Friday, November 25, 2005

VoIP Guidelines Useless Barriers to Entry

Maan Tolentino just sent me a copy of the new implementing rules and regulations for VoIP in the Philppines. Salient points:

1. Non-telco providers and resellers are required to ride on telco infrastructure.
2. VoIP service providers should pay PhP 10 million (about US$ 200,000) in paid-up capital.
3. VoIP service providers must pay an annual registration fee of P50,000 (about US$ 1,000), and post performance bonds worth P5 million (about US$ 100,000).

Ridiculous. It should not cost that much to provide a VoIP service in a small country. You do not need to ride on telco infrastructure to do so; ever heard of cable and satellite Internet? Even if your service did suck, the low cost of VoIP provision would create the multiplicity of providers required for the market to decide who should be in business.

1 comment:

Cheryl said...

This might be another conspiracy between the local politicians and the big companies. As you said before, VoIP will "for sure" inflict significant losses in sales to the telecommunication companies.