Legal basis and policy objectives
- The Order is promulgated pursuant to Republic Act No. 7925 (RA 7925), the Public Telecommunications Policy Act of the Philippines.
- RA 7925 directs the fostering of “a healthy competitive environment” where telecommunications carriers can make business decisions, interact in providing services, maintain financial viability, and offer affordable rates.
- RA 7925 requires the government to promote a fair, efficient and responsive market to stimulate growth of telecommunications facilities and services.
- RA 7925 mandates the NTC to promote and protect consumers of public telecommunications services.
- The Order implements competition and consumer-protection objectives by ensuring broadband quality information is communicated to subscribers/users.
Coverage: broadband offers and consumer information
- Broadband service providers must specify minimum broadband/internet connection speed in their offers to consumers/subscribers/users.
- Broadband service providers must specify minimum service reliability in their offers to consumers/subscribers/users.
- Broadband service providers must specify service rates tied to the minimum speed and minimum reliability in their offers.
- Broadband service providers must disclose the broadband/internet connection service being offered to subscribers/consumers.
Minimum speed, service reliability, and rates
- Broadband service providers shall specify the minimum broadband/internet connection speed and service reliability in their consumer-facing materials, including advertisements, flyers, brochures, service level agreements, and service agreements.
- The minimum service reliability is 80%.
- Service Reliability is measured over a period of one (1) month.
- Service Reliability is calculated using the ratio:
- (Hours in a day x Days in a month) − (Time internet connection speed is below minimum)
- divided by (Hours in a day x Days in a month).
- Service offers must specify service rates for the minimum broadband/internet connection speed and the service reliability.
- Service rate examples are provided showing rate differentiation by minimum connection speed and reliability, including PHP 900.00/month for 512Kbps at 80%, PHP 1,000.00/month for 512Kbps at 85%, and PHP 1,000/month for 1Mbps at 80%.
Subscriber/consumer notice requirement
- Subscribers/consumers must be properly informed of the broadband/internet connection service being offered to them.
- The requirement of proper information applies to the service details that the Order mandates providers to specify (minimum speed, minimum reliability, and corresponding service rates).
CIR providers and compliance rule
- Broadband service providers offering Committed Information Rate (CIR) must comply with NTC Memorandum Circular No. 12-19-2004.
Enforcement and administrative consequences
- If a broadband service provider fails to comply with the Order, the NTC shall file the appropriate administrative case against the broadband service provider.
Repeal and transitory/implementation rules
- Any circular, order, memoranda, or parts thereof inconsistent with NTC Memorandum Order No. 07-07-2011 are deemed repealed or amended accordingly.