QuestionsQuestions (NTC MEMORANDUM CIRCULAR NO. 14-7-2000)
The MC is issued pursuant to R.A. 7925 and E.O. No. 59 (1993), which liberalized telecommunications and mandated interconnection. Its purpose is to provide implementing rules for the interconnection of authorized public telecommunications entities (PTEs) to ensure interoperability, fair competition, consumer access, transparency, non-discrimination, and compliance with technical standards.
The rules apply to all duly authorized PTEs—entities enfranchised by law and authorized by the NTC to provide telecommunications services to the public for compensation.
Interconnection is the linkage (wire, radio, satellite, or other means) of two or more existing PTE networks to allow subscribers/customers of one PTE to access reach those of another. “Any-to-any” means subscribers/customers of two PTEs should be able to communicate with each other.
Key principles include end-to-end interoperability, fair compensation and timely settlement, equal responsibility of PTEs, timely satisfaction of requests, prompt seamless service to end users, and interconnection agreements consistent with government policy and international obligations. They guide NTC evaluation in negotiations, arbitration, and mandates.
Yes. Section 4 provides that all duly authorized PTEs must interconnect. Section 13 prohibits any PTE from disconnecting, disrupting, discontinuing, or impeding interconnection access to interconnected parties without prior written approval of the Commission.
An access seeker serves a request/demand for interconnection to the access provider and furnishes the NTC with proof of service. Within 10 days, the access provider serves counter-proposal/reply. Within 90 days from NTC receipt of the notice, the parties discuss, negotiate, execute, and submit the agreement for approval.
The agreement (except the compensation scheme) is deemed extended and remains fully effective until extended or a new one is executed. Any new/revised compensation scheme agreed upon retroacts to the date immediately following expiration of the old agreement.
The NTC may intervene and mediate at its own initiative and at any stage of negotiation, especially in the interest of public service.
The MC allows disapproval if the agreement (or portion) is contrary to law/rules/public morals/safety; inconsistent with national security or public interest; missing minimum provisions; discriminating against a non-party PTE; having unreasonable, not cost-based, and/or discriminatory compensation or charges; or other just and valid public service/ convenience causes.
If parties fail to agree within the 90-day negotiation period, the NTC may initiate compulsory arbitration motu proprio or upon petition by an interested party or LGU. The NTC may order provisional interconnection immediately and set terms and conditions. The case is resolved within 30 days through an Interconnection Mandate, which is final and immediately executory.
The MC requires consideration of public interest and convenience; necessity of interconnection; desirability of stimulating innovative offerings and providing users with services; availability of technically/commercially viable alternatives; equal access arrangements; integrity of the network and interoperability; nature of the request and available resources; relative market positions; promotion of competition; and need to achieve/maintain universal access.
They include commercial/financial relations (payment, billing/collection), exchange of information and periodicity, procedures for proposed alterations, limitation of liability and indemnity, remedies in case of service degradation, IP rights (when applicable), duration and mechanics of renegotiation, and provisions for new types of interconnection. Also included are provisions on interconnection services and remuneration; technical aspects (equal access measures, essential requirements compliance, interface description, quality, routing); and arrangements for establishment (forecasting, POI physical arrangements, reciprocal sizing, testing/interoperability, fault clearing/recording).
Each party bills/collects for outgoing paid calls from its own subscribers/customers. Incoming collect calls may also be handled by the receiving party if agreed. Unless otherwise agreed, billing/collection for outgoing calls using an IXC/IGF facility of another party is the responsibility of the IXC/IGF operator.
Settlement statements must be submitted within 60 days from end of the month. Data are mutually agreed. If a party fails to submit, available data are used; disputes on reconciled data must be raised within 3 months or the party is barred. Payment of undisputed amounts is due within 30 days from receipt. Variances are handled with rules based on percentage thresholds (4%, 7%) and if unresolved (variance > 7%), the dispute goes to NTC for summary resolution within 30 days.
POI is a designated point between two networks where one carrier’s responsibility begins and the other’s ends. POIs must be established and maintained at mutually agreed technically feasible points in the carrier’s system/network or at points mandated by the NTC.
Equal access allows subscribers to choose among toll/long distance carriers. The LEC must program and activate in its switches the access code(s) of the IXC/IGF assigned by NTC so LEC subscribers can access their chosen long-distance operator.
Unless otherwise agreed or provided in other memoranda, parties jointly and equally share costs of interconnect facilities necessary to interconnect. Special case: in IXC-to-LEC interconnection where the LEC has <5,000 total system-wide exchange line capacity and offers only VAS, the IXC shoulders interconnection costs. Ownership vests in the reimbursing party upon full payment (half, or as mutually agreed). No fees may be collected from a party for collocation of its indispensable facilities needed for basic-service interconnection.
Interconnect service charges must promote efficient and sustainable competition and respect objectivity, transparency, reciprocity, and non-discrimination. Excessive charges are not allowed. Charges must be transparent and unbundled so a PTE does not pay for network elements it does not need. Where possible, charges should be aligned with underlying long-run incremental costs; full cost methodology is subject to later NTC prescription.