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MEMORANDUMCIRCULAR NO.: 8-9-95
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SUBJECT:
Implementing Rules and Regulations for
Republic Act No. !"# Re:
An Act to $romote and %o&ern t'e
(e&elopment of $'ilippine
Telecommunications and t'e (eli&er) of
$ublic Telecommunications Ser&ices.
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* RE$UB+IC ACT N,. !"# -
or t'e purpose of an effecti&e and smoot'
implementation of RA!"#/ t'e National
Telecommunications Commission/ an attac'ed agenc)
of t'e (epartment of Transportation and
Communications 0(,TC1 and t'e principal administrator
of RA!"# $ublic Telecommunications $olic) Act of
2!!#1/ 'ereb) promulgates t'e 'ereunder ImplementingRules and Regulations.
Not'ing in t'is Circular/ 'o3e&er/ s'all be
constructed as delimiting t'e po3er , (,TC to monitor
t'e implementation of t'is Act in accordance 3it' itmandate to ac'ie&e its responsibilit) for t'e de&elopment
and maintenance of a long term strategic national
de&elopment plan for telecommunications.
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001 DEFINITION OF TERMS
2. Access Charge 4 refers to a remuneration paid to a carrier b) t'e
interconnecting carriers for accessing t'e facilities of suc' carrier
3'ic' is needed b) t'e interconnecting carriers for t'e originationand5or termination of all t)pes of traffic deri&ed from t'e
interconnection.
". Acta! C"st A##r"ach 4 refers to an approac' in traffic settlement
3'ereb) t'e cost is allocated using a met'odolog) 3'ic' most
appropriatel) reflects actual cost of t'e ser&ices.
6. Cr"ss S$s%&' A##r"ach 4 refers to an approac' 3'ereb) a +E
operator is entitled to some subsid) in t'e re&enue settlement to
earn a rate of return on its local e7c'ange net3or8 in&estments
t'at s'all be at parit) 3it' t'ose earned b) ot'er segments of t'e
telecommunications industr).
9. I(terc"((ect%"( Charge 4 refers to t'e sum of t'e access c'arge
plus cross4subsid).
#. )as%c Te!e#h"(e Ser*%ce 4 refers to t'e local e7c'ange telep'one
ser&ice for residence and business establis'ments.
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. U(%*ersa! Access 4 refers to t'e a&ailabilit) of reliable and
affordable telecommunications ser&ice bot' urban and rural
areas of t'e countr).
. L"ca! E+cha(ge Area 4 refers to a defined geograp'ic areaaut'ori;ed b) t'e National Telecommunications Commission
to a local e7c'ange operator.
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. 22. Cert%/%cate "/ ,$!%c C"(*e(%e(ce a(& Necess%t'
C,CN 4 refers to a grant consistent 3it' t'e
telecommunications policies and ob>ecti&es to a ?ualified
applicant/ after due notice and 'earing/ of a final aut'orit) to
o3n/ operate and maintain a public telecommunications
facilit)5ser&ice b) t'e National Telecommunications
Commission.
2". ,r"*%s%"(a! Ath"r%t' ,A 4 refers to an aut'orit)/ for alimited period/ granted to a ?ualified applicant to operate
and maintain a public telecommunications facilit)5ser&ice b)
t'e Commission/ pending t'e grant of t'e C$CN.
26. C"%ss%"(4 refers to t'e National Telecommunications
Commission.
29. Net"r24 refers to a set of nodes and lin8s t'at pro&ides
connections bet3een t3o or more defined points to
accommodate telecommunication bet3een t'em.
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By KVL;
2#. E(ha(ce& Ser*%ce 4 refers to a ser&ice 3'ic' adds a feature
or &alue not ordinaril) pro&ided b) a public telecommunications
entit) suc' as format/ media con&ersion/ encr)ption/ en'anced
securit) features/ computer processing/ and t'e li8e@ pro&idedt'at in t'e pro&ision of t'e en'anced ser&ice/ no la3/ rule/
regulation or international con&ention on telecommunications is
circum&ented or &iolated.
2. 3"r2%(g a%( !%(es 4 refer to t'e subscribed main telep'one
lines.2. ,TE4 refers to public telecommunications entit) as defined in
RA!"#.
2
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100 LOCAL E4CAN6E LE SER7ICES
a. T'e +E operator s'all pro&ide uni&ersal basic
telep'one ser&ice capable of accessing local/national/ international and ot'er net3or8s
3it'out discrimination to all applicants for suc'
ser&ice 3it'in its defined aut'ori;ed ser&ice
area5s and 3it'in t'e sc'edule dul) appro&ed
b) t'e Commission.
b. T'e +E operator s'all compl) 3it' t'e ser&ice
performance and tec'nical standards specifiedunder C 2=424!= and C 2=424!=
respecti&el) and ot'er standards 'ereafter
prescribed b) t'e Commission.
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c. $ublic telecommunications entities s'all not be allo3ed
to e7pand or e7tend long distance ser&ice directl) to a
person5entit)/ customer or end4user 3it'in t'e
aut'ori;ed local e7c'ange ser&ice area of a dul)aut'ori;ed +E ser&ice operator e7cept in t'e follo3ing
cases:
2. 3'en t'e aut'ori;ed +E operator is unable to
pro&ide ser&ice 3it'in t'e follo3ing response time: T3o 'undred fort) 0"9=1 da)s on t'e first )ear of
t'e effecti&it) of t'is Circular.
Si7t) 0=1 da)s on t'e second )ear of t'e
effecti&it) of t'is Circular Ten 02=1 3or8ing da)s t'ereafter.
and at standards prescribed b) t'e Commission
pro&ided t'at t'e b)passing carrier 'as no unser&ed
obligation in its assigned ser&ice areas.
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". 3'en t'e aut'ori;ed +E operator is unable to pro&ide
3it'in ninet) 0!=1 da)s from date agreement at
prescribed standards t'e re?uired interconnection
arrangements.
6. 3'en t'e aut'ori;ed +E operator is compensated in t'e
amount agreed b) t'e parties. In case parties cannot
reac' an agreement/ t'e matter can be broug't to t'e
Commission for final action pursuant to Rule #2=. In
cases 3'en t'ere are more t'an one 021 aut'ori;ed +Eoperators in one defined geograp'ic area/ t'e
compensation s'all be di&ided in proportion 4 to t'e
number of 3or8ing telep'one lines of eac' of t'e
aut'ori;ed +E operators. T'e determination of t'e
number of 3or8ing lines s'all be conducted ?uarterl).
In an) of t'e abo&e e7ceptions/ t'e $TE s'all secure prior
appro&al from t'e Commission t'roug' an administrati&e
procedure to pro&ide direct connection to t'e
subscribers5customers5end4users.
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d. A dul) enfranc'ised entit) ma) be aut'ori;ed b) t'e
Commission/ after due notice and 'earing/ to install/ operate
and maintain a local e7c'ange net3or8 and pro&ide local
e7c'ange ser&ice in t'e same local e7c'ange area 3'ere ane7isting aut'ori;ed local e7c'ange operator fail to satisf) t'e
demand for local e7c'ange ser&ice. T'e demand for local
e7c'ange ser&ice is considered satisfied 3'en != of all
applications for local e7c'ange ser&ice 3it'in t'e last t'ree 061
mont's are ser&ed 3it'in ten 02=1 3or8ing da)s from date ofapplication.
e. T'e pro&isions on b)pass s'all onl) appl) to public s3itc'ed
telep'one ser&ices.
f. Aut'ori;ed +E operators s'all 'a&e t'e first option to pro&ide
pa) telep'one ser&ices in t'e defined geograp'ic area co&eredb) its net3or8. ,t'er enfranc'ised telecommunications entities
ma) be aut'ori;ed to pro&ide public calling stations or pa)
telep'one stations in a gi&en local e7c'ange ser&ice area
ser&ed b) an aut'ori;ed +E ser&ice operator after due notice
and 'earing and upon determination of public need.
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g. Aut'ori;ed +E operators s'all be entitled to fair and
e?uitable re&enue s'aring arrangement pursuant to Rule
#"=.
'. T'e +E operator s'all use an) cost effecti&e tec'nolog) in
fulfilling its responsibilit) of pro&iding uni&ersal basictelep'one ser&ice. T'e +E operator s'all endea&or to use
state of t'e art tec'nolog).
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