At the start of the year, the National Telecommunications Commission has laid down the foundation for an overall policy change. Its consultative document on a new competition policy contains initiatives intended to break the existing duopoly, level the playing field and bring about increase competition. The duopoly providers intend to question before the court the legality of the suggested policy moves, invoking the equal protection of the law provision in the 1987 Constitution.

The NTC wants to fast track the policy changes. It intends to finish the new competition policy within the first quarter. The policy would be in place by the second quarter.

The domestic telecommunications sector is to be restructured by allowing new foreign players to enter the market. The current situation, where larger operators PLDT and Globe Telecom compete against small, financially unstable and unviable entities should become a thing of the past. Instead, PLDT and Globe Telecom are expected to compete with the likes of Vodafone, Hutchinson, Orange and others with established track records. The restructuring of the sector is expected to lead to the consolidation of operations among the smaller players.

Other recent regulatory developments include: the NTC’s liberalisation of VoIP –  defining it as "value added service" and allowing entities without franchises to offer this service to the public, and; awarding 3G licenses to four providers – Smart, Globe, Digitel-Sun and CURE – in order to improve the country’s wireless infrastructure.

Source: Telecom Asia - WDR/Intelecon Regulatory News