GLOBE Telecom Inc. said the National Telecommunications Commission’s (NTC) implementation of the per-pulse charging for voice calls next month would result in  a “severe degradation” of its network performance.
In a statement, the Ayala-led telco said the immediate implementation of Memorandum Circular 05-07-2009, or the Guidelines on Unit of Billing of Mobile Voice Service entails massive network modification and adjustments.

This circular, effective December 6, has fixed the maximum unit of billing for cellular mobile telephone service (CMTS) at six seconds per pulse.

“The introduction of any modifications/changes in the network or system during periods where the volume of voice SMS [short messaging service] MMS [multimedia service] and data traffic are at their heaviest levels as these could potentially bring about severe degradation of network performance,” Globe said.

Because of this, Globe wants the NTC to defer the implementation of the circular to January next year to avoid network congestion.

However, Douglas Michael Mallilin, NTC deputy commissioner, had said that the agency would no longer entertain telecom companies’ proposals to defer the rule.

Besides the postponement of the circular, Globe has also proposed a flag down rate for voice calls, ranging from P1.50 to P4 for the first six seconds and P0.70 and P1.25 per pulse for the succeeding pulses.
The present rate for on-net or within network voice calls is P6.50 per minute, while off-net or outside the network calls are charged P7.50 per minute.

The company said its proposed rates are not “anti-competition nor predatory as the same are not offered below cost.”

The rates will also ensure Globe and Innove Communications Inc.’s economic viability and a fair return of their investments without sacrificing efficiency in the provision of various telecommunications services.

“The approval of the rates will not result in ruinous competition or in the existence of monopoly or a cartel or combination in restraint of free competition in the telecommunications marketplace,” Globe added.
Roy Ibay, Smart Communications Inc.’s legal counsel, also said that the implementation of the per-pulse charging for voice calls could affect its network performance, but its networks are “ready” for its implementation.

Earlier, Smart and its unit, CURE, proposed a flag down rate of between P3 and P6 for first two pulses and P0.70 to P2.25 for each succeeding pulse.

Sun Cellular, on the other hand, wants a flag down rate of between P3 and P7.50 for first two pulses and P0.80 to P1 for each succeeding pulse.

Darwin G. Amojelar