Question & AnswerQ&A (NTC MEMORANDUM CIRCULAR NO. 02-05-2008)
Value Added Services are defined as enhanced services beyond those ordinarily provided by local exchange and inter-exchange operators and overseas carriers through circuit switched networks.
Types of VAS include Messaging Services (SMS, MMS, Unified Messaging), Audio Conferencing, Audio and Video Conferencing, Voice Mail Services, Electronic Mail Service, Information Service, Electronic Gaming Services (except gambling), Application Services, Content and Program Services, Audiotext Service, Facsimile Service, Virtual Private Network Service, and Hosting Service.
No, the Circular explicitly states that its rules shall not apply to VoIP services, which are covered under a different memorandum circular (MC 05-08-2005).
No entity shall provide Value Added Services without a valid certificate of registration from the National Telecommunications Commission, which must be secured by filing an application with the required documents.
The application must include: valid registration from the SEC or DTI with Articles of Incorporation; system configuration and mode of operation; list of services to be offered; facilities lease agreement with a duly franchised and certificated Public Telecommunications Entity; and a written undertaking against discrimination in leased facilities' terms.
The Certificate of Registration is valid for a maximum of five years, although the applicant may apply for a shorter period not less than one year. It is renewable upon expiry.
The rates for Value Added Services are deregulated. However, VAS providers must inform the Commission of the rates they intend to charge at least seven days prior to offering the service, and any increase in rates also requires prior notification.
Filing Fee is PhP 300.00. Annual Registration Fee is PhP 6,000.00 for the first five services registered and PhP 1,000.00 for each additional service. Late filings for renewal incur surcharges: 50% if within six months of expiry, and 100% if after six months.
Violation of any provisions may lead to the revocation or cancellation of the registration as a VAS provider, and any violations will be dealt with in accordance with the law.