QuestionsQuestions (NTC MEMORANDUM CIRCULAR NO. 02-05-2008)
The Circular classifies value added services as enhanced services beyond those ordinarily provided for by local exchange/inter-exchange operators and overseas carriers through circuit switched networks. It further defines “enhanced services” as services that improve upon the quality and/or functionality of services ordinarily offered, while “services ordinarily provided for” refer to voice services offered through circuit switched networks.
The NTC seeks to maintain and foster fair competition in the telecommunications industry and bring enhanced services to the general public. It cites the 1987 Constitution’s role of communications, RA 7925 (Public Telecommunications Policy Act), EO No. 546 (s. 1979), and a Supreme Court decision in G.R. No. 143964 (26 July 2004).
Examples include: (1) Messaging services (e.g., SMS, MMS, unified messaging); (2) Audio conferencing; (3) Audio and video conferencing; (4) Voice mail service; (5) Electronic mail service; (6) Information service; (7) Applications service; (8) Content and Program service; (9) Audiotext service; (10) Facsimile service; (11) Virtual Private Network service; (12) Hosting service. (Any five are sufficient.)
No. The Circular expressly states that its rules do not apply to voice over IP (VoIP) service. VoIP is covered by NTC MC No. 05-08-2005.
No entity shall provide a value added service without a valid certificate of registration from the Commission (NTC).
The application shall be filed and acted upon not later than seven (7) working days from date of application, with complete requirements.
The application must include: (1) valid registration from SEC or DTI and Articles of Incorporation; (2) system configuration and mode of operation; (3) list of services to be offered; (4) facilities lease agreement with a duly enfranchised and certificated PTE; and (5) written undertaking not to discriminate other VAS providers on terms of rates and service quality for similar leased facilities.
The Certificate is valid for a maximum period of five (5) years. Applicants may opt for shorter periods of not less than one (1) year. Certificates are renewable.
A registered VAS provider may use its own equipment capable only of processing/routing/storing messages in any format, but it must strictly comply with service performance standards under NTC MC No. 10-17-2000, NTC MC No. 19-12-2004, and other applicable standards prescribed by the Commission.
Rates for value added services are deregulated. However, the VAS provider must inform the Commission of the rates for each service at least seven (7) days prior to offering. For increases in rates for existing VAS, it must inform the Commission at least seven (7) days prior to implementation.
If the Commission does not act on the information within seven (7) days from receipt, the VAS provider may impose the new rates.
PTEs shall offer leased line service to VAS providers at the same quality and at a price not higher than the prevailing leased line prices offered to the PTE’s public. PTEs shall not deny requests. If unable to provide, the PTE must inform the requesting VAS provider in writing, copying the Commission, stating reasons for denial, and the Commission may require substantiation.
Filing fee: Php 300.00. Annual registration fee: Php 6,000.00 for the first 5 services registered, and Php 1,000.00 for each additional service registered.
Surcharge for late renewal filing: 50% of the annual registration fee if filed within six (6) months from date of expiry; 100% if filed after six (6) months from date of expiry.
Violation of any provision is a ground for revocation or cancellation of the registration as VAS provider. Any violation shall be dealt with in accordance with law.
It takes effect fifteen (15) days after publication in a newspaper of general circulation, and three (3) certified true copies are furnished to the UP Law Center.