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By Darwin G. Amojelar, Reporter
THE telecom industry is satisfied with the
performance of the National Telecommunications Commission (NTC) but
is urging the regulator to create a more business-friendly
environment.
“The [telecom] industry has benefited from the
liberalized regulatory environment that the NTC has implemented
based on the law passed in 1995. We hope that it will continue
because the past 10 years have shown that not only the industry but
the customers have benefited from this kind of liberal regulatory
environment,” Ramon Isberto, spokesman of Philippine Long Distance
Telephone Co., the country’s biggest telecom firm, told The Manila
Times.
Isberto added that the NTC should continue this
kind of regulatory environment, as it is the best for both the
industry and the consumers “because you’re dealing with an
industry that requires a great deal of investment periodically.
These investments have to be made because changes in the
environment, advances in technology, are taking place,” he said.
Players in the cellular phone industry have
invested about P700 billion to P800 billion since 2000.
Isberto said the NTC should maintain a
business-friendly environment while at the same time protecting
consumer welfare.
The NTC last month issued a draft circular
imposing a P0.15 interconnection charge per SMS, which is lower than
the current rate of P0.35.
The retail price of SMS consists of the cost of
the network sending the message plus the cost of the network
receiving it, as well as the cost of the interconnection.
At present, telecom companies charge P1 per text
message.
A separate circular would also reduce the
interconnection charge for voice calls to P1.50 or even lower per
minute. This is 63-percent cheaper than the current rate of P4 per
minute between mobile operators of separate networks.
These circulars were opposed by the telecom
companies, saying they are contrary to law.
Isberto noted that there is no need to cut
access charges because the telecom companies in general are now
talking of lowering not just text and voice rates but also the
broadband Internet usage rates.
Froilan Castelo, Globe Telecom’s head for
regulatory affairs, praised the performance of the NTC as
“good.”
“The de-clogging of the cases is very
important,” Castelo, who is also president of the
Telecommunications and Broadcast Attorneys of the Philippines (Telebap),
said. He was referring to cases lodged by consumers against the
telecom companies as well as petitions of the companies for
extension and renewal of provisional authorities, certificates of
public convenience and the like.
Eric delos Reyes, the president of Philippine
Association of Private Telephone Companies Inc. (Paptelco) agreed
with Castelo.
“Very good, what is worth noting is the big
number of cases that they have decided. I think it’s a very good
performance,” delos Reyes said.
He added that the NTC’s policies are
consistent with the direction of the government to provide cheaper
and affordable communications.
The NTC reported that as of June, the regulator
issued 886 orders and decisions compared to 310 in the same period
last year.
These include extension and renewal of
provisional authorities and certificates of public convenience
and/or necessities on various telecom services, radio and television
networks, and cable television operations, among others.
The telecom regulator has also issued circulars
on interconnection of local exchange carriers (LEC) in local calling
areas, which require telecom companies to connect their networks.
NTC has also issued a circular on value-added
services to open the market to more players. This will enhance
competition in the market and bring about other benefits to the
industry and the consumers.
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