The March Notice of Proposed Rulemaking would let customers request a U.S.-based agent, require domestic handling of sensitive calls, mandate disclosure of a call center’s location, and set English proficiency standards. According to FCC Chairman Brendan Carr, these moves are needed to address consumer frustration, confusing service, and security risks tied to offshore operations.
Industry groups push back
In a joint position paper dated May 18, the IT and Business Process Association of the Philippines (IBPAP), the American Chamber of Commerce of the Philippines (AmCham), and the US-ASEAN Business Council (USABC) urged the FCC to reconsider its proposal.
The groups argue that the measures would raise costs for American businesses without solving the underlying problem. They also said that Philippine-based providers already operate under strict contractual and regulatory obligations set by their U.S. clients, covering data protection, service-level agreements, and cybersecurity, and that no evidence exists linking offshore operations to the harms the FCC is trying to address.
They also rejected any connection between legitimate contact centers and illegal robocall activity, saying such operations run within monitored, auditable client workflows.
On language requirements, the groups noted that Philippine call centers already apply rigorous hiring standards for English proficiency, and additional certification would largely duplicate what is already in place.
The industry associations instead proposed a risk-based, outcome-focused framework built around measurable results such as customer satisfaction, complaint resolution, cybersecurity safeguards, and provider accountability, rather than blanket restrictions tied to a center’s physical location.
Economic stakes
The cost gap driving much of the debate is stark. According to Manila Bulletin, the FCC cited Indeed figures showing the average annual salary for a call center agent in the Philippines is around $5,115, compared to roughly $66,809 in the United States. Industry groups warned that losing offshore capacity would force companies to absorb sharply higher labor costs, which would likely be passed on to American consumers through higher prices.
The stakes for the Philippines are significant. According to IBPAP data, the country’s IT-BPM sector generated more than $40 billion in revenue last year, up 5% from $38 billion in 2024, making it one of the economy’s largest employers and export earners.
For now, the FCC’s proposal remains under review, with no timeline yet set for a final rule. Industry groups say they will continue engaging regulators as the process moves forward, while stressing that the sector’s compliance record, not its location, should be the basis for any new consumer protection standards.
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