The Philippines' National Telecommunications Commission (NTC) has instructed the market's operators Globe and PLDT to slash interconnection rates for voice calls and SMS within the next 30 days as part of the government's commitment to reduce household telecoms costs.
The NTC has set the new interconnection rates at 0.5 pesos ($0.0094) per minute, down from 2.5 pesos, the Philippine Daily Enquirerreported.
SMS interconnection rates have also been reduced to 0.05 pesos per message from 0.15 pesos.
PLDT and Globe have been instructed to implement the rates within 35 days of the publication date of the circular setting the new rates, which was dated July 19.
According to the NTC, the reduced voice interconnection rate will bring the Philippines from having one of the highest interconnection rates in the region to one of the lowest. Only Malaysia has lower voice IUCs, while Singapore, Myanmar and Brunei do not impose interconnection charges.
But the Manila Times notes that PLDT chairman Manuel V. Pangilinan has been quick to point out that reduced interconnection rates will not necessarily lead to lower prices for consumers.
The impact of the reduced rates on household bills is also likely to be small except for heavy users.