Definition of Key Terms
- Access: Provision of facilities/services from one provider to another under defined conditions.
- Access Charges: Payment by access seeker to access provider for network access.
- Access Deficit Charge (ADC): Difference between recovered line service cost and total revenues.
- Access Provider: Authorized telecom entity supplying access to another provider or VASP.
- Access Seeker: Entity requesting access to another’s network or facilities.
- Enhanced Services: Value-added telecom services beyond basic telephone services.
- Interconnection: Linkage between telecom carriers enabling subscriber communication.
- Reference Access Offer (RAO): PTE’s published conditions, prices, and terms for access.
- Various costing methodologies: Fully Distributed Cost (FDC), Long Run Incremental Cost (LRIC), TSLRIC, TELRIC.
Principles of Access
- Any-to-any connectivity between subscribers.
- Access across functional interfaces ensuring end-to-end interoperability.
- Fair compensation based on usage; commercial obligations must be met timely.
- Equal responsibility on access provider and seeker for efficient access provision.
- Timely satisfaction of access requests.
- Transparency, nondiscrimination, and compliance with telecommunications policies and international commitments.
Obligation and Scope of Reference Access Offer (RAO)
- All public telecom entities must submit RAOs to NTC within 90 days.
- RAO constitutes a definite access offer with prices, terms, and conditions.
- Commission specifies services to be included in RAOs promoting competition.
- Services include fixed/mobile origination, termination, transit, internet call services, data services, broadband, and retail access to value-added service providers.
Structure and Content of RAO
- RAO drafted as comprehensive, complete access agreements.
- Two-part structure: generic main clauses and schedules specific to access seekers.
- Main clauses cover scope, POIs, network requirements, traffic routing, infrastructure sharing, billing, service commitments, confidentiality, dispute resolution, termination, and technical specifications.
- Schedules detail POI specifics, charges, quality standards, and infrastructure available for sharing.
- Accompanying cost model submitted to NTC as basis for access pricing.
- RAO terms valid for three years unless otherwise specified.
Commission's Role in RAO Approval and Modification
- NTC reviews submitted RAOs for fairness, reasonableness, and nondiscrimination within 90 days.
- Failure to act within 90 days deems RAO approved.
- Disapproved RAOs require modifications; Commission may mandate terms if necessary.
- Access providers cannot modify or withdraw approved RAOs without consent.
- Commission may require RAO modifications to protect end-user interests.
- Approved RAOs must be published on NTC and carrier websites, with sensitive parts possibly withheld.
Access Agreements
- Access seekers may accept RAOs or negotiate individualized agreements.
- All agreements require NTC approval before effectiveness.
- Acceptance of RAO leads to execution of agreement within 30 days.
- Deviations from RAO terms mean agreement treated as individualized and subject to longer review.
- Interim access on RAO terms during negotiations allowed.
- Commission monitors and publishes approved individualized agreements for transparency.
Technical and Operational Requirements
POIs and Interconnection
- Access provider must specify feasible POIs with no additional charge.
- Terms must be no less favorable than prior memorandum circular provisions.
- Multiple POIs to ensure efficient interconnection.
- Detailed technical specifications and network information required in RAO.
Network, Transmission, and Traffic Management
- RAO to define rights, obligations, ordering, provisioning, response times, and notification procedures.
- Access seeker provides details regarding POIs and traffic forecasts.
- Access provider must timely respond; non-response deemed acceptance.
- Conditions for network changes and restoration costs outlined.
- Non-discriminatory routing of traffic mandated.
Infrastructure Sharing and Collocation
- List and locations of infrastructure for sharing must be included.
- Procedures and prices for infrastructure sharing and collocation specified.
- Standards for physical and virtual collocation enforced.
- Infrastructure sharing on nondiscriminatory basis, with first-come, first-served allocation preferred.
Billing and Settlement
- Mutual obligations for traffic data exchange to support billing.
- Clear billing cycle, payment terms, penalties for late payment, and legal recourse defined.
- Regulatory audits allowed.
- Retrospective invoicing allowed within six months.
- Dispute resolution mechanisms for billing accuracy included.
Technical Service and Fault Repair Commitments
- Access provider must maintain service quality comparable to its own services.
- Specific performance standards for interconnection quality apply.
- Timely fault rectification and remedies for delays or service interruptions mandated.
Data Interchange and Customer Information
- Methods and formats for data exchange specified.
- Customer information treated as confidential, restricting use and disclosure.
- Restrictions on cross-communication with end-users to prevent unethical solicitation.
Ancillary Services
- List of ancillary interconnection services with pricing to be specified separately.
- Mandatory provision of directory assistance.
Confidentiality, Liability, and Indemnities
- Confidential information use limited to agreement implementation.
- Liability provisions are reciprocal and based on control over risk.
- Indemnity provisions for losses caused by negligence or intentional acts established.
Contract Termination and Review
- Valid grounds for suspension or termination include non-payment and material breaches.
- Procedures for notice, disconnection, cost settlements, and end-user dealings specified.
Dispute Resolution
- Clear procedures for dispute management, arbitration, and regulatory intervention.
- Option to establish arbitration committees with binding decisions.
Commercial Terms of Access
- Distinct access-related charges: one-time set-up, basic interconnection, ancillary services, and ADC.
- Charges must be proportionate to costs and based on cost-oriented principles.
- Access provider responsible to justify cost orientation.
- Transition period of three years to adopt Total Service Long-run Incremental Cost plus markup (TSLRIC plus) methodology.
- Fully distributed cost methodology principles and classifications outlined.
- ADC applicable only for line cost-revenue gaps and subject to regulatory oversight.
Regulatory Forbearance
- Public telecom carriers may request exemption from RAO publication.
- NTC can forbear if enforcement is unnecessary and does not impede policy goals.
- Public hearings and transparent publication of exemptions required.
- Conditions may be imposed to protect end-user interests.
Transitory Provisions
- Existing interconnection agreements must conform to new provisions within one year.
- Commission intervenes in unresolved access disputes.
- Existing agreements remain valid until new approved RAO agreements are established.
Penalties for Noncompliance
- Penalties include administrative fines, suspension of license applications, disqualification of officers, and suspension of authorized rates.
- Commission may revoke approval of non-compliant access agreements.
Final Provisions
- Invalid provisions do not affect remaining provisions.
- Repeals or amends inconsistent existing regulations.
- Memorandum Order takes effect 15 days after publication.
This comprehensive framework ensures fair, transparent, and efficient access offers and agreements among public telecommunications entities, promoting sustainable competition and protecting consumer interests in the Philippine telecommunications industry.