Question & AnswerQ&A (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 in the Philippines.
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 plus a fixed mark-up added to collect a standard charge to all users without discrimination.
Local Exchange Carrier Service is a telecommunications service, primarily voice-to-voice, within a contiguous geographic area furnished to individual subscribers under a common local exchange rate schedule.
Universal Access refers to the availability of reliable and affordable telecommunications service in both urban and rural areas of the country.
The government pursues the policy of democratization in the ownership and operation of telecommunication facilities and services.
It mandates that until universal access is achieved and costs are reflected accurately, local exchange service shall continue to be cross-subsidized by other telecommunications services within the same company.
They must provide at least 300 local exchange lines per international switch termination, one rural exchange line for every 10 urban lines, and establish Public Calling Offices at the rural barangay level with appropriate credit from the NTC.
Subsidiaries of a public telecommunications carrier operating an authorized international gateway are not allowed to operate another gateway, pursuant to Executive Order No. 59 (1993), with specific criteria defining subsidiary relationships.
The obligation remains in force as long as the service providers hold their authorizations to provide their respective non-basic services.
All telecommunications service networks must be interconnected in a non-discriminatory manner in accordance with Executive Order No. 59 (1993) and its implementing guidelines.
Violations are subject to the same penalties provided in Section 13 of Executive Order No. 59 (1993).
Existing telecommunications service providers have a period of five (5) years to comply.
The National Telecommunications Commission (NTC) is directed to issue the guidelines, rules, and regulations within 30 days from the effective date of the EO.