NTC drafts add’l rules on VoIP

The National Telecommunications Commission (NTC) has drafted additional rules on voice over Internet protocol (VoIP) to address certain issues which, according to the commission, is hampering or discouraging the entry of new and potential VoIP service providers.

According to the draft rules, notwithstanding the issuance in March 2005 of NTC Memorandum Circular 5-8-2005 which classified VoIP as a value-added service, uncertainty over certain aspects of what is or is not allowed — particularly in reference to questions of access charges for VoIP, as well as the offering of VoIP service as a purely Internet-based application —  are discouraging or hampering the entry of new VoIP players, to the detriment of competition in the telecommunications market, and thereby depriving the consuming public of greater choice, lower costs and more efficient services.

Under the proposed new rules, VoIP service providers (VoIPSP) requiring access to the public switched telephone network (PSTN) shall enter into an interconnection or access arrangement with at least one of the duly enfranchised and authorized PSTN operator.

Such carrier shall then be responsible for routing of the VoIP traffic to and from the networks of other operators and shall see to it that VoIP traffic routed to other operators are properly identified. The VoIPSP shall pay transit charges to the PSTN, which shall not be higher than 25 cents per minute.

The access charge for VoIP calls originating from or terminating to the PSTN shall not be higher than the applicable access charge for regular national long distance telephone calls. The access charge shall not in no case higher than P1 per minute.

The same rules shall apply to VoIPSP requiring access to the cellular mobile telephone network (CMTN). Such provider shall enter into an interconnection or access arrangement with at least one of the duly enfranchised and authorized CMTN operator. The VoIPSP shall pay transit charges to the CMTN which shall also not be higher than 25 cents per minute.

According to the NTC, the access charge for VoIP calls originating from or terminating to the PSTN shall not be higher than the applicable access charge for regular national long distance telephone calls. The access charge shall not in no case higher than P1.50 per minute.

Meanwhile, the offering of VoIP services by a VoIPSP  accessed through a broadband connection provided by another operator is allowed without need of a prior commercial arrangement  with or permission from the said broadband operator.

The sale, lease, importation, distribution and/or provision of VOIP equipment, software and/or accessories that are not directly connected with the network of PTE’s, such as, but not necessarily limited to, those that are connected directly to computers or to broadband lines are likewise allowed.

VoIP service providers that offer services to the public that cannot guarantee quality of service beyond “best effort” basis shall provide adequate notice to their subscribers or customers of such limitation, the NTC said.

The NTC emphasized that new technologies such as VoIP are blurring the traditional boundaries between computing, telecommunications, and broadcasting; and continue to fundamentally alter the structure, economics and nature of competition in the telecommunications and broadcast sectors.