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 the consumers and producers. The government sees that through coordination, it will be able to do its task in providing and also taking care of the welfare of its people. In the setting of a market economy, information transmission and motivation are needed for both consumers and producers for their motives to be maximized. If it weren’t of these two, coordination won’t happen and market interaction will fail. However, incentives that are formulized by the government to the companies and to the whole market aren’t always correct or enough. There are instances that the market, specifically the producers finds loopholes from government regulations thus making government regulations inefficient and not enough. That is why, doing government regulations should always be studied thoroughly and updated from time to time to prevent the companies to their pursuit of self-interest from being self-defeating. One of the industries that will be tackled in this paper is the cellular mobile telephone (CMT) industry. The cellular mobile telephone companies play a vital role in the society in terms of giving communication services to the Filipinos. And to be able for these companies to deliver quality and fair services to the consumers, regulations are set by one of the government institutions in the Philippines. The National Telecommunications Commission (NTC) is one of the departments in the Philippines which take care of all communication channels in the country. It includes the telephone, television, cellular phones, radio and other communication industries for both the equipment and connections. From this, the National Telecommunications Commission (NTC) is the government branch who is responsible in regulating all the transactions of cellular phone companies with regards to its interaction to its consumers. With incentive economics, the advantages associated to it are flexibility, improved relationships between the private and public sector, encouragement of technological innovation, substantial cost savings, and better management of non-point emission sources. These economic incentives that is brought about by commanding factors such as the government to its countries’ companies allow and encourage these businesses/companies to use the most efficient means possible to achieve a goal. By granting flexibility in reaching targets through economic incentives, it provides an ongoing motivation to search out technological advances that make compliance even cheaper thus in improves substantial cost savings as well. On the other hand, the disadvantage of economic incentive is that it cannot cover all parts of a companies’ needs that is why most of the time companies make some ways to see loopholes in regulations that is set by the government. But at the same incentives cannot always give the consumers/subscribers the assurance that it can get the lowest fee that they can acquire with a quality service. That is why these regulations should be thoroughly studied before implementing it to avoid flaws and loopholes and at the same time should always be updated from time to time. Updating these regulations means adapting to the needs of the producer and most especially the consumers. Through updating these...
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