NTC expanding telco billing reform

Written by Miguel R. Camus / Business Mirror Reporter

THE National Telecommunications Commission (NTC) plans to expand its newly implemented billing scheme currently covering calls among cell phone users, to include those made to wireless and traditional landlines.

On Sunday, the regulator started a billing regime which effectively requires telecommunication firms to charge local cell phone-to-cell phone calls by six second “pulses” instead of the traditional per-minute charge.

Based on the rates approved by the NTC, the cost of a full minute should not exceed the assumed prevailing rate of P7.50, thereby giving consumers the option to pay for the time actually used at no extra cost.

Beyond this, the NTC is also working on new rules to include wireless and traditional landlines in the per pulse billing scheme.

“Eventually this will follow,” said NTC deputy commissioner Douglas Michael N. Mallillin at the sidelines of a press briefing held Saturday.

He explained that there is a growing popularity for calls between cell phone and landlines, which is not covered by the six-second billing scheme. Mallillin said it makes sense for landlines to follow suit since their usage might drop if consumers feel that they can save more through cell phone-to-cell phone voice calls.

He declined to comment on a specific time frame, however, noting that public hearings in Congress will still have to be held.

This is part of the NTC’s longer term goal to bring down local mobile call billing on a per-second charge, similar to the US, Hong Kong and Singapore.

“We are going on six and eventually [if we can] per second,” said Mallillin.

Already ahead of this, Ayala-led Globe Telecom offered a new per second billing scheme to coincide with the NTC regime.

Globe and Touch Mobile users will be charged 5 centavos per second on Sunday and 10 centavos per second for the rest of the week.

This amounts to P3 per minute on Sunday and P6 per minute from Monday to Saturday.

"We hope to stimulate and drive call usage among heavy texters, especially during this season," said Globe president Ernest L. Cu.

The landmark six-second pulse billing was a result of the collaboration—in the wake of a clamor from consumer groups—between the NTC, the Philippine Senate and major telecommunication firms Sun Cellular, Smart Communications Inc. and Globe Telecom Inc.

The rules, which took effect 12:01 a.m. Sunday, will initially cover intra-network calls (meaning those within the same network such as Globe to Globe, Smart to Smart and Sun to Sun calls). Cross-network calls for the new regime will start on December 16, after the major telcos asked for an extension to prepare their systems.

The major telcos had earlier asked the NTC to move the implementation date to the end of January 2010, citing difficulties arising from increased network traffic in December.

The new regime is also assigned as the default billing mode, meaning subscribers can be charged on the minute-per-pulse basis if they actively enroll in those schemes.

Under the rule, the NTC said that for the 10 six- second pulses in a minute, the first two pulses or 12 seconds shall not exceed the “flagdown rate” of P3; while the remaining eight shall not exceed the P7.50 prevailing rate for the full minute.

For instance, at the flagdown rate of P3 with the succeeding pulses costing P0.56 each, the total bill for a 30-second voice call will only be P4.59 compared to the full-minute charge of P7.50 under the old scheme.

The cost per pulse for succeeding minutes after the first will cost P0.75 each.

“The consuming public will be happier with this regime. The [new] system is already an advantage to the consuming public,” said Senate president Juan Ponce Enrile at the briefing.

Smart Communications and Sun Celluar officials could not be reached for comment yesterday. Globe

Mallillin said the NTC will monitor the new rates over the next two to three months to determine the effects on the telco firms and consumers.

DepEd backs cellphone ban

EDUCATION Secretary Jesli Lapus has expressed full support to the proposal of Cagayan de Oro Rep. Rufus Rodriguez for a nationwide ban on mobile telephones in schools to put an end to class mischief, including test cheating with the use these hi-tech gadgets.

The education chief lauded HB 4246, authored by Rodriguez who claimed that aside from cheating during examinations, cellular phones are also being used by students in making prank calls such as reporting false bomb threats to achieve early dismissal of classes.

He said that some features of cellular phones, particularly games compete with the student’s attention.

“We favor the total ban of cellular phone in schools. It distracts from their school lessons especially play hi-tech games,” Lapus said.

He said that some schools, particularly in private and exclusive schools, have banned cellular phones inside school premises.

Rodriguez noted that police have expressed alarm over the upsurge in cell phone-related crime incidents victimizing many students. By: Alvin Murcia Journal online

Telcos: No such thing as free SMS, not even in the US

While willing to discuss text rates, telecommunications companies are balking at a recent announcement that government wants to make text messaging free, saying this implies that telcos were unduly pricing the service when they were not.

"Reports have cited Verizon, a major US mobile carrier, as offering 'free' text messaging. A check with the Verizon website shows that the service being offered is not 'free' text messaging but unlimited text messaging. The unlimited SMS offer is part of their monthly service plans, the lowest priced of which costs US$59.99 or roughly P2,400 a month," Smart Communications Inc. spokesman Ramon Isberto said in a recent statement.

Unlimited text messaging is already available in the Philippines, he added.

"SMS rates in the Philippines are already among the lowest in the world. While the standard rate remains P1 per message, Philippine operators, including Smart, now offer many different text and call packages that have drastically reduced the effective price of SMS from 10 to 20 centavos per message or even lower in the case of unlimited text packages," he said.

Globe Telecom Inc. SVP Atty. Rodolfo Salalima agreed in a separate statement.

"While we do not take it from government to feel their concerns for the mass public, we need to sit down together (to discuss rates).... In Australia the cost per text is P2.4, in Malaysia P1.07, in China P1.55, in Taiwan P4.25, in Europe it ranges from P15 to about P25," he said.

As for lowering text rates, Salalima said the price of one text message was now only about 13 centavos because intense competition has driven telcos to offer promos.

He added that there was a public service aspect to the service, and if telcos were forced to make it free despite the heavy investment required to cope with data traffic and to improve quality of service, then text messaging may not be sustainable.

Digital Telecommunications Phils. Inc., operator of the Sun Cellular mobile brand, likewise said that text messaging was already very cheap in the Philippines.

"The fact that it is being contemplated to make it free or lower prices implies there is an impression that it is expensive. But in fact we are among the lowest especially when we count the promos. Of course, we can discuss this better if we get a formal policy or statement from government," Digitel SVP William Pamintuan told reporters recently.

But the NTC said it has already come up with twin circulars proposing to trim charges not only for text messaging but for voice calls as well. It has also announced that it will hold a public hearing about the proposed rates this week.

NTC wants to slash the access charge (also known as the interconnection charge) for text messaging between different operators (Smart to Globe, Sun to Smart, etc.) to 15 centavos from 35 centavos. This would put the charge at par with the current 15-centavo access charge for two brands using the same network (Smart to Talk n' Text, Globe to TM, Sun to Sun).

NTC believes that cheaper access charges between networks would drive down the price of text messaging from the nominal rate of P1.

As for voice calls, NTC wants access charges for off-network activity (Smart to Globe or Smart to Sun, and vice-versa) to go down to P1.50 from the current P4.

Telcos have declined to comment on the specific rates, saying they have not received a copy of the circulars. By Riza T. Olchondra - Philippine Daily Inquirer

Nograles eyes lower texting service rates

HOUSE Speaker Prospero Nograles yesterday assured the public the House of Representatives is giving priority to lowering the cost of telecommunications in the country at least during these difficult times.

In a statement, Nograles appealed to telecommunication providers to repay the subscribers who have given them billions of pesos in profits by lowering the cost of their services.

The Speaker said the Lower House is dead serious on rationalizing telcos operations in the country in order to bring down the cost of communication services particularly “texting” that is putting additional strain on the day-to-day budget of Filipino households.

Nograles has already instructed the House committee on Information and Technology chaired by Rep. Joseph Santiago to revisit Republic Act 7925, otherwise known as the Public Telecommunications Policy Act of 1995.

The move aims to find out possible amendments to bring down the cost of telco services particularly texting, which has become an essential communication tool among Filipinos including the poor.

Nograles said that RA 7925 may have “spoiled” the telcos with the removal of the 12-percent ceiling on return of investment and the 3-percent franchise tax on gross receipts which he said, could have made the costs of telco services more reasonable.

“The removal of the cap gave telecoms too much discretionary opportunity to maximize profit as they prey on the eager Filipino texters,” he said.

Based on estimates, Nograles said that texting in the Philippines should be only at 25 centavos per text or should even be made free.

Nograles also asked Santiago’s committee to review a measure filed during the 12th Congress which would compel telcos to stop overcharging their customers on the so-called “per-minute” basis on voice calls.

Mobile phone service providers should only charge their subscribers on “per six seconds of usage” and should be compelled to issue billing statements even for pre-paid subscribers, Nograles said.

The practice of telecoms companies of charging their subscribers on a per-minute basis instead of the actual length of calls should be considered as a business malpractice and this should be immediately corrected, the Speaker added. By: Jester P. Manalastas - Journal online

TXTpower warns of cellphone health risks

THE cellphone you’re using may be hazardous to your health.

So warned consumer group TXTpower, whose members have raised the alarm after reports and studies showing the health risks pose by the frequent use of cellphones.

In an interview, TXTpower spokesperson Anthony Ian Cruz cited several studies here and abroad of the detrimental effects of the electromagnetic field and electromagnetic radiation emitted by cellphones.

Based on studies, Cruz said, prolonged exposure to these dangerous microwave radiations might result in brain cancer and other bodily tumors.

In some cases, experts claimed overexposure to cellular phone radiation resulted to poor sperm reproduction and even sterility, he said.

“Most of these studies remain inconclusive but there is absolutely no harm in making the public aware about these dangers. One may not know it but the gadgets we keep closely to our selves may cause problems in the future,” he added.

Children, students and young adults are likewise warned to give themselves some kind of protection from these harmful radiation.

Since these radiowaves affect some sectors of the brain, they might cause nausea and other illnesses related to memory and other brain functions, Cruz pointed out.

TXTPower is an organization of cellphone users that aims to empower Filipinos both as consumers and as citizens.

Cruz further explained that ensuring the safety of these radioactive gadgets is the primary concern of the government, particularly the National Telecommunications Commission.

“TXTpower considers safety from cellphone use as one of its primary concerns but because the government and not us consumers are duty bound to protect the public, the NTC must not be remiss in its job and it must work double time in ensuring that the cellular units being sold around have passed the required safety standards,” Cruz said.

He disclosed that the NTC has a unit that tests the radiation ratings of each handset sold in the market. By: Melnie Ragasa-Jimena Journal online