Why SMS rates are still not down to Php0.80?

Last year, the NTC has sent out a memorandum to all carriers (Globe, Smart & Sun) asking everyone to lower their regular SMS rates down to Php0.80USD 0.01INR 1EUR 0.01CNY 0.10 from Php1.00USD 0.02INR 1EUR 0.02CNY 0.12. It should have been in effect since November 30, 2011.

We first reported back in July 2011 where NTC ordered telcos to reduce interconnection charges from Php0.35USD 0.01INR 0.51EUR 0.01CNY 0.04 to just Php0.15USD 0.00INR 0.22EUR 0.00CNY 0.02. The difference of Php0.20USD 0.00INR 0.29EUR 0.00CNY 0.02 will be passed on to consumers effectively making regular SMS rates cheaper at Php0.80USD 0.01INR 1EUR 0.01CNY 0.10.

However, if you will notice in your postpaid bill or even when you check your load balance for prepaid, the going rates for regular SMS is still Php1.00USD 0.02INR 1EUR 0.02CNY 0.12 and not Php0.80USD 0.01INR 1EUR 0.01CNY 0.10 as mandated by NTC.

Well, as expected, all the telcos were resistant to the mandate. Nobody wants to follow the memorandum and cut back on SMS price. Remember it’s 20% of SMS rates which could translate to the same 20% in lost revenues from all SMS transactions.

Telcos argue that they are already offering unlimited text promos to consumer with SMS rates much lower than Php1.00USD 0.02INR 1EUR 0.02CNY 0.12.

If I am not mistaken, some of the telcos have even taken this to the court to fight NTC.

Abe Olandres

Abe is the founder and Editor-in-Chief of YugaTech with over 20 years of experience in the technology industry. He is one of the pioneers of blogging in the country and considered by many as the Father of Tech Blogging in the Philippines. He is also a technology consultant, a tech columnist with several national publications, resource speaker and mentor/advisor to several start-up companies.

https://www.yugatech.com

29 Comments

Benchmark says:

13 years ago

well that is one of the problems here in PH…mga gamahan sa pera. From Government officials to Telcos to private institution.

But then again, nung free naman ang SMS dati, sobra naman mga tao magpadala ng SMS, na nagmemessage failed pa talaga.

Hayz! Nasa tao lang talaga…Sana meron ulit isang bagong telco na magpapabago sa flow like what Sun did (but sad to say, it was acquired by smart)
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itachi1 says:

13 years ago

Antay lang bro… may SMC pa na darating…

Glenn Ong says:

13 years ago

Shouldn’t it be in effect while the telcos are filing it in court?
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Sampat says:

13 years ago

Cause Pinoys doesn’t care… pag tumagal ng few months ang unresolved issue, nakakalimutan na… and move on to the next issue…

This will be brought up sa next election… pang commcercial ulit ng mga politiko…
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Hesemessss says:

13 years ago

Telcos… lowering their SMS rates? Ha! Umasa pa kayo!
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Ramillav says:

13 years ago

It’s because the administrative agency NTC does not have the power to impose upon the tele companies how much they will charge, because the law wanted to deregulate the industry. Unfortunately, the free market economic principle behind the law is not functioning because there is no real competition since now, only two companies dominate the entire industry.

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Anonymous says:

13 years ago

becasue it was never Php1.00 to begin with. SMS should be free in the first place since it really has no cost to the telco provider when you use it since it rides the control channel, the channel that your phones use to notify you of incoming calls.
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Q says:

13 years ago

i was wondering the same thing, kung bakit di na implement. siguro mahiba ang ntc o posible nag bribe ang telcos ng bilyon bilyon para manahimik ang ntc.

nasan na ang media para maungkat uli ang issue?
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Patrick says:

13 years ago

Are SMS Value Added Services (VAS) included in the 20% reduction? Afaik, the discount was because of the lowered interconnection rate between networks. Now that it appears that there’s a 2-way rivalry in the market right now, I guess it’s more than enough to have this implemented right away.

If VAS are not included, then I guess the term “SMS transactions” should be labeled as “standard SMS rates” to prevent confusion.
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Neil says:

13 years ago

Mga taga NTC nagno-Noynoying. lol
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Monique says:

13 years ago

Make the calls affordable para ang tao will use the facility aside sa texting.
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