NTC mulls lowering inter-connection charges
This should be good news to everyone — the National Telecommunications Commission (NTC) is considering the idea of lowering the inter-connection charges between telcos in the next 3 years.
The current inter-connection charge for calls is Php4 and Php0.35 for SMS. NTC wants it to go down to Php1 for call and Php0.15 for SMS. When that happens, regular charges to consumers will also go down.
If the regular fees to consumers is Php6.50 and Php1, for calls and SMS respectively, NTC’s move could theoretically low calls to just Php3.50 and SMS to Php0.80.
However, this could also heavily affect the bottom-line of all telcos concerned.
Telcos send out over 2 billion text messages per day. If the reduced charges take into effect, that could shave off at least 20% of their revenue. Now that’s a huge chunk of their bottom-line already and we’re not counting call charges yet.
Of course, we all want lower connection fees but the question is “can the NTC make it happen?”. Or maybe this is NTC’s response to Rep. CasiÃ±o’s payola allegations.