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  • 50% text rate cut seen likely
     
    By Lenie Lectura
    Reporter
     

    MOBILE-phone operators are expected to cut by half the rates of short message service (SMS) from the current P1 per SMS sent to one network from another, a move which might just put discussions to limit the cap on interconnection charge to a definite close.

    Globe Telecom was the first to propose this. It told the National Telecommunications Commission (NTC) recently that it intends to implement an off-net SMS rate of P20 per 40 texts per one day. Effectively, the cost of one SMS sent by a Globe subscriber to another network will be P0.50.

    And because the SMS rate cut applies to other networks, then obviously other cellular operators would have to implement the same.

    Sun Cellular, the mobile brand of Digital Telecommunications Philippines Inc. (Digitel), agreed to do the same.

    “It’s logical. Even if we have the lowest rates in the market, if subscribers of another network will only be charged P0.50 if they send SMS to Sun Cellular, then obviously we have to respond,” said the company’s senior vice president for legal services William Pamintuan in an interview last week.

    Smart Communications Inc. did not say if it will follow suit but officials said, “The entire industry will make an announcement soon.”

    NTC officials, at a celebration of the agency’s anniversary on Friday, said they have not yet acted on Globe’s application to implement the proposed slash in SMS fee.

    “Globe’s application is still pending. We will still study the draft circulars we issued in connection with the cap on access charges even if they will reduce the text-messaging fees. What is sure is that we will resolve the issue they raised in their position papers if we, the NTC, are authorize to impose a cap,” said NTC Commissioner Ruel Canobas.  

    Industry sources said Globe, Smart and Sun Cellular have agreed to adopt the rate cut in SMS, but could just not make an announcement on this because President Arroyo will be the one to reveal this development in her State of the Nation Address today.

    Transportation Secretary Leandro Mendoza, who earlier said phone companies should honor the new policies which their regulators are proposing to implement, had hinted last week, at the commercial opening of Ninoy Aquino International Airport Terminal 3, that telcos will heed the government’s call to lower telecommunications costs.

    “They will announce something next week. We are looking forward to that,” said Mendoza in an interview Tuesday last week.

    In a separate interview, Globe senior vice president for corporate and regulatory affairs group Rodolofo Salalima said the proposed rate cut will only apply to SMS. Voice rates, he said, will remain unchanged.

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