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NTC eyes access charge cuts
Nov 20, 2009 (The Manila Times - McClatchy-Tribune Information Services via COMTEX) --
THE National Telecommunications Commission (NTC) on Thursday said it would push for the reduction of access charges among telecom companies to enhance competition and use of voice and data services.
Commissioner Gamaliel Cordoba said the agency is enhancing rules on interconnection rates and spectrum allocation and assignment for broadband wireless access networks.
"Based on existing rules, interconnection rates are negotiated and agreed by the interconnecting parties," Cordoba said, adding that the regulator is studying prevailing interconnection rates.
The regulator's announcement came after Frost & Sullivan said that access charges are "high" in the Philippines compared with other countries.
Natin Bhat, Frost & Sullivan senior vice president in Asia Pacific had said that interconnection charges should come down by 30 percent to 40 percent in the next two years to entice more people to use voice and text services.
Last year, the NTC issued a draft circular imposing a P0.15-interconnection charge per text message, lower than the current rate of P0.35.
A separate circular would also reduce the interconnection charge for voice calls to P1.50 or lower per minute, or 63-percent cheaper than the current P4 between mobile operators of separate networks.
At present, telcos impose P1 per text and P6 per minute for voice calls.
The agency estimated that with a P0.35 access charge, the short messaging service (SMS) rate may come down to the P0.40-to-P0.50 range.
For voice, the NTC is proposing an interconnection fee of P1.50 per minute, comparable with Thailand, P1.36 to P1.70 per minute; and Malaysia, between P1.24 and P1.30.
With the new circular, NTC estimated that voice call charges may range between P3 and P4 per minute.
The circulars have been pending before the NTC due to the opposition by Smart Communications Inc. and Globe Telecom Inc.
Smart and Globe earlier said that the cap on interconnection charges will discourage further investments in the industry as telcos cannot expect a reasonable period of time for the return on their investments.
The two telcos said the rates for voice services have also been going down as mobile service providers provide service packages that offer lower calling rates.
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http://www.manilatimes.net. Copyright (c) 2009, The Manila Times, Philippines
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