Only local firms may offer VoIP services for a fee — NTC

Foreign companies are prohibited from offering voice over Internet protocol or VoIP services for compensation, according to the National Telecommunications Commission (NTC).

According to a memorandum order issued just recently by the NTC, a VoIP service provider will be registered only after the submission of documents from either the Securities and Exchange Commission (SEC) or the Department of Trade and Industry (DTI) showing that the company is at least 60 percent owed by Filipino citizens.

The new guidelines also require entities intending to register as VoIP service providers to have a paid-up capital of at least P10 million to discourage fly-by-night operators.

VoIP is voice communication through the Internet instead of the traditional circuit switched technology. Because the NTC decided to classify VoIP as a value-added service or VAS, even entities without a congressional franchise to offer voice services can be registered as VoIP providers.

The classification of VoIP as VAS was earlier opposed by local telcos led by the Philippine Long Distance Telephone Co. (PLDT) group and Globe Telecom.

The NTC likewise requires VoIP providers to have valid facilities or network lease agreement or interconnection agreements with duly authorized facilities/network providers, such as the local exchange network, cellular mobile network, trunk radio network, or broadband access network, and to submit a list of the cities and municipalities where the VoIP service will be offered.

Each VoIP service provider shall post a performance bond of P5 million to guarantee the delivery of VoIP service to the public. VOIP resellers shall likewise post a performance bond of P1 million. The bond will be forfeited in favor of the government in the event that these entities fail to deliver VoIP service pursuant to NTC rules and regulations.

According to the NTC, each registered VoIP service provider shall be assigned a VoIP service prefix "09xx". Only a user/customer/subscriber with an assigned VoIP subscriber number shall be allowed to originate and/or receive VoIP calls/traffic.

Only duly registered VoIP service providers shall be allowed to offer VoIP service using "toll free" service. Each registered VoIP service provider offering this type of service shall be assigned a "toll free" access telephone number "1801-xxxyyyy". Code "yyyy" shall be assigned to duly registered VoIP service providers while code "xxx" shall be assigned to duly authorized local access network providers as follows: 100-199, Paptelco members; 200, Bayan Telecommunications; 201, Bell Telecommunications Philippines; 203, Digital Telecommunications (Digitel); 204, Innove Communications; 205, Philcom; 206, Philippine Long Distance Telephone Co. (PLDT); 207, Pilipino Telephone Corp. (Piltel); 208, Telecom Technologies Phils.; 209, Telecommunications Office (CICT); 302, Express Telecommunications (Extelcom); 303, Globe Telecom; 306, Smart Communications; and 400 to 404 for 3G network operators.