Question & AnswerQ&A (NTC MEMORANDUM ORDER NO. 07-07-2011)
The main objective of Republic Act No. 7925, The Public Telecommunications Policy Act of the Philippines, is to foster a healthy competitive environment in the telecommunications market, allowing carriers freedom to make business decisions and interact, with the aim of encouraging financial viability while maintaining affordable rates.
The National Telecommunications Commission (NTC) is mandated to promote and protect the consumers of public telecommunications services under RA 7925.
Broadband service providers must specify the minimum broadband/internet connection speed, service reliability, and the service rates in their offers to consumers/subscribers/users through advertisements, flyers, brochures, service level agreements, and service agreements.
The minimum service reliability required is 80%.
Service reliability is measured over a period of one (1) month and calculated as: (Hours in a day x Days in a month) minus (Time internet connection speed is below minimum) divided by (Hours in a day x Days in a month).
Examples include PhP900.00/month for 512Kbps minimum connection speed and 80% service reliability; PhP1,000.00/month for 512Kbps minimum connection speed and 85% service reliability; or PhP1,000/month for 1Mbps minimum connection speed and 80% reliability.
Service providers offering committed information rate (CIR) must comply with NTC Memorandum Circular No. 12-19-2004.
The NTC shall file an appropriate administrative case against the broadband service provider who fails to comply with this Order.
This Order took effect fifteen (15) days after publication in a newspaper of general circulation and after three (3) certified true copies were furnished to the UP Law Center.
Any circular, order, memoranda, or parts thereof inconsistent with this Order are deemed repealed or amended accordingly.