Title
Policy on Local Exchange Carrier Service
Law
Op Executive Order No. 109
Decision Date
Jul 12, 1993
Fidel V. Ramos establishes a policy to enhance local exchange carrier services, ensuring universal access to telecommunications by mandating cross-subsidization from profitable services and requiring authorized operators to serve unserved and underserved areas within three years.
A

Q&A (OP EXECUTIVE ORDER NO. 109)

The main objective is to improve the provision of local exchange service in unserved and underserved areas to promote universal access to basic telecommunications service.

Basic Telecommunications Service refers to local exchange residence and business telephone service and telegraph service without additional features.

Cost-based pricing is a system where the actual cost of providing service establishes the basic charge, to which a fixed mark-up is added to collect a standard charge to all users without discrimination.

Local Exchange Carrier Service refers to a telecommunications service, primarily voice-to-voice service, within a contiguous geographic area furnished to individual subscribers under a common local exchange rate schedule.

The Government pursues the policy of democratization in the ownership and operation of telecommunication facilities and services.

Local exchange service shall continue to be cross-subsidized by other telecommunications services within the same company until universal access is achieved and such service is priced to reflect actual costs.

They must provide a minimum of 300 local exchange lines per international switch termination, ensure at least one rural line per ten urban lines installed, and establish public calling offices at the rural barangay level, among other requirements.

No, subsidiaries are not allowed to operate another gateway if they meet criteria such as shared management, stock ownership exceeding 50%, or significant financial exposure as stated in Section 6.

They may be authorized to provide Cellular Mobile Telephone System (CMTS) services and other non-basic telecommunications services.

Violations are subject to the same penalties provided in Section 13 of Executive Order No. 59 (1993), which governs related telecommunications regulatory offenses.

All telecommunications service networks must be interconnected in a non-discriminatory manner as per Executive Order No. 59 (1993) and its implementing guidelines.

Existing providers have a period of five (5) years to comply with the requirement to provide local exchange service.

They must file necessary applications for local exchange service within three (3) months from issuance as stipulated in the order.

They are repealed, modified, or amended accordingly to conform with Executive Order No. 109 provisions.


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