs, location data; destruction or unauthorized use is penalized.
Contract & Civil Law	Civil Code arts. 1170‑1191 (breach & rescission), 1266‑1267 (impossibility & extraordinary difficulty); arts. 2200‑2235 (damages)	A post‑paid subscription is a locatio operis (service contract). Failure to deliver service when no valid cause exists is substantial breach giving rise to rescission, refund and damages; waiver clauses in standard terms are void insofar as they defeat law, public order or morals (art. 6).
Alternative Dispute Resolution	RA 9285 (ADR Act); Supreme Court A.M. No. 04‑3‑15‑SC (Court‑Annexed Mediation); Globe’s own Terms (clause on “voluntary mediation”)	Parties may agree to mediate at the Philippine Dispute Resolution Center, Inc. (PDRCI) or the Integrated Bar’s PILMAMS; mediated settlements are enforceable as compromise judgments.

2. Contract Documents – Globe’s Standard Terms (2025 edition)

Clause	Potential leverage points
“Service Availability”	States that service is “as‑is,” may be interrupted for maintenance or factors outside Globe’s control; but also promises “commercially reasonable efforts to maintain minimum service levels.” Argument: The carve‑outs are conditions, not a blanket immunity, and Globe still bears the burden of proving force‑majeure.
“Billing Disputes”	Requires written notice within 30 days of statement date and allows Globe up to 60 days to investigate. The period is not prescriptive—civil actions may still be filed within four (4) years (art. 1146).
“Limitation of Liability” (₱5 k cap)	Under art. 1171, a party in bad faith cannot limit liability; RA 7394 treats caps that “unreasonably diminish consumer rights” as void.
“Dispute Resolution / Venue”	Choice of Makati courts and NTC; note that any consumer may still file with the DTI or the court of her residence under RA 7394 §100.

3. Jurisprudence (Selected)

Case	Gist & ratio decidendi
Spouses Trinidad v. PLDT, G.R. No. 205568 (28 Sept 2020)	Recurrent line outages + continued billing = breach; SC upheld ₱100 k moral & ₱50 k exemplary damages; limitation clause “inherent in the service” struck down as contrary to public policy.
Cebu Cable v. NTC, G.R. No. 190588 (16 Feb 2016)	NTC may impose fines per day of violation even absent express subscriber complaint; “no service” equals “unsatisfactory service.”
Globe Telecom v. City of Davao, G.R. No. 217723 (10 Jan 2018)	Though primarily about local taxes, dictum states that telcos owe a “high degree of diligence in ensuring continuity of service.”
PLDT v. Court of Appeals, G.R. No. 145578 (23 June 2005)	Unauthorized billing for calls never completed; SC ordered refund plus 12% interest from date of demand; emphasized that “documentary records rests with the telco.”
People v. Cordero, G.R. No. 174676 (17 Jan 2011)	Criminal estafa conviction for over‑billing where employee manipulated meters; relevant to willful acts.

4. Administrative Pathway for Complainants

Tip – Keep screenshots of “No Service” indicators, run speed‑tests (Ookla) with timestamp, save SMS reference numbers and make contemporaneous affidavit of intermittent signal; these are persuasive exhibits before the NTC or DTI.

Internal Globe escalation
- Dial 211 ► ask for trouble‑ticket ► insist on a written service‑interruption report by e‑mail. Under NTC MC 05‑06‑2019 Globe must issue a ticket within 24 h and resolve within 3 working days for urban areas (7 days rural).
- Globe may grant billing adjustments (prorated charges, bill shock reversal) – capture this in writing.
NTC Complaint (quasi‑judicial)
- Form: Verified Complaint + Certificate of Non‑Forum‑Shopping + evidence; filing fee ₱200.
- Process: 10‑day answer ► mediation (optional) ► summary hearing ► decision within 90 days (NTC Rules 2023).
- Remedies: Refund/credit; order to cease billing; administrative fine up to ₱2 million per day; suspension/revocation of CPCN in extreme cases.
- Appeal: To the Court of Appeals via Rule 43 within 15 days.
DTI Fair‑Trade Enforcement
- Good where dispute is pure billing / deceptive act (Consumer Act) but no technical service proof is needed.
- Flow: Mediation (15 days) ► Arbitration (Adjudication Officer decision) ► Secretary of DTI ► Court of Appeals.
- Sanctions: Refund, treble damages, closure of business office. Globe historically settles at mediation.
Civil action / Small Claims
- Venue: Where plaintiff resides (RA 7394) or per contract (Makati).
- Small Claims (≤ ₱400 k; A.M. 08‑8‑7‑SC as amended 2022) – no lawyer needed; decision within 30 days; judgments immediately executory.
- Ordinary action – For higher claims or moral/exemplary damages; include prayer for temporary restraining order to stop disconnection or collection.
Alternative Dispute Resolution
- If contractually agreed, initiate mediation with PDRCI or IBP‑PILMAMS; typical completion 30‑45 days; cost split; settlement enforceable under ADR Act.
- Arbitration advisable only for corporate subscribers (time‑critical installations, large claims).

5. Causes of Action & Defenses

Plaintiff theories	Globe’s usual defenses	Counter‑strategy
Breach of contract – unpaid consideration; art. 1170	Force majeure (tower damage, acts of God)	Force‑majeure clause requires notice & proof; outages due to capacity congestion are not fortuitous (Trinidad).
Unfair or unconscionable act (RA 7394 §52)	“As‑is” clause; acceptance by use	Consumer Act treats standard‑form adhesion contracts strictly against the drafter; acceptance cannot waive statutory rights.
Fraud / bad‑faith over‑billing (art. 1171; exemplary damages)	Good‑faith error, promptly rectified	Show pattern of ignoring trouble tickets, internal memos; demand internal audit under Best Evidence Rule exceptions.
Negligence (art. 2176)	No duty beyond PSA & QoS benchmarks	Cite NTC benchmarks + internal SLA, insisting they create actionable duty in tort.
Data Privacy (RA 10173) – misuse or mishandling of billing logs	Legitimate purpose, proportionality	Ask NPC for investigation; NPC may impose separate fines (up to ₱5 M) resulting in leverage for global settlement.

6. Remedies & Damages Matrix

Remedy	Measure / statutory basis	Practical tips
Refund / Credit	NTC MC 05‑06‑2019 (§8); art. 1268	Compute pro‑rated charge per hour of outage; NTC uses 1/720 of MSF per hour.
Actual damages	art. 2199	Business customers – submit invoices for lost revenue; home users – cost of alternative connection (mobile hotspot fees, café rentals).
Moral damages	art. 2219(10)	Show “mental anguish, serious anxiety”; medical certificate helps but not indispensable after Trinidad.
Exemplary damages	art. 2232 (bad‑faith breach)	Pattern of ignoring NTC directives or repeated violations; cite Globe fined ₱9 M in NTC Case 2022‑078.
Attorney’s fees & costs	art. 2208(11)	Granted where defendant acted in bad faith or caused plaintiff to incur expenses to protect interests.
Provisional relief	Rule 58 (injunction); Rule 57 (attachment)	To stop disconnection or to secure fund for refund. Courts grant if clear right + urgent necessity.

7. Evidentiary Issues

Burden of proof lies initially on complainant to show outage; shifts to Globe once prima facie made.
Electronic logs – NTC Rules 2023 accept screenshots & speed‑tests if authenticated by affidavit; subpoena duces tecum may compel Globe’s OSS logs.
Expert testimony – IT engineer may be offered to correlate RF logs and user GPS data.
Admissibility of screenshots – Allowed under Rules on Electronic Evidence (A.M. 01‑7‑01‑SC); hash value not required but time‑stamp and device description recommended.

8. Compliance & Risk‑Management Guides for Practitioners

Step	Action item	Rationale
Before suit	Draft Demand Letter citing PSA §20 & RA 7394; give 15‑day cure.	Preserves right to attorney’s fees; triggers legal interest from date of demand (12% per annum post‑2013).
During proceedings	Request billing suspension to avoid service cutoff; rely on NTC MC 03‑03‑2008 (“no suspension during bona‑fide dispute”).	Prevents coercive disconnection which may be considered abuse of dominance under Philippine Competition Act.
Settlement	Propose service‑credit + damages package; ask for “without fault” certification for credit scoring.	Cheaper for Globe; protects subscriber’s credit file with TransUnion.
Post‑resolution	File update with NPC if personal data were shared; close data‑privacy loop.	Avoid residual liability under RA 10173.

9. Corporate & Class‑Action Considerations

Enterprise accounts often have bespoke Service‑Level Agreements (99.5 % uptime). A single day of no service can exceed SLA thresholds, entitling client to 5‑15 % monthly‑service‑fee credit.
Class suits – Rule 3, §12 (representation) & RA 7394 §100 allow consumer class actions; typical where network‑wide outage affects thousands. Plaintiffs must show commonality and adequacy.
Competition law overlay – Large‑scale, repeated outages while continuing to bill may be “abuse of dominant position” (RA 10667 §15). PCC can impose fines up to 10 % of Philippine turnover and order disgorgement.

10. Road‑Map / Flowchart (practitioner version)

Service outage → Collect evidence → Demand letter →
┌─Globe resolves + credits─┐
│                         No →
│          Yes             │
└────End case──────────────┘
        ↓
NTC or DTI complaint (90 days)
        ↓
Settlement ←→ Decision
        ↓
     Appeal / Civil action (optional)

11. Emerging Trends (2024‑2025)

e‑NTC Portal – Complaints can now be filed online; 45 % faster disposition.
NTC MC 01‑02‑2025 – Proposed to peg automatic bill waiver once contiguous outage > 24 h is verified by network logs.
Satellite fail‑over plans – DICT pushing telcos to adopt LEO‑based redundancy; may narrow Globe’s force‑majeure safe‑harbor.
AI‑driven billing audits – Start‑ups offering subscribers analytics (e.g., PulseCheck PH) creating new evidence streams.

12. Checklist (Quick‑Reference for Counsel)

Obtain subscriber contract & plan details.
Gather timestamps of “No Service” & reference numbers.
Compute pro‑rated refund and attach working paper.
Draft demand citing statutory bases (PSA, Consumer Act).
File NTC/DTI complaint if no cure in 15 days.
Prepare affidavit with screenshots + speed‑test logs.
Subpoena Globe OSS/BSS logs (if resisted).
Consider small‑claims vs. ordinary civil vs. ADR.
Plead damages: actual + moral + exemplary + fees.
Secure interim relief to prevent disconnection.

13. Conclusion

A “no‑service but still billed” scenario against Globe Telecom is not merely a customer‑care issue—it sits at the intersection of public‑utility regulation, consumer law and private contract. The subscriber’s toolkit is robust: administrative remedies before the NTC or DTI, civil damages, even competition‑law complaints for systemic outages. Telcos, for their part, can mitigate exposure through transparent outage reporting, fair billing adjustments and prompt ADR. Mastery of the statutes, circulars and jurisprudence above is essential for effective advocacy or compliance in the Philippine setting.

Prepared 20 April 2025 – Asia/Manila
(c) This note may be reproduced with attribution. For tailored advice, consult a Philippine lawyer.