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SMART Communications Inc. has opposed the regulator’s plan to
impose a cap on interconnection rates for short messaging service,
saying the proposal violates the law.
In a public hearing on Wednesday before the
National Telecommunications Commission, the firm’s legal counsel
Eric Espanol asserted that the proposed cap on interconnection rates
would violate the constitutional right of telcos to non-impairment
of contracts.
“Mandating a cap on interconnection charges
would be an ultra vires act as it runs contrary to the statue that
the regulation seeks to implement,” Espanol added.
Under its draft circular, NTC wants to cut
interconnection charge to P0.15 per SMS, or 57.14 percent lower than
the current rate of P0.35. Currently, the telcos charge P1 per text
message.
Espanol also said that access charge or revenue
sharing arrangements between all interconnected carriers should be
negotiated among themselves.
Ramon Isberto, Smart spokesperson, stressed that
the prices of text and voice calls have been going down
dramatically, saying that “unlike electricity charges, water
charges and transport fares which keep increasing from time to time,
SMS charges, on the other hand, have not increased and, in fact,
have decreased over the years.”
He added that the P1 per SMS charge is already
one of the lowest in the world, pointing to SMS rates in Singapore
at P1.60 per text; Thailand, P2.70; Indonesia,P0.46; Australia,
P10.50; Canada, P6.62; Middle East, P1.16; United Kingdom, P2.59;
South Africa, P1.28 and Malaysia, P1.35.
He said his company has several packages where
the effective SMS charge is much lower than P1. “These packages
give our customers the power of choice based on their respective
financial capability and communication needs,” Isberto added.
Globe Telecom, Digital Telecommunications Phils.
Inc. and Bayan Telecommunications Inc. will file their respective
position papers next week.
NTC Chief Ruel Canobas said the cut in
interconnection charge would translate to lower retail text rate per
SMS within a telco’s network. “Definitely it will be lower
because interconnection charge is part of the cost of the retail
price of SMS,” he said.
A separate circular showed that NTC would also
reduce the interconnection charges for voice calls to P1.50 or lower
per minute, 0.63 percent cheaper than the current rate of P4 between
mobile operators with separate networks.
In Thailand, the interconnection charge to
mobile service operators ranges from P1.36 to P1.70 per minute and
in Malaysia, between P1.24 and P1.30.
In the Philippines, telecom companies charge
their subscribers from P6 to P7 for one-minute voice call. With the
new circular, NTC estimated the voice call charges may range between
P3 and P4 per minute.
-- Darwin G. Amojelar
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