NTC Memorandom For Reduced Text Message Rate

Just recently, the National Telecommunications Commission (NTC) released a Memorandum Circular 02-10-2011, lowering the highest interconnection cost for SMS between 2 different networks to P0.15 per text message out of the current P0.35 per text message. Due to this, each of our SMS standard costs is going to be 80 centavos from the existing P1 per text message or lowered by a minimum of 20 centavos per text message.
National Telecommunications Commission (NTC) said the new SMS interconnection rate complied which has a provision of Republic Act 7925, or the Public Telecommunications Policy Act of the Philippines, which seeks reasonable and sensible interconnection among public operators as well as other telecommunications services providers with fair as well as reasonable fee.
Connection charge is applicable to the fee paid by one carrier for each SMS that passes via the network of another carrier. Less connection charge implies a cheaper SMS fee, currently placed in an average of P1 per text message. The market price of SMS includes the price of the network distributing the short message, and also the price of the network accepting the text message as well as the price of the interconnection services.
In relate to this news, Globe's position on NTC's initiative to lower SMS Interconnection access rates is as follow.
Globe supports the NTC initiative to lower SMS interconnection access rates to 15 centavos and has fully complied with the NTC Memorandum.

The lowering of domestic access charges on sms will allow Globe to offer more aggressive and competitive sms based unli, bulk and all network promos.

Right now, our customers are enjoying an average rate of close to 10 centavos per sms because of the inter and all network bulk unli offers, as well as our postpaid and consumable plan offerings.

The lower sms access rates will help provide greater benefits to our customers especially those who are currently using our unli services.

Atty. Froilan Castelo
Head, Corporate and Legal Services Group
Globe Telecom.