Why is PAGCOR going to the NTC for SMS Gambling?

While trolling about the NTC website looking for the VoIP draft rules, I chanced upon this “Notice of Public Consultation” issued at the request of PAGCOR for the issuance of short-access codes for PAGCOR-approved games of chance.

I don’t get it.

If PAGCOR wants to be a content provider for SMS gambling, all it needs to do is enter into an agreement with either Globe, Smart or Sun. They’ll assign PAGCOR the short-access code which of course, may be different for each carrier but that’s how they do it for everyone else.

Is there more to this than meets the eye?

I suspect that PAGCOR doesn’t want to be at the mercy of the cellcos which have onerous content provider agreements, the terms of which are coincidentally identical for both Smart and Globe, to wit:

• 70%-30% revenue share split in favor of the cellco (this means the content provider only makes 30% of P2.50)
• one year term only - renewable every year

This gives the cellco the flexibility to change the terms of the contract on a yearly basis. Of course, you should thank your lucky stars if you get a contract at all since the cellcos are very protective of their network.

This is probably why PAGCOR is going to NTC instead of the cellcos. Some of them may not want to have anything to do with gambling on their networks. I understand that the Ayalas have a standing policy not to invest in businesses that cater to vices (i.e., alcohol, cigarettes, gambling, etc.). So, Globe might not be willing to carry PAGCOR content.

Anyway, I’ll ask around and report back when I find out why PAGCOR’s doing this.