Cheaper internet for all

Ilocos Norte Gov. Imee Marcos is urging the Department of Information and Communications Technology (DICT) and the National Telecommunications Commission (NTC) to seriously consider implementing a “lifeline” rate for consumers who are not heavy users of data and mobile services. She is also proposing a package of measures to reduce the cost of phone calls, text messages, and data services so as to end the country’s record of having one of the highest mobile voice and SMS rates in Asia.

“A ‘lifeline’ rate which could be based on a consumer’s average data and mobile use would benefit mostly lower income Filipinos,” the governor said. “The poor sectors of our society use the internet less frequently than the ‘techie’ ones, hence they should not be burdened with high cell phone charges that they did not actually incur.”

She urged the government to remove the value-added tax on telecommunication services, such as phone calls and data subscriptions, and to eliminate the interconnectivity fees between telco firms.

“Removing the VAT on cellular and data subscriptions will substantially bring down the cost of communications in the country to benefit our people, especially those engaged in business and those whose relatives are working abroad and who rely heavily on cellular phone calls and the internet to communicate with their loved ones as often as they can,” she explained.

Marcos also proposed the elimination of network connectivity fees, where subscribers of either Globe or Smart are charged extra when they contact numbers belonging to the other network. Interconnectivity charges hamper customer mobility, and effectively holds subscribers hostage to existing network plans.

“Removing the network connectivity fees will not only reduce the cost of communications services, but will also improve customer mobility in the telecommunication industry as well as compel telcos to improve their services,” she said.