NTC tightens rules on cellphone operations

MANILA, Philippines - The National Telecommunications Commission (NTC) has imposed more stringent service performance standards on cellular mobile telephone service (CMTS) operators in a bid to ensure the quality and reliability of telecommunications services in the country.

Under NTC Memorandum Order 03-06-2009, CMTS operators, in particular Smart Communications/Pilipino Telephone Inc. (Piltel), Globe Telecom, and Digitel Mobile (Sun Cellular) have to observe a grade of service (GOS) of four percent or not more than four lost calls for every 100 calls.

Meanwhile, the drop call rate (DCR) being experienced by mobile subscribers should not exceed two percent or two dropped calls for every 100 calls. 

Under a previous memorandum circular, 07-06-2002, CMTS operators are encouraged to improve their GOS by one percent and DCR by one percent every two years until the GOS is four percent and the DCR is two percent 

The NTC noted that since six years have already elapsed from the promulgation MC 07-06-2002, the GOS and DCR should have improved by three percent each.

Meanwhile, the NTC has proposed further amendments to its previous rules governing broadcast messaging services. 

In a draft circular which according to NTC commissioner Ruel Canobas will be issued early this week, the regulatory agency pointed out that one of the major reasons for “vanishing loads” is the alleged “opting-in” of subscribers to contents and/or information services offered by content as well as information service providers.

It will be recalled that Sen. Juan Ponce Enrile criticized CMTS operators after his prepaid load “vanished.” But his service provider, Globe Telecom, produced records to show that he downloaded certain value-added services and was charged for it. 

A previously issued circular 03-03-2005 allows content and/or information providers to initiate the “opting-in” of subscribers to content as well as information services through push messages;

Such practice, the NTC said, is a source of dispute between subscribers and content and/or information service providers.

Under the proposed amendments to MC 03-03-2005, push messages will not be allowed so that subscriptions or requests for content and information shall be initiated by the subscriber only.

Commercial and promotional advertisements, surveys and other broadcast messages shall be allowed only if prior consent from the subscribers is secured, the NTC added.

The draft rules also provide that contents and any form of information for a fee shall only be delivered to subscribers who requested for such content or information on a per request basis.

Another NTC draft circular calls for a fixed access charge instead of the prevailing revenue sharing arrangements between the content/information provider and the networks providers, to further encourage the development of contents and information.

The proposed rules state that networks, systems and facilities providers shall provide access to content/information providers upon request and based on an access agreement. Access to the networks, systems and facilities of duly authorized providers by duly registered content andinformation providers shall be mandatory.  

The access charge shall be negotiated, the NTC said, and shall be cost-oriented and not be higher than the prevailing retail rates for the service where the contents or information are offered.