RA 7925

• RA 7925 is the Public Telecommunications Policy Act of the Philippines

  
• RA 7925 was approved on March 1, 1995
• RA 7925 promotes and governs the development of Philippine telecommunications and the delivery of public telecommunications services

  
• Articles in RA 7925

  • General Provisions
  • Policy and Objectives
  • Administration
  • Telecommunications Entities
  • Other Services and Facilities
  • Franchise, Rates and Revenue Determination
  • Rights of Telecommunications Users
  • Telecommunications Development
  • Final Provisions
• Telecommunications


  Any process which enables a telecommunications entity to relay and receive voice, data, electronic messages, written or printed matter, fixed or moving pictures, words, music or visible or audible signals or any control signals of any design and for any purpose by wire, radio or other electromagnetic, spectral, optical or technological means

  
• Public telecommunications entity


  Any person, firm, partnership or corporation, government or private, engaged in the provision of telecommunications services to the public for compensation
• Broadcasting


  An undertaking the object of which is to transmit over-the-air commercial radio or television messages for reception of a broad audience in a geographic area
• Franchise


  A privilege conferred upon a telecommunications entity by congress, authorizing that entity to engage in a certain type of telecommunications service
• Local exchange operator


  An entity providing transmission and switching of telecommunications services, primarily but not limited to voice-to-voice service, in a geographic area anywhere in the Philippines
• Inter-exchange carrier


  An entity, sometimes referred to as carrier's carrier or national backbone network operator, authorized to install, own and operate facilities which connect local exchanges within the Philippines and to engage in the business of inter-exchange national long distance services
• International carrier


  An entity primarily engaged in the business of providing transmission and switching of any telecommunications service between the Philippines and any other point of the world to which it has an existing correspondent or prospective interconnection agreements
• Value-added service provider (VAS)

  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
• Public toll calling station


  A non-exclusive facility at which the public may, by the payment of appropriate fees, place as well as receive telephone calls and/or telegrams or other messages
• Mobile radio telephone system

  A wide area mobile radio telephone system with its own switch, base stations and transmission facilities capable of providing high capacity mobile telecommunications by utilizing radio frequencies
• Interconnection


  The linkage, by wire, radio, satellite or other means, of two or more existing telecommunications carriers or operators with one another for the purpose of allowing or enabling the subscribers of one carrier or operator to access or reach the subscribers of the other carriers or operators
• Objectives of RA 7925

  • Develop and maintain a viable, efficient, reliable and universal telecommunication infrastructure
  • Expand telecommunications network to improve and extend basic services to unserved and underserved areas
  • Administer radio frequency spectrum in the public interest
  • Ensure fair, just and reasonable rates and tariff charges
  • Provide public telecommunications services through private enterprises
  • Foster a healthy competitive environment for telecommunications carriers
  • Ensure fair and reasonable interconnection of facilities
  • Assist and encourage Philippine international carriers
  • Regulate telecommunications entities through a stable, transparent and fair administrative process
  • Encourage ownership of public telecommunications entities by as wide a number of people as possible
  • Promote development of domestic telecommunications manufacturing industry
  • Harness and improve human resources skills and capabilities
• Responsibilities of the National Telecommunications Commission

  • Adopt administrative process to facilitate entry of qualified service providers and pricing policy to encourage basic services in unserved/underserved areas
  • Ensure quality, safety, reliability, security, compatibility and inter-operability of telecommunications facilities and services
  • Mandate fair and reasonable interconnection of facilities at reasonable and fair charges, including cross-subsidy to unprofitable local exchange service areas
  • Foster fair and efficient market conduct, protect from unfair trade practices
  • Promote consumer welfare by facilitating access to telecommunications services
  • Protect consumers against misuse of monopoly or quasi-monopolistic powers
  • Impose fees and charges to cover reasonable costs of regulation and supervision
• Responsibilities of the Department of Transportation and Communications

  • Develop and maintain a long-term strategic national development plan for telecommunications
  • Coordinate research and development activities in government
  • Represent and promote Philippine interests in international telecommunications bodies
  • Operate a national consultative forum to facilitate interaction amongst telecommunications stakeholders
• Categories of Telecommunications Entities

  • Local Exchange Operator
  • Inter-Exchange Carrier
  • International Carrier
  • Value-Added Service Provider
• Local Exchange Operator


  Provide universal basic telephone service to all subscribers, be protected from uncompensated bypass or overlapping operations, have first option to provide pay telephone services, be entitled to fair revenue sharing with interconnected carriers
• Inter-Exchange Carrier


  Interconnect with other networks and establish its own tandem switching facilities to enable domestic and international long distance services
• to provide inter-exchange national long distance services may be limited, but as a matter of policy, where it is economically viable, at least two (2) carriers, shall be authorized: Provided, however, That a local exchange carrier shall not be restricted from operating its own inter-exchange carrier service if its viability is dependent thereto
• Inter-exchange carrier


  • Shall interconnect with other networks in the same category and with local exchange carriers or other telecommunications entities, upon application and within a reasonable time period, and under fair and reasonable level charges, in order that domestic and international long distance services are made possible
  • Shall have the right to establish and operate its own tandem switching facilities to which international calls or overseas carriers have to course their messages or signals
• Only entities which will provide local exchange services and can demonstrably show technical and financial capability to install and operate an international gateway facility shall be allowed to operate as an international carrier
• The entity so allowed shall be required to produce a firm correspondent or interconnection relationships with major overseas telecommunications authorities or carriers within one (1) year from the grant of the authority
• The international carrier shall also comply with its obligations to provide the local exchange service in unserved or underserved areas within three (3) years from the grant of the authority as required by existing regulations: Provided, however, That said carrier shall be deemed to have complied with the said obligation in the event it allows an affiliate thereof to assume such obligation and who complies therewith
• Failure to comply with the above obligations shall be a cause to cancel its authority or permit to operate as an international carrier
• Value-added Service (VAS) Provider

  Provided that it does not put up its own network, a VAS provider need not secure a franchise. A VAS provider shall be allowed to competitively offer its services and/or expertise, and 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
• Telecommunications entities may provide VAS, subject to the additional requirements that: prior approval of the Commission is secured to ensure that such VAS offerings are not cross-subsidized from the proceeds of their utility operations; other providers of VAS are not discriminated against in rates nor denied equitable access to their facilities; and separate books of accounts are maintained for the VAS
• In a local telephone exchange area, more than one duly enfranchised provider of mobile radio services, distinct and separate from the local exchange carrier, may be allowed to operate. However, such entities shall secure prior authority from the Commission and, in addition, comply with the conditions imposed on VAS and with the norms on radio frequency spectrum utilization
• The operator of a mobile radio telephone system shall comply with its obligations to provide local exchange service in unserved and underserved areas in accordance with existing regulations. Failure to comply with this obligation within (3) years from the grant of the authority shall be a cause to cancel its authority or permit to operate a mobile radio telephone system
• Duly enfranchised radio paging services involving either voice or data messages, shall be allowed to compete freely in rates, number of operators, or variety of operating modalities, subject only to the norms on radio frequency spectrum utilization
• Telecommunications subscribers shall be allowed to use within their premises terminal equipment, such as telephone, PABX, facsimile, data, record, message and other special purpose or multi-function telecommunication terminal equipment intended for such connection: Provided, That the equipment is type-approved by the Commission
• The radio frequency spectrum allocation and assignment shall be subject to periodic review. The use thereof shall be subject to reasonable spectrum user fees. Where demand for specific frequencies exceed availability, the Commission shall hold open tenders for the same and ensure wider access to this limited resource
• No person shall commence or conduct the business of being a public telecommunications entity without first obtaining a franchise
• The Commission, in granting a Certificate of Public Convenience and Necessity (CPCN), may impose such conditions as to duration and termination of the privilege, concession, or standard or technical aspects of the equipment, rates, or service, not contrary to the terms of the franchise. In no case, however, shall the CPCN be shorter than five (5) years, nor longer than the life of the franchise. A CPCN expiring at the same time as the franchise shall be deemed to have been renewed for the same term if the franchise itself is also renewed or extended
• The Commission shall establish rates and tariffs which are fair and reasonable and which provide for the economic viability of telecommunications entities and a fair return on their investments considering the prevailing cost of capital in the domestic and international markets
• The Commission shall exempt any specific telecommunications service from its rate or tariff regulations if the service has sufficient competition to ensure fair and reasonable rates or tariffs. The Commission shall, however, retain its residual powers to regulate rates or tariffs when ruinous competition results or when a monopoly or a cartel or combination in restraint of free competition exists and the rates or tariffs are distorted or unable to function freely and the public is adversely affected. In such cases, the Commission shall either establish a floor or ceiling on the rates or tariffs
• The access charge/revenue sharing arrangements between all interconnecting carriers shall be negotiated between the parties and the agreement between the parties shall be submitted to the Commission. In the event the parties fail to agree thereon within a reasonable period of time, the dispute shall be submitted to the Commission for resolution
• The Commission shall require telecommunications entities to set up a uniform system of accounts which shall be one of the bases in establishing rates and tariffs. Where a single entity spans more than one category of telecommunications service, a separate book of accounts shall be maintained for each category or specialized classification