DICT orders NTC to reduce interconnection rates

MANILA, Philippines — The Department of Information and Communications Technology (DICT) has ordered the National Telecommunications Commission (NTC) to reduce interconnection rates between telecommunications operators.

In Department Order 002 signed by acting Secretary Eliseo Rio Jr. on May 11, the DICT instructed the NTC to formulate concrete measures to bring down interconnection rates for both mobile voice and short message services to the minimum. 

This, as Rio said calls and text service rates in the Philippines are among the highest in Asia.

“Surely, the subscribers will send more text messages that will really make up for the interconnection cost,” he said.

The move is not only seen to benefit subscribers in terms of lower charges for calls and text messages, but also the incoming third telco.

Having standard interconnection fees will also eliminate the factor of choosing an operator on the basis of the current subscriptions of friends and families.

The DICT said “affordable interconnection charges would encourage competition and attract new major telecommunications players by creating a healthy environment conducive for competition and fair level playing field.”

Earlier, Rio said the DICT intends to name the new telco player within the year.

While the DICT has a self-imposed target to make the announcement before the President’s State of the Nation Address in July, he said doing so is not possible as the government is still finalizing the terms of reference for the selection process.

President Duterte initially wanted to have a third telco operator to compete in the market in March of this year.

By having a new major telco player in the market, customers would benefit in terms of having more options and improved services.