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 Php0.80 from Php1.00. 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 Php0.35 to just Php0.15. The difference of Php0.20 will be passed on to consumers effectively making regular SMS rates cheaper at Php0.80.
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 Php1.00 and not Php0.80 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 Php1.00.
If I am not mistaken, some of the telcos have even taken this to the court to fight NTC.