Promoting Competition and Investment
- Effective competition is needed to foster suitable communication structures.
- Telecommunications providers authorized by the National Telecommunications Commission (NTC) are encouraged to invest in infrastructure.
Universal Access to Telecommunications Services
- All users must have access to one another at reasonable cost and service standards.
- Effective interconnection of carriers is essential to this goal.
Legal Basis for Compulsory Interconnection
- The Supreme Court declared that Republic Act No. 6849 mandates interconnection among domestic carriers.
- The NTC is empowered to encourage competition and larger use of facilities.
Scope and Definition of Interconnection
- Interconnection is compulsory among all NTC-authorized public carriers.
- Defined as linkage by any medium (wire, radio, satellite etc.) allowing subscribers to reach other networks' subscribers.
Technical Requirements for Interconnection
- Interconnection points are preferably at local and junction exchange levels.
- These must have adequate capacity and number to handle reasonable traffic demands.
Customer Freedom of Routing Choice
- Customers have freedom to choose which carrier routes their calls.
- Implementation through distinct access codes or pre-programmed equal access options as exchanges upgrade.
Mandatory Interconnection for Services
- Applies also to other telecommunications services including value-added services like paging, trunking, messaging, and data switching.
Negotiation and Dispute Resolution Process
- Interconnection agreements to be reached via bilateral negotiations.
- If no agreement within 90 days, NTC intervenes to set terms deemed fair and workable.
Reliability and Continuity of International Gateway Operations
- Interconnection must allow call re-routing when an international gateway operator becomes inoperative.
- Operators can have necessary permits to serve their own network but subsidiaries cannot operate additional gateways.
Technical and Traffic Settlement Rules
- Technical rules should align with international standards (CCITT, ITU).
- Traffic settlement includes:
- Volume-based billing per minute with day-night rate differentials.
- Equivalent monthly trunk line charges for store-and-forward services.
- Differentiated rates for short haul (<=150 km) and long haul (>150 km) connections.
- Subsidies and surcharges are allowed for public policy goals like rural service support.
Non-Discrimination and Effective Competition
- Interconnection must promote competition and be non-discriminatory.
Points of Connection and Cost/Revenue Sharing
- The NTC defines connection points.
- Costs and revenues are apportioned and approved by the NTC.
Responsibilities of Interconnecting Parties
- Parties share costs based on responsibilities.
- Each must maintain and operate facilities and comply with NTC-approved obligations.
NTC Authority to Modify Agreements
- Approved interconnection and revenue-sharing agreements may be revoked or amended by NTC to serve public interest.
Penalties for Violation
- Penalties include fines and sanctions under existing laws.
- Suspension of applications for permits and licenses is possible.
- Financial institutions may be directed to withhold loans.
- Disqualification of responsible employees or officers from NTC-supervised entities.
- Suspension of authorized service rates without service disruption.
Implementation and Effectivity
- NTC must promulgate implementing rules within 90 days.
- All inconsistent prior orders and issuances are repealed or modified.
- The Executive Order takes effect immediately upon signing.