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Draft MC on SMS Interconnection Charge

Draft MC on SMS Interconnection Charge

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Published by tonyocruz
Draft memorandum-circular on interconnection charges for SMS
Draft memorandum-circular on interconnection charges for SMS

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Published by: tonyocruz on Jul 05, 2011
Copyright:Attribution Non-commercial

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03/30/2014

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,/
MEMORANDUMCIRCULAR
No.
SUBJECT:INTERCONNECTIONCHARGE
FORSHORT
MESSAGING
SERVICEWHEREAS,
the
1987 Constitution
fully
recognizes
the
vital
role
of
communications
in
nation
building
and
provides
for
the
emergence
of
communications
structuressuitable
to
the
needs
and
aspirations
of
the
nation;WHEREAS,
promotion
of
competition
in
thetelecommunicationsmarket
is
a
key objective
of
Republic
Act
7925
(RA7925)
,
otherwise
known
as
ThePublic
Telecommunications
Policy
Act
of
the
Philippines,
which
mandatesthato'ahealthy
competitiveenvironment
shall
be
fostered,
one
in
which
telecommunicationscarriersare free
to
make
businessdecisionsand
to
interact
with
oneanother
in
providing
telecommunications
services,
with
the
end
in
view of
encouraging
theirfinancial
viability
whilemaintainingaffordable
rates";
WHEREAS,
RepublicAct7925
further
definesthe
role of
thegovernment
to "promote
a
fair,
efficient
and
responsive
market
to
stimulate
growth
and
development
of
the
telecommunications
facilities
and
seryices":
WHEREAS,
Sec.
5c
of
RA7925
directs
NTC
to
"Mandate
a
fair
and
reasonable
interconnection
of
facilities
of
authorized
public
network
operators
and otherproviders
of
telecommunicationsservices
through
appropriate
modalities
of
interconnection
and
at
a
reasonable
and
fair
level
of
charges,
which
make
provision
for
the
cross subsidy
to
unprofitable local
exchange service
areas so
as
topromote
telephone
density
and
provide
the
most extensive
access
to
basic telecommunications
services
available
at
affordable
rates to
the
public";
WHEREAS,
the shortmessaging service
(SMS)
is
widely
used
by the
citizensintheir
day-to-
day
activities;WHEREAS,
the
existing
interconnection
charge
for
SMSis PhP0.35perSMS;
WHEREAS,
public
telecommunications
entities(PTEs)
are
offering
SMS
at
a
price
as
low
as
PhP0.15
perSMS
within
their
respective networks;
WHEREAS,theretailprice
of
SMS
consists
of
the
cost
of
the network
sending
the
short
message
or
textplus
cost
of
the
network
receivingthe
text
plusthe
cost
of
the interconnection
facilities;
NOW,
THEREFORE,
pursuant
to
RA
7925,
Executive Order
546
series
of
1979, and reduce
communications
costs,
maintain and foster
fair
competition
in
the
telecommunications
industryand
in
order
to
makeSMS more
affordable
to
the
general
public,
the
National
Telecommunications
Commission
herebypromulgatesthe
following
guidelines:Section
1.
The
interconnection
charge
for
SMS between
two
(2)
separate
networks
shall
be
as
follows:
First
year
from
effectivity
of
the
Circular
-
not higher than PhP0.25per SMS
Secondyear
from
effectivity
of
the
Circular
-
nothigher than
PhP0.20
perSMS

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