Solon files bill seeking lower telco service rates

EDITORIAL

It is a welcome development that a party-list representative has filed a bill seeking to lower the rates of voice calls, text messages and mobile internet services.

Kabataan partylist Rep. Terry Ridon filed House Bill 4380 or the "Affordable Mobile Service Rate Act" following the National Telecommunications Commission's (NTC) order that reiterated its 2011 ruling on the rollback of SMS rates to P0.80 from P1.

The HB 4380 seeks to "implement a standard rate of fees for mobile phone services," leading to possible rate deductions on the services for text messaging, voice calls, and even mobile data connection.

Section 4 of HB 4380 states, "All cellular mobile telecommunications service providers shall charge a standard rate of fees for mobile phone services to its subscribers in accordance with the rates established by the NTC which shall be fair and reasonable and which provide for the economic viability of telecommunication entities and a fair return on their investments considering the prevailing cost of capital in the domestic and international markets."

The proposed bill will also require telecommunications companies to "file a petition with the NTC on any proposed adjustment in the approved ceiling rates of mobile phone services."

"Mobile phone service rates in the Philippines are one of the most expensive in Asia. It's time for Congress to step in and bring down costs, for the benefit of millions of Filipino mobile users," Ridon said. The bill also seeks to abolish interconnection charges in all types of mobile phone services.

The bill defines interconnection charges as "the rate levied by service providers to subscribers for services that involved linkage, by wire, radio, satellite or other means, of two or more existing telecommunications carriers or operators with one another for the purpose of allowing or enabling the subscribers of one carrier or operator to access or reach the subscribers of the other carriers or operators."

Section 6 of HB 4380 states, "All types of interconnection charges, including interconnection usage charges such as termination  charges and carriage charges for mobile phone services are hereby abolished."

"The abolition of interconnection charges shall in no way affect the quality of connection and services rendered by CMTS providers. Upon the effectivity of this law, mobile phone service rates shall hereby be revised to reflect the deduction brought about by the removal of interconnection charges," the proposed bill reads.

"Over the years, telecommunications companies have already recouped their expenses for infrastructure and equipment that enable interconnectivity. Abolishing interconnection charges would greatly contribute to lowering mobile phone rates without harming the economic viability of telecommunication companies," Ridon said in the explanatory note of HB 4380.

At present, telecommunications companies charge up to P0.35 as interconnection fee per text message. The recent NTC order brings this down to P0.15.

Meanwhile, voice calls to other networks are charged P1 to P4 per minute as interconnection fee. "If interconnection charges are removed, present mobile phone service rates may go down to as much as 50 percent," Ridon said.