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NTC OKs lower interconnection charges


The National Telecommunications Commission has reduced interconnection charges for calls and text messages.

Interconnection charges are rates that telecommunications companies charge subscribers when they call or text users on another network.

Based on Memorandum Circular No. 05-07-2018, the current P2.50 per minute interconnection charge for calls will be reduced to 50 centavos per minute, while the current interconnection charge of 15 centavos per text will be reduced to 5 centavos.

The NTC order will become effective 15 days after publication in a newspaper of general circulation. Telecommunications companies are ordered to impose the new rates not later than 20 days from the effectivity of the order.

NTC Deputy Commissioner Edgardo Cabarios said the telcos, in their position papers, mentioned that they did not object to the reduction of interconnection charges.

But for voice calls, “Wala silang objection sa pagbaba. Yun nga lang, nag-propose sila ng two years glide path,” Cabarios said.

The NTC, however, rejected this. “NTC, diniscuss yan. And base rin sa ating mga researches, talagang we stick na, na one time siya from P2.50 to 5 centavos,” Cabarios said.

Also in their position papers, the telcos mentioned expected revenue losses.

Cabarios said, “Meron silang sinasabi sa position papers na maaapektuhan ang kanilang rate of return on investment, ROI. But sa pag-aaral kasi namin, nakita na maliit naman yung epekto nito sa kanilang revenues.”

The primary concern of the NTC is to lower the cost for subscribers. “Karamihan dito ay mga nasa class lower C, D, E class, economic class. So sila dapat ang tulungan,” Cabarios stressed.

Right now, there are 130 million active SIMS in the country. 20-30 percent of them are 2G users. 

Both Smart Communications and Globe Telecom refused to comment on the development.

“Our legal/regulatory is reviewing the Memo Circular,”  said Ramon Isberto, spokesperson of PLDT Inc. and Smart Communications.

“We have yet to receive a copy of the MC. We shall send a statement as soon as we have a copy,” said Yolly Crisanto, senior vice president of Globe’s Corporate Communications Group.

For his part, Vicente Froilan Castelo, Globe general counsel, said: “No comment muna.” — with Jon Viktor D. Cabuenas/RSJ, GMA News

 

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