NTC: Wireless landline calls within local loop 'free' of access charges

MANILA, Philippines - Wireless landline providers can make calls within a wireless local loop or calling area free of access charges, the National Telecommunications Commission (NTC) said. In a circular, the commission said subscribers of wireless landline should be able to move around, receive and make calls anywhere within a local calling area. NTC Director Edgardo Cabarios said they wanted to make sure that wireless landline service follows the rules imposed on fixed lines since both are considered landlines under the law. "Access charges are bilaterally negotiated [by interconnecting service providers,] so it is very hard for us to say how much it is right now," Mr. Cabarios said. A landline is a traditional telephone connected to the public switch telephone network by a traditional wire or fiber local loop that terminates at a fixed location, rather than a cellular mobile telephone connected to a cellular network via radio technology. A cordless telephone is also considered part of a landline since the local loop terminates at a fixed base station on the subscriber premises, even though the connection to the base station is wireless. Meanwhile, a wireless local loop is considered a landline since it is terrestrial and connects two fixed points. Also known as fixed wireless, a wireless local loop is a group of airwave transmission technologies designed to support communications from the edge of a public network to the customer premises. The NTC circular provides for a "signal spillover distance," which allows a subscriber to still use his wireless landline one kilometer from the farthest edge of his authorized local calling area. "Wire local loop calls made from one local calling area to another local calling area shall be considered national long distance calls and shall be imposed the appropriate interconnection access charges," the NTC said. Telecommunication firms that offer wireless landline service include Philippine Long Distance Telephone Co. (PLDT), Globe Telecom, Inc., Bayan Telecommunications, Inc. and Digital Telecommunications Philippines, Inc. A Globe official said the company was still studying the NTC circular, while representatives from other telcos could not be reached for comment. Also Monday, the NTC defined value-added services in mobile communications to educate consumers on phone features that may carry additional charges. The commission issued a circular in response to a Supreme Court ruling in 2004 that directed the regulator to classify value-added services. NTC Commissioner Ruel V. Canobas said Republic Act 7925 or the Public Telecommunications Act of 1995 merely states that value-added services are "enhanced services beyond those ordinarily provided" by carriers. "The basic service is just voice. The rest is value-added. We were directed by the Supreme Court to enumerate them," Mr. Canobas said in an interview. According to the NTC, value-added services include messaging, audio conferencing, audio and video conferencing, voice mail, electronic mail and information. Also included are electronic gaming (except gambling), applications, content and program, audiotext, facsimile, virtual private networking and Web hosting. "The foregoing list of value-added services may be revised, modified, expanded or shortened by the commission after due public consultation," the NTC circular said. It added that the circular is not applicable to voice over Internet protocol service since it is covered by a separate memorandum. "This circular was just released to end the confusion. There are so many [value-added service] players," Mr. Cabarios said in a separate interview. He added that the circular might encourage more players that provide value-added services. "In an open market where there is an almost unlimited supply of value-added services, you can get the best price and you can get the best quality," Mr. Cabarios said. — Anna Barbara L. Lorenzo, BusinessWorld