Clarity, Transparency, Truthfulness, and Fairness:

Opportunities Towards the Improvement

of NTC MO 07-07-2011
(Minimum Speed of Broadband Communications)
Engr. Pierre Tito Galla, PECE
Democracy.Net.PH
September 16, 2014
Background: 2010 - 2011
Issue of slow internet connection first raised
publicly in December 2010
Public outrage because of announcement by NTC to adopt
policy of data caps, as supported by service providers*
Stakeholders (telcos, associations, consumers) submitted
position papers for and against the proposed measure
NTC committed to the public:
Public hearings on slow internet
Show results of telco audit
* http://www.gmanetwork.com/news/story/209385/scitech/ntc-s-proposed-data-caps-violate-
consumer-rights-lawyer-says
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Background: 2010 - 2011
As a result of public hearings, NTC released NTC
MO 07-07-2011*
Heavily criticized**
Ambiguity of service quality standards
Does not provide clear service quality monitoring processes
Does not provide clear dispute resolution mechanisms
Is especially unhelpful for prepaid subscribers
Is the current regulation governing internet connectivity
subscriber service quality
* http://propinoy.net/2011/07/29/ntc07072011msbc/
** http://propinoy.net/2011/07/29/ampaw-ntcmo07072011-pwe/
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Background: Present Day
Grace Mirandilla-Santos, independent ICT
researcher, participated in a study on internet
connectivity service quality* for LIRNE Asia.
Participants: select South Asian and Southeast Asian
cities , including Manila
Study findings first presented at PHOpenIX forum
of DOST-ASTI
* http://lirneasia.net/wp-content/uploads/2014/09/BBQoSE-Report_Final.pdf
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Excerpts from LIRNE Asia Study
Metrics and methodology
6 Parameters: Download, Upload, RTT, Jitter, Packet
Loss and Availability
Multiple days: during the week and on weekends
At six times: 0800, 1100, 1500, 1800, 2000, 2300 hrs (3
readings per slot)
Averages of multiple readings for each time slot, taken
from unannounced, unknown locations
Varying server locations: ISP domain; International
domain; National domain
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Actual vs. Advertised Speed
Download from an international server
0
10
20
30
40
50
60
70
80
90
100
110
120
0800 H 1100 H 1500 H 1800 H 2000 H 2300 H
SMART Bro Starter Plug-it (7.2 Mbps)-Manila,PH*
Globe Tattoo Prepaid Stick (3.6 Mbps)-Manila,PH*
SunBroadband Plan 799 (3.6Mbps)-Manila,PH
A
c
t
u
a
l

v
s

A
d
v
e
r
t
i
s
e
d

(
%
)
Advertised "Up to" Speed
Latency - International
503 ms
438 ms 437.6 ms
0
100
200
300
400
500
600
700
0800 H 1100 H 1500 H 1800 H 2000 H 2300 H
L
a
t
e
n
c
y

(
R
T
T
)
SMART Bro Starter Plug-it (7.2 Mbps)-Manila,PH*
Globe Tattoo Prepaid Stick (3.6 Mbps)-Manila,PH*
SunBroadband Plan 799 (3.6Mbps)-Manila,PH
Lower the better
300ms
Philippine ISPs Only
Value for Money (kbps per USD)
Philippine vs. select SA & SEA ISPs
0
50
100
150
200
250
300
0800 H 1100 H 1500 H 1800 H 2000 H 2300 H
Airtel 3G (4Mbps)-Bangalore,IN
Tata (3.1Mbps)-Chennai,LK
Airtel (4Mbps)-Delhi,IN
Airtel LTE (4Mbps)-Bangalore,IN
Ooredoo Data 99 (7Mbps)-Male,MV
Dhiraagu Data 200 (1Mbps)-Male,MV
Ncell (7.2Mbps)-Kathmandu,NP
PTCL Evo (9.3Mbps)-Karachi,PK
Etisalat (7.2Mbps)-Colombo,LK
Telkomsel Flash Ultima(3.6Mbps)-
Jakarta,ID
SMART Bro Starter Plug-it (7.2
Mbps)-Manila,PH*
Globe Tattoo 4G Flash(7.2 Mbps)-
Manila,PH*
SunBroadband Plan 799 (3.6Mbps)-
Manila,PH
k
b
p
s
p
e
r

U
S
D
Excerpts from LIRNE Asia Study
Key findings
21.7% was highest actual vs. advertised speed
achieved.
Best performing PH ISP tested offered >256 kbps
download speed only 67% of the time.
All three major ISPs did not meet acceptable levels for
critical QoSE parameters (i.e., actual vs advertised,
latency, jitter.)
PH ISPs has lowest value for money among all ISPs
tested (highest average: 22 Kbps per USD)
9
Background: Present Day
At the invitation of the Senate, Democracy.Net.PH
submitted proposed improvements to NTC MO 07-
07-2011
Submitted proposal is improved version of MO proposal
submitted to the NTC in 2011 by various public
stakeholders
Improved MO taken up for consideration by TWG of
Committee on Trade and Industry, for submission for NTCs
consideration as part of Senates power of oversight
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Rationale of MO Proposal
Proposed Memorandum Order
Anchored on clarity, transparency, truthfulness, and
fairness
Proposed order consists of:
Thirteen (13) parts
Thirty-eight (38) rules
Thirty-two (32) subordinate rules
Service quality metrics and measurement methodologies
Service quality standards
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Proposal Principle:
Clarity
The proposed MO emphasizes clarity of rules,
standards, and processes
Definitions of terms, alignment with ITU definitions
Service quality standards are metricized and
methodologies to calculate quality metrics are provided
explicitly
Processes for standards implementation, consumer
complaints handling and dispute resolution, service
provider compliance, and NTC enforcement are set out
in detail
12
Proposal Principle:
Transparency
The proposed MO promotes transparency in the
enforcement of standards and processes
Service information is to be made clear on offers to the
public and on contracts/ service level agreements
Common reference/ source of evidence for actual
service quality is established between NTC, consumer,
and the service provider
Periodic service quality reports mechanisms, and on-
demand service quality reports mechanisms, are also
created for common benefit and reference
13
Proposal Principle:
Truthfulness
The proposed MO requires truthfulness from all
stakeholders NTC, consumers, and service
providers alike
Truth in advertising is promoted by the proposed MO
Truthfulness of complaints is also promoted by the
proposed MO
Processes ensure that objective, measurable facts will
be the basis for decisions regarding dispute resolution,
service standards adjustments, and compliance
measurement
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Proposal Principle:
Fairness
The proposed MO mandates fairness between
consumers and service providers, to be fairly
enforced by the NTC
Service providers are ordered to give subscribers their
rightful due, especially on complaints and required
rebates, whether prepaid or postpaid subscribers
Consumers have the responsibility to act fairly towards
service providers, especially on complaints and issues
NTC is mandated to provided fair treatment for both
and between consumers and service providers
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Salient Points:
Quality of Service and Offers
In offers to the public, specify minimums, allow
the specification of maximums (up to) of:
broadband/ internet connection data rates
data rate reliability
service reliability
overall reliability
Quality of service metrics, calculation methods,
measurement methods, and service quality standards
are provided.
16
Salient Points:
Best Efforts and Fair Use
Service quality standards for best efforts
services are provided.
Fair use policies are provided guidance as to their
presentation to the public and their implementation.
Data volume capping, should service providers use
such a network management method, is given specific
rules to follow.
17
Salient Points:
Prepaid Service Offers
Prepaid service offers are allowed to have
different services rates, provided there will be no
difference in the implementation of service quality
standards between prepaid and postpaid services.
Prepaid subscribers are given higher consumer
protection for service delivery, as higher is the
likelihood that their credits are consumed before
any substandard service is detected, disputed, and
resolved.
18
Salient Points:
Disputes, Refunds, and Rebates
A common source of objective evidence will be
used by NTC, service providers, and consumers in
the resolution of disputes.
Processes for refunds and rebates are made clear
that it shall not be unreasonably difficult for a
subscriber to collect a rightful refund or rebate
from a service provider.
There will be no discrimination in the processing
of prepaid and postpaid subscriber disputes.
19
Salient Points:
Service Standards Adjustments
Service providers are provided mechanisms to
request the adjustment of service standards,
should there be legitimate business reasons,
particularly the inability at present to comply with
service quality standards.
Upon compliance with MO requirements, there is
no barrier to reducing service quality standards
for a limited period, after which compliance must
be with the appropriate service quality standards.
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Salient Points:
Transparency and Compliance
Information for purposes of ensuring the
compliance of service providers is to be gathered
by and acted upon by the NTC.
Subject to reasonable processing fees to be
collected by service providers, subscribers are
given the ability to request service quality
information regarding their subscribed service.
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The Larger Picture
The proposed MO, implemented as is, is a step towards better
service quality of internet connectivity in the Philippines.
Upgraded laws, such as SBN 1091 (the Magna Carta for
Philippine Internet Freedom, filed by Sen. Bam Aquino; SBN
53 by Sen. Miriam Defensor-Santiago), including amendments
to RA 7925, will help in the longer term.
Through the support of consumers, service providers,
government stakeholders, and the general public, longer-term
improvements can be made.
That said, a journey of a thousand miles begins with a single
step. We encourage the NTC to adopt the proposed MO.
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A. Definitions
B. Rules on Offer Information
C. Rules on Measurement and
Metrics
D. Rules on Service Standards
for Standard Broadband
Connectivity Offers
E. Rules on Best Efforts Offers
F. Rules on Data Volume
Capping
G. Rules on Fair Use
Guidelines
H. Rules on Prepaid Service
Offers
I. Rules on Refund or Rebate
J. Rules on Requests for Service
Standards Adjustments
K. Rules for Transparency and
Compliance
L. Rules for Non-Compliance
M. Other Rules
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MO Proposal Outline
Q & A
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Appendix.
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END.
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