NTC wants text messages to be free within network, todays top news..

The National Telecommunications Commission's desire for lower interconnection rates among mobile phone providers could make text messages within the same network free.
This was according to NTC commissioner Ruel V. Canobas, who stressed the direct effect of interconnection charges on retail prices. "Retail prices include interconnection charges if a call or text is sent from one network to another network. For calls or texts sent within the network, the retail price is lower. So, if the interconnection charge is low, the retail price is low and lower if the call or text is within the same network," he said.
The regular access charge agreement submitted by Smart and Pilipino Telephone Corp. (Piltel) to NTC shows that the SMS (short messaging service) charge between them is P0.32 per text, which is P0.03 lower than what Smart charges other operators. Smart is a sister company of Piltel. Canobas said the retail price or fee for text within the same network may almost become free if the interconnection rates are set a minimum prices.
He, however, said that the power of the NTC is limited under Section 18 of the Republic Act 7925 to set interconnection charges. Under the law, the access charge/revenue sharing arrangements between all interconnecting carriers shall be negotiated between the parties and the agreement between the parties shall be submitted to the Commission. With this, the NTC chief is supporting the House Bill No. 456, which proposes to prohibit the public telecommunications entities (PTEs) from imposing fees and/or charges on text messaging between subscribers of the same network.
Under the proposed bill prepaid subscribers shall be entitled to free text messages until such prepaid load has been fully consumed. Canobas said when Sun Cellular entered the cellphone market, it embarked on a massive marketing campaign introducing free text and voice calls "on net" or between and among subscribers of Sun. Globe Telecom Inc. and Smart Communications Inc. then offered free text promos to their subscribers.
"If the PTEs are required to provide free text messages between its subscribers until the value of the prepaid call card is fully consumed, the PTEs may stop offering low-priced prepaid cards and longer validity period," Canobas said. At present, the value of prepaid cards ranges from P50, P100 and P300 with a validity period until one month or less. Once this happened, revenues of telecommunication companies are expected to decline as earnings from text messages contributed the biggest. Globe, Smart officials were not immediately available for comment. - GMANews.TV