By John Mark V. Tuazon
Computerworld Philippines
January 13, 2011
At least 24 hours after holding a public hearing on its draft memorandum circular about minimum broadband speeds, the NTC (National Telecommunications Commission) announced it has taken out the “bandwidth cap” clause to focus on the real intent of the memo, a deputy commissioner said Wednesday.
Speaking at the Communications Convergence Forum between Philippines and Korea organized by the Korean Information Security Agency, Jaime M. Fortes, deputy commissioner, NTC, said they have deleted the clause to foster less-emotional discussions on minimum broadband speeds in the country.
“We have taken out the provision because of reactions that the memo is not pro-consumer,” Fortes explained. “The provision was bad and counterproductive to increasing Internet usage in the country,”
Fortes echoed sentiments of various consumer groups during Tuesday’s hearing that imposing a bandwidth cap on broadband use is an impairment of the contract entered by both parties.
Asked if there are already reactions from telco players regarding NTC’s latest move, Fortes said: “Wala kaming pakialam sa concerns ng telcos (We don’t care about their concerns).”
In a release sent to the press by NTC’s public information office, the agency said they will continue with the proposed regional consultations “to give everyone concerned a chance to provide useful insights to improve internet service.”
The first consultation will most likely be held in Baguio, it said. Dates and other venues of consultations will be announced soon, it added.
NTC further said that it will post the new working draft on its Website shortly. As of writing, however, the new draft memorandum circular has yet to be made available on the agency’s Website.
Not Enough
Consumer group TXTPower.org, Inc., one of the strong advocates of the removal of the broadband cap clause in the draft memo, welcomed NTC’s move to slash the contentious provision out, but said that it is not enough.
“With the broadband cap already set aside, the NTC should use all its powers to address the mounting demands of Filipino internet users, big and small, for #betterinternet and to curb the abuses of the telcos,” Anthony Ian Cruz, the group’s President and CEO, said in its statement.
Cruz further urged the NTC to investigate telcos who are already imposing bandwidth cap on users of their unlimited service, saying: “the NTC must correct this absurd situation.”
The TXTPower.org, Inc. convenor likewise pushed for the agency to adopt the group’s eight-point proposal, as highlighted in its online petition.
Focus on Minimum Speed
With the bandwidth gap issue taken out of the equation, Fortes said the agency and other stakeholders can now engage on a healthy debate about the imposition of minimum speeds in broadband services.
According to position papers submitted to the NTC by major telcos, however, imposing a minimum speed on broadband services is at the most impossible, and at the least costly.
“Specifying a minimum speed of connection is like providing a dedicated/leased line for each subscriber,” PLDT (Philippine Long Distance Telephone Co.)’s paper said. “This would greatly impact network dimensioning, which would mean higher opex and capex, and would eventually translate to more expensive service rates for the consumers.”
Concurring with this opinion, 4G WiMax broadband provider Wi-Tribe said the imposition of a minimum speed requirement would only limit the access of users to broadband Internet services, which, they said, runs contrary to the Commission’s original mission.
“To comply with such legal guarantee, service providers will necessarily have to limit the number of possible users on the assumption that said users will access the network all at the same time, on a 24/7 basis,” the new entrant’s statement said.
“This will consequently increase rates since there would be less users sharing the costs of the network capacity,” it added.
The Wi-Tribe paper further said that there are other external factors that affect broadband speed which are beyond the providers’ control. “Unless the [NTC] has the capability to isolate the cause for the non-compliance with the required minimum speed guarantee on a per individual subscriber basis, then it would not be fair to penalize the service provider therefor,” it asserted.
Globe Telecom, for its part, said the connection rate at any given time is based on three factors: the Carrier to Interference Noise Ratio; the Received Signal Code Power, which is used as an indication of signal strength; and point-in-time data traffic on the wireless broadband base station.
“For wireless broadband connections, the laws of physics guiding radio propagation and the very nature itself of broadband services delivered over a wireless medium provides real world challenges to delivering CIR,” the company emphasized.
Formula not realistic
Both Smart and Wi-Tribe agree that the measure of minimum speed/service reliability proposed by the NTC is unrealistic, if not downright impractical.
The proposed measure for 80% service reliability denotes an equation of number of hours broadband is used in a day subtracted by the hours used below minimum connection speed in a day divided by the number of hours used in a day.
The resulting number shouldn’t go below the 80th percentile, the memo stressed.
Wi-Tribe said the formula may yield an inaccurate picture as to the true quality of the provider’s service. “For example, if a subscriber uses the service for only one hour out of the 720 hours in a month, and in that hour of use the speed falls below the guarantee, then the service provider will automatically earn a score of 0% service reliability,” it pointed out.
Smart, on the other hand, decried the formulas unrealistic—and inexistent—basis. “Worse, the proposed formula has not passed the scrutiny and test of the industry stakeholders who will be affected by its implementation,” the telco stressed.
At the end of the day, PLDT said imposing a minimum speed requirement would just open up the doors for more consumer ire. “Specifying minimum speed of connection with SLA would just invite more complaints and create unsatisfied consumers,” it said.
Globe, for its part, suggested separate measurement methods for fixed broadband, fixed wireless broadband, and mobile broadband, as these three have different propagation methods.
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