More consultations on data rollover bills pushed

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MANILA, Philippines — A consumer advocacy group has warned that proposed data rollover bills could undermine the affordability and flexibility of prepaid mobile data offerings in the country if not carefully designed. 

CitizenWatch Philippines is therefore urging lawmakers to suspend deliberations and conduct broader consultations.

The group said that while allowing consumers to carry over unused data is a valid and necessary protection, the current proposals risk clashing with the structure of the Philippines’ promo-driven mobile data market, which is heavily reliant on short-term prepaid bundles offered by telecommunications companies.

“Consumers should not lose paid internet data simply because of arbitrary expiration rules. That objective is valid and necessary,” said Orlando Oxales, CitizenWatch’s lead convenor.

Oxales, however, stressed that legislation must reflect market realities, noting that telecommunications providers in the Philippines largely depend on frequently changing promotional packages rather than fixed monthly subscription plans.

“Broader consultations among lawmakers, regulators, consumer groups, and telecommunications providers are needed to ensure that the policy is workable and aligned with the realities of the Philippine mobile market,” he said.

CitizenWatch explained that data rollover features are easier to implement in markets dominated by postpaid plans with fixed allocations. In contrast, the Philippine setup is centered on low-cost, short-duration promos that appeal to budget-conscious consumers.

“It is easy to see how rollover features work with fixed monthly plans that have defined data allocations. The real question is how this will work in a market dominated by short-term promotional bundles,” Oxales said.

The group further warned that forcing rollover mechanisms onto this system without proper calibration could disrupt how telecommunications companies design and price their offerings. This, in turn, could reduce the availability of low-denomination prepaid options that many Filipinos rely on.

CitizenWatch also flagged several risks, including increased complexity in promo structures and a potential shift by telecom providers toward fewer, higher-priced plans to offset operational and financial uncertainties introduced by rollover rules.

According to the group, such developments could erode the flexibility that prepaid users currently enjoy, particularly those who depend on small, affordable data packages for daily connectivity.

Beyond pricing concerns, CitizenWatch also raised security risks linked to prepaid promo misuse. It cited data from TransUnion showing that the Philippines remains a hotspot for digital fraud, with a 13% suspected fraud rate in 2024, which is more than double the global average.

The group noted that scammers often rely on low-cost, short-term prepaid promos, such as unlimited SMS or data packages, to carry out large-scale messaging campaigns. Extending the lifespan of these promos through rollover features, it said, could inadvertently lower operational costs for fraudsters and expand the reach of scams.

To address these concerns, CitizenWatch pointed to how rollover systems are implemented in other markets, such as in the United States, where telecom operators impose strict guardrails. These include limiting rollover validity to one billing cycle and requiring users to remain subscribed to eligible plans.

“These limits help preserve affordability, prevent pricing distortions, and maintain product diversity,” Oxales said.

The group emphasized that without similar safeguards, the proposed bills could unintentionally distort the local telecom landscape, affecting both service providers and consumers.

CitizenWatch is calling for a pause in legislative discussions to refine key provisions, including how rollover applies to short-term promos, the duration and limits of carried-over data, and the conditions for renewal and enforcement.

“Getting the policy right is more important than getting it fast. If we take the time to refine the rules, we can protect consumers today without undermining affordability, access, and innovation in the future,” Oxales stated.

Lastly, the group warned that poorly calibrated data rollover policies could jeopardize the future of flexible, low-cost prepaid promos, which is long considered a cornerstone of mobile connectivity in the Philippines, raising concerns that well-intended reforms may come at the expense of affordability and consumer choice. (Contributed story)