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Telcos threaten to sue over voice over internet protocol rules
(Business World (Philippines))The National Telecommunications Commission (NTC) yesterday released the implementing rules on voice over internet protocol (VoIP) amid threats from the country's three leading telcos to bring the regulator to court over the rules.
The NTC ruling requires non-telco providers and resellers to ride on the infrastructure of telcos in providing VoIP, as mandated by Republic Act 7925. The order is set to take effect immediately.
Counsels of dominant telecommunications companies said they are mulling on challenging the NTC ruling in courts. The move can drag the two- year-long debate on which entities can offer VoIP if the telcos can get a temporary restraining order from the courts.
William S. Pamintuan, senior vice-president at Digital Telecommunications Phils., Inc. (Digitel), said the NTC ruling on VoIP places telcos at a financial disadvantage in the business of delivering voice services.
He said public telecommunications entities are required to pay supervision and regulations fee (SRF) to offer voice services.
Thus, non-telcos that may want to provide or resell VoIP should also be required by the NTC to pay SRF, an amount that represents one half of 1% of paid-up capital of a company or P0.50 per P100 of financial resource.
Under the regulator's VoIP rules released yesterday, VoIP service providers should pay only P10 million in paid-up capital, pay an annual registration fee of P50,000, and post performance bonds worth P5 million.
For VoIP resellers, the NTC requires posting of performance bonds worth P1 million and an annual registration fee of P5,000.
"If non-telcos will not be asked to pay SRF, then that would be really unfair to PTEs [public telecommunications entities]. VoIP would not be a level playing field for us players," Mr. Pamintuan said.
The lead counsel of Smart Communications, Inc. Rogelio V. Quevedo maintains that VoIP is a technology and not a voice service that can be offered by non-telcos.
RA 7925 states that only telecommunications entities with congressional franchise can roll out voice services. Non-holders of congressional franchise cannot venture into telecommunication service.
NTC defined VoIP as a cheap voice service that breaks down voice into digital packets and sends them over the internet.
"VoIP is a technology. It is not a voice service. We will go to courts to clarify this matter once we formally receive the copy of the IRR [implementing rules and regulations]," Mr. Quevedo said.
Froilan Castelo, counsel of Globe Telecoms, Inc., echoed the sentiments of Digitel and Smart.
"We should look at the disparity between telcos and non-telcos. Telcos pay more fees to offer voice services yet with this ruling other entities can offer voice services for less because they would be paying NTC less or nothing in supervision and regulations fees," he said.
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