Philippine School of Business Administration

R. Papa St., Sampaloc, Manila

Submitted by:
Nicasio, Naiomi Marice S.
Our Vision
Lead and Inspire Filipinos to Create a Better Tomorrow.

Our Mission
Empower Filipinos everywhere with customer-focused digital innovations that unlock
and share their infinite potential.

Our Values
● Deliver awesome customer experiences
● Take care of our people
● Collaborate to win
● Fast is better than perfect
● Malasakit
● Humility to listen and learn

The Beginning
Anticipating the liberalization of the telecommunications industry in the Philippines in 1992,
Smart (then named Smart Information Technology, Inc.) was organized on January 24, 1991 by
a group of Filipino investors led by Orlando B. Vea and David T. Fernando. The Company
obtained its congressional franchise in April 1992 and was granted a provisional authority to
operate a mobile cellular service in May 1993. In December 1993, Smart commenced
commercial operations of its cellular service. By then, Smart had drawn in strategic partners
who brought in managerial and technical expertise, and contributed substantial financial
resources. These were: First Pacific Company Limited, a Hong Kong-based conglomerate, its
Philippine flagship Metro Pacific Corporation and Nippon Telegraph and Telephone Corporation
of Japan (NTT) – one of the world’s largest telecommunications companies.
In compliance with the government’s telecommunications program, Smart established a local
exchange service in the cities and provinces assigned to it under the “service area scheme.”
The Company also obtained licenses to provide international gateway, paging and inter-carrier
transmission services.

Smart Communications, Inc. (Smart) is a wholly-owned wireless communications and digital

services subsidiary of PLDT, Inc., the Philippines’ largest and only integrated
telecommunications company. Smart serves approximately 96% of the country’s cities and
municipalities with its combined 2G, 3G, 4G LTE, and 5G network*, providing mobile
communications services, high-speed internet connectivity, and access to digital services and
content to over 71.2 million Filipinos*, supporting the country’s growing digital economy, and
providing the best customer experience for an increasingly digital Filipino lifestyle.
Management Committee
Manuel V. Pangilinan, Chairman
Alfredo S. Panlilio, President and Chief Executive Officer
Victorico P. Vargas, Leadership Transition Officer
Mario G. Tamayo, Network
Jane J. Basas, Consumer Business Wireless
Alejandro O. Caeg, Consumer Sales
Anabelle L. Chua, Finance
Gina Marina P. Ordoñez, People
Marilyn A. Victorio-Aquino, Legal and Regulatory Affairs
Mary Rose L. Dela Paz, Supply Chain Management and Administration
Menardo G. Jimenez Jr., Consumer Business, Home
Joseph Ian G. Gendrano, Enterprise Business
Katrina L. Luna-Abelarde, Strategic Partnerships and Revenue Operations
Victor Emmanuel S. Genuino II, Digital Office
Alexander G. Seminiano, Information Technology
Angel T. Redoble, Cybersecurity
Jeanine R. Rubin, Customer Experience
Leah Camilla B. Jimenez, Risk and Privacy
Melissa V. Vergel De Dios, Corporate Sustainability
Catherine L. Yap-Yang, Corporate Communications
Mary Julie C. Carceller, Strategic Program Management and overall coordinator ManCom
meetings
The Subscriber has read the Terms and Conditions of this Service Agreement ("Agreement").
After having read the contents hereof, Subscriber agrees to the supply of telecommunications
services ("Service") under the terms and conditions hereinafter contained, Smart
Communications, Inc. ("Company" or "SMART") agrees to supply the Service under the
conditions stipulated herein.

1. HARDWARE:
All terminal equipment/unit connected to or used in conjunction with the SMART
telecommunication networks shall be of a type approved by the Company. The Company does
not by this Agreement cover any representation or warranty for any telecommunications and
related equipment ("Hardware").
Ownership of all Hardware received by Subscriber under the Service shall only be transferred to
the Subscriber at the end of the lock-in period. In the event the Subscriber violates this
Agreement, SMART reserves the right to retrieve, collect, or block the said Hardware and use
whatever means it may deem necessary to protect its interest.

2. TERMS AND CONDITIONS:

This Agreement relates only to the Service provided by the Company and shall be in full force
and effect from and after the actual date of approval of the application for the Service.

3. PAYMENT TERMS
● The Subscriber shall pay all accounts due to the Company in respect of: 1) A monthly
fixed fee for the Service as invoiced; 2) All charges incurred in using the Service as
applicable; and 3) All applicable Philippine taxes as included in the billed charges.
●
The Company may, at its absolute discretion, allow the Subscriber credit for using the
Service up to a certain level and the Company may set, revoke, or impose conditions on
such credit limit at any time and at its absolute discretion. The Company may determine
the billing period at its absolute discretion. Any fees paid in advance shall not be
refundable.
●
The Subscriber shall be liable for all outgoing calls, texts and other transactions,
including those incurring roaming charges from the Subscriber’s terminal unit regardless
of who may make such calls, texts, and other transactions, including those incurring
roaming charges. Non-payment of these charges or refusal on the part of the Subscriber
to pay charges arising from these calls, texts, and other transactions, including those
incurring roaming charges shall be sufficient ground for the Company to discontinue the
Service.

The Subscriber agrees to pay on or before the date specified in the service bill ("Due
Date") all charges stated on the bill. Billing Statement for the Service shall be rendered
at regular intervals at the end of applicable billing cycles. Contested bills, if any, should
be brought to the attention of the Customer Care Department of the Company within
 twenty-one (21) days from the statement date, otherwise the Subscriber shall be
deemed to have accepted the correctness or accuracy of the bill.
●
Notwithstanding the non-receipt of any bill, it shall be the Subscriber's responsibility to
inform himself of the Subscriber’s outstanding fees or charges through the SMART
Website, Customer Care Hotline, or any SMART Store and effect payment, without need
for further demand on or before the Due Date.
●
The Subscriber shall be charged the Company's applicable roaming rate and the
roaming service activation fee in the event that the Subscriber avails of the Company's
International Roaming Service. The Company shall not be liable for the failure of the
roaming partner to provide services in the roaming area.
●
The Subscriber agrees that all payments shall be applied first to bills in arrears, including
interests and-penalties. The balance, if any, will be applied to the current obligation.
●
The Subscriber agrees not to transfer this Agreement or any right or interest originating
therefrom, to any person or entity without prior written approval from the Company.
Pending the approval of such transfer, the Subscriber shall remain liable for any and all
accrued fees and charges.
●
The Subscriber agrees that all cheques and other payments shall be made payable
directly to the Company/authorized collection partners and any cheque payment made
out, or any payment in cash made directly, to any representative or salesman shall be
invalid.

4. DEPOSIT
● The Company may require the Subscriber to pay a deposit of such amount as the
Company may determine from time to time as a guarantee for all payments due
hereunder. No interest shall be payable on such deposit.
●
Without prejudice to any of the Company's rights to recover amounts due from the
Subscriber, the Company shall be entitled at any time to set off any amounts due from
the Subscriber against the deposit without prior notice to the Subscriber.
●
The Company may (without prejudice to any other rights it may have) forfeit the
Subscriber's deposit If the Subscriber is in breach of any of these Terms and Conditions.
●
Subject to any rights which the Company may have, and upon termination of the
Service, the Company shall, upon the written request of the Subscriber, refund the
deposit after deduction of all outstanding amounts due from the Subscriber within sixty
(60) days of receipt of the written request for refund.
●
If any deposit remains unclaimed for twelve (12) months after the termination of the
 Service, the Subscriber shall forfeit such deposit in favor of the Company without need
of any further act or deed.

5. PRE-PAID FEES, CHARGES AND DEPOSITS

● The Company may require a pre-paid fee as a pre-requisite for continuing the Service.
The pre-paid fee and/or deposit (as stated in Clause 4 above) shall bear no interest.
Upon termination of the Service, the pre-payment shall be applied against the
Subscriber's final bill, In case the pre-payment is not sufficient to cover the final bill, the
Company shall charge the Subscriber any deficiency. The balance of the pre-payment
and/or deposit, if any, will be refunded to the Subscriber, without interest, after one
hundred eighty (180) days post termination.
●
The Subscriber shall be charged a fee for the processing of any Service modification
requests such as changes in subscription plan, etc.

6. LOSS OR DAMAGE OF HARDWARE

● The security of the Subscriber Identity Module (SIM) Card and the confidentiality of the
Subscriber’s Personal Identification Number (PIN) as well as the proper care and
maintenance of the Hardware and/or SIM Card shall be the Subscriber's sole
responsibility.
●
The Company, upon notification of lost SIM Card/Hardware, shall immediately effect
barring of outgoing and incoming calls/SMS. All charges and fees accruing prior to the
disconnection shall remain for the account of the Subscriber.

7. MULTIPLE LINES
The Subscriber may avail of a maximum of ten (10) postpaid lines for retail individual plans. The
Company has the right to decline applications that exceed this limit. Subscribers obtaining lines
beyond the maximum allowed number may apply for corporate plans.

8. THIRD-PARTY APPLICATIONS
Should Subscriber have any issues using third party applications due to the unavailability of the
mobile number (due to it being registered to another person), it is the responsibility of the
Subscriber to coordinate with the third party application concerned regarding the updating of
information linked to the mobile number. SMART has no access to the third party application
database.

9. FRAUDULENT AND UNAUTHORIZED USE

If the Subscriber or any other person, at the sole discretion of the Company, is found to use the
Service for any fraudulent purpose or illegal activity, or is found to use abusive and/or Indecent
language to other Subscribers or Company staff, or has submitted an application for
Subscription through fraudulent means or has supplied any false/ wrong information in
connection with such application, the Company reserves the right to immediately disconnect the
Service without prior notice and/or refuse to reconnect the Service.
The Company also reserves the right to file the appropriate legal action against the erring
Subscriber or person concerned, and to charge the appropriate pre-termination fee, if any. The
Subscriber's right to use the Service is personal to the Subscriber. The Subscriber shall not
engage in the following activities:
● Resale or any other commercial use of the Service without the prior express written
consent of the Company;
●
Utilization of the Service in bypassing or in activity/ies that tend to bypass the SMART
network, billing and/or traffic routing;
●
Use of the Service in prohibited activities like callback, dialback, unauthorized audiotext,
international and national simple resale (ISR/NSR) and other similar services;
●
Tampering, altering, modification, or unauthorized programming of the SIM Card or its
digital reference ("Unauthorized Activities");
●
Use of SMART Subscriber Identity Module (SIM) cards with unauthorized types of
devices apart from the intended hardware (i.e. smartphones or tablets) For example,
SIM cards must not be inserted in portable hotspots and fixed routers. Otherwise, the
Company reserves the right to temporarily suspend or terminate its service without prior
notice.
●
Abusive use of data services where data usage exceeds 60GB under the Service’s anti
bill-shock feature.
●
Activities that are considered unlawful by the laws of the Republic of the Philippines;
●
Obstruction or penetration, or attempts to obstruct or penetrate the security of any
entity’s network or systems such as malicious software (e.g., Trojan horses, worms,
spyware, etc.), denial of service attacks, spam emails, etc.;
●
Excessive contribution to network congestion, which results to disruption of other
subscribers’ access to the network and diminishes network performance; or
●
Use of high bandwidth applications and services like operation of servers, web
broadcasting, and the like
●

Should the Subscriber engage in any of the abovementioned activities, the Company
has the right to take necessary actions including, but not limited to, the following:
 ○ SMART may implement network management practices to improve its service, to
reduce network congestion, and/or to adapt to technological advancements;
○ SMART may downgrade Subscriber’s data speed in case of excessive usage at
any point during a billing cycle;
○ SMART may obtain and monitor Subscriber’s usage information through
reasonable and legal methods; and/or
○ SMART may temporarily disconnect, interrupt, or terminate the Subscriber’s data
services without prior notice.

The Subscriber shall likewise be liable to the Company for any and all compensation fee on
account of any of the above Unauthorized Activities and unauthorized commercial use of the
Service. The compensation fee is payable, without any limitation, from the time the
Unauthorized Activity occurred until the actual cessation thereof. A penalty equivalent to one
hundred fifty percent (150%) of the computed revenue losses shall likewise be charged against
the Subscriber if proven accountable for such Unauthorized Activity. For this purpose, the
Company shall have the right to full access to the relevant books and all other records of the
Subscriber in order to ascertain the volume of traffic and total amount of compensation fee
payable. In the absence of said record, the Company shall have sole discretion in the
determination of the bypass compensation.
In addition to the Unauthorized Activities referred to above, the Subscriber undertakes not to
use the Service for any activity that is contrary to morals and public policy or which violates any
ordinance, law, decree, order, regulation or treaty ("Illegal Activities"). The Subscriber agrees to
indemnify and hold the Company free and harmless from any liability, suit, or damage arising
from or connected with the Subscriber's Unauthorized Activities and/or Illegal Activities. The
Subscriber further authorizes the Company to supply any and all information requested by any
law enforcement or government agency/ies, or other private entities, the latter within the limits
provided or by law, relative to the Subscriber's subscription to the Service. The Subscriber
hereby irrevocably and unconditionally waives any and all its relevant remedies under the law
including, but not limited, to the right to claim damages.

10. SERVICE REDIRECTION

Unless otherwise inconsistent with other provisions in this Agreement, the Company reserves
the right without incurring any liability, and at the Subscriber's expense, to redirect partially or in
full the Subscriber's Service. Upon compliance with the requirements of the company, the
Service may be restored partially or in full. Failure of the Subscriber to comply with the
Company's requirements will give the Company the option to terminate the Service
permanently, subject to RA 7925 and its implementing rules, and to charge the appropriate pre-
termination fee, if any.

11. EXCLUSION FROM LIABILITY

The Company shall not be liable for any loss, costs, compensation, damage or liability to the
Subscriber or any third party arising directly or indirectly out of or in connection with the supply
or use of the Service including, without prejudice to the generality of the foregoing, any loss,
costs, compensation, damage or liability to the Subscriber or third parties caused by:
 ● Any delay, interruption, or termination of the Service, whether caused by administrative
error, technical, mechanical, electrical or electronic fault or difficulty or any other reason
or circumstances beyond the Company's control (including but not limited to acts of God,
strike, labor disputes, fire, disturbance, action of government, atmospheric conditions,
lightning, interference or damage by third parties or any change in legislation);
●
Any inaccuracy or omission, lack of clarity, interference in, misdirection or destruction of
any information transmitted to or from the Subscriber howsoever caused;
●
Theft or unauthorized use of the Hardware or any loss, costs, damages or compensation
incurred by or payable to any third party by the Subscriber or other party;
●
Any inherent defect in the Hardware or any defect or damage to the Hardware resulting
from use other than in the normal and customary manner; or
●
Transmission or non-transmission of any illegal, false, misleading, derogatory, libelous,
obscene or vulgar messages or information.

12. DISCONNECTION OR TERMINATION OF THE SERVICE

● The Company may temporarily suspend or terminate the Service without prior notice if:
1) The Subscriber fails to pay promptly any amount due and payable hereunder; 2) The
Subscriber commits breach of the terms of this Agreement; 3) The Subscriber transfers
or allows the Hardware to be tampered with or used by any other person (except if such
use is authorized by the Subscriber) without the consent of the Company; 4) The
Subscriber dies or becomes bankrupt, fails to pay its debts as they fall due or any of its
assets becomes subject to any form of winding up, administration, receivership, or
insolvency proceedings or it enters into any arrangement with its creditor generally.
●
Without prejudice to any of subclause 12(a), the Company may discontinue or terminate
the Service at any time by giving the Subscriber not less than thirty (30) days notice of
such discontinuation or termination.
●
Any discontinuation or termination shall be without prejudice to the rights of the
Company, including the right to recover all amounts due from the Subscriber hereunder,
including but not limited to the pre-termination fee, if applicable, together with any
expense and cost (including legal costs) incurred in recovering such amounts due. No
refund of any advanced payment will be made to the Subscriber.
●
Any discontinuation or termination shall be without prejudice to the rights of the
Company, including the right to recover all amounts due from the Subscriber hereunder,
including but not limited to the pre-termination fee, if applicable, together with any
expense and cost (including legal costs) incurred in recovering such amounts due. No
refund of any advanced payment will be made to the Subscriber.
 ●
Upon disconnection or termination of the service, SMART shall assign the mobile
number to a new customer. If the mobile number is used to register with any third-party
application (i.e. banking, shopping, messaging, or social media applications) the
Subscriber shall have the sole responsibility to immediately request for the updating of
the registered mobile number directly with the third party application concerned. SMART
shall not be liable for Subscriber’s failure to update the mobile number and other
information registered with any third party application, and SMART is not authorized to
store and/or update information owned and maintained by any third party application.
The Subscriber may terminate this Agreement at any time by giving the Company not
less than thirty (30) days written notice of such termination, which shall become effective
only upon settlement of all amounts due hereunder, including the pre-termination fee as
provided in the Pre-termination Acknowledgment that forms part of this Agreement,
together with any expense and cost (Including legal cost) incurred.

13. TEMPORARY DISCONNECTION AND RESUMPTION OF SERVICE

The Subscriber may request a temporary disconnection of the Service by giving not less than
fourteen (14) days prior notice to the Company and by settling all amounts due to the Company.
Such temporary disconnection shall not constitute a termination of this Agreement if it does not
exceed six (6) months. If the temporary disconnection is for a period which is more than six (6)
months, the Company reserves the right to terminate this Agreement without prejudice to the
rights of the Company, including the right to recover all amounts due from the Subscriber
hereunder including but not limited to the pre-termination fee, together with any expense and
cost (including legal costs) incurred in recovering, such amounts due and no refund of any
advanced payment will be made to the Subscriber. The Company may charge such fees for
reconnection of the Service as it shall In Its absolute discretion determine.

14. USE OF PASSWORD

Upon request of the Subscriber, any transaction on the account and Service record can be
handled through the use of a password issued by the Company which the Subscriber
undertakes to keep confidential. The Subscriber may request for a change of password by
accomplishing and submitting a Request for Password Form and presenting a valid
identification card to any SMART Store.

15. INDEMNITY
The Subscriber shall indemnify the Company against all liabilities, losses, damages, costs,
charges, expenses (including legal costs) incurred by or brought against the Company arising
directly or indirectly out of or in connection with any breach by the Subscriber of any obligation
hereunder.

16. MISCELLANEOUS
● This Agreement shall be governed and construed in accordance with the laws of the
Philippines.
 ●
This Agreement, together with the Company's records shall be final and conclusive
evidence of any dispute between the Company and the Subscriber.
●
The Company reserves the right at its absolute discretion to modify, delete or add to any
of the Terms and Conditions of this Agreement at any time without further notice. It is the
Subscriber's responsibility to regularly check any changes to these Terms and
Conditions. The Subscriber's continued used of the Service after any such changes
constitutes acceptance of the new Terms and Conditions.
●
This Agreement constitutes the entire Agreement between the Company and the
Subscriber and supersedes all previous agreements (if any) between the parties, and
the Subscriber acknowledges that in agreeing to enter into this Agreement it has not
relied on any representation, warranty or other assurance (including any that may have
been made by any authorized agent or dealer of the Company) except those set out in
this Agreement.
●
The Company's right shall not be prejudiced or restricted by any concession, indulgence
or forebearance extended to the Subscriber.
●
No waiver by the Company of any breach shall operate as a waiver of any other
subsequent breach.
●
All notices under this Agreement shall be in writing and sent to the registered office of
the Company or the address of the Subscriber as stated on this Service Application
Form or such other address which may be notified to the Company in writing from time
to time.
●
Any complete or partial invalidity or unenforceability of any provision of this Agreement
shall not affect the validity or enforceability for any other purpose of the remaining
provisions
●
Interest on all amounts outstanding to the Company shall accrue at the rate of 2% per
month.
●
In case it will be necessary to use a lawyer or collection agency, the Subscriber shall pay
25% of the amount due as collection or attorney's fees, in addition to damages or billing
for services, penalty, charges and surcharges.

17. DISCLAIMER OF WARRANTY

Subscriber acknowledges that it has not relied on any warranty, expressed or implied with
regards to the Service provided hereunder.
18. VENUE
The venue of all suits from this Agreement and of other suits directly or indirectly arising from
the relationship between the Company and the Subscriber shall be exclusively in the proper
courts in Makati City. Subscriber hereby expressly waives claims to any other venue.

19. COMPLAINTS
Complaints against the Company or its agents should be brought to the attention of the
Customer Care Department of the Company.

20. PERSONAL INFORMATION AND BROADCAST SERVICES

Subscriber agrees and consents to the disclosure to third parties and the processing, either by
SMART or by third parties on behalf of SMART, of personal information and data, including
personal information, traffic and billing data for marketing and other purposes. Subscriber
acknowledges and agrees that SMART may send commercial and promotional advertisements,
surveys, and other broadcast push messages. Specifically, subscriber agrees and consents that
SMART and its affiliates may use subscriber personal information and data to:
● Manage subscriber account, carry out customer-care activities and train staff, including
monitoring calls, emails or text messages that subscriber send to SMART;
●
Monitor the quality and security of the network and test and maintain SMART's IT
systems;
●
Analyze subscriber use of the services for marketing purposes, including, but not limited
to, the calls and messages the subscriber send and receive and subscriber location at
the time these communications take place, as well as subscriber browsing history and
use of SMART websites;
●
Send to the emergency services (if subscriber make an emergency call), including
subscriber approximate location; and
●
Contact the subscriber with marketing messages such as commercial and promotional
advertisements, surveys, and other broadcast push messages, which may include
marketing. SMART does not include subscriber details in any directory or directory-
enquiry service. If a subscriber wants to have subscriber information included in these
services, subscriber should contact SMART. If subscriber does not want that personal
information and data to be disclosed to third parties, or the processing of the same or to
receive marketing messages and other messages from SMART or from other
organizations, subscriber must immediately contact SMART through the website or
calling *888. More details on how SMART uses personal information and data of the
subscriber are available on the privacy policy on the SMART website.