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Among other things, the draft memo defines VAS as those involving the following: messaging services; audio and video conferencing; voice mail services; electronic mail services; information services; gaming services; application services; content and program services; audio-text services; domain name hosting services; facsimile services; IP multi-casting services; virtual private network services; and PBX services. It does not include VoIP services, which the draft memo says, are already covered by a separate memo-circular.
The draft memo says leased line service shall be classified as VAS, but mandates telcos not to discriminate providers. It says telcos should provide providers with the same kind of services given to other subscribers at prices not higher given them. Also, the VAS rates will be deregulated, although the draft memo requires providers to advise the NTC of their price structures. The draft memo says the department should protect consumers.
By all means, the draft memorandum circular is part of the overall competition policy, which the NTC is putting in place primarily to make the telecommunications sector more competitive, promote universal access, and protect consumers. The Philippines has been widely criticized for its failure to promote competition despite the deregulation and liberalization of the telecommunications sector in the 1990s and the wireless boom in the early 2000s. The enactment of Republic Act 7925, of the Public Telecommunications Policy Act of 1995, did little to break up the then existing telecommunications monopoly. What has emerged in the last 12 years is a duopoly composed of PLDT and Globe Telecom.
It would appear that the NTC wants big telcos, or infrastructure owners, to sell wholesale services, while the VAS providers perform the retailing. This has been in consonance of the same structure existing in developed markets, primarily Europe. A study on the country's telecommunications structure says major telcos have been poor sellers of retail services as indicated by their own heavy operational and financial losses. The pursuit of a new overall competition policy is seen as a way to restructure the sector to make it more adapted to the changing times.
DEVELOPMENTS: Pacific Internet Ltd., the largest Internet service provider by geographic reach in Asia-Pacific, is pursuing a $12-million (almost P600 million) investment and expansion plan for its local subsidiary, Pacific Internet Philippines. This is the nation's first WiMAX rollout to provide wireless broadband services initially in Metro Manila. Its plan includes multiple wireless technologies to support its core business: leased lines and broadband Internet access and other IP-based services mainly for corporate customers. Its local subsidiary has recently been assigned the 15MHz spectrum in the 2.5-2.7 GHz band, suitable for broadband wireless access for corporate customers.
The infrastructure expansion will make Pacific Internet Philippines an important component in PacNet's regional strategy, by providing the means to extend corporate networks from the other PacNet countries into the Philippines, while having full end-to-end control over the service delivery and quality. PI PH will also be able to strengthen its brand name and market positioning by owning its infrastructure down to the last mile. Also, the expansion is in line with Pacific Internet's five-year business plan announced in 2006, to transform Pacific Internet into an IP-based communications and solutions provider.
Also, the Intellectual Property Office of the Philippines and the NTC have signed the implementing rules and regulations the resolution of cases filed with the NTC against cable operators involving violations of intellectual property rights and NTC rules and regulations. The IRR allows the offended parties to file criminal or civil complaints against alleged cable pirates for violating laws on intellectual property rights and cable piracy. The complainant may also opt to file first with the NTC, which exercises jurisdiction over all administrative cases involving violation of permits, issuance of licenses and authority to operate radio and television broadcasts including cable TV. If the the department determines that the case is an IPR violation, it shall endorse the complaint to IP Philippines for appropriate action. The IRR forms part of a joint program of IP Philippines and NTC to monitor and enforce IP laws in the cable industry. The two agencies have a calendar of activities that include workshops and trainings for their officials to enhance skills in resolving issues related to cable piracy.
The May 14 local polls are shaping up to be a hokum affair, as the electorate remains essentially indifferent to the candidates. Voters see it as nothing but the anarchy of families, political dishrags (trapos) and butterflies, second and third raters, and entertainers, who hardly have any preparation for an arduous political career. One political observer sees the proverbial absence of hope. No candidate provides any hope or a semblance of national deliverance for the people. The political indifference may not trigger a political backlash in the immediate or short term. But once it happens, it will just cascade so swift to the point that one can hardly explain it.
E-mail: telecom_digest@yahoo.com
Copyright 2007 Kamahalan Publishing Corp. Source: Financial Times Information Limited.
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