Smart to Junk Thousands of E-Load Dealers?

Congress asked to defend Smart dealers from “dismissal”

Consumer group TXTPower today urged the Senate and House of Representatives to look into a mobile carrier’s plan to summarily dismiss thousands of electronic load dealers nationwide who have helped the telco expand its market share since 2002.

“Both the National Telecommunications Commission and the Department of Trade and Industry have told Smart electronic load (e-load) dealers that they do not have jurisdiction over their predicament, and so Congress must step in to fill the void, rescue these dealers from certain bankruptcy and exercise their oversight functions on the franchises granted to Smart Communications and parent compant PLDT,” said TXTPower president Anthony Ian Cruz.

If not stopped, Smart’s plan will end the e-loading businesses of at least 3,000 dealers and their tens of thousands of partners.

Smart introduced its e-load system in 2002 and asked entrepreneurs to become dealers. The dealers meanwhile recruited retailers who sell e-load to end-users. The initial set-up resulted in Smart expanding its nationwide reach and beating rival Globe Telecom in the prepaid market.

“By the end of November, we have been informed that Smart will end its business partnerships with these dealers after depending on them to lay down the network of hundreds of thousands of e-load retailers from the very start. The dealers would be dropped in favor of a smaller number of regional and provincial distributors,” said Cruz.

“There is a possibility that Smart’s plan to eliminate dealers would affect Smart subscribers. Some retailers who partnered with the dealers may also lose their businesses because they may not be reached by the new regional and provincial distributors who are fewer in number and who do not personally know theese retailers,” said Cruz.

TXTPower said that Smart should recognize the role of the e-load dealers, who have formed the Telco Entrepreneurs Association (TEA), who the company egged on to take on the business in the first place.

“We also appeal to Smart to uphold corporate social responsibility and include these dealers who have helped them in their business since 2002 in their new business plans,” said Cruz.

TEA sought and obtained TXTPower assistance in a meeting last week in Manila, and has likewise written several members of the Senate.

The group has earlier sought to meet officials of Smart but the request has not been acted upon by company officials, as of press time. ###

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