Law Summary

Introduction

This memorandum circular serves as an addendum to the implementing guidelines of Executive Order No. 109, detailing amendments relevant to operators of Government Public Calling Offices (PCOs) under the jurisdiction of the National Telecommunications Commission (NTC).

Legal Authority

• Executive Order No. 109: Provides the foundational authority for the guidelines.
• Acts Referenced:
  • Act No. 3846 (Radio Control Law)
  • Act No. 146 (Public Service Act)
  • Executive Order No. 546 (Series of 1979)

Amendment Details

• The circular amends Section 8, Article II of the existing implementing guidelines as previously set out in NTC Memorandum Circular No. 11-9-93.

Local Exchange Lines Installation

• Provision: IGF/CMTS operators awarded contracts for leasing or owning Government PCOs shall be considered to have installed Local Exchange Lines equivalent to the bid price divided by $1,200 (the average cost per line).
  • Rounding Rule: Any fraction shall be rounded to the nearest whole number.

Operational Capacity Requirements

• Operational Obligation: IGF/CMTS operator awardees must operate the PCOs within their designated service areas to full capacity.
• Utilization of PCOs Outside Assigned Areas: PCOs located outside the assigned service areas may only be utilized up to their maximum line capacity, while still adhering to obligations under Article II, Section 4 of the original guidelines.

Key Definitions

• IGF/CMTS Operator: Entities awarded contracts to lease or own Government Public Calling Offices.
• Local Exchange Lines: Telecommunications lines through which calls are routed.

Important Requirements

• Operators must ensure that:
  • The number of installed Local Exchange Lines corresponds to the calculated bid price.
  • Operations within assigned areas are maximized.

Cross-References

• The provisions reference Article II, Section 4 of the original implementing guidelines under NTC Memorandum Circular No. 11-9-93.

Key Takeaways

• The NTC Memorandum Circular No. 20-12-94 introduces important amendments to the operational and installation requirements for IGF/CMTS operators of Government PCOs.
• It establishes clear financial calculations for line installations and mandates operational efficiency within designated service areas.
• Operators must remain compliant with the obligations outlined in both the newly amended circular and existing regulations.