Charging Regulations for Cellular Phone Companies in the Philippines

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Incentives of Charging Regulations to Cellphone Mobile Telephone Companies in the Philippines In partial fulfillment of the requirements in SPECTO 3 Submitted by: Cameron Cabanlig on April 08, 2010 De La Salle University- Manila I. INTRODUCTION In the Philippines, there are different businesses, industries and companies that are mainly regulated by the government to at least make the market fair for both the consumers and producers. For a market to function fairly and competitively, incentives are implemented and handed out to the market components specifically by companies in accordance to government regulations. Incentives give people the initiative to acquire the best possible outcome and the best benefit for both…show more content…
The companies that will be included in this paper are the main cellular mobile telephone companies that play a major role in the market. Only top/major players of cellular phone companies such as Smart, Globe and Sun telecoms will be included in this paper. The study however limits it to such because a big percentage of subscribers are subscribed in these three large cellular phone companies. And because of it, we can see the relation of producer and consumer and the effect of incentives regulated by the government specifically the National Telecommunications Commission (NTC) on to those companies. In these three top/major cellular phone companies we can see how economic incentives play a major role on how these companies charge their subscribers. Cost of services paid by subscriber on different bundles of services i.e. basic service/voice, text, minimum charge (either per minute or pulse) are the major factors that these companies that charge consumers. In this study, we will be focusing on the main usage of cellular phones which are the calls and short messaging service (SMS) for local and international usage, prepaid and line subscribers. Through incentives, cost of services subscribed by cellular phone users is minimized and at the same time the benefit of both the consumer and the producer are maximized. II. CELLULAR PHONE COMPANIES AND ITS ROLE IN THE SOCIETY Background of Cellular Mobile Telephone Companies a. Smart Communications

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