Question & AnswerQ&A (Republic Act No. 7925)
The short title of Republic Act No. 7925 is the "Public Telecommunications Policy Act of the Philippines."
RA 7925 applies to all public telecommunications entities in the Philippines.
Telecommunications is any process which enables a telecommunications entity to relay and receive voice, data, electronic messages, written or printed matter, fixed or moving pictures, words, music or visible or audible signals or any control signals of any design and for any purpose by wire, radio or other electromagnetic, spectral, optical or technological means.
The National Telecommunications Commission (NTC) is the principal administrator of this Act.
The NTC shall implement the policies of the Act, facilitate entry of qualified providers, ensure quality and safety standards, mandate fair interconnection, foster fair market conduct, promote consumer welfare, protect consumers against misuse, and regulate fees and charges for telecommunications entities.
Telecommunications is essential to the economic development, integrity, and security of the Philippines; it shall be developed and administered to safeguard and strengthen the nation's fabric, with the aim of maintaining an efficient, reliable, and universal telecommunications infrastructure using best available and affordable technologies.
A local exchange operator must provide universal basic telephone service within a reasonable time at prescribed standards and tariffs allowing a fair return; it is protected against bypass or overlapping operations without compensation, has the first option to provide pay telephone services in its area, and is entitled to fair revenue sharing with inter-exchange carriers.
An international carrier must provide local exchange services, demonstrate technical and financial capability, establish interconnection agreements within one year, and provide local exchange service in unserved or underserved areas within three years or allow an affiliate to do so; failure to comply can lead to cancellation of authority.
No person may operate as a public telecommunications entity without first obtaining a franchise; the NTC issues a Certificate of Public Convenience and Necessity (CPCN) with terms not shorter than five years nor longer than the franchise life.
Users have the right to non-discriminatory, reliable service meeting minimum standards, to receive a telephone connection within specified periods upon application, to regular and accurate billing, courteous service, and prompt investigation and action on complaints.
Ownership should be encouraged to be as wide as possible, preferably including customers, to promote efficiency, public accountability, and to tap personal savings.
Rates and tariffs must be fair, just, reasonable, and provide economic viability and fair returns. The NTC may exempt services with sufficient competition but retains power to regulate when ruinous competition or monopolies exist.
The Department coordinates the national strategic telecommunications development plan, research and development, represents the Philippines internationally, and operates a national consultative forum, without interfering in NTC's quasi-judicial functions.
No, a single franchise shall not authorize an entity to engage in both telecommunications and broadcasting services.
VAS providers that rely on existing networks and do not set up their own networks need not secure a franchise but must get NTC approval, offer services competitively without discrimination, and maintain separate books of accounts.
Failure to comply may result in cancellation of the authority or permit to operate the mobile radio telephone system.
Yes, subscribers may use type-approved terminal equipment such as telephones, PABX, faxes, and other special-purpose devices within their premises.
The Department must privatize all government-owned telecommunications facilities used for public service within three years from the effectivity of the Act, generally through public bidding.
Interconnection charges and revenue sharing must be negotiated and submitted for NTC approval; if parties fail to agree, the NTC resolves disputes ensuring fairness, equity, reciprocity, and consideration of costs and cross-subsidies.