THE National Telecommunications Commission (NTC) plans to issue rules cutting the interconnection fees among telecom companies to lower text and voice call rates before the May elections.

“We hope we can finalize it [interconnection cut] before elections. We hope to finish it within this term, so that we can start [implementing lower text and voice call rates],” Douglas Michael Mallillin, NTC deputy commissioner, told reporters.

He said the regulator is studying the breakdown of revenues gained from interconnection charges submitted by the telcos.

Based on the NTC’s initial assessment, only Smart Communications Inc. and its parent firm, Philippine Long Distance Telephone Co. (PLDT), are earning from the higher access charges.

NTC said Smart earns P1.5 billion a year from interconnection charges, while Globe Telecom Inc. and Digital Telecommunications Philippines Inc. have payouts of P500 million and P60 million, respectively.

Mallillin said the new interconnection rates will depend on the results of the study using data submitted by the telcos.

“It may be the [old] model we’re looking at but some changes we can put into it,” Mallillin said, referring to the draft circular issued in 2008.

The regulator issued a draft circular that seeks to lower the interconnection charge to P0.15 per text message from the current P0.35.

A separate draft circular was also issued to reduce the interconnection charge for voice calls to P1.50 or lower per minute, or 63 percent cheaper than the current rate of P4 between mobile operators of separate networks.

With the draft circular, NTC estimated that a P0.35 access charge could bring down the short messaging service (SMS) fee to P0.40 to P0.50.

For voice, the NTC is proposing an interconnection fee of P1.50 per minute, which is comparable with that of Thailand at P1.36 to P1.70 per minute, and Malaysia at P1.24 to P1.30.

With the new circular, NTC estimates that voice call charges may range between P3 and P4 per minute. At present, the telcos impose P1 per text and between P6 and P6.50 per minute for voice calls.

The draft circulars were issued last year, but the implementation was put on hold after Smart and Globe bucked the proposals.

Despite the opposition, Mallillin said the agency has the power to set rates for reference access offer (RAO) even if the telcos will not submit their proposals. Globe and PLDT said the RAO violates the law.

RAO is a statement of the conditions, prices and terms a telco offers in exchange for access to its network, facilities, systems or customer base by another player or by value added service providers.
Darwin G. Amojelar