The National Telecommunications Commission is looking at slashing the short message service and Internet costs next, following the decision of Globe Telecom Inc. and PLDT Inc. to reduce their interconnection charges for voice calls.
NTC commissioner Gamaliel Cordoba said lowering voice call rates was just the first step of a string of reforms being considered by the regulatory body to give subscribers an efficient way of communication at the lowest possible rates.
“This is just the first step. It wouldn’t stop with voice. It will continue with text, Internet. We will lower the prices,” said Cordoba after Globe and PLDT agreed to cut down interconnection charges by Jan. 1, 2017 through the signing of a memorandum of understanding on Nov. 28.
Cordoba said affording the public a cheap but high quality way of communication was the thrust of the administration of President Rodrigo Duterte, noting that 50 percent of the market still relied on conventional calls.
“These are the people in the provinces, especially the lower income families. They are the ones using voice calls,” he said.
“The telcos right now, they can use the lower interconnection rates to give different promos, pocket pricing and unlimited calls; they may be crossed over from one network to another,” Cordoba said.
The NTC recently issued Memorandum Circular No. 09-11-2016 on interconnection charge for voice service, which stated that interconnection rates among telcos’ voice services should no longer be higher than P2.50 per minute from the previous P4 per minute.
The interconnection charges are also subject to an annual review by the NTC.
NTC deputy commissioner Edgardo Cabarios said “effectively the retail rates should be dropped by P1 across all plans” following the agreement signed by the telcos.
Cabarios said with the lower interconnection charges, the current retail rates of P6.50 per minute for mobile calls and P7.50 per minute for mobile to landline calls were expected to drop to P5.50 and P6.50, respectively.
The NTC said the new reduced interconnection charges would be effective not later than Jan. 1, 2017 to give sufficient time for the necessary adjustment in the operators’ respective billing system.