Facelift

Trunk radio operator Nextel Communications Philippines, Inc. (NCPI) has transformed into a new organization with a new name: Next Mobile.

Next Mobile, headed by its chief executive Mel Velarde, is set to introduce to the market a whole new range of products and services geared towards data and coordination-intensive markets.

Based on its invitation for its upcoming launch, Next Mobileuses the Integrated Digital Enhanced Network (iDEN) platform known for its superior 4-in-1 functionality, two-way trunk radio, voice call, SMS or text messaging and wireless packet data services.

So what’s the difference?

IGF operators cry foul

Effective Feb. 1, 2003, Philippine telcos increased their termination rates from nine cents to 12 cents per minute for international calls terminating in Philippine fixed line while cellular operators increased their rates from 12 to 16 cents per minute.

On the local industry front, Globe, Smart and PLDT unilaterally raised local access charges from 9.5 cents to 12 cents per minute for fixed line and from 12 cents to 16 cents for mobile calls effective Feb. 1.

Non-acceptance of the new local access charges resulted in circuits reportedly being by the three.

In response to this latest development, Eastern Telecommunications Phils. Inc (ETPI), Philcom, and Capwire filed a petition with the National Telecommunications Commission (NTC) to address the concern on the unilateral increase of the local access charges.

Said carriers requested that the big three consider a wholesale local access charge that is lower than the international termination charge to ensure better margins in off-net call termination for the smaller domestic players.

The big three have not agreed to lower their access charges yet. On the one hand, the NTC still has to come up with a policy regarding this matter.

Local carriers were forced to accept the new rates for local access under protest, until bilateral negotiations for wholesale rates are concluded.

In general, an increase in international termination rates means higher margins for the Philippine telcos.

However, this is premised on local interconnect charges remaining at the original levels 9.5 cents and 12 cents per minute for fixed line and cellular traffic, respectively.

With local interconnect charges raised unilaterally to the same level as the settlement/termination rates, international gateway facility (IGF) carriers like ETPI, Capwire, and Philcom terminating off-net traffic will be forced to quote even higher termination rates thus rendering them uncompetitive.

Such increase force these carriers to focus only on their own on-net traffic, which is limited to their respective local exchange carrier (LEC) areas, as defined by the Service Area Scheme.

Can we hear from the big three?

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