Diary of a Techie

As a followup to Mike Abundo’s post that the NTC is requiring websites to be registered, I had my staff call up the NTC for the draft/ruling. Here is what she got for me:

MEMORANDUM CIRCULAR
No. __________________
SUBJECT: VALUE ADDED SERVICES
WHEREAS, the 1987 Constitution fully recognizes the vital role of communications in nation building and provides for the emergence of communications structures suitable to the needs and aspirations of the nation;

WHEREAS, the promotion of competition in the telecommunications market is a key objective of Republic Act No. 7925 (RA7925, for brevity), otherwise known as The Public Telecommunications Policy Act of the Philippines, which mandates that “a healthy competitive environment shall be fostered, one in which telecommunications carriers are free to make business decisions and interact with one another in providing telecommunications services, with the end in view of encouraging their financial
viability while maintaining affordable rates.”

WHEREAS, RA7925 further defines the role of the government to “promote a fair, efficient and responsive market to stimulate growth and development of the telecommunications facilities and services”;

WHEREAS, the National Telecommunications Commission (Commission) defined “Value Added Services” in MC No. 05-08-2005 as enhanced services beyond those ordinarily provided for by local exchange and inter-exchange operators, and overseas carriers through circuit switched networks.

WHEREAS, the Commission in the same MC also defined “Enhanced Services” as services that improve upon the quality and/or functionality of services ordinarily offered by local exchange and inter-exchange operators and overseas carriers and “Services Ordinarily Provided for by Local Exchange and Inter-Exchange Operators and Overseas Carriers” refer to voice services offered through circuit switched networks.

NOW, THEREFORE, pursuant to RA7925, Executive Order (EO) No. 546 series of 1979, and in order to maintain and foster fair competition in the telecommunications industry, and to bring the benefits of enhanced services to the general public, the National Telecommunications Commission (the Commission/NTC, for brevity) hereby promulgates the following guidelines:

A. Scope
1. These guidelines shall apply to the following value added services:
a. Messaging services – includes all types of messaging services such as short messaging
service (not more than 160 characters), messaging service (more than 160 characters),
Multimedia messaging service, unified messaging service, etc.

b. Audio Conferencing
c. Audio and video conferencing
d. Voice mail service
e. Electronic mail service
f. Information service – includes all types of information delivered to/accessed by the users/subscribers, e.g. road traffic information, financial information, visa application information, etc.
g. Gaming services except gambling
h. Applications service – includes all types of applications delivered to/ accessed by the users/subscribers, e.g. mobile banking, electronic payments, point of sale service, etc.
i. Content and Program service – includes all types of contents delivered to/ accessed by the users/subscribers such as music, ring tones, logos, video clips, etc.
j. Audiotext service
k. Domain name Hosting service
l. Facsimile service
m. IP multicasting service
n. Virtual Private Network service
o. PBX hosting service

2. The foregoing list of value added services may be revised, modified, expanded or shortened by the Commission after due public consultation.
3. These rules shall not apply to voice over IP (VoIP) service. VoIP service is covered by MC05-08-2005.
4. Leased line service shall be classified as value added service. Public telecommunications entities offering leased line service shall not discriminate against value added service providers. Value added service providers shall be provided with the same quality of service provided to other subscribers/users and at prices not higher than the prices offered to other subscribers/users.

B. Registration
5. No entity shall provide value added service without valid certificate of registration from the Commission. The application for registration shall be filed and acted upon by the Commission not later than seven (7) working days from date of application.
6. The application shall include the following documents:
a. Valid registration from the Securities and Exchange Commission or from the Department of Trade and Industry and Articles of Incorporation;
b. System configuration and mode of operation;
c. List of services to be offered;
d. Facilities lease agreement with duly enfranchised and certificated public telecommunications entity; and
e. Written undertaking that the applicant will not discriminate other VAS providers in terms of rates and service quality for similar facilities leased to them (for duly enfranchised and certificated public telecommunications entity).
7. The Certificate of Registration shall be valid for a maximum period of five (5) years. Applicants for registration may opt to apply for shorter period not shorter than one (1) year. Certificates of Registration shall be renewable.
C. General Provisions
8. A duly registered VAS Provider
a. May utilize its own equipment capable only for processing, routing and storing messages in whatever format;
b. Shall strictly comply with the service performance standards and other applicable standards prescribed by the Commission;
9. The rates for value added services shall be deregulated. The VAS provider shall inform the Commission of the rates for each of the value added services offered at least three (3) days prior to the offering of such value added service. VAS providers seeking increases in rates for existing VAS shall inform the Commission of the details of such increases at least five (5) days prior to
the implementation of the increase. The Commission in the exercise of its mandate to protect consumers may not allow the increase. If the Commission does not act on the information within five (5) days from receipt of the same, the VAS provider can impose the new rates.
D. Fees and Charges
10. The following fees and charges shall be imposed:
a. Filing Fee : Php 300.00
b. Annual Registration Fee: 6,000.00 for the first 5 services registered 1,000.00 for each additional service registered
c. Surcharge for late : 50% of the annual registration fee if application filing of application is filed within six (6) months from date of expiry for renewal 100% if filed after six (6) months from date of expiry
E. Sanctions
11. Any violation of this circular shall be dealt with in accordance with law.
F. Final Provision
12. Any circular, order, memoranda or parts thereof inconsistent herewith are deemed repealed or amended accordingly.
13. This Circular shall take effect fifteen (15) days after publication in a newspaper of general circulation and three (3) certified true copies are furnished the UP Law Center.

Quezon City, Philippines ____________________________.
ABRAHAM R. ABESAMIS
Commissioner

JORGE V. SARMIENTO JAIME M. FORTES, JR.
Deputy Commissioner Deputy Commissioner

I have asked my staff to double check on this. The regulation covers ISPs, but not website owners as far as i can tell.

Filed under: Computing