Role and Mandate of the National Telecommunications Commission (NTC)
- The NTC is empowered to promote and protect consumers of public telecommunications services.
- It is tasked with fostering fair competition in the telecommunications industry.
- NTC's regulatory scope includes broadband service providers regarding service quality and consumer rights.
Observations on Broadband Service Offerings
- Service providers often specify only maximum broadband speeds in their advertisements.
- Customers have a right to be accurately informed about the quality of broadband services offered.
- Different broadband technologies (fixed, fixed wireless, mobile) have varying transmission characteristics.
- Mobile broadband is notably more susceptible to signal fading compared to other types.
Key Regulatory Provisions
- Broadband service providers must specify the minimum broadband connection speed in all consumer offers.
- They must disclose service reliability and service rates in advertisements, flyers, brochures, service level agreements, and service contracts.
- Minimum service reliability is set at 80%.
- Service reliability is measured monthly using the formula:
- Service Reliability = ((Hours in a day × Days in month) – (Time connection below minimum speed)) / (Hours in a day × Days in month)
Service Offering Specifications and Examples
- Providers must clearly indicate minimum speeds, reliability percentages, and corresponding rates.
- Example rates:
- PhP900/month for 512 Kbps minimum speed and 80% reliability.
- PhP1,000/month for 512 Kbps minimum speed and 85% reliability.
- PhP1,000/month for 1 Mbps minimum speed and 80% reliability.
- Subscribers must be properly informed about service offerings.
Compliance Requirements for Committed Information Rate (CIR)
- Providers offering CIR must comply with NTC Memorandum Circular No. 12-19-2004.
Enforcement and Administrative Measures
- Non-compliance with this Order subjects broadband service providers to administrative cases filed by the NTC.
- Conflicting circulars, orders, or memoranda are considered repealed or amended accordingly.
Effectivity
- The Order takes effect 15 days after publication in a newspaper of general circulation.
- Three certified true copies are to be furnished to the UP Law Center.
Signatories
- Signed by Commissioner Gamaliel A. Cordoba and Deputy Commissioners Carlos Jose A. Martinez and Delilah F. Deles on July 15, 2011.