Need for Regulatory Update
- Previous NTC Memorandum Circular No. 03-07-2009 set expiration periods for prepaid loads based on load amounts.
- Changes in subscriber base (from 75.57 million in 2009 to 130 million in 2016) affected cost structures and necessitated revision.
- Fixed network costs and declining per subscriber carrying cost justified extending load validity.
Section 1: Definition of Terms
- Clarifies important terms such as:
- Bucket of services: storage unit for calls, SMS, data, or content purchased by subscribers.
- ICT and ICT Provider: entities and technologies involved in electronic communication and information processing.
- Prepaid service: telecommunications accessed by topping up credits.
- Public telecommunications entity: providers of telecom services to the public.
- Top-up: credit addition to enable prepaid services.
- Promotions: limited-time marketing activities involving discounts or cheaper rates.
Section 2: Scope
- Applies to all prepaid loads from all ICT providers and public telecommunications entities.
Section 3: Expiration of Prepaid Load
- Prepaid loads, regardless of amount, expire one (1) year from the latest top-up date.
- The validity period is counted from the most recent top-up.
- Public telecommunications entities may offer longer validity if they choose.
Section 4: Exclusions
- Prepaid loads for promotions and bucket of services with specific approved usage periods are excluded.
- Such promotions must be approved by the DTI and/or NTC.
Section 5: Violations and Penalties
- Violations of the expiration period rules are subject to penalties under the Public Telecommunications Policy Act, DICT Act, and others.
- False, deceptive, or misleading advertisements on prepaid loads and services invoke penalties under the Consumer Act and related rules.
Section 6: Repealing Clause
- Preexisting inconsistent rules from DTI, NTC, and DICT are repealed or amended to conform with this Circular.
Section 7: Separability Clause
- Any inconsistent circulars, memoranda, orders, or rules are superseded or amended accordingly.
Section 8: Effectivity
- The Circular takes effect fifteen (15) days after publication in a newspaper of general circulation.
- Certified true copies are to be furnished to the UP Law Center.