This is an article repost.
MANILA, Philippines — The Philippines has one of the highest interconnection rates in the Asia Pacific region, averaging at $0.10, versus its neighbors who charge from $0.03-0.05.
Each telephone company pays for using the local network of another for every voice call or text messages they put through. Domestic voice call and text rates cannot go down unless telcos reduce these access fees.
For the benefit of 85 million Filipino mobile phone subscribers, the National Telecommunications Commission (NTC) wants interconnection charges for voice calls lowered to P1 per minute from P4 within the next three years. For text messages, the commission requests charges be reduced to P0.15 from the current P0.35 per text.
But carriers cannot slash their rates right away. Globe Telecom Inc., the first to respond to the regulators’ call, proposed a one-year grace period before reducing their interconnect charges and a 3-year ‘glide path’ beginning January 31, 2012 to give mobile operators time to restructure business plans and models as well as help cushion revenue losses.
In its position paper submitted to the commission last week, Globe proposed P2.50 interconnection charges for voice calls on the first year, P2.00 on the second year, and P1.50 on the third year.
For SMS, charging is P0.25 on the first year, P0.20 on the second year and P0.15 on the third year, congruent with the NTC’s proposal.
For landline, charging is P2.00 on the first year, P1.50 on the second year and P1.00 on the third year.
“Globe supports NTC’s call to lower domestic interconnect rates among telcos,” declared Atty. Froilan Castelo, Head for Corporate and Legal Services Group of Globe. We also support mobile to landline interconnection and vice versa, where interconnection fees should also be reduced. This way, subscribers will experience lower service charges.”
However, “Globe requests the NTC to implement these new charges by January 2012 to give us ample time to adjust its tariffs and billing systems.”
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By: EMMIE V. ABADILLA
Source: Manila Bulletin, July 13, 2011
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