Title
NTC Guidelines on Value Added Services
Law
Ntc Memorandum Circular No. 02-05-2008
Decision Date
May 30, 2008
The National Telecommunications Commission establishes guidelines for value-added services in telecommunications, promoting competition and ensuring fair access for providers while outlining registration requirements, service classifications, and regulatory compliance.

Law Summary

Definitions and Role of the National Telecommunications Commission (NTC)

  • Value Added Services (VAS) are enhanced services beyond standard local and inter-exchange voice services delivered via circuit switched networks.
  • Enhanced Services improve the quality or functionality of these ordinary services.
  • Ordinary services refer to voice communications provided by local exchange and inter-exchange operators.
  • The NTC is responsible for defining and regulating these services.

Scope of Value Added Services

  • Includes various messaging services (SMS, MMS, unified messaging), conferencing (audio and video), voicemail, email, information services, electronic gaming (excluding gambling), application services, content delivery, audiotext, facsimile, virtual private networks, and hosting services.
  • The list can be revised by the NTC after public consultation.
  • Regulations do not apply to Voice over IP (VoIP), which is separately governed.
  • Public Telecommunications Entities (PTEs) must provide leased lines to VAS providers at equal quality and no higher price than those offered to the public, with transparent justification required for any denial.

Registration Requirements for VAS Providers

  • No entity may offer VAS without a valid NTC-issued certificate of registration.
  • Application must be processed within seven (7) working days if complete.
  • Required documents include SEC or DTI registration, articles of incorporation, system configuration, service list, lease agreement with PTE, and written undertakings against discriminatory practices.
  • The certificate is valid for up to five (5) years, renewable, with option for shorter validity.

General Operational Provisions

  • Registered VAS providers may use equipment for processing, routing, and storing messages.
  • Compliance with established service performance standards (NTC MC Nos. 10-17-2000, 19-12-2004) and other rules is mandatory.
  • Rates for VAS are deregulated but must be reported to the NTC at least seven (7) days before offering or increasing rates.
  • The NTC can disallow rate increases to protect consumers; absence of objection within seven days permits implementation.

Fees and Charges

  • Filing fee: PHP 300.00
  • Annual registration fee: PHP 6,000 for first five services, PHP 1,000 for each additional.
  • Surcharge for late renewal: 50% if within six months post-expiry, otherwise 100%.

Sanctions and Enforcement

  • Violation of the circular's provisions may lead to revocation or cancellation of VAS registration.
  • Violations are subject to legal action.

Final and Miscellaneous Provisions

  • Existing inconsistent rules are repealed or amended accordingly.
  • The circular takes effect fifteen (15) days after publication in a newspaper of general circulation.
  • Copies are furnished to the UP Law Center for official record-keeping.

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