Title
Interconnection Rules for Philippine Telecoms
Law
Ntc Memorandum Circular No. 14-7-2000
Decision Date
Jul 21, 2000
A Philippine law establishes a regulatory framework for interconnection in the telecommunications sector, promoting competition, transparency, and equal access to services.
A

Key Definitions

  • Defines critical terms including Access Charges, Access Deficit, Access Provider/Seeker, Billing Information, Cellular Mobile Telephone System (CMTS), Interconnection, Local Exchange Carrier (LEC), Major Supplier, Market Power, Network Elements, and Value-Added Services, among others.
  • Provides a framework for consistent interpretation of telecommunications concepts.

General Principles of Interconnection

  • Interconnection should enable any-to-any communication among PTEs.
  • Ensure end-to-end interoperability and service quality.
  • Fair, timely, and efficient interconnection with equal responsibility on all PTEs.
  • Interconnection agreements must align with government policies and international commitments.
  • Interconnection mandated for all authorized PTEs without discrimination.

Objectives and General Provisions

  • Protect consumer interests and promote transparent, competitive telecommunications markets.
  • Ensure universal, seamless nationwide network integration.
  • Enable direct or indirect interconnection depending on geographic and technical feasibility.
  • Promote fair, non-discriminatory access and timely service.

Obligations of PTEs

  • Provide cost-based interconnection and access to network elements.
  • Negotiate in good faith and supply necessary data and network features.
  • Prohibit anti-competitive behavior especially by Major Suppliers.
  • Promote equal treatment in terms, conditions, and operational quality.
  • Prohibit disconnection or disruption of interconnection without Commission approval.

Interconnection Agreements Procedure

  • Formal negotiation initiated by access seeker with detailed information requirements.
  • 90-day timeframe to negotiate and submit agreement for Commission approval.
  • Commission may mediate or arbitrate unresolved disputes, mandating interconnection terms if necessary.
  • Minimum agreement terms include financial, commercial, technical, operational, and legal provisions.

Call Measurement and Settlement

  • Both outgoing and incoming calls measured and billing managed by respective PTEs.
  • Settlement statements exchanged monthly with dispute resolution mechanisms.
  • Specific provisions detailing reconciliation of billing disagreements.
  • International IGF operators handle collection from foreign administrations.

Points of Interconnection (POI) and Facility Responsibilities

  • POIs established at mutually agreed technical points or as mandated.
  • LECs program access codes for IXC/IGF to ensure customer choice.
  • Cost sharing of interconnect facilities generally on 50-50 basis, with exceptions.
  • Parties responsible for maintenance and upgrades within their premises.

Technical and Operational Standards

  • Compliance with national technical standards and service performance requirements mandatory.
  • Joint cooperation for testing, fault reporting, and maintenance.
  • Grade of Service standards ensure minimal call blocking.
  • Mechanisms for capacity forecasting, provisioning, and adjustment.

Cost and Charging Principles

  • Charges must reflect underlying costs: fixed costs incur fixed charges, usage costs incur usage charges.
  • Charges must be transparent, unbundled, cost-based, and non-discriminatory.
  • Distinction between basic interconnection services and ancillary services with respective charging guidelines.
  • Special interconnect subsidies for Local Exchange Carriers (LECs) in high-cost or universal access areas.

Access to Network Elements and Collocation

  • Access to network elements provided on unbundled basis to enable competitive service provision.
  • Physical and virtual collocation offered on first-come, first-served basis subject to technical feasibility.
  • Providers must facilitate reasonable space allocation and connection arrangements.
  • Prohibitions on collocation of switching or billing equipment for enhanced services.

International Gateway Operations

  • Re-routing capabilities mandated to maintain service continuity during outages.
  • Parties responsible for operation, maintenance, safety of equipment and facilities on their premises.

Maintenance and Fault Management

  • Agreed maintenance procedures following Commission and international standards.
  • Timely fault reporting and clearance with mutual assistance between parties.

Force Majeure

  • Obligation relief clauses for events such as eminent domain, war, rebellion, natural disasters, or lawful government orders.

Confidentiality

  • Strict confidentiality of all interconnection-related information except when disclosure is legally required or consented.

Penalties for Violations

  • Administrative fines, suspension of applications, disqualification of personnel, suspension of rates without service disruption.
  • Discouragement of financial institutions from lending to violating PTEs.

Interpretation and Transition

  • Rules to be liberally interpreted to encourage interconnection.
  • Parties may enter agreements exceeding mandated terms for mutual benefit.
  • Transitional periods granted for existing agreements to comply and for technical capability installations.

Final Provisions

  • Severability clause ensuring partial invalidity does not affect whole rules.
  • Repeal of inconsistent prior regulations.
  • Effectivity 15 days after publication with procedural requirements for distribution.

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