041407: NTC prepares rules on value-added services

By Mary Ann Ll. Reyes
The Philippine Star 04/14/2007

The National Telecommunications Commission (NTC) has prepared a draft set of rules governing value-added services (VAS), identifying which services should be considered VAS and which should be classified as regular telecommunications services.

The difference is that VAS rates deregulated while rates for other telco services are not and require prior approval of the NTC.

In a previous circular, the NTC defined VAS as enhanced services beyond those ordinarily provided for by local exchange and inter-exchange operators, and overseas carriers through circuit switched networks.

Enhanced services, meanwhile, was defined as services that improve upon the quality and/or functionality of services ordinarily offered by local exchange and inter-exchange operators and overseas carriers.

Services ordinarily provided for by local exchange and inter-exchange operators and overseas carriers refer to voice services offered through circuit switched networks.

In its draft circular, the NTC identified as VAS the following: messaging services (including text messaging or SMS), audio conferencing, audio and video conferencing, voice mail service, electronic mail service, information service, gaming services except gambling, applications service (e.g. mobile banking, electronic payments, point of sale service), content and program service (music, ring tones, logos, video clips, etc.)

Also included are audiotext service, domain name hosting service, facsimile service, IP multicasting service, virtual private network service, and PBX hosting service.

According to the NTC, this list of value added services may be revised, modified, expanded or shortened by the commission after due public consultation.

The proposed new rules, however, do not apply to voice over IP (VoIP) service which is covered by another circular.

Leased line service shall be classified as VAS. The NTC said public telecommunications entities offering leased line service shall not discriminate against VAS providers, who shall be provided with the same quality of service and at prices not higher than the prices offered to other subscribers/users.

The new rules likewise provide that no entity shall provide VAS without valid certificate of registration from the NTC, which shall be valid for a maximum period of five years. To be issued a certificate, the provider must, among other things, submit their facilities lease agreement with duly enfranchised and certificated public telecommunications entity and a written undertaking that the applicant will not discriminate other VAS providers in terms of rates and service quality for similar facilities leased to them (for duly enfranchised and certificated public telecommunications entity).

 

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