Emergence and Definition of Value-Added Services (VAS)
- New technologies like VOIP blur traditional lines between computers, telecommunications, and broadcasting.
- RA 7925 introduces "Value-Added Service (VAS) providers" as entities offering enhanced services beyond those provided by basic carriers.
- VAS providers do not need a franchise if they do not create their own network.
- VAS is supplementary, not a public service in the traditional voice-to-voice sense.
- Services ordinarily offered at the time of RA 7925 passage were limited to voice services via circuit switched networks.
Classification of VOIP as a Value-Added Service
- VOIP digitizes and transmits voice via the Internet Protocol, offering greater efficiencies and economic benefits.
- VOIP enhances traditional telephony by converging voice with other data applications.
- Promoting VOIP aligns with RA 7925 objectives like viable, efficient, universal telecommunications infrastructure and extending service coverage.
- Lack of clear regulatory guidelines hinders widespread VOIP deployment.
- Premature heavy regulation might stifle innovation and competition in ICT.
- Minimal regulation is encouraged to enhance Philippine competitiveness globally.
Registration and Operations Requirements for VOIP Providers
- Any entity providing VOIP services to the public for compensation must register with the National Telecommunications Commission (NTC) before operation.
- Local exchange and inter-exchange operators and overseas carriers can offer VOIP without further registration if they: a. Avoid cross-subsidizing from utility operations. b. Do not discriminate against other VOIP providers. c. Maintain separate accounting for VOIP.
Interconnection and Access Agreements
- VAS providers must secure agreements with network providers for fair and reasonable access and interconnection charges before offering VOIP.
- If parties refuse negotiation, NTC may intervene to mandate interconnection with just terms.
- Parties have 90 days to negotiate and finalize agreements after notice; until then, mandated interconnection remains effective.
Non-Discrimination and Equal Access Obligations
- Network providers must ensure equal access to VAS providers in terms of quantity, quality, and price.
- Discrimination among VAS providers is prohibited.
- Agreements between parties must be submitted to NTC within 30 days for monitoring.
Network Neutrality Provisions
- Entities providing Internet access must not impede or degrade subscriber or VAS provider access to Internet content unless it threatens network integrity.
- Network or Internet service providers cannot impose purchase or non-purchase of IP-enabled services as a condition for broadband access.
VOIP Equipment and Customer Premises Equipment (CPE)
- Sale, lease, import, distribution, or provision of VOIP equipment not directly connected to PTE networks (e.g., computer-connected VOIP devices) is permitted.
- CPE designed to facilitate VOIP usage is subject to existing regulations on customer premises equipment.
Repealing Clause
- Any conflicting rules, regulations, circulars, orders, or memoranda are amended or revoked to the extent of inconsistency.
Effectivity
- The memorandum circular takes effect 15 days after publication in a newspaper of general circulation.
- Certified copies are to be furnished to the University of the Philippines Law Center for official records.