Expect more pro-active regulatory policies--NTC officials

EXPECT more pro-consumer and pro-active regulatory policies from the National Telecommunications Commission (NTC). Officials made the statement last week after the NTC recently issued a draft ruling that permits non-telecommunication companies to offer commercial voice over Internet Protocol (VoIP) services, a decision widely seen to benefit consumers.

NTC Commissioner Ronald Solis hinted that the commission would deliver more surprises for the local industry.

"You can expect more pro-active positions from us. We want to be remembered for these [policies]," Solis said.

In a memorandum on VoIP's draft rules, the NTC said that it would no longer assume a hands-off policy on controversial issues such as the deregulation of VoIP in the Philippines.

"A hands-off policy, such as the Commission has adopted in the past, no longer serves the public interest. It is the Commission's position that regulatory clarity is now a necessary precondition if meaningful investment and innovation in, and public access to and use of VoIP is to grow," the NTC memorandum said.

While the NTC's draft rules and regulations on VoIP have yet become final, its recent move to issue an explanation for them signals changes in the NTC's policy direction, Solis said.

In the drafting of the new VoIP rules, Solis stressed that the NTC conducted broader public consultations to exhaust all opinions before making its own judgment.

"The Department of Transportation and Communications (DOTC) gave us a directive [on November 2003] to come up with the new rules on VoIP in 90 days. But we took the pains to come up with a consultative document before we wrote our memorandum," Solis said.

The NTC official denied that Malacañang had pressured them to issue a more favorable position on VoIP.

NTC Deputy Commissioner Jorge Sarmiento however acknowledged that the new draft rules on VOIP are more pro-consumer compared to rulings issued prior to Solis' appointment to the NTC.

"This is based on the existing law [the Public Telecommunications Act] and a sound public policy after consultations with different parties," Sarmiento said.

Solis said that long before the National Economic and Development Authority (NEDA) publicly supported the deregulation of VoIP in the Philippines, the NTC had already conducted its own studies and public consultations.

NEDA has said that VoIP deregulation would lower Philippine telecommunication costs.

"We're aware of the telcos' sentiments on striking a balance between protecting consumers and the viability of an industry. But we're not insulated [from] what's happening outside of the Philippines," said Sarmiento.

Telecommunication firm have opposed the deregulation of VoIP--which routes voice calls through the Internet--as they fear it could affect their long distance revenues.

The firms had wanted VoIP classified as a voice service, which, under Philippine law, would limit commercial services to firms that have been granted a government franchise.

The NTC's draft rules classify VoIP as a value-added service, paving the way for Internet Service Providers to offer VoIP services in their own right.

Current NTC rules permit private companies to use VoIP for internal communication networks.

"VoIP is staring them in their faces. So we believe that the local telcos had been preparing for this. We believe that we have to [get] a grip on this new technology,” Solis said.

Solis declined to comment on whether the NTC's VoIP ruling was a harbinger for similar rulings third generation (3G) mobile communication services, but indicated that new regulations would be released soon.