QuestionsQuestions (Republic Act No. 6849)
RA 6849 is titled the “Municipal Telephone Act of 1989.” It aims to provide for the installation, operation, and maintenance of public telephones in each municipality in the Philippines, fostering interconnection through a nationwide network of public calling stations, especially to support rural development.
It declares that the benefits of modern communication and technology are as important to rural development as to urban areas, and the State shall pursue and foster, in an orderly and vigorous manner, the interconnection of all municipalities through a nationwide network of public calling stations.
RA 6849 creates a Municipal Telephone Projects Office in the Department of Transportation and Communications (DOTC) to administer the Act’s provisions, including planning, implementation, funding arrangements, standards setting, training, and monitoring/evaluation for system integration.
Among others: develop a plan for voice and data-capable public calling stations (and barangays when feasible); implement plans via contracts for procurement and facilities; arrange funding from various sources; prescribe and ensure compatibility with minimum standards for construction/maintenance/operation/personnel/accounting; provide technical assistance and training; and monitor/evaluate and integrate systems whenever economically and technically feasible.
The approval of the provincial government of the province where any or all functions are to be discharged must be secured first.
The Projects Director is appointed by the President upon recommendation of the Secretary of Transportation and Communications. He has the rank, position, and emoluments of an undersecretary.
He executes and administers plans/projects; directs and supervises operations and internal administration (including delegating powers); appoints officials/employees subject to Civil Service Law (with guidance and coordination with DBM on number and compensation); prepares and submits an annual report to the President and Congress; and performs other necessary powers/duties vested by the DOTC Secretary.
All domestic telecommunications carriers/utilities existing at the Act’s effectivity and franchised to service a province/region certified by the NTC as providing satisfactory and competent service are given the first option, under equal conditions, to provide/install/operate public calling stations capable of voice and data transmission, interconnected to the PSTN/other national facilities. The intent must be made specifically in writing to the Projects Office within six months from effectivity and must indicate the preferred province and timeframe.
They are entitled to the same benefits and privileges enjoyed by those installed and operated by government, insofar as tax concessions and/or incentives are concerned.
Under Section 6, the NTC is authorized to assign or reassign, when necessary, existing radio frequency users currently operating, to accelerate implementation of the project.
The NTC must fix an equitable, reasonable, and uniform rate of charges for every type of call, after consulting regional development councils. Rate schedules are set for classifications such as: Municipal to International; Municipal to Metro Manila and other domestic long distance calls; Municipal to Provincial Capital; and Municipal to Municipal (same province and different provinces other than domestic long distance).
The NTC, in consultation with toll network operators/interchange carriers and the concerned provincial government, must authorize and implement an equitable toll revenue sharing/collection scheme. Local exchange operators’ share in toll revenues must be remitted by interchange carriers to them within ninety (90) days from receipt.
The Projects Office must install public calling stations for provinces/municipalities not covered by private utilities under Section 5 such that each municipality in the Philippines still unserved by telephone at effectivity shall have at least one public calling station/public telephone by the third year of effectivity.
The public calling stations must be interconnected to the public switched telephone network (PSTN) or other national transmission facilities, subject to technical interconnection standards prescribed by the NTC.
They may set up, operate, and maintain their own public calling stations or grant a franchise to private entities for operation and maintenance of telephone systems/public calling stations—provided that the NTC certifies the proposed grantee is technically and financially capable of complying with public service requirements.
It appropriates P200,000,000.00 (or as much as necessary) from EO 182 Title I—Telecommunications appropriations. Additionally, it provides P300,000,000.00 (or equivalent foreign currencies as necessary), in order of preference, from foreign grants, concessional loans, Official Development Assistance, commercial loans, and/or export credits.
No further evaluation by the NEDA Board is required for the municipal telephone program, notwithstanding EO 230 of 1986 and rules for ODA evaluation/authorization—subject to Section 21, Article XII of the Constitution.
The Projects Office shall not have a life exceeding ten (10) years from approval and may only be extended by act of Congress. At the option of the provincial government, systems operating in each province may be turned over to it, except those operating under Section 5.