NTC Guidelines on VOIP as Value-Added Service

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.

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.

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.

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.

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.

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.

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.

Any conflicting rules, regulations, circulars, orders, or memoranda are amended or revoked to the extent of inconsistency.

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.