Thanks to the efforts of Citizen Journalist group Blog Watch I was able to follow the NTC public hearing on the Broadband Cap issue. The public hearing was brought about after a draft Memorandum Order was published by the NTC. Before I share my insights and thoughts on the matter, allow me to breakdown the entire Broadband Cap issue into something more non-techie and easier to digest:
- Right now everyone enjoys “unlimited” internet if you subscribe to most postpaid ISP services.
- Every time you use the internet you consume “bandwidth”. This isn’t just for downloading movies or music. When you stream videos, load pictures, and do various activities online you will consume bandwidth.
- The draft Memorandum Order of NTC will enforce a BANDWIDTH CAP. Users will have a daily limit of bandwidth that they consume.
- The draft Memorandum Order of NTC doesn’t specifically say what will happen when a user exceeds the daily limit. It’s common practice now that ISPs lower your download speed. Let’s say you download like 15 movies in one day. Your speed for the rest of the month will go down drastically.
Okay with that said, here are some of my observations and reactions to some of the things that were said during the public hearing this afternoon:
- Customer service of ISP’s hit hard by several groups and consumers. This is really a problem since I myself had tons of issues with several ISP’s in the last few years.
- TXT Power’s position paper made a lot of sense. I don’t agree 100% with all the stuff in the paper but I fully support the idea that the NTC should take a more active role in defining what the terms are.
- There were so many misconceptions going around on Twitter. Please note that businesses won’t be affected with this because the broadband cap memorandum doesn’t affect business subscribers. This will only include residential lines. Please stop tweeting that restaurants and malls will stop offering free WiFi.
- I found it a bit absurd that the iCafe Pilipinas President would say that they would need to charge higher rates. Like what was mentioned above, the cap doesn’t affect them at all… well unless they’re using a residential line for business purposes.
- There is really an abuse on the part of a small group of consumers. I had a talk with the PR of Globe and she said that 0.7% of Globe subscribers end up using 40%-50% of total capacity and they mostly do this using lower end plans (Globe Tattoo sticks, etc).
- Home-based Gamers will get hit the most. This is I think the segment of the netizen community that will really be affected. Some game updates need to be downloaded online and they are usually several gigs in size (StarCraft II is 6GB). This will also cripple e-commerce platforms like Steam and to an extent even the Apple Mac Store because you download big programs after paying with your credit card.
- Telcos all said they wouldn’t comment during the hearing and they will just submit position papers. Understandable considering all types of issues were being thrown at them and not just the broadband cap.
In all honesty I’m all for a good Fair Use Policy. I will support the Broadband Cap initiative but only if the limit is truly fair to both the telcos and the consumers (gamers included). I strongly suggest that the NTC hold more consultations and they should also bring in local gaming companies like Level Up into the discussion. I will also be eagerly waiting for the various telcos to post their position papers online. I would love to hear their side of the story. I doubt it if this entire thing will make internet faster for everyone but it will definitely make the entire marketing/sales more transparent and understandable for everyone.
Again, thank you to Mom Blogger for the wonderful Blog Watch coverage. I find it amazing that out of all the press (both online, print, and TV) that covered the event only you guys live streamed it. 
UPDATE: Here’s the coverage of TV5 during the event. Just fast forward the video to the 9:40 mark to immediately watch it.
work at home people, video/voip calling for people with relatives/love ones abroad also are affected here.
Good point. Will add to blog entry. Thanks!
I think icafes would increase their prices, as residential use is pushed into business use
Which is inherently wrong.
Imagine… buying a game you are so excited about on steam or EA download manager, then suddenly the throttling hits.
Rather than improving infrastructure, they’re more into capping. I’m all for the fair use policy but this capping is just a step backwards.
Like! I agree with Chino on this. Creating caps is by all means a restriction rather than a move forward to real progress.
you are welcome. and to add to the coverage, thanks to Mitch Orosa-Ople for being right there to cover it with a cameraman. ABS CBN camera was there. GMAnews.tv was there too.
Go go go TV 5! XD
Carlo.. here’s a good post regarding the issue:
http://propinoy.net/2010/12/29/an-open-letter-to-president-aquino-and-to-the-15th-congress-on-ntc-broadband-cap-draft-memorandum/
Hi Carlo!
The circular covers all types of broadband connections, and all subscribers. Which is why the IT industry reps, those in the internet cafe business, independent or homebased net entrepreneurs and even telecommuting folk are up in arms.
The idea of the telcos was to impose the caps across the board except for those with special arrangements (with CIR).
Tonyo
Hi Tonyo,
I talked with the PR of several telcos and they said that the MO will not cover business lines. Maybe NTC will have to clarify but I highly doubt it if it will since all other countries who have the bandwidth cap don’t limit business lines as well.
Cheers,
Carlo
As Tonyo said above, it was never mentioned during the public hearing nor in any NTC publications that the broadband cap will be for residential plans only so I say it not senseless (absurd) for i-café owners to think of increasing their rates.
Passing on the added costs to consumers is practiced by all businesses and I don’t see i-cafés as exemptions to this rule.
Should note that merely going to a website already consumes bandwidth, even by a tiny amount
THE CAP HAS BEEN REMOVED BY NTC!!! THEY HAVE LISTENED TO THE PEOPLE OF THE PHILIPPINES! I agree with NTC. This is a good step for progress where everyone will benefit. I am sure that NTC will act fairly, take measures, and will continue to improve services to satisfy the needs of the public. They will not regress development; moreover, they will make Philippine services more competitive in comparison to other foreign countries. Let us show our support for this advocacy.
Number: 8888
Content:
GLOBE Advisory: Ur data subscription for today has reached 800mb. Ur remaining browsing hours will resume tomorrow subject to promo validity. U may opt to forfeit ur remaining subscription to browse for P5/15. To unsubscribe text POWERSURF OFF or SUPERSURF OFF to 8888. This promo is guided by Globe Fair Use Policy.
Bullshit na globe na yan.. Sa modem ko it registered 650MB in total (upload ang download rates).. Subra na sila. Parang wla pa rin effect ang NTC Broadband Cap na to. I am using stupid prepaid globe tatoo huawei stick. Just registered 2 hours ago and then naubos na ang 800MB kong limit na behind their greedy evil globe faces na 650 MB. I am a home user and you cannot download anymore.. Damn!