NTC Regulations and VoIP in the Philippines

NTC Regulations and VoIP in the Philippines

Nowadays, very seldom can you find countries without computers. The Philippines is a small country in Asia, and is rather behind compared to already developed countries. But this doesn't mean that local residents are not aware of the new trends on the net.
There are many problems in the country that needs to be resolved. All the authorities are looking for ways to address the different problems in order to attain progress. And that is why rules and regulations are established for local residents to follow.

The National Telecommunications Commissions or the NTC regulates and addresses all issues concerning telecommunications. And one of the many things that the institution is trying to monitor is VoIP services.

VoIP is not new in the market; in fact, it has been used for a number of years now. But not all people are aware of its services; and what the different providers has to offer. According to the NTC, all VoIP providers are required to place a bond of guaranteed performance, and must have a paid-up minimum capital in order to deliver their services to the people.

You must be aware that there are many scams going on in the Internet. And the NTC is just protecting the people from possible scams. Their effort is geared towards blocking fly-by-night VoIP providers to protect applicants.

Because of this effort, VoIP providers are now required to pass through fixed-line networks of carriers.

A lot of VoIP providers are attracted to the Philippine market because they are aware that many Filipinos are working overseas. And so their families in the country are always making overseas calls. There are at least 8 million overseas Filipino workers, and this is quite a huge market.

The NTC assigned codes to the different companies concentrated in local exchange. According to the guidelines set by the NTC, all in and outbound VoIP should pass the local exchange's network. Those providers using foreign addresses are prohibited in doing business in the country because they bypass the network.

In the Philippine context, a VoIP provider is an entity or a person who provides VoIP services directly to the people. They may also be resellers who are paid with certain amounts of compensation. They are required to post a performance bond worth five million pesos and having at least a capital of ten million pesos.

The cost of making an international call at present is about $0.40 per minute. And if a person is using VoIP, the cost in making international calls can be greatly reduced to as low as $0.10 or lower per minute. A lot of Filipino families can save as high as 75%.

The NTC further requires that VoIP providers posting performance bonds should be from registered surety companies or insurance companies.

This is one main reason why many VoIP providers are hesitant to make any investment in the Philippines. Many telecommunications companies are claiming that the issue has long been in debate, and that they have rights to provide service in the country at a much lower capital. But they can't argue with the authorities. The NTC is quite firm as to their rules and regulations. This is only to protect small investors and its local residents as well.

In order for VoIP providers to penetrate the Philippine market, they must comply first with all the requirements set forth by the National Telecommunications Commission. And this is the only time that they can do legal business.

The Philippines has a very large market for overseas calling. Now, almost all current companies are quite competitive in giving their telephone service to many overseas Filipinos. In fact, there are different offers which allow the different families to save in making their international calls.

But if the VoIP providers can penetrate the market, the local residents will benefit greatly because all international calls will surely be much cheaper compared to the current rates being offered. Almost every person welcomes an opportunity to save money, and with VoIP around, there is another option for the people.

All other Asian nations are benefiting from the advantages of VoIP. But soon enough, after the long debates are through, the VoIP providers can do business in the country.