NTC allows 100% foreign firms to offer content, other products

The National Telecommunications Commission (NTC) will allow even 100- percent foreign-owned entities to provide content, information, applications, and electronic games to local subscribers, in a bid to encourage and facilitate the development of content and the provision thereof to the consumers.

According to the NTC, the provision of contents, information, applications, and electronic games to the consumers creates demand for telecommunication networks and services, and should therefore be encouraged and facilitated.

In a draft memorandum circular, the NTC said the entry of more content, information, applications and/or electronic games providers in the market will result in lower prices, benefiting the consumers.

There shall be no nationality requirement for contents, information, applications and/or electronic games providers, contents, applications and/or electronic games developers and information sources.

Applicants only need to submit a valid registration from the Securities and Exchange Commission or from the Department of Trade and Industry and their articles of incorporation, as well as a facilities lease agreement with duly enfranchised and certificated public telecommunications entity.

The regulatory agency noted that in the power sector, consumers can purchase their power requirements from independent power producers which are not subject to nationality requirements.

The NTC added that to further encourage the development of these products and services, the prevailing access charge regime between the content, information, applications and electronic games providers, and the networks providers which is revenue sharing should be replaced by fixed access charge.

Content refers to all types of contents delivered to or accessed by users and subscribers such as music, ring tones, logos, video clips, among others. Information includes all types of information such road traffic information, financial information, visa application information.

Application includes mobile banking, electronic payments, point of sale service, among others, while electronic games are those played online except gambling.

The proposed rules require contents, information, applications and/or electronic games providers, contents developers, information sources, applications developers, and electronic games developers to have commercial presence in the country and shall secure a certificate of registration from the NTC, which shall be valid for a maximum of five years. The certificates are renewable.

The rates that providers can charge shall be deregulated. However, the provider is required to inform the NTC of the rates for each of the content, information, application or electronic game offered at least three days prior to the offering of such content, information, application or electronic game. Contents, information, applications and/or electronic games providers seeking increases in rates shall also notify the commission of the details of such increases at least five days prior to the implementation of the increase.

However, the NTC reserved the right not to allow an increase in the exercise of its mandate to protect consumers. But if the commission does not act on the information within five days from receipt of the same, the contents, information, applications and/or electronic games provider can impose the new rates.