Thursday, November 23, 2006 Major telcos want ISPs to invest in technology not just offer VoIP
INTERNET service providers (ISPs) must also invest in technology and infrastructure for them to offer the Voice over Internet Protocol (VoIP) service, and not just ride on the infrastructure of telecommunication companies.
This is Philippine Long Distance Telecommunications Co.’s (PLDT) stand on the liberalization of Internet-based telephone services through VoIP.
In an interaction with officers of the Cebu Chamber of Commerce and Industry (CCCI) at the Club Ultima last Tuesday, PLDT president and chief executive officer Napoleon Nazareno said telecommunication companies, including PLDT, are investing a lot to cope with the VoIP technology.
“They (Internet service providers) must become big for them to offer the service themselves. VoIP is something we can’t escape. That is why we (PLDT) are embracing it and investing heavily into it to make our existing landlines VoIP-capable,” he said.
VoIP enables phone calls through the Internet instead of through traditional public switched telephone networks. Its lower cost has made it a popular alternative to traditional voice calls.
Telecommunication companies Globe Telecom Inc. and PLDT have cried foul over the offering of VoIP calls by Internet cafes, saying the Telecommunications Act has classified VoIP as a voice service.
This means that only telecommunication companies with a government franchise to carry voice calls are permitted to offer VoIP commercially, although private companies have been permitted to make use of VoIP for private networks.
“We’re not against VoIP. The issue here is who can offer it?,” Globe senior vice president for corporate and regulatory affairs Rodolfo Salalima earlier said. But the National Telecommunications Commission’s newly drafted rules on VoIP states that the VoIP is a value-added service and that any company can offer it, provided it signs a memorandum of agreement with a telecommunications carrier.
Reclassification
The reclassification of VoIP as a value-added service has placed Internet service providers (ISPs) and telecom firms at loggerheads as it would, if finally approved, permit ISPs to offer VoIP services to their subscribers independently of the telcos.
The House of Representatives has approved on third and final reading House Bill 5284 or the proposed VoIP Act, which would require telecommunication, Internet service and cable TV providers equal capacity to access all entities supplying web-based telephone services.
Nazareno said PLDT is now in the process of reinventing its landlines to make these Internet-capable by deploying the next generation network. The upgrade will enable PLDT to enhance its voice and data services by offering voice and digital subscriber line or high-speed Internet connection in one package. (JBN)
