NTC to push through with cap on voice call, text rates

Tag : long distance call

DESPITE telecom companies promotional offerings, the NationalTelecommunications Commission (NTC) said it would not abandon acircular imposing a cap on interconnection charges for text andvoice services.
 
In her state of the Nation address (SONA), President Arroyo saidtelcos have agreed to reduce their inter-network short messagingservice (SMS) rates to P0.50 from the current P1.
 
Smart Communications Inc. and Sun Cellular on Monday started theirrespective promotional offerings until October this year.
Ramon Isberto, spokesperson for Smart parent, Philippine LongDistance Telephone Co., said the promo is extendable and may becomepermanent depending on the response of the market.

The rate cut was the result of the NTC's meetings with industryplayers ahead of the President's SONA.
Jorge Sarmiento, NTC deputy commissioner, however said thegovernment would not abandon the draft circular imposing a cap oninterconnection charges because the promos are only temporary.
 
The lowering of communications charge will continue, he said. The NTC last month issued a draft circular imposing aP0.15-interconnection charge per text message, lower than thecurrent rate of P0.35. A separate circular would also reduce the interconnection chargefor voice calls to P1.50 or lower per minute, or 63 percent cheaperthan the current rate of P4 between mobile operators with separatenetworks. Telcos have opposed the circulars on grounds that they would impedeinvestments and violate existing laws.