NTC issues implementing rules on VoIP

INQ7.net

THE NATIONAL Telecommunications Commission (NTC) has issued the much-delayed implementation guidelines for providing voice over Internet Protocol (voIP) services.

The guidelines, posted at the NTC's website, require companies that wish to provide voIP services to show that they have a minimum capitalization of 10 million pesos.

VoIP service providers must also post a performance bond of five million pesos "to guarantee the delivery of VoIP service to the public."

The guidelines require resellers of VoIP services to post a performance bond of one million pesos.

The bonds must be from a registered insurance or surety company, the guidelines state. Performance bonds from the state-owned Government Service Insurance System are preferred.

Discussions on the minimum capitalization for companies wanting to enter the local VoIP market had delayed the release of the implementing rules. They were originally set to be released on Sept. 10.

The entry of fly-by-night VoIP providers had been one of the concerns raised by Internet Service Providers and telecommunications companies, NTC Deputy Commissioner Jorge Sarmiento had previously told INQ7.net.

There were indications that local telephone companies are planning to block implementation of its VoIP rules through a temporary restraining order in local courts.

In the past, this was the move taken by telephone companies against NTC policies that they believed were not in their favor.

The NTC ruled in September that VoIP was a value-added service, meaning it would now fall under the category of deregulated services. The move is expected to dramatically lower the cost of telecommunications in the country.

VoIP routes calls through the Internet Protocol-based networks instead of circuit-switched networks.

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VoIP providers required to post bond


BESIDES a minimum paid-up capital, firms interested in offering voice calls over the Internet, or VoIP (voice over Internet protocol) have to post a performance bond to guarantee the delivery of services to the public, the National Telecommunications Commission (NTC) said.

In its memorandum order released Thursday, the NTC said VoIP service-providers have to post a P5-million performance bond on top of raising at least P10 million in paid-up capital.

The performance bond shall be from a registered insurance or surety company preferably from the Government Service Insurance System, the NTC said.

The NTC added that persons or entities intending to register as a VOIP service reseller is required to submit a certified true copy of its Securities and Exchange Commission registration or Department of Trade and Industry registration showing that, among others, the entity is at least 60-percent owned by Filipinos.

The circular also said that VoIP resellers should post a performance bond of P1 million.

The NTC defines a VoIP service provider as a person or entity providing the service directly to the public or through resellers for compensation. Resellers, on the other hand, are persons or entities that intend to derive or source VoIP service from a duly registered VoIP provider under an agreement to resell the service directly to retail end-user customers.

The agency also said that registered VoIP service provider shall be allowed to offer the service using “toll free” service. “Each registered VoIP service provider offering this type of service shall be assigned a toll free access telephone number of 1801-xxx-yyy,” it added.

VoIP is considered a cheap alternative to traditional telephony. The National Economic and Development Authority estimates that the cost of current international calls can be reduced by as much as 75 percent, from the present $0.40 to only about $0.10 a minute, or even lower, as is the case in other Asian countries.
--Darwin G. Amojelar, Manila Times