Law Summary

1. Performance Bond Requirements

• Legal Principle/Provision: Each Voice over Internet Protocol (VoIP) service provider and reseller is mandated to post a performance bond to ensure compliance with service delivery regulations.
• Key Definitions:
  • Performance Bond: A financial guarantee to secure the delivery of VoIP services.
  • VoIP Service Provider: An entity authorized to provide VoIP services.
  • VoIP Reseller: An entity that offers VoIP services on behalf of a VoIP service provider.
• Requirements/Procedures:
  • VoIP service providers must post a bond of PhP5,000,000.00.
  • VoIP resellers must post a bond of PhP1,000,000.00.
  • Bonds must be from reputable insurance or surety companies registered with the SEC and accredited by the Insurance Commission.
  • The bond must be maintained for the duration of the certificate of registration as a VoIP provider or reseller.
• Consequences:
  • The performance bond will be forfeited in favor of the government if the entity fails to deliver VoIP service according to NTC rules and regulations.

2. VoIP Service Prefix Assignment

• Legal Principle/Provision: Establishes the assignment of specific prefixes for VoIP services to ensure regulated usage of the service.
• Key Definitions:
  • VoIP Service Prefix: A designated code assigned to VoIP service providers for call origination and reception.
• Requirements/Procedures:
  • Registered VoIP service providers will be assigned the prefix a08xxa.
  • Only users with an assigned VoIP subscriber number are permitted to originate or receive VoIP calls.

3. Authorized Providers and Service Codes

• Legal Principle/Provision: Specifies authorized entities and their respective access telephone numbers for VoIP services.
• Key Definitions:
  • Public Telecommunications Entities (PTE): Entities authorized to provide public telecommunications services.
• Requirements/Procedures:
  • Only authorized PTEs and registered VoIP service providers can offer VoIP services using the a1-800a service.
  • Each authorized provider will be assigned an access telephone number in the format a1801-xxx-yyyya.
  • Local access network providers are responsible for assigning codes to VoIP service providers.
• List of Local Access Network Provider Codes:
  • Codes 100-199: PAPTELCO Members
  • Specific numbers assigned to various telecommunications companies such as Bayan Telecommunications, Inc., Globe Telecom, Inc., etc.

4. VoIP Call Traffic Regulations

• Legal Principle/Provision: Mandates that all VoIP calls must be processed through registered and authorized VoIP service providers.
• Requirements/Procedures:
  • Both outgoing and incoming VoIP traffic must pass through duly registered VoIP service providers.
• Consequences: Ensures compliance with regulations and maintains service integrity.

Key Takeaways

• VoIP service providers and resellers are required to secure significant performance bonds to guarantee service delivery.
• Specific prefixes and codes have been established for VoIP services, restricting usage to authorized providers.
• All VoIP traffic must comply with the regulation of passing through registered service providers to ensure adherence to the guidelines set forth by the NTC.

This memorandum emphasizes the regulatory framework aimed at ensuring reliable VoIP services in the Philippines, underlining the responsibilities and obligations of service providers and resellers.