NTC: Broadband services can be regulated

The National Telecommunications Commission (NTC) last week said that broadband Internet services can be regulated, not withstanding provisions in the law saying that value-added services (VAS) are deregulated. The statement was met positively by industry observers who have been hoping that the NTC would step in to ensure that telecommunications companies (telcos) deliver consistent and reliable broadband Internet service to the public. However, this goes against earlier statements made by the NTC during its initial consultations in Manila that VAS —under which broadband services are claimed to fall under— are deregulated and, as such, telcos are free to impose their own regulations independent of the NTC. “When it comes to broadband services, whether or not it is VAS or a basic service, it can be regulated. That’s why we are discussing [these] circulars," said Edgardo Cabarrios, director of NTC’s common carrier and authorization division, at the public consultation on minimum broadband speeds in Baguio on March 18. Cabarrios further clarified that so long as there are steps by telecommunication firms that can directly affect the public, the NTC can step in and regulate the market. Broadband no longer VAS? Pierre Tito Gala, of the news and commentary site The ProPinoy Project, questioned the classification of broadband as a value-added service. “Why is broadband still under VAS? We are not in the analog age anymore, DSL is already digital," he said during the public hearing. In a position paper submitted earlier to the NTC, The ProPinoy Project maintained that “Data communication over the public switched telephone network (PSTN) is no longer an enhanced service over and above voice services, which was previously analog. With the current technology used by the telecommunication networks, voice and data are normal services carried over digital networks." Since data services are now “ordinarily provided," the group added, broadband services should no longer fall under VAS. Cabarrios, meanwhile, explained that under the memorandum circular promulgated by the commission in 2005 concerning VoIP services, “ordinarily provided" services refer to “voice services offered through circuit switched networks." Despite this, Cabarrios said the only difference between basic and value-added services is its requirement to operate. “Regulated services cannot be offered without a franchise [approved by Congress], while VAS can be offered even if you don’t have a franchise," he stressed. NTC set to monitor speeds The commission was also asked by consultation attendees if it is capable of measuring broadband speeds, should the minimum speed requirement be imposed eventually. “We have already acquired equipment to monitor the speeds, but we have yet to train our staff to operate it," Cabarrios said. The equipment should already be operational by the first week of April, NTC commissioner Gamaliel Cordoba added. Aside from this, Cordoba said they have already started gauging the 3G performance of the three telcos. “We have already sent out letters to the telcos asking for their reports on 3G rollouts across the country," he reiterated. The NTC commissioner said they are planning to conduct the next public consultations on the draft memorandum order in Cebu and Davao, with an eye to finally promulgate the memo by next month. Cabarrios added that should the memorandum order be promulgated, telcos who currently impose data caps on their broadband services will be penalized. - TJD, GMA News