Bayan backs NTC move on interconnection fees

Lopez-owned Bayan Telecommunications has expressed its full support to the National Telecommunications Commission’s move to lower interconnection charges for voice calls.

In a letter to NTC commissioner Ruel Canobas, Bayan chief executive consultant Tunde Fafunwa said they reiterate their full support to regulator’s plan to lower interconnection charges for voice calls since this would result in lower rates for subscribers.

“As observed by the (NTC), voice call rates for mobile services in the Philippines remain the highest in Asia. This is particularly true for calls made outside of a carrier’s network (off-net),” Fafunwa pointed out.

He said that in support of NTC’s initiative to make calls more affordable to consumers, Bayan launched its wireless landline service which enables a subscriber who is mobile to make unlimited landline calls to any landline network, both on-net and off-net, within a local calling area.

“It is on this environment we saw an opportunity to launch Bayan Wireless Landline, where we offered unlimited landline calling while being mobile while calling on-net and off-net to other landline providers,” Fafunwa said.

He explained that because subscribers are being charged with a fixed rate, while having the capability of making unlimited calls while being mobile, wireless landline merges the benefits of landlines and cellular phones.

Recently, the NTC said commercial agreements between telcos make the cost of cell phone usage unreasonable in the Philippines with subscribers bearing the brunt. The commission has proposed to reduce access or interconnect charges among telecommunication companies.

In August, NTC issued a draft circular imposing a 15-centavo interconnection charge per text message which is lower than the current rate of 35 centavos per message.

Another circular issued would reduce the interconnection charge for voice calls to P1.50 or lower per minute or 63 percent cheaper than the current rate of P4 between mobile operators with separate networks.

NTC director Edgardo Cabarrios has cited the emergence of wireless landlines of giving consumers an option. The International Data Corp. (IDC) earlier said wireless landline service is becoming more popular in certain markets as operators use the technology to offer unlimited voice calls that resemble services offered by traditional landlines. Aside from Bayan, PLDT, Globe and Digitel offer wireless landline services.

Also in his letter, Fafunwa said they echo the call of the commission that there is still room for improvement to extend the affordability of telecommunications services to more people while broadening the use of these services to its full potential and contribute further to improving the lives of Filipinos.

“As a major stakeholder of the telecommunications industry, Bayan shall strongly support an industry summit to be organized by the commission specifically to develop a framework for lowering rates in mobile, landline and wireless landline services on a sustained basis, achieve parity in interconnection charges between mobile and landline/wireless landline services, as well as improve interconnection among competing communication networks to address public clamor for affordable yet efficient telecommunication services given the current economic conditions,” he added.

Fafunwa stressed that Bayan remains committed to deliver on its mission to give Filipinos their voice back and is consistently looking for ways to make its services more accessible to more consumers. Recently, it launched a basic plan for its wireless landline service at a fixed rate of only P499 per month.