NTC: On The Right Track

MANILA, Philippines - Over the past few weeks, the National Telecommunications Commission (NTC) has issued a number of new landmark rules and regulations that are set to change the telecommunications sector landscape in the country.

 Included among these are a memorandum circular that extended the validity of prepaid loads, one that prohibited the sending to mobile phone subscribers of unsolicited text messages particularly those that promote the products and services of content providers, and another that required cellular mobile telephone service providers to meet higher quality standards.

 And soon, the NTC will be issuing a circular that reduces the voice or call unit of billing to six second pulses instead of one minute. At present, subscribers are charged at the one minute call rate regardless of whether the call made is less than 60 seconds, except for those who subscribe to promotional offers of some providers

 While these new rules offer good news to the millions of cellular phone subscribers in the country, not all are pleased, especially those stakeholders whose businesses will be adversely affected by the changes

 NTC commissioner Ruel Canobas admits it will never be easy, being the government regulatory agency tasked with ensuring that telecommunications products and services are made available at prices that are affordable to consumers but at the same time fair to the producers.

 “It will always be difficult for the NTC. But what is important is that they know where we are coming from. If there is an unresolvable conflict between what the telcos want and what the consumers need, we will always rule in favor of the consumers. The NTC will have to be pro-consumer in this case. Telcos have to remember that the frequencies that they are using and the franchises that have been granted to them will always be a privilege imbued with public interest,” he said.

 Canobas also takes pride in the fact that it is only in the telecommunications industry that business is characterized by constantly declining prices of products and services, resulting from market forces being allowed to operate freely.

 “We at the NTC and in government leave market forces to decide so long as there is no evidence of unfair competition,” he said.

 But it is not only in the area of policy-making that the NTC, under the present leadership of Canobas who assumed office mid-2007, has made significant strides.

 Via a thorough review of current and potential revenue streams and enforcement of NTC regulations, Canobas reported that the commission’s total revenues reached P3.2 billion in 2008, compared with P2.2 billion in 2007 and P2.12 billion in 2006. Unfortunately, while NTC collections have been on the rise, budget appropriations for the NTC have not kept pace. While in 2007, NTC’s budget amounted to P203.2 million, last year, it dropped to P199.3 million, inspite of increased revenues mainly from collection of spectrum user’s fees and regulatory fees from NTC licensees.

 The NTC chief also attributes the increase in collections to the procurement of monitoring equipment, such as the unmanned broadcasting monitoring system and quality of service benchmarketing equipment, as well as a much-need motor vehicle which allowed the NTC to keep track of the operations of stations and networks all over the country.

 “Prior to these equipment, some companies have been understating the number of stations that they have. And because we were able to properly monitor, the NTC was able to fine these companies,” he said.

 He added that the NTC has been stringent in requiring companies to submit their financial reports as a basis for the application of regulatory fees, which are based on paid-up capital. “Thus, we are able to find out if companies are understating their financial and cash position,” Canobas pointed out.

 Another significant accomplishment of the NTC under Canobas is the improvement in the efficiencies and effectiveness of en banc hearings for the speedy resolution of cases pending before the office.

 The NTC reported that the rate of disposition for resolutions and decisions on substantive matters under NTC’s jurisdiction involving grants, denials, approvals, and extensions of provisional authorities, certificates of authority, and certificates of public convenience and/or necessity, more than doubled during Canobas’ term.

 In 2006, the NTC was able to resolve 219 cases. From January to August 2007 before Canobas assumed office, only 93 resolutions and decisions were issued by the NTC. After a thorough review and overhaul of the system, the NTC from Sept. to Dec. 2007 alone was able to dispose of 190 cases. The volume increased to 467 in 2008, and from January to July of this year alone, already, 316 resolutions and decisions have been promulgated.

 Canobas explained that he made sure that cases set for en banc determination were substantially resolved, deferring only those that required additional evidence or facts before a complete determination is concluded.

 He cited that in 2003 for instance, of the 925 cases set for en banc, only 201 or 21.7 percent were resolved. In 2008, of the 532 cases submitted for en banc, 478 cases of 89.85 percent were resolved. As of July 2009, 328 cases were submitted for en banc, of which 84.4 percent or 277 cases were resolved.

 “We adopted a system for promulgating cases and held en banc sessions regularly. We removed the routing of cases that led to delays in resolving them in the past. We also made sure that a week after the en banc session, we are able to sign all deliberated cases,” he added.

 Canobas also pointed out that the NTC was able to strengthen its One Stop Public Assistance Center (OSPAC) by streamlining the center’s customer/subscriber complaint procedures and by strengthening the unit via the addition of required personnel. The procedures centered on paperless complaint processing with improved interfacing with the concerned telcos.

 The OSPAC’s customer-oriented processes are also undergoing systems review and reengineering as the focus process for ISO 9001:2008 accreditation. Canobas said all frontline activities have been reviewed and reengineering of all processes has been undertaken to conform with the Anti-Red Tape Act. “The OSPAC, being our frontline activity, will be our pilot for ISO accreditation,” he revealed.

 Much remains to be done, however. Canobas said that while short-term measures are being undertaken, there is a great need for a long-term solution to the problems besetting the NTC and the telecommunications industry as well.

 The NTC though is on the right track. And with the commission working with the various stakeholders in finding a lasting solution to the ills plaguing the industry, the telecommunications sector can rest assured that it will remain as one of the most vibrant sectors of the Philippine economy.