NTC sets new interconnection rules

THE National Telecommunications Commission (NTC) will issue new rules designed to curb anti-competition practices.

The proposed circular on so-called reference access offers (RAO) will be the new template on interconnection agreements spelling out the prices, terms and conditions a public telephone entity would offer another telecom company or value-added service provider for access to its network, facilities, systems or customer base.

The NTC said an effective and efficient interconnection is key to sustainable competition in the industry.

The regulator said technological changes, expansion of market boundaries and the emergence of new services and business practices underscore the need for new and more substantive rules for access to and interconnection of networks.

Interconnection refers to the linkage, by wire, radio, satellite or other means, of two or more existing telecom carriers or operators to allow their subscribers to access or reach each other.

“A regulatory framework to ensure that markets function effectively for interconnection agreements to be fair, reasonable and non-discriminatory is in the best interest of consumers,” the NTC said.

The regulator said the greater transparency in access arrangements will reduce access-related disputes and protect non-dominant service providers against discrimination and abuse of market power by their more dominant rivals.

Under the draft circular, all telcos are required to submit to the NTC a RAO for each of the access services applicable to it that have been specified by the regulator within 90 days from the date of effectivity of the circular.

“The prices, terms and conditions stipulated in the RAO should represent an access provider’s definite offer, sufficient in substance and form so that an access seeker that accepts the offer may not be refused access,” the circular said.

The circular said the access services that must be offered under RAO includes fixed and mobile network termination service, mobile internet, broadband access services, mobile data termination service, among others.

The NTC said that an access provider is not allowed to modify or withdraw its RAO after it has been submitted to the regulator, unless otherwise approved upon petition, by the same.

“Any access agreement adopted pursuant to an approved RAO may not be terminated by an access provider prior to the end of the period at which the RAO is valid, without the approval of the Commission,” the NTC said.

The regulator said the terms and conditions of the access agreement that is entered into pursuant to a RAO may not be modified or amended except by mutual written consent of the parties concerned and with the approval of the NTC. By Darwin G. Amojelar, Manila Times