New rates for mobile phone calls start Dec 6

Regulators decided on Saturday to implement a new billing scheme for mobile phone calls starting Dec. 6, Sunday, effectively charging customers only for time consumed. For now, however, the new rates apply only to calls made in the same network, or “intranetwork" calls, as the National Telecommunications Commission (NTC) gave telcos 10 days to resolve technical issues in implementing the new billing scheme for calls between two different networks. In a press conference, the NTC announced that telcos must begin charging for every six seconds consumed, instead of by the minute. But there will be a “flag-down" rate for the first two six-second “pulses" to allow telcos to recover the cost of starting a mobile phone call. This flag-down rate must not exceed P3.00. In the first minute, each succeeding six-second pulse will be charged up to P0.56. Every pulse in the succeeding minutes will be charged up to P0.75. Charges for calls should not exceed P7.50, the highest prevailing rate among telcos. The new rates were meant to follow the old rates. Rates for the second and succeeding minutes were determined by dividing the old rate by 10. For instance, the maximum P7.50 per minute charge was translated to P0.75 for every six seconds. The pulse rates for the first minute are lower because of the policy of charging a higher flag-down rate. “Basically what we have done is make the charges for calls only for what the user has actually consumed and this would be the default charge for all cell phone networks," said NTC commissioner Gamaliel A. Cordoba. To illustrate, using the old rate of P7.50, a call lasting for 30 seconds will be charged P4.69. The new rates will first be implemented for calls in the same network and not for calls to other networks. “Rates are for intraconnection first because the telecommunication companies requested that the implementation of the new rates for interconnections, or those calls between two different networks, be delayed for 10 days because of technical issues," said NTC deputy commissioner Douglas Michael N. Malilin. It will take about two to three months to determine the effect of the new rates on telcos, officials said. The six-second-per-pulse rate scheme was ordered by NTC memorandum circular 05-07-2009 in July, amid complaints of "vanishing" mobile phone "prepaid" credits due to "spam" text messages and dropped calls. Telecommunication companies had sought for a delay in the implementation of the new rates, claiming the volume of network traffic in December may cause problems. Telcos deferred comment, saying they have yet to receive a copy of the decision of the NTC. Implementation of the new rates for intranetwork calls begin 12:01 am on Dec. 6. For calls between two different networks, the new rates take effect Dec. 16. -- Emilia Narni J. David, BusinessWorld