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FactSheets
3 Out of 4 VASPs in the Philippines Offer Internet-related Services 
(FS-200611-NS1-02, posted 23 November 2006)
Out of the 351 value-added service providers (VASP) registered with the National Telecommunications Commission (NTC) with valid licenses as of December 2005, 264 or 75.2% offer Internet-related services, while 52 (14.8%) provide mobile phone content and application services and 35 (10.0%) offer other value-added services.
Among the various VASP’s Internet-related services, e-commerce emerged as one of the two major services along with Internet access. While there are 131 VASPs offering access to Internet, 90 provide e-commerce services. Other specific Internet-related services include web hosting which is provided by 59 VASPs and webpage development and design offered by 36 VASPs. For specific mobile phone content and applications services, 18 VASPs offer SMS, 11 offer MMS, eight (8) provide mobile entertainment and three (3) offer WAP application services. Meanwhile, 11 VASPs provide call center services while four (4) specialize in directory assistance, three (3) in automated response systems and two (2) in paging systems.
According to Republic Act No. 7925, “An Act to Promote and Govern the Development of Philippine Telecommunications and the Delivery of Public Telecommunications Services”, a value-added service provider (VASP) is “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”. A VASP is allowed to competitively offer its services and/or expertise; lease or rent telecommunications equipment and facilities necessary to provide such specialized services in the domestic and/or international market in accordance with network compatibility.
Of the 264 VASPs offering Internet-related services such as access to the Internet (dial-up, leased line, broadband, cable, DSL, satellite), web hosting, web page development and design, Voice-Over Internet Protocol (VOIP), electronic commerce, and the like, 224 (84.8%) are located in the National Capital Region (NCR), 26 (9.8%) are in the rest of Luzon, 9 (3.4%) are in the Visayas and 5 (1.9%) are in Mindanao.
On the other hand, the 52 VASPs (14.8%) which provide mobile phone content and application services like short and multimedia messaging services (SMS/MMS), general packet radio services (GPRS), wireless application protocol (WAP), mobile entertainment, caller ring back tunes, voice mail services, etc. and the remaining 35 VASPs (10.0%) which offer other value-added services such as integrated voice response system, paging system, customer network management system, service information system, call center service, etc. are all located in the NCR.
Figure 1. Distribution of VASPs by Type of Service
(as of December 2005)
Table 1. Number of VASPs by Type of Service Offered
| Internet-Related Services | Number of VASPs | Mobile Phone Content and Application Services | Number of VASPs | Other Value-Added Services | No. of VASPs |
| Internet access | 131 | SMS | 18 | Call center | 11 |
| E-commerce | 90 | MMS | 11 | Directory assistance | 4 |
| Web hosting | 59 | Mobile entertainment | 8 | Automated response systems | 3 |
| Webpage development & design | 36 | WAP | 3 | Paging systems | 2 |
| Others | 111 | Others | 28 | Others | 24 |
Figure 2. Distribution of VASPs Providing Internet-Related Services by Location
(as of December 2005)
Source of basic data: National Telecommunications Commission (NTC)
STATISTICS
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