House committees back NTC on VoIP

Approves measure to deregulate VoIP services


By Erwin Lemuel Oliva
INQ7.net



(UPDATE) THE COMMITTEES on Information and Communications Technology and on Trade jointly backed the National Telecommunications Commission (NTC) on Wednesday as they approved legislation supporting the deregulation of voice over Internet protocol (VoIP) services in the country.

Both committees approved the consolidated bill declaring VoIP as a value-added service, consistent with the new rules signed by the NTC on Tuesday, according to Representative Simeon Kintanar who also chairs the House ICT committee.

NTC signed the memorandum circular number 05-08-2005 on Tuesday.

This move opens up the Philippine VoIP market to value-added service providers, such as Internet service providers who can now begin offering VoIP without the need to apply for a congressional franchise.

"The VoIP bill has been approved although there are some amendments to be made in relation to interconnection and access issues. But in principle, this measure has been approved. It will now be referred to the House rules committee, which will schedule this bill for plenary discussions," Kintanar told INQ7.net in a telephone interview.

VoIP routes phone calls through the Internet instead of through traditional public switched telephone networks. Its lower cost has made it a popular alternative to traditional voice calls.

The latest NTC circular would identify parties allowed to offer VoIP services, as well as agreements between telecommunications carriers and Internet service providers (ISPs) regarding service performance standards, interconnection charges, access costs, and consumer security and privacy.

Kintanar said the timing of the approval of NTC's latest guidelines and Congress' further push of VoIP bills is was not a coincidence. "We've been closely working with the NTC," he said. "We wanted to make sure that we're not departing from the NTC guideline."

According to the proposed measure, VoIP will be declared as a value-added service, Kintanar noted.

Prior to the NTC ruling, VoIP was classified as a voice service, which meant that under Philippine law only telecommunications companies with a congressional franchise could offer VoIP services. The NTC ruling re-classified VoIP as a value-added service that could be offered by Internet Service Providers.

The local telephone companies have been at loggerheads with value-added service providers for months of heated public debate both at the NTC and Congress.

Meanwhile the Philippine Internet Commerce Society (PICS) on Wednesday commended the NTC for issuing new guidelines deregulating VoIP.

PICS is an industry association representing private companies and individuals.

"We are very pleased that the NTC has adopted our position. There is no question that the deregulation of VoIP by the NTC will significantly benefit electronic commerce and all of our constituents eventually," according to PICS President Mary Anne Tolentino in a statement to INQ7.net.

By facilitating greater access for the end user and enhancing competition for communications services, it is clear that the real winner here is the market and the Philippine economy, she added.

PICS noted that the NTC rules on VoIP reiterated its earlier position in its memorandum issued on March 29,2005, where it already declared VoIP a value-added service.

PICS filed a position paper with the NTC last year. Tolentino noted that deregulation of VoIP services in the country will create more opportunities, such as engaging in electronic commerce.

The local industry association said that it would turn its attention to Congress and lobby for quick passage of pending measures supporting the deregulation of VoIP services in the country.

In a separate interview, William Torres, president of the Philippine Internet Service Organization (PISO), also commended NTC and Congress for the recent developments. He reserved comments on the NTC guidelines until he gets a copy.

"We're waiting on the implementing rules and regulations since we want to know what will be the arrangement between local exchange carriers (LECs) and value-added services. The NTC draft rules indicated that LECs and VAS providers have to negotiate for the cost for transfer of calls to VAS providers but we hope that NTC sets a standard price," Torres said.

Officials of the Philippine Long Distance Telephone Co., Globe Telecom, and Bayantel were mum when asked to comment on recent developments.

 

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