A PANEL in the House of Representatives has ordered the National Telecommunications Commission to hasten its plan to lower inter-connection charges for voice calls to ensure unlimited calls to all networks will be accessed by the public.
During the first organizational meeting held by the House committee on information and communications technology chaired by Tarlac Rep. Victor Yap, several members aired their complaints against telecommunications services in the country, including slow internet, dropped calls, and costly voice call charges to other networks.
Responding to the query of Cavite Rep. Francis Gerald Abaya, House committee on ICT vice chairman, on how to make the cost of voice call services more competitive, NTC Deputy Commissioner Edgardo Cabarios admitted the present inter-connection rates between telcos at P4.00 per minute drives the cost higher.
Cabarios also revealed NTC plans to lower the inter-connection charges this year or next year.
The NTC explained the existing telcos charge each other a fixed rate of P4.00 per minute for every call they facilitate and process from consumers of different networks.
The amount, which 119 million subscribers pay, is one of the highest in the Asia-Pacific region. Callers pay this amount whenever they make a call, including the dropped calls that occur in the process.
Yap, meanwhile, directed the NTC to look into the immediate lowering of the inter-connection charges.
Telcos present at the meeting (i.e. Smart and Globe) said they would lower the inter-connection charges once directed by the NTC. They said they would abide by whatever rates the NTC implements.
Section 5(c) of Republic Act 7925 directs the NTC to “mandate a fair and reasonable interconnection of facilities of authorized public network operators and other providers of telecommunications services through appropriate modalities of inter-connection and at a reasonable and fair level of charges.”
In 2011, NTC issued a memorandum circular lowering the inter-connection rate for SMS from P0.35 to P0.15. As a result, the country’s rate for SMS is one of the lowest, according to NTC Chairman Gamaliel Cordoba.
“The lowering of inter-connection charges for voice from P4.00/minute to P2.00-2.50 per minute can result to unlimited calls to other networks as what happened when NTC lowered inter-connection charges for SMS—it resulted in unlimited SMS,” Cordoba said.
But Yap asked: “Why wait till next year? I suggest that this scheme be implemented as soon as possible.”
“In 2011, you already decreased the inter-connection rates for text messages. I do not see any reason why you cannot do the same with voice calls now,” Yap said.
“Our restive consumers will definitely be happy to receive this as your early Christmas present,” Yap concluded.
In the next ICT hearing, the Committee will take up other measures to improve speed and lower the cost of internet in the country and resume deliberation on bills increasing the penalties imposed against telcos.
President Rodrigo Duterte had earlier warned telcos to shape up, otherwise he would open the Philippine telco market to foreign players if the local companies failed to deliver.