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Republic
Act (RA) 7925, or the Public Telecommunications Policy
Act of 1995, is a law that is long in vision, but short
in implementation.
While it
aims to break the then-monopoly, it has failed to
provide competition to players. Result: a duopoly has
supplanted the monopoly. The entire nation has to live
with the duopoly of PLDT and Globe Telecom, which have
cornered 93 percent of the domestic telecommunications
market.
Likewise, RA 7925 has hardly strengthened the main
regulator, the National Telecommunications Commission (NTC).
Since the members of this collegial body do not enjoy
tenure security, the NTC is a frequent subject of
industrial capture, making the regulatory body a witting
accomplice to every whim and caprice of the powers that
be, especially the duopoly.
It is a
weak regulator to a sector that has been characterized
by dynamism and vigor; it has become an anachronism in
these days of flux and flow, of sudden shifts and
changes to technology and way of life. In short, the NTC
has to typify the softness of a soft state like the
Philippines.
Because
of its inherent weakness, the NTC has not put in place
some policy changes. It has not moved to complete the
envisioned overall competition policy that would break
the stronghold of the duopoly and lessen its ill effects
to the consumers. It has not done to face policy issues
confronting the ancillary industry that includes
value-added services (VAS).
Admittedly, the NTC had some flashes of brilliance when
it came out in 2005 with a memorandum circular that
allows voice over Internet protocol (or VoIP) and
another circular on spam-related complaints and push
messaging. But it has not done much after those two
important circulars. As if on cue, the NTC is back to
its old powerless state.
Take the
issue of broadcast messaging services. Memorandum
Circular 03-03-2005-A addresses consumer welfare by
providing rules on spam messages, guidelines on push
messaging and penalties imposed on erring entities. It
requires all local content providers, which provide
value-added services such as downloadable ring tones,
wallpapers and java games, to register with the NTC as
value-added service providers.
This
requirement is necessary because the VAS sector has
evolved into a multibillion-peso industry of which more
than 10 percent of the combined gross sales of the
wireless telecommunications players come from those
downloadable services. The sheer magnitude of this
industry and its reach to millions of consumers are
compelling reasons for regulation.
Of over
460 entities registered as VAS providers in the NTC web
site, over 70 are content providers offering services
such as downloadable ring tones, dating services, info
on demand, java games, SMS games and the like via mobile
phones. The list includes top content providers (CPs),
including ABS-CBN Interactive, GMA News Media, Inq7
Interactive, Tin Can Mobile and Wireless Services Asia.
The
memorandum circular mandates the cancellation of the
certificate of registration of content providers that
violate its provisions. They may not be allowed to
engage in broadcast messaging services.
Since
its implementation, the incidence of spam-related
complaints has been reduced dramatically to suggest that
the NTC’s guidelines have worked to benefit consumers.
Lately, some content providers continue to operate and
refuse to register with the NTC as VAS providers.
One of
them is Zed
Philippines,
which has a pending case with the NTC for operating
without a license in the country. In its defense, Zed,
which sells ring tones, logos and java games, asserts
that “Zed is NOT a VAS provider,” stressing that the NTC
has to refine further the definition of a VAS provider.
While it
says it may accept that it is a content provider, it
rejects the current NTC practice that requires CPs to
obtain a VAS license from the NTC. It asserts that “no
law or NTC regulation. . . states that a content
provider is a VAS provider.”
Certainly, every regulation leaves room for
interpretation. But Zed is challenging the NTC practice
to classify content providers as VAS providers and is
asking to be exempt from the licensing requirement.
Imagine
what would happen if the NTC agrees to Zed’s contention
that it does not require a license because it is not a
VAS provider. Then all the other 70 or so similarly
situated content providers that have voluntarily
registered and obtained VAS licenses will now have
grounds to reject the NTC’s jurisdiction over them as
well, resulting in a free-for-all.
Furthermore, those unscrupulous content providers that
have been stopped by the NTC’s regulations may now begin
operating anonymously as registration is no longer
required. This will adversely affect the consumers. This
will further weaken an already weak regulator.
The
antispam guidelines and implementing rules passed by the
NTC in 2005 have brought positive results to establish
order to a relatively new industry. The consumers now
have a watchdog that protects their welfare, and
consumer complaints have dropped dramatically.
Incidentally, Reps. Florencio Noel and Justin Chipeco
have jointly initiated a legislative inquiry “in aid of
legislation” into content providers, including Zed,
which operate without valid licenses. The inquiry seeks
to cull insights whether Congress has to come out with a
legislation that will finally regulate content
providers.
But even
if Congress fails to come out with an appropriate
legislation, the NTC has to exercise some political will
and display a new kind of resolve to put order into a
multibillion-peso industry and protect consumers at all
times. It should adhere to its twin goals of consumer
welfare and universal access. |
