Question & AnswerQ&A (Republic Act No. 6849)
The official title is the "Municipal Telephone Act of 1989."
The Act declares the national policy to adopt modern communication technology benefits equally in rural and urban areas by establishing a nationwide network of public calling stations connecting all municipalities.
The Municipal Telephone Projects Office is created within the Department of Transportation and Communications to administer the provisions of the Act.
Its functions include developing plans for public calling stations, implementing these plans, contracting for equipment and facilities, arranging funding, prescribing standards, providing technical assistance and training, and monitoring local telecommunications system integration.
The Projects Director is appointed by the President of the Philippines upon recommendation of the Secretary of Transportation and Communications, and holds the rank, position, and emoluments of an undersecretary.
They have the right of first option to provide, install, and operate public calling stations in provincial networks, provided they are certified as rendering satisfactory and competent service by the National Telecommunications Commission (NTC).
The NTC is authorized to assign or reassign existing radio frequency users to facilitate the implementation of the municipal telephone project.
The NTC shall fix equitable, reasonable, and uniform rates for different classifications of municipal telephone calls in consultation with regional development councils and other stakeholders.
The law mandates an equitable toll revenue sharing and collection scheme whereby local exchange operators receive their share, remitted by interchange carriers within ninety days of receipt.
The law requires that every unserved municipality shall have at least one public calling station within three years from the effectivity of the Act.
Yes, provinces and municipalities may operate or grant franchises for public calling stations provided the grantee is certified by NTC as technically and financially capable and complies with public service requirements.
Funding includes an appropriation of two hundred million pesos from Executive Order No. 182 and an additional three hundred million pesos or equivalent foreign currencies sourced from foreign grants, concessional loans, official development assistance, commercial loans, or export credits.
Yes, the municipal telephone program is eligible for foreign loans and grants without further evaluation by the NEDA Board, subject to constitutional limitations.
The Projects Office shall not exceed ten years from the approval date of the Act and may only be extended by an act of Congress.
At the provincial government's option, the systems operating in each province (except those under Section 5) shall be turned over to the provincial government after the Projects Office’s term.