Republic of the Philippines

Country Report
AsiaAsia-Pacific Regional Workshop on Equal Access of Women in ICT
2222-26 October 2001, Seoul, R.O.Korea

Name of Country

Republic of the Philippines

Location & a Brief History

The archipelago, named Felipinas for Spain's Philip II,

was composed of 7,107 islands and islets spanning 1854
kilometers from north to south. The Philippines, also is a
window to the New World, stretched from China to the
North and the Indonesian archipelago to the south. The
northern most tip of the country, Y'ami of the Batanes
Island group, is 241 kilometers south of Taiwan while the
southernmost tip, Sibutu of the Tawi-Tawi group of
islands, is just 14.4 kilometers north of Borneo.

Capital

Manila. Metropolitan Manila is where the country's most

prestigious business addresses and the trendiest leisure
establishments are found.

Area

300,000 sq. kilometers

land - 298,170 sq. kilometers
water - 1,830 sq. Kilometer

Coastline

36,289 kilometers

Climate

Tropical Marine, Northeast monsoon (November to

April); Southwest monsoon (May to October)

Terrain

Mostly mountains with narrow to extensive coastal

lowlands

Language

Pilipino (official language : English)

Religion

80% Catholic, 15% Moslems & 5% Christian & Buddhist

Population

76.5 Million (as of May 2000)

GDP (2nd quarter 2001)

3.3 %

Currency

Peso (PhP)

STRUCTURE OF THE PHILIPPINE TELECOMMUNICATIONS SECTOR

D O T C

OTHER
GOVERNM ENT
A G E N C IE S

CO N G RESS

T E L O F

R A D IO & T V
BROA DCAST
NETW ORK

P R IV A T E
NETW ORKS

P U B L IC
NETW ORKS

N T C

IN D U S T R Y
A S S O C IA T IO N S

E Q U IP M E N T
M ANUFACTURERS
& S U P P L IE R S

C A R R IE R S
C A R R IE R
V O IC E
C A R R IE R S
RECORD
C A R R IE R S
OTHER
S E R V IC E
C A R R IE R S

DOTC

Department of Transportation and Communications.

It is the policy-making body for telecommunications
Head : Secretary Pantaleon Alvarez

NTC

National Telecommunications Commission

It is the regulatory arm with quasi-judicial powers.
Head : Commissioner Eliseo M. Rio, Jr.

TELOF

Telecommunications Office
It is the operating arm of the government, providing telecommunications
facilities in areas where no such services are available. It also maintains
the telecommunications network backbone.
Head : Assistant Secretary Delia R. Hoy-Ganaden

CONGRESS is empowered to enfranchise private telecommunications carriers while the NTC

grants specific authorities called as Certificate of Public Convenience and Necessity (CPCN).

I.

PHILIPPINE TELECOMMUNICATION HISTORY

A.

Telecommunications Policy Issuances

1.

Department Circular No. 87-188 (March 22, 1987)

A landmark document which contained policy statements intended to rationalize
and guide the orderly and competitive development of Philippine
telecommunications.

2.

Department Circular No. 92-269 "Cellular Mobile Telephone System Policy"

(November 11, 1992)
This Circular allows open entry to the CMTS market, subject to availability of
frequency spectrum.

3.

E. O. 59 and its Implementing Guidelines "Interconnection Policy"

(February 24, 1993)
This mandates compulsory interconnection of authorized public
telecommunications carriers in order to create a universally accessible and fully
integrated nationwide telecommunications network and thereby encourage
greater private sector investment in telecommunications.

4.

Department Circular No. 93-273 "Domestic Satellite Policy" (June 14, 1993)
This Circular opened the domestic satellite communications service market to
competition.

5.

E. O. 109 and its Implementing Guidelines (July 12, 1993)

Policy to Improve the Provision of Local Exchange Carrier Service
This mandate authorized international gateway operators and CMTS operators
to provide 300,000 and 400,000 local exchange lines respectively in unserved
and underserved areas, including Metro Manila with an obligation of 10:1
urban:rural ratio.

6.

Republic Act No. 7925 and its Implementing Guidelines (March 1, 1995)
An Act to Promote and Govern the Development of Philippine
Telecommunications and the Delivery of Public Telecommunications Services.
This act is also known as the "Public Telecommunications Policy Act of the
Philippines."
The objective of the government is to develop and maintain a viable, efficient,
reliable and affordable technologies, as a vital tool to nation building and
development. This act encourages network operators, among others to extend
basic services to areas not yet served.

7.

E. O. 436 (September 9, 1997)

3

"Prescribing Policy Guidelines to Govern the Operations of Cable Television in

the Philippines"
This executive order specifies the rules and regulations on who, how and where
to operate cable television system. Also, it clearly states that cable television
services is separate and distinct from telecommunications or broadcast.
8.

Department Circular No. 97-01 "Guidelines on the Procurement of Orbital

Slots and Frequency Registration of Philippine Satellite(s) (October 17, 1997)
This Circular provides guidelines for the DOTC, the NTC, and prospective
satellite operators in the acquisition of orbital slot(s) and registration of
frequency assignments of Philippine satellite(s).

9.

Department Circular No. 98-01 " Global Mobile personal Communications by

Satellite (GMPCS) Policy (February 27, 1998)
This Circular allows authorized Public Telecommunications Entities to provide
GMPCS service in the country.

10.

E. O. 467 (March 17, 1998)

"Providing for a National Policy on the Operation and Use of International
Satellite Communications in the Country."
The executive order allows all international carriers and broadcasters access to
fixed and mobile international satellite.

11.

Republic Act No. 8792 - "Electronic Commerce Act" (June 14, 2000)
"An Act Providing for the Recognition and Use of Electronic Commercial and
Non-Commercial Transactions, Penalties for Unlawful Use thereof, and Other
Purposes." This Act is also known as the "Electronic Commerce Act."
The Act aims to facilitate domestic and international dealings, transactions,
arrangements, agreements, contracts and exchanges and storage of information
through the utilization of electronic, optical and similar medium, mode,
instrumentality and technology to recognize the authenticity and reliability of
electronic data messages or electronic documents related to such activities and
to promote the universal use of electronic transactions in the government and by
the general public.

B.

Service Providers
Below is a list of telecommunication services and corresponding number of
operators providing such services.

No. Of Operators per Telecom Service

As of December 2000
4

TELECOM SERVICE
Local Exchange Carrier Service
Cellular Mobile Telephone Service
Paging Service
Public Trunk Repeater Service
International Gateway Facility
Satellite Service
International Records Carrier
Domestic Record Carrier
Very Small Aperture Terminal
Public Coastal Station
Radiotelephone
Value-Added Service
C.

OPERATORS
77
5
15
10
11
3
5
6
5
12
5
156

Sector Statistics
The following are sector statistics showing growth rate for selected
telecommunications services.
1.

Fixed Lines

Teledensity (per
100 Persons)

TELEPHONE DENSITY INDEX

9.08 9.12 9.05

8.07

10
4.66
5

1.17

2.01

0
1992

1996

1998

2000

Year

No. of Subscribers

TELEPHONE DISTRIBUTION BY OPERATOR

1,800,000
1,200,000
600,000
0
1

9 10 11

Operators

Legend:
Operator No.
1
2

Operator
PLDT
DIGITEL
5

3
4
5
6
7
8
9
10
11
2.

BAYANTEL
ISLACOM
GLOBE TELECOM
SMART
PT&T
PILTEL
PHILCOM
ETPI
OTHER OPERATORS

Cellular Mobile Telephone Services

4,000,000
2,000,000

1,733,652

6,000,000

6,454,359

2,849,880

8,000,000
1,343,620

No. of Subscribers

GROWTH IN CELLULAR MOBILE TELEPHONE SERVICE

SUBSCRIPTION

1997

1998

1999

2000

Year

CMTS Subscriber Share Per Operator

PILTEL
10%

EXTELCOM
3%

ISLACOM
3%

SM ART
44%

GLOBE TELECOM
40%

3.

Other telecommunications statistics.

6

A.

Public Trunk Repeater Service

100,000
80,000
60,000
40,000
20,000
2000

1999

1998

1997

No. of Subscribers

STATUS OF PUBLIC TRUNK

REPEATER SERVICE SUBSCRIPTION

Year

b.

Trunk Radio Subscriber Share per Operator

TRUNK RADIO SUBSCRIBER SHARE PER

OPERATOR
BAYANTEL
TNRI
OMNINET

LBNI
8%

5%

UTS

CORONA 0%RA DI OM A RI NE

4%

3%

0%

NEXTEL
51%

5%

CONTEL
10%
WORLDWIDE
14%

c.

Growth of Broadcast Stations and CATV Networks

GROWTH OF BROADCAST STATIONS AND CATV

NETWORKS
1200
1000
800

1997

600

1998
1999

400

2000

200
0
AM

D.

FM

TV

CATV

DTU

Telecommunication Entities

"Article IV. Telecommunication Entities" of the Republic Act 7925, categorizes the
telecommunication entities as follows:
1.

Local Exchange Operator

It is an entity providing transmission and switching of telecommunications
services, primarily but not limited to voice-to-voice in a geographic area
anywhere in the Philippines.
The liberalization of the industry beginning in the mid-80s saw major changes in
the fixed (or wired) telecommunications sector. Liberalization resulted in
increased competition, introduction of new technologies, and direct investments.
In 1999, telecommunications firms attracted $769.5 M worth of investments
from fund companies. Most of the investments made in telecommunications
services were focused on switching technology, backbone/trunking, and
interconnection.

2.

Inter-Exchange Carrier
It is an entity, sometimes referred to as carrier's carrier or national backbone
network operator, authorized to install, own and operate facilities which connect
local exchanges within the Philippines and to engage in the business of interexchange national long distance services.

3.

International Carrier
It is an entity primarily engaged in the business of providing transmission and
switching of any telecommunications service between the Philippines and any
other point of the world to which it has an existing correspondent or prospective
interconnection agreements.

4.

Value-added Service Provider (VAS)

It is an entity which, relying on the transmission, switching and local
distribution facilities of the local exchange and inter-exchange operators, and
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overseas carriers, offers enhanced services beyond those ordinarily provided by

such carrier.
VAS providers who do not build their own networks are not regulated by NTC.
The only requirement is to register with the NTC and submit quarterly reports
on the operation. At present Internet Services fall within value-added services,
thus it is not regulated.
5.

Mobile Radio Services

Mobile radio telephone system is a wide area mobile radio telephone system
with its own switch, base stations and transmission facilities of providing high
capacity mobile telecommunications by utilizing radio frequencies.
The cellular mobile telephone service is growing at a rapid pace since the
deregulation of the sector in the early 90s. Wireless data has become a service
for mobile phone operators, particularly with new developments in technology
that allow users to download data from the internet through WAP (wireless
application protocol)-enabled phones.

6.

Radio Paging Services

Radio Paging Service was introduced in the country when Pocketbell
Philippines, Inc. was given authority to provide paging service in 1975. It started
offering tone only radio paging and later expanded to introducing voice paging.
After ten (10) years, the NTC authorized a second operator, EasyCall
Philippines, Inc. which offered alphanumeric and numeric radio paging service.
These two operators were authorized to provide the service nationwide. In 1989,
T.N. Romasanta (DigiPage) was authorized to provide numeric radio paging
service.
Between 1992 up to 1998, twelve more companies were authorized to provide
the service. The influx was mainly due to the partial deregulation of this
segment of the industry with the enactment of Republic Act 7925. The law
provides that possession of a valid franchise and availability of frequencies are
the only prerequisites to obtain authorization to render the service.
With the introduction of short messaging system (SMS) in cellular phones, this
service began to decline.

E.

Foreign Ownership Limitation

Section 11, Article XII of the 1987 Philippine Constitution limits 40% foreign
ownership and participation in telecommunication entities.

II.

INFORMATION AND COMMUNICATIONS TECHNOLOGY (ICT)

A.

The Information Technology and Electronic Commerce Council (ITECC)

ITECC was formed through the merging of the National Information Technology
Council (NITC) and the Electronic Commerce Promotion Council (ECPC). Executive
Order 18, dated May 25, 2001, signed by President Gloria Macapagal Arroyo
restructured ITECC with President Arroyo acting as its chair.
ITECC was established to function as the primary planning and policy body on
development, promotion and application of national ICT and e-commerce initiatives.
The Council is composed of ten (10) members from government and eight (8) members
from the private sector.
Below are the five Sub-committees of the ITECC with their corresponding lead
agencies. Each committee is co-chaired by a private sector representative.
1.

Information Infrastructure Committee - chaired

Transportation and Communication (DOTC)

by the Department of

Focus Areas:

2.

Identify priority hubs for Network development

Develop Project Study on bandwidth requirements plan
Develop incentive programs for private sector network capacity build-up in
non-commercially viable areas
Develop policy on interconnect charges
Review, update and revise frequency management policies and practices
Pursue and resolve interconnection issues

E-Government Committee - chaired by the Department of Science and

Technology
Focus Areas:
Commission study on developing an implementation plan for GISP
Review and consolidate all networking requirements of government
agencies
Study feasibility of a single government portal
Review all government ISPs to ensure alignment with GISP and maximize
synergy through use of common resources
Review mandate of NCC and align with ITECC directions
Monitor compliance of agencies to E-Commerce Act

3.

Legal and Regulatory Committee - chaired by the Department of Justice

Focus Areas:
Finalize draft bill for creation of DICT
10

4.

Monitor all IT related bills filed in both houses

Finalize IRR for E-Commerce Act
Develop programs for enforcement of IPR laws
Pursue legislation in Internet privacy and security
Develop guidelines on regulatory issues related to ICT
Develop guidelines on ownership and security of data in BOT/BOO IT
projects

Human Resource Development Committee - chaired by the Commission on

Higher Education
Focus Areas:
Develop policy and programs on E-learning
Develop guidelines on enhancement of Basic Education
Develop programs on government/private sector initiatives in increasing
supply of IT skills
Monitor implementation of HR Cluster recommendations

5.

E-Business Development Committee - chaired by the Department of Trade

and Industry
Focus Areas:
Enhance fiscal incentives for investors
Enhance financing schemes for SMEs
Plan and set policy for venture capital market
Promote Philippines as E-Services Hub
Develop an inventory of existing IT skill in the country

III.

IV.

PENDING BILLS/REGULATIONS
A.

Bills on Cable TV
The bill aims to bring the Philippine Cable Television Industry at par with its
global counterparts and encourages foreign participation in the local industry
through capital infusion and technology transfer.

B.

Bills on Interconnection
The bill aims to penalize officers and personnel of Public Telecommunications
Entities that Refuse or Fail to Interconnect their Facilities to those of other
Telecommunications Operators.

RECENT ITU ACTIVITIES

A.

Philippine Convergence Project

11

This project has been undertaken by the Department with funding assistance
from the ITU.
It has involved the preparation of three key deliverables namely:
1.
2.
3.
B.

Revised Draft Convergence Bill

National Convergence Policy Framework; and
Outline of a Convergence Master Plan

Telecommunication Policy and Regulatory Training Program for the

Philippines
The Philippines is one of the recipients of ITU Asia and Pacific Center of
Excellence one-country programme for training on policy and regulation with
the following objectives.
1.
2.
3.

To provide innovative training for high level personnel in the public and
private sectors in policy and regulation.
To make use of latest available technology and introduce knowledge
management into the training.
To provide an important component of capacity building for developing
countries in Asia and Pacific region.

The course will involve a combination of workshop sessions as well as case

studies, work-based assignments, interactive discussions, special lectures and
access to information arranged on-line.
The tentative date of implementation is on October 2001.

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