Operators To Lower SMS Interconnection Charges
News: The National Telecommunication Commission (NTC) of the Philippines ordered three local telecoms operators to immediately decrease interconnection charges for SMS messages from PHP1 (US$0.024) to PHP0.8 (US$0.019). The three local telecoms operators are Globe Telecom, Sun Cellular and Smart Communications. This decision was based on the operators' non-compliance, with a memorandum circular for interconnection charges for SMS messages. NTC also instructed the operators' to refund their subscribers the excess charge of PHP0.20 (US$0.0048) per off-net SMS message from December 2011.
BMI View: The reduction in interconnection charges for SMS by NTC will attract more number mobile subscribers in the Philippines. BMI estimates there will be 102.2mn mobile subscribers in 2012 and expects the total to rise 11.9% by 2016 to 114.4mn. During this period penetration will rise from 105.9% to 111%.