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NTC seeks to lower SMS, voice cost with new directives

By Erwin Oliva
INQUIRER.net
First Posted 11:45:00 06/01/2008

Filed Under: Telecommunications Services, mobile phones

MAKATI CITY, Philippines--The National Telecommunications Commission (NTC) has sought to lower the cap on interconnection charges imposed by mobile network operators on short messaging service (SMS) and voice calls in two new directives released Friday.

NTC Deputy Commissioner Jorge Sarmiento said that the new directives were in response to an earlier order of the Department of Transportation and Communications to lower the cost of communications in the country.

According to the NTC directives, NTC will lower interconnection charges--charges imposed by networks to connect to another network--for SMS from P0.35 to P0.15.

Currently, mobile networks charge P0.35 to interconnect with other mobile networks. This lowering of interconnection charges will effectively lower the total cost of an SMS message to less than P1, Sarmiento said.

Another NTC directive will also drop the interconnection charges for voice calls from P4 to P1.50. This cut will also cut the existing cost of voice calls per minute, which is in the range of P6.50 to P8, the NTC official said.

The NTC is scheduled to hold public hearings next month on the two directives.



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