The National Telecommunications Commission is currently studying prevailing interconnection rates among local telcos “with the objective of reducing these rates to enhance competition and facilitate the development of voice and data services.”

In a statement, NTC commissioner Gamaliel Cordoba said “it has always been the NTC’s desire to promote effective competition locally.” At present, interconnection rates are negotiated and agreed by the interconnecting parties.

High interconnection rates of P4.00 per minute of voice call and P0.35 per text message has kept new players in the industry from engaging the local telco giants in a price war while the rates also serve as a barrier to the entry of more players since high charges will make it hard for them to make a profit.

In 2008, the NTC drafted 2 Memorandum Circulars (MCs) which provided for the lowering of interconnection charges to P1.50 per minute for voice calls and to P0.15 per text message.