Untitled Document

What are the more pressing concerns of the telecommunications industry today? What are the vital issues concerning the industry that the NTC will prioritize in answering? What are the most important accomplishments of the NTC the past year? How did these positively affect the industry and the consumer? What changes still need to be implemented? What are the objectives that the NTC hopes to accomplish in the next couple of years? Relevant questions calling for sound, rational answers - and what do our honorable Commissioners have to say?

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NTC Aims for a Competitive Environment for the
Telecommunications Industry

The continuous influx of advanced technologies in the world of communications has undoubtedly paved the way for other business sectors to improve the quality of service they offer consumers. Interaction became faster; service providership became feasible in an instant. Everything became possible with just a click on NET, or a call, or even text on the mobile phone.

A great deal of responsibility has indeed been placed on the communications industry as purveyor of advancement in the world today.

All eyes seem to focus on the communications sector - on what would happen next and how its improvement would change lives for the better. The NTC, as the government’s leading agency that regulates the communications industry is aware of that great privilege and challenge.

The NTC is truly not intimidated by the immense task that has been put on its shoulder. As it celebrates its 24th founding anniversary this year, it continues to come up with strategies that would make communications technologies work effectively both for service providers and consumers. The current administration envisions a more proactive and people-centered NTC focused on developing a competitive environment for the communications industry.

The Commission’s immediate job is to foster and encourage the transition of the communications industry from a regulated to a fully competitive environment. As Commissioner, I believe that it is in competition that our communications sector can be at par with its foreign counterparts.

The NTC highlights five key goals as the communications industry gears up for a fully competitive environment this year and the years to come. First on its list is to establish better interconnection standards for telecommunications technologies where warranted and overseeing compatibility standards for all networks.

The key to a pro-competitive, deregulatory communications policy is competition than monopoly. One of the most enduring problems of NTC since the entry of new telecommunications firms and the introduction of competition in 1993 has been the interconnection of the networks of all firms.

To address the problem, the NTC issued detailed rules on interconnection with the aim of providing a transition framework to move toward cost-reflective pricing consistent with competition, more regulatory powers to resolve disputes and detailed procedures for interconnect negotiations. Now, the NTC is keen on establishing the obligations, when necessary, of firms to extend services to others.

Updating rules and regulations consistent with competition is another goal for the NTC. It aims to deregulate communications services where consumers can choose the best combination of price, service and quality for their needs. This would entail, writing fair rules of competition - discarding regulations no longer necessary and finding sensible ways to regulate non-competitive services that remain.

In the next couple of months, the NTC will review the access charge structure as well as the prices to retail customers. Protecting consumers is next on the NTC’s list. The move towards a competitive marketplace and encouraging wider entry may also mean more unscrupulous tactics by players or the lack of competitive spirit by some. Either way, the consumers end up as losers. The welfare of the consumers always comes first for the NTC. We make it a point to develop projects that would benefit them and protect their interest along the way.

Promoting the efficient use of the electromagnetic spectrum that would give birth to new products that consumers want is also one of the major targets of the NTC this year. Moreover, it also aims to catch up with the world leaders in telecommunications in terms of regulations and reform by following the standards set by advanced nations for promoting open and competitive markets.

Preparing for the Future

How does the Commission intend to meet the onrushing challenges of technology and globalization? As Commissioner, I believe that our continuous participation in global conferences that tackle technology issues will give us ideas that can help us solve our own concerns. Next, the NTC will work towards establishing a proactive agency for the service of the consumers.

Message from the Commissioner	What are the more pressing concerns of the telecommunications industry today? What are the vital issues concerning the industry that the NTC will prioritize in answering? What are the most important accomplishments of the NTC the past year? How did these positively affect the industry and the consumer? What changes still need to be implemented? What are the objectives that the NTC hopes to accomplish in the next couple of years? Relevant questions calling for sound, rational answers - and what do our honorable Commissioners have to say? ------------------------------------------------------------- NTC Aims for a Competitive Environment for the Telecommunications Industry The continuous influx of advanced technologies in the world of communications has undoubtedly paved the way for other business sectors to improve the quality of service they offer consumers. Interaction became faster; service providership became feasible in an instant. Everything became possible with just a click on NET, or a call, or even text on the mobile phone. A great deal of responsibility has indeed been placed on the communications industry as purveyor of advancement in the world today. All eyes seem to focus on the communications sector - on what would happen next and how its improvement would change lives for the better. The NTC, as the government’s leading agency that regulates the communications industry is aware of that great privilege and challenge. The NTC is truly not intimidated by the immense task that has been put on its shoulder. As it celebrates its 24th founding anniversary this year, it continues to come up with strategies that would make communications technologies work effectively both for service providers and consumers. The current administration envisions a more proactive and people-centered NTC focused on developing a competitive environment for the communications industry. The Commission’s immediate job is to foster and encourage the transition of the communications industry from a regulated to a fully competitive environment. As Commissioner, I believe that it is in competition that our communications sector can be at par with its foreign counterparts. The NTC highlights five key goals as the communications industry gears up for a fully competitive environment this year and the years to come. First on its list is to establish better interconnection standards for telecommunications technologies where warranted and overseeing compatibility standards for all networks. The key to a pro-competitive, deregulatory communications policy is competition than monopoly. One of the most enduring problems of NTC since the entry of new telecommunications firms and the introduction of competition in 1993 has been the interconnection of the networks of all firms. To address the problem, the NTC issued detailed rules on interconnection with the aim of providing a transition framework to move toward cost-reflective pricing consistent with competition, more regulatory powers to resolve disputes and detailed procedures for interconnect negotiations. Now, the NTC is keen on establishing the obligations, when necessary, of firms to extend services to others. Updating rules and regulations consistent with competition is another goal for the NTC. It aims to deregulate communications services where consumers can choose the best combination of price, service and quality for their needs. This would entail, writing fair rules of competition - discarding regulations no longer necessary and finding sensible ways to regulate non-competitive services that remain. In the next couple of months, the NTC will review the access charge structure as well as the prices to retail customers. Protecting consumers is next on the NTC’s list. The move towards a competitive marketplace and encouraging wider entry may also mean more unscrupulous tactics by players or the lack of competitive spirit by some. Either way, the consumers end up as losers. The welfare of the consumers always comes first for the NTC. We make it a point to develop projects that would benefit them and protect their interest along the way. Promoting the efficient use of the electromagnetic spectrum that would give birth to new products that consumers want is also one of the major targets of the NTC this year. Moreover, it also aims to catch up with the world leaders in telecommunications in terms of regulations and reform by following the standards set by advanced nations for promoting open and competitive markets. Preparing for the Future How does the Commission intend to meet the onrushing challenges of technology and globalization? As Commissioner, I believe that our continuous participation in global conferences that tackle technology issues will give us ideas that can help us solve our own concerns. Next, the NTC will work towards establishing a proactive agency for the service of the consumers. These are Challenging Times for Telecommunications These are exciting and challenging times for telecommunications. In the 1990s, telecommunications became one of the leading engines of growth, fuelling activity and trade in all sectors. Now, as it evolves into a broader information and communications technology (ICT), that includes communications, broadcasting and computing, this critical sector has become not only an economic engine but also, an enabler of social, educational, cultural and medical progress. The Telecommunications Market In 2000, the growth of telecommunications and ICT markets seemed to know no limits. Profits soared and were unprecedented. However, in 2001, ICT market nosedived and stumbled earthward. The dot.com bubbles burst and the telecommunications companies were among the worst performers. Now, in 2002 and 2003, there is an upward lift in the whole ICT sector. On the whole, the telecoms sector -in US, Europe and Japan, were the best performers in the past year. Moreover, many of these companies have slimmed down their debt loads and repositioned themselves for growth. The same is true with our Philippine local telcos namely PLDT, Globe and Smart, among others. This year, they are registering healthy growth and inevitably, robust profits. There is a Need for Sector and Structural Reforms There is, however, in the Philippines setting, the need for sector and structural reforms in the telecoms/ICT industry. The need for a regulatory regime that provides both optimal conditions for economic growth and, at the same time, achieve universal service goals becomes imperative. More importantly, there is urgency for the enactment of legislations like convergence, cyberlaws against cybercrimes, the reorganization and strengthening of the National Telecommunications Commission (NTC) and the creation of a Department of Information and Communications (DICT). These reforms will spur investors’ confidence. The DICT will be the government agency to define policy for the ICT sector and oversee the implementation of alt ICT-related government initiatives consistent with the goals and objectives of national ICT plans. The NTC, in turn will continue to serve as the regulatory body for the telecoms sector, but with a broader mandate for governance of ICT as well. The Challenges Facing the Present NTC Under the present Commission, the NTC as a regulatory body is pursuing its mandate to implement fair competition to ensure that ICT services are extended to more people, made more affordable, provided at high levels of service quality and relevant to, and understood by, a broad range of society. Today, the NTC is faced with a growing number of regulatory challenges from important issues like interconnection (local Loop unbundling, alternative infrastructure to provide broadband access like multiple wireless Local loop), third-generation (3G) mobile service, licensing, broadband technologies deployment, internet and leased Lines, Internet governance like domain names WIFI, convergence and cyber laws, price regulation, consumer protection, universal service and universal access, quality of service, enforcement, dispute resolution, equipment type approval and many more. The Private Sector as Parntner of the Government In the 1990s, the private sector, as a partner of government, was chiefLy credited with helping achieve universal access to basic telecom service. At present, with the new developments in the industry, the private sector wiLl again take a critical role in giving the country access to the Internet and stay competitive in a globalized economy with connectivity to the information infrastructure of other countries. The active and flourishing market for telecommunications and ICT in the Philippines is an occasion for the government to once again tap the private sector in this endeavor by way of further liberalization of the telecoms and ICT sectors as a means to encourage more private sector investments for the expansion and modernization of the country’s telecom and ICT infrastructure, and help the country crossover the so-called "Digital Divide." Strong Market for Telecommunications/ICT Indications of a strong market for telecommunications and ICT services are evident from the following: 1. a huge potential demand for broadband networks and services; 2. a large market base of over 15 million cellular mobile phone users projected to reach 20 million users by year-end of 2003; 3. full connectivity of all of the country’s cities and municipalities; 4. rising personal and household incomes. The new information Landscape has changed with the dynamism that technology has brought about. Information is power and central to the creation of a global knowledge economy is Information and Communications Technology (ICT) playing a vital role in bridging the digital divide, promoting sustainable development and the eradication of poverty. No less than Her Excellency, President Gloria Macapagal-Arroyo acknowledge this fact when she declared that it is with ICT that the Philippines will have its mark in a highly competitive and global environment. The NTC as the agency tasked to regulate the sector faces the tough test of making itself dynamic and relevant in the face of unrelenting technological challenges and changes. It is essential for NTC to ensure that the appropriate regulatory environment is in place not only to promote investment, innovation and competition, but in holding to the promise of driving down consumer costs and stimulating technical and market innovation so as to enable people to avail of the benefits of technology and enjoy its basic right to communicate. The challenge, therefore, ultimately lies on the NTC as the regulator in protecting the level playing field it has created and in sustaining the environment where there exists a public-private partnership among the stakeholders of the sector, namely, government, the industry and the consumer/civil society as they interact with each other to ensure a sustainable information society where the interest and welfare of the Filipino people is paramount.
Commissioner Armi Jane R. Borje Deputy Commissioner Jorge V. Sarmiento Deputy Commissioner Kathleen G. Heceta