National Policy
- Declares the State's commitment to promote communication access in both rural and urban areas.
- Prioritizes interconnection of all municipalities through a systematic and vigorous network deployment.
Creation and Functions of the Municipal Telephone Projects Office
- Established within the Department of Transportation and Communications (DOTC).
- Responsible for planning, implementing, and monitoring the installation of public calling stations.
- Tasks include formulating engineering studies, contracting procurement and construction, arranging funding, and setting technical standards.
- Ensures compatibility of installations, offers technical assistance and training, and evaluates local telecommunications for integration.
- Requires approval from the relevant provincial government before executing its functions.
Management Structure
- A Projects Director with undersecretary rank is appointed by the President upon DOTC Secretary’s recommendation.
- Powers include executing the law's plans, supervising operations, appointing staff in coordination with the Department of Budget and Management, and submitting annual reports to the President and Congress.
Rights of First Option for Existing Carriers
- Domestic telecommunications carriers franchised in provinces or regions and certified by the National Telecommunications Commission (NTC) to have satisfactory service are granted the first option to provide public calling stations.
- These operators must notify the Projects Office within six months of the Act's effectivity specifying province and development timeline.
- Private operators of public calling stations receive similar tax concessions and incentives as government installations.
Frequency Allocation
- The NTC is authorized to allocate or reallocate radio frequencies to expedite project implementation.
Rates and Toll Revenue Sharing
- The NTC, after consultation with regional councils, sets reasonable, uniform rates for various types of municipal calls.
- Calls are classified into categories such as Municipal to International, Metro Manila, Provincial Capitals, and other domestic destinations.
- Implements an equitable toll revenue sharing scheme between local exchange operators and interchange carriers.
- Local exchange operators must receive their toll revenue shares within 90 days of receipt by interchange carriers.
Implementation Timetable
- The Projects Office is tasked with installing public calling stations in all unserved municipalities within three years of the Act’s effectivity.
- Extension of services to remote barangays shall be pursued as resources allow.
- All facilities must interconnect with the public switched telephone network or equivalent national transmission facilities.
Operation by Local Governments
- Provinces and municipalities may establish and operate public calling stations or franchise private entities.
- The NTC must certify the technical and financial capability of any proposed private operator.
Appropriations and Funding
- A budget of PHP 200 million shall be sourced from the telecommunications appropriations under Executive Order No. 182.
- An additional PHP 300 million or equivalent in foreign currency shall be sourced preferably from foreign grants, concessional loans, and official development assistance.
Official Development Assistance
- The municipal telephone program may access foreign loans and grants without further NEDA Board evaluation, subject to constitutional constraints.
Sunset Clause and Turnover of Systems
- The Projects Office has a lifespan of ten years from the Act’s approval, extendable only by Congress.
- Systems operated in provinces may be turned over to provincial governments, except those managed under the rights of first option provision.
Separability Clause
- Declares that if any provision is invalidated, the remainder of the Act remains effective and enforceable as long as it can stand independently.
Repealing Clause
- All inconsistent laws or parts thereof are repealed or modified accordingly.
Effectivity
- The Act takes effect fifteen days after publication in two national newspapers.
This comprehensive legal framework enforces the objective of universal telecommunication access through public telephone facilities in municipalities, balancing government oversight, local government participation, and private sector involvement under clear operational, technical, financial, and regulatory guidelines.