NTC issues rules for VoIP services

The National Telecommunications Commission (NTC) has issued additional rules that would govern applications to offer voice over Internet Protocol (VoIP) services.

To ensure that VoIP services are offered only by Filipino entities, the NTC has required the submission of government registration papers showing that the entity is at least 60 percent owned by Filipino citizens.

The new rules also require VoIP applicants to have a paid-up capital of at least P10 million to guard against fly-by-night operators.

Applicants are also required to provide the NTC with a copy of valid interconnection agreements with duly authorized access facilities/network providers and/or leased facilities agreement with duly authorized network providers as well as a list of cities and municipalities where the VoIP service will be offered.

A performance bond of P5 million must also be put by by the applicants from a reputable insurance or surety company duly registered with the Securities and Exchange Commission (SEC) and accredited by the Insurance Commission, and preferably from the Government Service Insurance System.

In the case of VoIP resellers, the commission requires a lower performance bond of P1 million as well as a certified true copy of a reseller agreement with duly registered VoIP service provider.

The NTC earlier opened up VoIP services not only to duly enfranchised public telecommunications entities (PTEs) but also to value-added service (VAS) providers after classifying VoIP as a VAS. This despite stiff opposition from telecommunications companies which insisted that only PTEs with congressional franchises can offer VoIP because the latter is a basic telecommunications service and not a VAS.

VoIP is the provision of voice communication using IP technology instead of traditional circuit switched technology.