MEMORANDUM CIRCULAR NO. 08-09-95 SUBJECT: IMPLEMENTING RULES AND REGULATIOS FOR REPUBLIC ACT NO.

7925 RE: AN ACT TO PROMOTE AND GOVERN THE DEVELOPMENT OF PHILIPPINE TELECOMMUNICATIONS AND THE DELIVERY OF PUBLIC TELECOMMUNICATIONS SERVICES.

For the purpose of an effective and smooth implementation of RA 7925, the National Telecommunications Commission, an attached agency of the epartment of Transportation and Communications ! "TC# and the principal administrator of RA 7925 !$u%lic Telecommunications $olicy Act of &995#, here%y promulgates the hereunder 'mplementing Rules and Regulations( Nothing in this Circular, ho)ever, shall %e constructed as delimiting the po)er of "TC to monitor the implementation of this Act in accordance )ith its mandate to achieve its responsi%ility for the development and maintenance of a long term strategic national development plan for telecommunications( DEFINITION OF TERMS &( Access Charge * refers to a remuneration paid to a carrier %y the interconnecting carriers for accessing the facilities of such carrier )hich is needed %y the interconnecting carriers for the origination and+or termination of all types of traffic derived from the interconnection( Actual Cost Approach * refers to an approach in traffic settlement )here%y the cost is allocated using a methodology, )hich most appropriately reflects actual cost of the service( Cross -u%sidy Approach * refers to an approach )here%y a ./ operator is entitled to some su%sidy in the revenue settlement to earn a rate of return on its local e0change net)or1 investments that shall %e at parity )ith those earned %y other segments of the telecommunication industry( 'nterconnection Charge * refers to the sum of the access charge plus cross3 su%sidy( 4asic Telephone -ervice * refers to the local e0change telephone service for residence and %usiness esta%lishments( 6niversal Access * refers to the availa%ility of relia%le and afforda%le telecommunications service in %oth ur%an and rural of the country( .ocal /0change Area * refers to a defined geographic area authori7ed %y the National Telecommunications Commission to a local e0change operator(

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4ypass * refers to a situation )here an entity other than a local e0change service operator provides long distance service %y esta%lishing direct access to a person+entity, customer or end3user )ithin the authori7ed local e0change service area of a duly authori7ed local e0change operator( $-TN * refers to a pu%lic s)itched telephone net)or1( $ay Telephone -ervices !$T-# * sometimes referred to as a pu%lic calling station, refers to a facility )here the pu%lic may, %y payment of appropriate and duly approved fees, place as )ell as receive local or long distance telephone calls or other s)itched telephone messages( Certificate of $u%lic Convenience and Necessity !C$CN# * refers to a grant consistent )ith the telecommunications policies and o%:ectives to a ;ualified applicant, after due notice and hearing, of a final authority to o)n, operate and maintain a pu%lic telecommunications facility+service %y the National Telecommunications Commission( $rovisional Authority !$A# * refers to an authority, for a limited period, granted to a ;ualified applicant to operate and maintain a pu%lic telecommunications facility+ service %y the Commission, pending the grant of the C$CN( Commission * refers to the National Telecommunications Commission( Net)or1 * refers to a set of nodes and lin1s that provides connections %et)een t)o or more defined points to accommodate telecommunication %et)een them( /nhanced -ervice * refers to a service )hich adds a features or value not ordinarily provided %y a pu%lic telecommunications entity such as format, media, conversion, encryption, enhanced security features, computer processing, and the li1e< provided that in the provision of the enhanced service, no la), rule, regulation or international convention on telecommunications is circumvented or violated( =or1ing >ain .ines * refer to the su%scri%ed main telephone lines( $T/ * refers to pu%lic telecommunications entity as defined in RA 7925( $hilippine 4est $ractice * refers to the e0perience of t)o or three ./ service operators in the conte0t of the three3!,# $hilippine mar1ets )hich are mist economically efficient in a specific accounting category as determined %y the National Telecommunications Commission( The specific accounting category need not %e sourced from the same ./ service operator(

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LOCAL E!CHANGE "LE# SERVICES a( %( The ./ operator shall provide universal %asic telephone service capa%le of accessing local, national, international and other net)or1s )ithout iscrimination to all applicants for such service )ithin its defined authori7ed service area+s and )ithin the schedule duly approved %y the Commission(

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The ./ operator shall comply )ith the service performance and technical standards specified under >C &93&7399 and >C &93&5399 respectively and other standards hereafter prescri%ed %y the Commission( $u%lic telecommunications entities shall not %e allo)ed to e0pand or e0tend long distance service directly to a person+entity, customer or end3 user )ithin the authori7ed ./ service operator e0cept in the follo)ing cases? &( )hen the authori7ed ./ operator is una%le to provide service )ithin the follo)ing response time? T)o hundred forty !229# days on the first year if the effectivity of this Circular( -i0ty !59# days on the second year of the effectivity of this Circular Ten !&9# )or1ing days thereafter( and at standards prescri%ed %y the Commission provided that the %ypassing carrier has no unserved o%ligation in its assigned services areas( 2( )hen the authori7ed ./ operator is una%le to provide )ithin ninety !99# days from date of agreement at prescri%ed standards the re;uired interconnection arrangements( ,( )hen the authori7ed ./ operator is compensated in the amount agreed %y the parties( 'n case parties cannot reach an agreement, the matter can %e %rought to the Commission for final action pursuant to Rule 5&9( 'n cases )hen there are more than one !&# authori7ed ./ operators in one defined geographic area, the compensation shall %e divided in proportion to the num%er of )or1ing telephone lines of each of the authori7ed ./ operators( The determination of the num%er of )or1ing lines shall %e conducted ;uarterly(

'n any of the a%ove e0ceptions, the $T/ shall secure prior approval from the Commission through an administrative procedure to provide direct connection to the su%scri%ers+customer+end3users( e( A duly enfranchised entity may %e authori7ed %y the Commission, after due notice and hearing, to install, operate and maintain a local e0change net)or1 and provide local e0change service in the same local e0change area )here an e0isting authori7ed local e0change operator fail to satisfy the demand for local e0change service( The demand for local e0change service is considered satisfied )hen 99@ of all applications for local e0change service )ithin the last three !,# months are served )ithin ten !&9# )or1ing days from the date of application( The provision on %ypass shall only apply to pu%lic s)itched telephone services( Authori7ed ./ operators shall have the first options to provide pay telephone services in the defined geographic area covered %y its net)or1(

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"ther enfranchised telecommunications entities may %e authori7ed to provide pu%lic calling stations or pay telephone stations in a given local e0change service area served %y an authori7ed ./ service operator after due notice and hearing and upon determination of pu%lic need( Authori7ed ./ operators shall %e entitled to fair and e;uita%le revenue sharing arrangement pursuant to Rule 529( The ./ operator shall use any cost3effective technology in fulfilling its responsi%ility of providing universal %asic telephone service, The ./ operator shall endeavor to use state of the art technology(

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INTERE!CHANGE CARRIER "I!C# AND INTERNATIONAL CARRIER "IC# SERVICES INTERE!CHANGE CARRIER "I!C# SERVICES a( %( c( The 'ACs shall interconnect )ith other 'ACs and )ith local e0change carriers or other telecommunications entities on a non3discriminatory manner( The interconnection shall %e effected pursuant to Rule 5&9( The interconnect charges shall %e pursuant to Rule 529( The 'ACs shall comply )ith the services performance and technical standards specified under >C &93&7399 and >C&93&5399 respectively and other standards hereafter prescri%ed %y the Commission(

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INTERNATIONAL CARRIER "IC# SERVICES a( %( The relevant provisions of the 'mplementing Buidelines on /" &99 under NTC >C &&39939, series of &99, are here%y adopted( Failure on the part of the 'C or its affiliate company to install at least ,99,999 local e0change lines and additional ,99 local e0change lines per one international s)itched termination in e0cess of &,999 international s)itch terminations and provide local e0change service )ithin three !,# years from date of authority to provide local e0change service shall %e cause for the cancellation of the authority to install, operate and maintain facilities and offer and offer international carrier services in accordance )ith due process(

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MOBILE RADUI SERVICES "MRS# CELLULAR MOBILE TELEPHONE SYSTEM a( %( The Rules and Regulations on Cellular >o%ile Telephone -ystem !C>T-# "perations under NTC >C 293&2392 are here%y adopted( The implementation of the roll3out plans for local e0change service for all authori7ed nation)ide and regional C>T- operators shall %e reduced from five !5# to three !,# years(

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An authori7ed regional or nation)ide C>T- operator shall %e considered to have complied )ith Rule ,&9 !%# if the conditions specified in Article '' -ection 5 of the 'mplementing Buidelines on /" &99 under NTC >C &&3 9939, series of &99, are met( An authori7ed C>T- operator shall comply )ith Article '' -ections 7 and 8 of NTC >C &&39939, series of &99,( -u%scri%ers to the C>T- shall not %e considered as ./ su%scri%ers( Failure on the part of the C>T- operator to install 299,999 local e0change lines and provide local e0change service )ithin three !,# years from date of authority to provide local e0change service shall %e a cause for the cancellation of the authority to install, operate and maintain cellular mo%ile telephone system and offer C>T- service in accordance )ith due process(

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PUBLIC REPEATER NET%OR& "PRN# SERVICES a( %( c( The Rules and Regulations on $u%lic Repeater Net)or1 -ervices under NTC >C &93&8399 series of &999 are here%y adopted( The service rates for pu%lic repeater net)or1 services shall %e deregulated immediately( At least thirty !,9# days %efore any change, increase or decrease, in service rates, after the deregulation, are implemented, authori7ed $RN service providers shall pu%lish in a ne)spaper of general circulation the changes in the service rates and inform all affected su%scri%ers of said change( Authori7ed $RN service providers shall inform the Commission in )riting of any increase or decrease in service rates at least seven !7# days prior to the implementation of said changes in the service rates(

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RADIO PAGING AND VALUR ADDED SERVICES RADIO PAGING SERVICE "RPS# a( %( -u%:ect to availa%ility of radio fre;uencies and prior to actual operation, a duly enfranchised radio paging entity shall register )ith the Commission and apply for the appropriate radio fre;uencies to %e used in its operation( The application for registration shall include documents sho)ing, among others, system configuration, mode of operation, radio fre;uencies re;uired for efficient operation, method of charging rates, etc( The application shall %e acted upon %y the Commission )ithin si0ty !59# days from date of application( All radio paging service providers shall comply )ith the relevant service performance and technical standards prescri%ed %y the Commission( /ffective immediately, all radio paging service providers )ith assigned radio fre;uencies shall %e allo)ed to compete freely in their rates )ithout prior approval from the Commission(

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At least fifteen !&5# days prior to the implementation of any change, increase or decrease, in service rates, the radio paging service providers shall pu%lish in a ne)spaper of general circulation such change in the service rates and shall inform all affected su%scri%ers( All radio paging service providers shall inform the Commission in )riting of any change in their services rates at least seven !7# days %efore said changes are implemented( -u%:ect to the availa%ility of radio fre;uencies, a duly enfranchised radio paging entity may %e allocated and assigned radio fre;uencies re;uired for the efficient conduct of their operations upon application and clearance from interference to other authori7ed e0isting net)or1s( Authori7ed radio paging services providers )ho intend to e0pand their facilities and+or offer other radio paging services including international radio paging service shall su%mit to the Commission at least thirty !,9# days prior to the commencement of the planned e0pansion in facilities and+or services the follo)ing documents, among others, areas to %e covered %y the proposed e0pansion, pro:ected investments and list of capital e;uipment re;uired( Approval %y the Commission shall not %e re;uired(

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VALUE ADDED SERVICES "VAS# a( %( A non3$T/ CA- provider shall not %e re;uired to secure a franchise from Congress( A non3$T/ CA- provider can utili7e its o)n e;uipment capa%le only of routing, storing and for)arding messages in )hatever format for the purpose of providing enhanced or augmented telecommunications services( 't shall not put up its o)n net)or1( 't shall use the transmission net)or1, toll or local distri%ution, of the authori7ed $T/s( The provision of CA- shall not in any )ay affect the cross su%sidy to the local e0change net)or1 %y the international and national toll services and C>T- service( /ntities intending to provide value added services only shall su%mit to the Commission application for registration for approval( The application form shall include documents sho)ing, among other, system configuration, mode of operation, method of charging rates, lease agreement )ith the $T/, etc( The application for registration shall %e acted upon %y the Commission through an administrative process )ithin thirty !,9# days from date of application( $T/s intending to provide value added services are re;uired to secure prior approval %y the Commission through an administrative process( CA- providers shall comply strictly )ith the service performance and other standards prescri%ed %y the Commission(

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INTERCONNNECTION AND ACCESS CHARGES

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INTERCONNECTION a( %( The Rules and Regulations on 'nterconnection under NTC >C 9939739, series of &99, are here%y adopted e0cept -ection 22(5( =hen one party to an interconnection agreement re;uires additional interconnecting trun1s and the other party cannot provide, the former shall either advance the payment or furnish the e;uipment, accessories and materials necessary su%:ect to repayment in )hatever manner agreea%le to the parties( To the ma0imum practical e0tent, the Commission encourages the use of co3location of and shared facilities %et)een carriers )hen such configurations shall %est serve pu%lic interest( The parties to an interconnection agreement shall route the calls to the nearest point of interconnection( 'n case the shortest route is congested, the call may %e routed to other points of interconnection su%:ect to net)or1 configuration, The rate shall %e %ased on the lo)est cost(

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ACCESS CHARGES GENERAL a( %( 6ntil the local e0change service is priced reflecting actual costs, the local e0change service shall %e cross3su%sidi7ed %y other telecommunications service( The allocation of the local e0change carrier costs to all interconnect services including those offered %y the same company operating the ./ service shall %e charged against the international and domestic toll and C>T- interconnect services( The su%sidy needed %y the ./ service operator to earn a rate of return at parity )ith the other segments of telecommunications industry shall %e charged against the international and domestic toll and C>Tinterconnect services( The Cost >anual shall follo) the accounting structure %ased on the applica%le provisions of 6- Federal Communications Commission !FCC# $art ,5 as modified to conform )ith the provisions of this Circular( $rovision for dou%tful accounts !as used in general accounting# shall not %e included in the costs( "nly ta0es actually incurred shall %e included in the costs( The access charge shall %e negotiated %y the interconnecting parties( 'n the event the parties cannot arrive at an agreement, either or %oth parties can %ring the matter %efore the Commission for final action pursuant to NTC >C 9939739,( 'nterconnecting parties shall strictly adhere to the herein prescri%ed guidelines(

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The cost manual shall %e su%mitted to the Commission not later than ,&st of Duly of each year for approval( 'n approving the cost manual, the Commission shall consider efficiency and the E$hilippine 4est $racticeF( The interconnection %et)een C>T- and local e0change net)or1 for purposes of calculating the access charge shall %e considered domestic toll interconnect( Reappraisal of plant and facilities in service shall %e duly approved %y the Commission after due notice and hearing( Actual costs and all accounting charges for provisioning of services and interconnection shall %e non3discriminatory, transparent, de3averaged %y time of day and un%undled, and su%:ect to revie) %y the Commission( 'nterconnection charges shall %e composed of the access charge and the su%sidy( For the purpose of calculating the su%sidy, the local e0change net)or1s shall %e classified into three !,#, to )it? >etro >anila, Gighly 6r%ani7ed Cities as defined %y la) and others( 'nterconnection charges shall accrue only on completed calls(

COST SEPARATION o( A ./ service provider operating other telecommunications services shall separate the cost at discrete and recogni7a%le point!s# of demarcation for each of the services it offers to determine the cost of the local e0change service( irect assignment of costs to each service category )hen possi%le )ill %e made( Actual costs %asis of separation )hich gives consideration to relative usage+circuit occupancy of services for traffic related costs should %e used( Cost of customer %illing of toll services shall %e allocated fully to the local e0change service( Cost of mar1eting and advertising shall not %e allocated to the local e0change service(

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ALLOCATION OF COST t( The local e0change service costs shall %e shared %y the interconnect services as follo)s? The cost allocated+charged to the local e0change service shall %e e;uivalent to the local e0change service gross revenue plus the revenues derived from the interconnection services other than international and domestic toll and C>T-( The cost allocated+charged to the interconnection services other than domestic and international toll and C>T- shall %e %ased on the actual cost of interconnection( The cost allocated+charged to the international and domestic toll and C>T- interconnect service shall %e

divided into t)o components, to )it? access charge and su%sidy( The access charge shall %e %ased on the actual cost of interconnection )hile the su%sidy shall %e e;ual to the revenue re;uired %y the ./ operator to earn rate of return at parity )ith those earned %y other segments of the telecommunications industry( 'nterconnection service shall also include all telecommunications services offered %y the $T/ interconnected to the local e0change net)or1 operated %y the same $T/(

INTERCONNECTION OF LOCAL E!CHANGE NET%OR&S u( There shall %e no access charges to %e paid %y either party in the interconnection of local e0change net)or1s operating in a given local e0change service area of the monthly local e0change service rate is fi0ed and that the local e0change service operators do not discriminate applicants for local e0change service( 'n the event that in any given local e0change service area there are a mi0ture of fi0ed and measured rates, the local e0change service operators thereat shall negotiate for the access charge( 'n the event that the parties cannot agree, the matter may %e %rought to the Commission for final action pursuant to >C 9939739,( 'n the negotiation %et)een the ./ service operators, the cost of investments shall %e considered(

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RA '" -$/CTR6> a( The radio spectrum allocation and assignment shall %e su%:ect to revie) in the interest of pu%lic service and in order to 1eep pace )ith the development in the )ireless technology )ith the end in vie) of insuring )ider access to the limited radio spectrum and the use of cost effective technology( The Commission shall create a Radio Fre;uency Consultative Committee !RFCC# composed of one !&# representative each from $A$T/.C", $/T/F, H4$, 'C, C>T- "perator, T/./4A$, $u%lic Repeater Net)or1 -ervice "perator, Radio $aging -ervice "perators, Radio ealers Broup, T6B $hil( T)o !2# from "TC and four !2# from the Commission one each from RR. , CCA , 4- and F> to %e chaired %y the Chief, F> ( The RFCC shall recommend to the Commission guidelines that )ill cover the follo)ing concerns )ithin thirty !,9# days from the effectivity of this Circular? the procedure on ho) to underta1e the revie) and allocation of the radio spectrum ta1ing into consideration

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the need to provide universal access to %asic telephone service( the transfer of all authori7ed and e0isting users in the %and allocated pursuant to Rule 599 !a# to other %ands of radio fre;uencies( ho) the cost of the transfer of the authori7ed and e0isting users to other fre;uency %ands shall %e shared %y the ne) assignees( the manner of calculating the cost of the transfer( the procedure on ho) to calculate the reasona%le spectrum users fees and the amount to %e paid for the use of the spectrum( The determination of situations )here the demand for a particular radio fre;uency %and e0ceeds availa%ility and the manner %y )hich spectrum shall %e %idded out in case the demand for a specific %and of radio fre;uencies e0ceeds availa%ility(

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RATES AND TARIFF a( The Commission shall reesta%lish rates and tariff setting procedures in order to arrive at rates and tariffs )hich are fair and reasona%le and )hich provide for the economic via%ility of telecommunications entities and a fair return on investments considering the prevailing cost of capital in the domestic and international mar1ets( The Commission may after consultation )ith the industry and the users deregulate the rates for specific telecommunications services if there is sufficient competition to ensure fair and reasona%le rates and tariff( Go)ever, in determining )hether or not service rates for a specific telecommunications service is to %e deregulated, the Commission shall ta1e into consideration the need to cross3su%sidi7e the local e0change service until such time that the local e0change service is priced to reflect actual cost( $romotional or special rates lo)er than the duly approved rates for a period not e0ceeding fifteen !&5# days shall not re;uire approval %y the Commission( The $T/ offering the promotional or special rates shall inform the Commission in )riting at least t)o !2# days prior to the implementation of said promotion( The total period for promotional or special rates for one calendar year shall not e0ceed ,9 days( $romotional or special rates lo)er than the duly approved rates for a period e0ceeding fifteen !&5# days shall %e considered reduction in rates( After the period of promotional or special rates, the $T/ shall charge the duly approved rates( Reduction in rates shall %e acted upon %y the Commission through an administrative process involving the mere su%mission of documentation in

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support thereof( The Commission shall act on all applications for rates reduction )ithin seven !7# )or1ing days from date of application( Any increase in service rates shall %e filed in a separate application and shall undergo ;uasi3:udicial proceedings( The Commission may grant provisional authority !$A# to charge increase in service rates immediately upon filing and compliance )ith :urisdictional re;uirements of pu%lication and notice to affected parties provided that all documents re;uired to :ustify the increase is su%mitted and that a formal hearing must %e held )ithin thirty !,9# days from the grant of the $A( Rates for the rental or lease of terminal e;uipment interconnected to the pu%lic telecommunications net)or1s shall not re;uire the approval of the Commission( All entities operating telecommunications services )ith deregulated rates shall su%mit to the Commission monthly list of their service rates sho)ing increases or decreases( 'n approving rates, the Commission shall consider the su%sidy paid to the ./ service operators %y the operators of C>T-, national and international toll services( AND)OR

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CONSUMERS AND END USERS( AND E!PANSION MODERNI*ATION OF E!ISTING FACILITIES CONSUMER AND END-USERS RIGHTS AND RESPONSIBILITIES a( %( c(

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Customer or end3users shall %e provided )ith telecommunications services strictly )ithin prescri%ed service performance standards( Applicants for %asic telephone service shall %e served on first come first served %asis( $rovided, that an applicant )ithout any telephone service as yet, shall have the priority over applicants )ith e0isting telephone service( Applications for residential or %usiness telephone service shall %e treated e;ually( $riority shall %e given to the provision of %asic telephone service to those performing security, safety, and emergency functions, e(g( hospitals, military, police and fire departments( Customer or end3user shall %e responsi%le for all calls originating and terminating in his o)n terminal e;uipment( All calls originating and terminating in his o)n terminal e;uipment shall %e %illed against said terminal e;uipment( 'f the customer or end3user contests the %ill, the demanding carrier shall provide all information necessary to esta%lish )hen, )here and to )hom the calls )ere made( >onthly %illings shall %e received %y the customer or end3user )ithin fifteen !&5# days after the %illing cycle( 4illings for services rendered other than the local telephone service shall %e served to the customer or end3user )ithin one hundred eighty !&89#

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days from the date the alleged services )ere delivered( Failure on the part of the $T/ to serve the %ill )ithin the specified period, said $T/ shall %e su%:ect to sanctions pursuant to la), rules and regulations( The customer or end3user may participate in the monitoring of the compliance %y the $T/s of the prescri%ed standards and of the approved roll3out plans( The customers or end3users cannot interfere )ith the ar%itration or litigation of complaints filed %efore the Commission if not directly involved( 'f a su%scri%er for telephone service re;uires ten !&9# or more lines he+she is encouraged to use private %ranch e0changes !$4A# or 1ey telephone system(

COMPLAINTS a( The $T/s shall inform all its su%scri%ers of the person or office and the telephone num%ers )ithin its organi7ation )here its su%scri%ers can file or phone in their complaints and act on all complaints received in )hatever form and manner from its su%scri%ers )ithin thirty !,9# days from receipt of the complaint( The office and the telephone num%ers )here the customers or end3users can file or phone in their complaints must %e printed in the monthly %ill sent to the customers or end3users( Complainants )ho are not satisfied )ith the action of the $T/ may %ring the matter to the Commission( Complaints received %y the Commission shall %e acted upon )ithin thirty !,9# days from receipt( =ithin fifteen !&5# days from receipt of the complaint, the Commission shall call the parties for a conference( 'f )ithin thirty !,9# days the matter cannot %e settled amica%ly, the complaint shall %e for)arded to the .egal epartment for appropriate legal action( For %illing complaints filed )ith the Commission, the customer or end3 user shall not %e re;uired to deposit the amount contested( The $T/ may temporarily suspend the service !s# to the customer or end3user, su%:ect to revie) %y the Commission( 'f the Commission finds the suspension of service to %e un)arranted, the service shall %e restored immediately )ithout any charges and the Commission may impose sanctions against the $T/ pursuant to la), rules and regulations( The $T/s shall su%mit a monthly report on all complaints )ithin fifteen !&5# days after the end of each month detailing the nature of complaints, the action ta1en thereon including the reasons for the action and the response time(

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CUSTOMER PREMISES E+UIPMENT a( The Rules and Regulations on the deregulation of Customer $remises /;uipment under NTC >C 9&392388 series of &988 are here%y adopted(

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E!PANSION AND)OR MODERNI*ATION a( /0pansion and upgrading of e0isting and previously approved plant and facilities for purposes specified in RA 7925 )ithin the same areas covered %y the e0isting plant and facilities previously approved shall not re;uire approval %y the Commission( Any financing arrangement for the purpose specified in Rule 8,9 !a# including increase of capital shall not re;uire approval %y the Commission( The $T/ )ho )ishes to e0pand and+or upgrade its e0isting or previously approved plant and facilities )ithin the same approved area shall su%mit to the Commission its planned e0pansion and+or upgrading, the timeta%le of implementation and the amount needed to carry out such e0pansion and+or upgrading thirty !,9# days prior to the commencement of the pro:ects( $T/s underta1ing e0pansion and upgrading of facilities shall su%mit a ;uarterly report on the status of the pro:ect implementation incorporating there)ith the list of e;uipment, materials and accessories and the amount actually invested(

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OTHER REGULATIONS STANDARDS a( %( 'n prescri%ing standards, the Commission shall consider internationally recommend standards( -tandards set %y international organi7ations through a convention or treaty to )hich the $hilippines is a party shall form part of the national standards(

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CABLE TELEVISION "CATV# a( Ca%le TC operations shall %e governed %y /" 295 series of &987( 'f CATC operators offer pu%lic telecommunications services they %e treated :ust li1e a pu%lic telecommunications entity(

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IN CASE OF MERGERS)AC+UISITIONS OF CMTS)IC a( The surviving entity in case of mergers or the entity that ac;uires a C>Tor 'C shall assume all local service o%ligations of the C>T-+'C merged or ac;uired(

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OTHERS a( Call %ac1, dial %ac1 and other similar scheme, )hich results in the same prohi%ited operation, is not and )ill not %e authori7ed(

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Resale of private leased lines is prohi%ited and )ill not %e authori7ed(

TRANSITORY PROVISIONS a( $T/s )ith franchise granted %y local government units )hich have %een duly authori7ed %y the Commission on or %efore 22 >arch &995 )ith either a C$CN or a $A shall continue to provide services until the e0piration of their respective franchises or until their respective C$CNs or $as are sooner revo1ed or cancelled( Calid and e0isting franchises )hich are not operating or )ithout pending applications for certificates of pu%lic convenience and necessity at the time of the effectivity of RA 7925 !effectivity date is 2, >arch &995# are deemed revo1ed(

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IN CASE OF NULLITY IN ANY OF THE PROVISIONS a( 'f, for any reason, any provision, section, su%section, sentence, clause or term of this Circular is held to %e unconstitutional or declared void %y a competent court, such decision shall not affect the validity of the other provisions of this Circular(

EFFECTIVITY a( This Circular may %e revised, amended or repealed as the Commission deems fit in accordance )ith la) and shall ta1e effect )ithin fifteen !&5# days after pu%lication in the "fficial Ba7ette or in a ne)spaper of general pu%lication and the filling )ith the 6niversity of the $hilippines .a) Center three !,# certified copies of every rule adopted %y it(

Iue7on City, $hilippines -eptem%er 25, &995( !-igned# SIMEON L. &INTANAR Commissioner

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