Regulator told to rein in foreign VoIP service providers

Thursday, June 29, 2006

FOREIGN broadband telephony outfits operating in the Philippines are a major threat to local Voice over Internet Protocol (VoIP) players, according to an official of the Bayan Telecommunications Inc. (BayanTel). VoIP, which transmits voice via the Internet, is a cheap alternative to traditional telephony. “One of the challenges [for local firms] is you have very big foreign players like Skype providing cheaper rates,” Tunde Fafunwa, BayanTel chief executive consultant, said during the first VoIP conference. Under such a scenario, the National Telecommunications Commission (NTC) should ensure local companies can compete on a level playing field with their foreign counterparts, he said. “The foreign companies have to be subject to the rules and regulations of the country like the local players,” he added. Although the NTC has taken the first step in helping local players by classifying VoIP as a value-added service, Fafunwa said other sources of disadvantage include the absence of any tax liability for foreign firms. “The next step that the government [can take] is to continue to invite other carriers, as well as other interested parties to participate in a dialogue on how the Philippines can use VoIP,” he said. Fafunwa cited a study by the International Data Corp. that showed revenues from VoIP can reach P5.8 billion by 2010. For his part, Ronald O. Solis, NTC chief, said VoIP can benefit companies, demonstrating the power of converging technologies to make them more competitive and globally accessible. “VoIP also offers 10 million OFWs [overseas Filipino workers] another alternative, far more affordable than traditional phone calls, to remain in touch with [families] back home,” he said. Solis said that the costs of long distance calls plummeted by as much as 75 percent within days of its issuance. He said price, however, is not the only consideration in phone service, as reliability and quality of service are also important. “Our people should be able to expect that they will not need to sacrifice better quality, reliability, customer service and accessibility for lower costs,” he added. The NTC last year ruled that VoIP is a value-added service, thus opening the field to nontelcos. Apart from service providers, the regulator also cleared the way for the establishment of resellers. --Darwin G. Amojelar

 

http://www.manilatimes.net/national/2006/june/29/yehey/business/20060629bus9.html