The National Telecommunication Commission’s (NTC) latest memorandum ordering telecommunication companies (telcos) to reduce interconnection charges on text messages and calls placed in other networks is facing uncertainties as reports said the rule is applicable for 2G telephones only.

To recall, the Department of Information and Communications Technology ordered telcos in May to lower the rates for interconnection charge.

The move was in line with Republic Act 7925, also known as The Public Telecommunications Policy Act of the Philippines, which 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 interconnection and at a reasonable and fair level of charges to promote telephone density and provide the most extensive access to basic telecommunications services available at affordable rates to the public.”

The previous regular rates for text message were pegged at P0.15, and the provision will cut it just P0.05 per text message. For call services, the P2.50 per minute will be reduced to P0.50 per minute.

The RA also added that the DICT mandates telcos to ensure that the interconnection rates for both mobile voice and short message service will be reduced to minimum in consideration of the consumers interest.

Compared to most of ASEAN countries, the Philippines has one of the highest interconnection charges. In India – for SMS and voice services – they are pegged at P 0.0154 per text and P 0.067 per minute.

Meanwhile, there is no charge in other ASEAN countries mainly in Singapore, Myanmar and Brunei.

The watchdog’s order is part of a drive to reduce the cost of mobile services to end-users.

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