The NTC believes, and continues to believe that broadband is a value added service. Value added service is another speak for, “add on.” NTC believes that this isn’t the telco’s main business, but their side business.
I think it’s time for the National Telecommunications Committee (NTC) to review its definition of Value-Added Service (VAS).
Value-added service provider (VAS) – an entity which, relying on the transmission, switching and local distribution facilities of the local exchange and inter-exchange operators, and overseas carriers, offers enhanced services beyond those ordinarily provided for by such carriers.
Even the TelCos themselves have shown that their mobile Internet business is NOT a VAS.
Let’s take a look at two of the Philippine’ s biggest TelCos:
When you go to their Product Summary page, you’ll see that the broadband services have their own categories and not even considered as a VAS.
Despite supposedly just being an “add-on service”, PLDT’s broadband service has steadily climbed last 2010 as shown in this presentation:
Their VAS list includes only the following: ringbacks, person trackers, and mobile apps. The broadband services are also included in their own categories–showing that it is no longer just a side-business, but rather it has been increasingly becoming the forefront of their business.
And yes, according to this Financial Analysis Briefing 2010, their Broadband Business has been on the rise:
So we have two of the biggest TelCos in the Philippines who didn’t include broadband in their Value Added Services list and both are having MASSIVE profits in their broadband “Business”.
NTC, please take a second look.
There’s no better way to end this post but with this quote:
Internet is no longer a value added service, but the business itself.
–Cocoy Dayao