Legal basis and policy statements
- The circular is issued pursuant to Republic Act No. 7925 (Public Telecommunications Policy Act of the Philippines), Executive Order (EO) No. 546 (series of 1979), and the Commission’s authority to regulate telecommunications.
- Republic Act No. 7925 requires fostering a healthy competitive environment where telecommunications carriers can make business decisions and interact to provide services while maintaining financial viability and affordable rates.
- Republic Act No. 7925 requires the government to promote a fair, efficient and responsive market to stimulate growth and development of telecommunications facilities and services.
- Republic Act No. 7925 requires the Commission to promote and protect consumers of public telecommunications services.
- Customers/subscribers/users must be informed of the quality of the broadband/internet connection service being provided.
Key definitions for broadband measurement
- “Broadband” refers to a data connection speed of at least 256 kbps, as defined by the International Telecommunications Union (ITU).
- “Commission” refers to the National Telecommunications Commission.
- “Fixed Wireless Broadband” refers to a data connection using fixed wireless technologies.
- “Cable Broadband” refers to a data connection using coaxial cables.
- “Digital Subscriber Line (DSL)” refers to a data connection using DSL technologies.
- “Fiber-To-The-Home (FTTH)” refers to a data connection using fiber optic cables.
- “Packet” refers to a unit of data routed between an origin or source and a destination on the internet or any packet-switched network.
- “Jitter” refers to the variation of end-to-end delay from one packet to the next within the same packet stream/connection/flow.
- “Latency” refers to the time it takes for a packet to get from a source to a destination.
- “Packet Loss” refers to the number of packets that does not reach the destination.
- “End-to-End Delay” refers to the time it takes for a packet to be transmitted across a network from source to destination.
Offer information and consumer notice rules
- Subscribers/consumers/users must be properly informed of the broadband/internet connection service being offered through tools including flyers, brochures, advertisements, among others, and the information must be kept updated.
- Internet Service Providers (ISPs) must specify average downstream and upstream data rates per area, where the area may be administrative regions (e.g., NCR, Region I, etc.), provinces, or cities/municipalities.
- Service offers made through advertisements, flyers and brochures must contain the service rates for broadband/internet connection data plans.
- Service agreements and service level agreements must contain the service rates for broadband/internet connection data plans.
- ISPs may impose maximum limits on data volume per service package/plan/promo per day/week/month, provided that subscribers/consumers/users are automatically informed when consumed volume reaches 80%, 85%, 90%, and 95%.
- When consumed data volume reaches 100%, the subscriber/user must be automatically informed that continued service will be charged at the normal rates if the subscriber/user opts to continue.
- ISPs with less than 5,000 subscribers/consumers/users may use a 24/7 Help Desk hotline number instead of an automatic system to allow subscribers to call to find remaining volume.
- ISPs must ensure subscribers are informed that when consumed volume reaches 100% and the subscriber/user opts to continue, the subscriber/user will be charged the normal rates.
Monitoring and measurement standards
- The Commission must conduct monitoring and measurements of fixed broadband/internet access service.
- The Commission must monitor and measure the following parameters:
- Downstream and upstream average data rate
- Latency
- Jitter
- Packet loss
- Measurements must be conducted considering ISPs’ uncontrollable variables, including that for ISPs providing only the access network and leasing bandwidth from broadband connectivity providers, measurements are performed within the ISPs’ access network.
- Specific measurement points must be used by technology type:
- DSL: measurement at the station protector that connects to the drop wire.
- FTTH: measurement at the “IN” port of the Optical Network Unit (ONU).
- Fixed Wireless: measurement at the “IN” port of the fixed wireless modem.
- Cable Broadband: measurement at the LAN port of the cable modem.
- Measurements must use standard devices available commercially without changes.
- No applications may be running during measurement.
- Test equipment must be free from viruses or any form of malware.
- Measurement locations must be a combination of:
- Known locations agreed upon by ISPs, consumer groups, and the Commission
- Unknown locations selected by the Commission
- Unknown locations must be disclosed to ISPs and consumer groups not later than 2 days after the conduct of the measurements.
- The test server accessed during tests must be available at these locations:
- Within the LAN of the ISP
- Outside the LAN of the ISP but within the national network
- Outside the LAN of the ISP and located outside the Philippines
- The Commission must perform monitoring and measurements during both peak and off-peak hours using different subscribers/consumers/users broadband/internet access data plans, among others.
- Monitoring and measurements must be performed at least twice (2x) a week.
- No monitoring and measurement activities may be conducted during adverse weather conditions.
- The Commission must prescribe the official measurement and monitoring tool to be used; the tool must be downloadable and available to the public.
Publishing monitoring results and transparency
- The results of monitoring and measurements must be posted in the Commission’s website not later than five (5) days from the end of each month and released to the media.
- Results of tests must be made available to the public upon request.
- Results must be averaged for each of the ISPs.
- Published results must indicate at least:
- Points A and B where monitoring and measurements were performed
- Date and time of monitoring and measurements
- Subscriber/consumers/users data plans
- Before posting the results, each ISP must be informed and given an opportunity to explain their side.
Related compliance rules and effects
- ISPs offering Committed Information Rate (CIR) must comply with Memorandum Circular (MC) No. 12-19-2004.
- Only duly enfranchised and authorized Public Telecommunications Entities may provide networks for broadband/internet services.
- Memorandum Order No. 07-07-2011 remains effective.
- Any circular, order, memoranda, or parts thereof inconsistent with this circular are deemed repealed or amended accordingly.
- The circular’s effectivity is governed by the 15-day publication and U.P. Law Center filing requirements described in the effectivity rule.