NTC

NATIONAL TELECOMMUNICATIONS COMMISSION

The National Telecommunications Commission (NTC) is the government agency created under Executive Order No. 546 promulgated on July 23, 1979, and conferred with regulatory and quasijudicial functions taken over from the Board of Communications and the Telecommunications Control Bureau which were abolished in the same Order.

Primarily, the NTC is the sole body that exercises jurisdiction over the supervision, adjudication and control over all telecommunications services throughout the country. For the effective enforcement of this responsibility, it adopts and promulgates such guidelines, rules, and regulations relative to the establishment operation and maintenance of various telecommunications facilities and services nationwide.

Although independent, in so far as its regulatory and quasi-judicial functions are concerned, the NTC remains under the administrative supervision of the Department of Transportation and Communication as an attached agency. However, with respect to its quasi-judicial functions, NTC's decisions are appealable to the Court of Appeals and the Supreme Court.

MISSION
"The National Telecommunications Commission shall establish a regulatory, regime conducive to development and provision of progressive, affordable, viable, reliable and accessible Information and Communications Technology (ICT) infrastructure and services."

VISION
"By, 2015, the National Telecommunications Commission is a strong and proactive regulatory agency able to steer the telecommunications and ICT sectors as the primary engine for national progress and development."

The history
1927: Act No. 3396 known as the Ship Radio Station Law was enacted.The Radio Construction and Maintenance Section, the first radio regulatory office was charged to enforce the said law.

1931: Act No. 3846 known as the Radio Control Law was enacted. The Radio Control Division in the Bureau of Post was created under the jurisdiction of the then Secretary of Commerce and Communications.

 1939: The Radio Control Division was transferred to the Department of National Defense which was organized pursuant to Executive Order No. 230.

1947: The Radio Control Division was again transferred to the Department of Commerce and Industry which was created pursuant to Executive Order No. 230.

1951: Republic Act 1476 was enacted abolishing the Radio Control Board.

 1962: Department Order 51 was issued changing the name of the Radio Control Division to the Radio Control Office.

1972: The Board of Communications (BOC) was created under the Integrated Reorganization Law. It was the first quasi-judicial body with adjudicatory powers on matters involving telecommunications services.

1974: The Radio Control Office was renamed the Telecommunications Control Bureau.

 1979: By virtue of Executive Order 546, the TCB and the BOC were integrated into a single entity now known as the National Telecommunications Commission. The Ministry of Transportation and Communication, which was created under the same Order has administrative jurisdiction over the NTC.

1987: President Corazon Aquino issued Executive Order 125-A making the NTC an attached agency of the Department of Transportation and Communication.

 2004: President Gloria Macapagal-Arroyo issued Executive Order 269 creating the Commission on Information and Communication Technology and transferring the NTC from the DOTC to the CICT.

2005: President Gloria Macapagal-Arroyo issued Executive Order 454 transferring the NTC back to the DOTC.

2008: President Gloria Macapagal-Arroyo issued Executive Order 648 transferring the NTC back to the CICT.

What is the composition of the NTC?

The NTC is composed of a Commissioner and two deputy commissioners, preferably one of whom shall be a lawyer and a another an economist.

Commissioner

Gamaliel A. Cordoba

Deputy Commissioners

Delilah F. Deles Carlos Jose A. Martinez

What are the qualifications that the Commissioner and the two deputy commissioners should possess? They shall be of unquestioned integrity, of proven competence, and recognized as experts in their fields, related as much as possible, to communications.

What are the important functions of the NTC?

Under Executive Order No.546 dated July 23, 1979, the Commission has the following functions : issue Certificate of Public Convenience for the operation of communications utilities and services, radio communication systems, wire or wireless telephone or telegraph systems, radio and television broadcasting system and other similar public utilities;

 Establish and prescribe rules, regulations, standards, specifications in all cases related to the issued Certificate of Public Convenience and administer and enforce the same; Coordinate and cooperate with government agencies and other entities concerned with any aspect involving communications with a view to continuously improve the communications service in the country; Promulgate such rules and regulations , as public safety and interest may require, to encourage a larger and more effective use of communications, radio and television broadcasting facilities, and to maintain effective competition among private entities in these activities whenever the Commission finds it reasonably feasible;

 Supervise and inspect the operation of radio stations and telecommunications facilities; Undertake the examination and licensing of radio operators; Undertake, whenever necessary, the registration of radio transmitters and transceivers; and Perform such other functions as may be prescribed by law.

Under the Public Telecommunications Policy Act of the Philippines (RA. 7925), what are the responsibilities of the NTC?
The National Telecommunications Commission shall be the principal administrator of this Act and as such shall take the necessary measures to implement the policies and objectives set forth in this Act. Accordingly, in addition to its existing functions, the Commission shall be responsible for the following:

 Adopt an administrative process which would facilitate the entry of qualified service providers and adopt a pricing policy which would generate sufficient returns to encourage them to provide basic telecommunications services in un served and underserved areas;

Ensure quality, safety, reliability, security, compatibility and inter-operability of telecommunications facilities and services in conformity with standards and specifications set by international radio and telecommunications organizations to which the Philippines is a signatory;

 Mandate a fair and reasonable interconnection of facilities of authorized public network operators and other providers of telecommunications services through appropriate modalities of interconnection and at a reasonable and fair level of charges, which make provision for the cross subsidy to unprofitable local exchange service areas so as to promote telephone density and provide the most extensive access to basic telecommunications services available at affordable rates to the public;

Foster fair and efficient market conduct through, but not limited to the protection of telecommunications entities from unfair trade practices of other carriers;

 Promote consumers welfare by facilitating access to telecommunications services whose infrastructure and network must be geared towards the needs of individual and business users; Protect consumers against misuse of a telecommunications entity's monopoly or a quasi-monopolistic powers but not limited to, the investigation of complaints and exacting compliance with service standards from such entity; and

In the exercise of its regulatory powers, continue to impose such fees and charges as may be necessary to cover reasonable cost and expenses for the regulation and supervision of the operations of telecommunications entities. (Sec. 5, R.A. 7925)

What is the declaration of national policy on telecommunications?

Telecommunications is essential to the economic development, integrity and security of the Philippines, and as such shall be developed and administered as to safeguard, enrich and strengthened the economic, cultural, social and political fabric of the the Philippines.

Is the NTC authorized to grant provisional authority to install, operate and maintain a cellular mobile telephone system?
There can be no question that the NTC is the regulatory agency of the national government with jurisdiction over all the telecommunications entities. It is legally clothed with authority and given ample discretion to grant a provisional permit or authority. In fact, NTC may, on its own initiative, grant such relief even in the absence of a motion from an applicant.

RADIO AND TELEVISION BROADCASTING STATIONS

PRESIDENTIAL DECREE No. 576-A

REGULATING THE OWNERSHIP AND OPERATION OF RADIO AND TELEVISION STATIONS AND FOR OTHER PURPOSES.

section 4 Any person or corporation which owns more than the number of radio or television stations authorized in the preceding section shall divest itself of the excess stations or channels.. any excess station shall be sold through the Bureau to Telecommunications.

What is the penalty for failure to divest oneself of the excess broadcasting radio stations or television channels?

Section 5
Failure to divest as provided in the foregoing section shall, in addition to the penalties provided in Section 6, subject the person or corporation guilty of such failure to cancellation of the franchise of every excess station and to confiscation of the station and its facilities without compensation.

 Section 6. All franchises, grants, licenses, permits, certificates or other forms of authority to operate radio or television broadcasting systems shall terminate on December 31, 1981. Thereafter, irrespective of any franchise, grants, license, permit, certificate or other forms of authority to operate granted by any office, agency or person, no radio or television station shall be authorized to operated without the authority of the Board of Communications and the Secretary of Public Works and Communications or their successors who have the right and authority to assign to qualified parties frequencies, channels or other means of identifying broadcasting systems; Provided, however, that any conflict over, or disagreement with a decision of the aforementioned authorities may be appealed finally to the Office of the President within fifteen days from the date the decision is received by the party in interest.

What are the penalties provided for violations of Presidential Decree No. 576-A?
Any person who violates this Decree shall be punishable by imprisonment for a period ranging from five months to six years and the payment of a fine of P1,000.00 to P10,000.00, or both such imprisonment and fine, at the discretion of the court. If the violation is committed by an association, partnership or corporation, the penalty shall be imposed on the officers or employees thereof who were responsible for or who committed the violation.( Sec. 7, PD. No. 576-A)

What is required in order to operate and maintain a radio or television broadcasting stations?
. No radio or television (TV) broadcasting shall be operated and maintained without first franchise as stations/systems

securing a legislative

required by the provisions of the Radio Control Law, Act No. 3846, as amended, and a Certificate of Public Convenience and Necessity from the National Telecommunications Commission (NTC), except noncommercial stations that are wholly devoted for training purposes.

How shall radio or TV broadcasting station import equipment?

No radio or Television broadcasting station/system shall be allowed to import equipment necessary for its operation without first securing authorization from the NTC.

What are the fees to be paid by radio and television broadcasting stations?

All radio ad television broadcasting stations shall pay annually to the NTC supervision and regulation fees.

Are radio and television broadcasting stations required to submit financial reports?
Yes. They shall submit to the NTC their respective annual financial reports on or before March 1 of each year following the calendar year of their operations.

What is the NTC regulation regarding radio broadcasting and television programs which propose and /or incite treason, rebellion or sedition, or the language used or the theme is indecent or immoral?

All radio and broadcasting or television stations shall, during any broadcast or telecast, cut off from the air the speech , play, act or scene or other matter being broadcast and / or telecast , if the tendency thereof is to propose or incite treason, rebellion or sedition, or the language used therein or the theme of indecent or immoral. (NTC MC 11-12-85)

In its Memorandum Circular No. 22-89 promulgated Dec. 5, 1989, the NTC issued the following broadcast/ telecast guidelines which shall be strictly followed:

a. - The airing of rebellious/terrorist propaganda, comments, interviews, information and other similar and/or related materials shall be prohibited.

b. - The airing of government strategic information, including but not limited to government military locations, troop movements, troop numbers, description of government weapons, military units, vehicles and such other government tactical operations shall likewise be prohibited.

What is the penalty for allowing the use of broadcast or television facilities against the government? The penalty of reclusion perpetua to death shall be imposed on any person who, on occasion of a rebellion or sedition, gives aid and comfort to the perpetrators of such crimes. The penalty of reclusion perpetua to death shall also be imposed upon any person, who having control and management of printing, broadcast or television facilities, or any form of mass communication shall use or allow the use of such facilities for the purpose of mounting sustained propaganda assaults against the Government

May a foreigner own and operate a radio or television broadcast station?

No. the Philippine Constitution provides that the ownership and management of mass media shall be limited to citizens of the Philippines or corporations, cooperative or associations wholly owned and managed by citizens (Art. XVI, Sec.11, (1) Philippine Constitution)

Q AND A ABOUT HOW NTC REGULATES

NTC

What are the standards for broadcasting news and public events?
Broadcast stations shall provide accurate, in formed and adequate coverage of news and public events. It should be factual, fair and without bias. Programs of news analyses and commentary shall clearly identifiable as such and clearly distinguished from straight news reporting.

What is the policy on national language?

Broadcast stations shall encourage and promote the development of national language in their programs.

What is a cable television system or community antenna television (CATV)?

Any facility that, in whole or in part, receives directly or indirectly over the air, and amplifies or otherwise modifies the signals transmitting programs broadcast by one or more television, satellite or radio stations and distributes such signal by wire or cable to subscribing members of the public who will pay such service.

CATV Each separate and distinct community or municipal entity constitutes a separate cable television system, even if there is a single headend and identical ownership of facilities extending into several communities.

Who grants the authority to operate CATV?

A certificate of authority to operate a cable antenna television system shall be granted by the NTC on a non exclusive basis and for a period not to exceed fifteen years, renewable for another similar period: provided, that such certificate shall be subject to the limitation that the authority to operate shall not infringed on the television and broadcast markets.

Television or CATV cinematographic works or programs

Pursuant to the memorandum of agreement signed on April 10, 1995, the NTC, the MTRCB and the video gram regulatory board operating under their respective characters.

 All person, natural or juridical, intending to operate a television or cable television , shall file a verified petition with the NTC, furnishing the VRB and MTRCB copies of the petition and its attachments, and shall comply with all the requirements and impositions provided for under the pertinent rules and regulations of the NTC.

 All programs, cinematographic works, etc. for exhibition or broadcast by a television or CATV operator shall be subject to review and classification by the MTRCB and the VRB, except in that in cases of direct signals or satellite feeds, the operator shall take full responsibility of any violation of existing laws, guidelines, programming or technical standards.

Globe Telecom, Inc. v. NTC et. al.

Facts

On 4 June 1999, Smart filed a Complaint with NTC to interconnect Smart's and Globe's GSM networks, particularly their respective SMS or texting services. The Complaint arose from the inability of the two leading CMTS providers to effect interconnection. Smart alleged that Globe, with evident bad faith and malice, refused to grant Smart's request for the interconnection of SMS. But NTC also declared that both Smart and Globe have been providing SMS without authority from it, in violation of Section 420 (f) of MC No. 8-9-95 which requires PTEs intending to provide value-added services (VAS) to secure prior approval from NTC through an administrative process.

 Globe

filed with the Court of Appeals a Petition for Certiorari and Prohibition to nullify and set aside the Order and to prohibit NTC from taking any further action in the case. It reiterated its previous arguments that the complaint should have been dismissed for failure to comply with conditions precedent and the non-forum shopping rule. It also claimed that NTC acted without jurisdiction in declaring that it had no authority to render SMS, pointing out that the matter was not raised as an issue before it at all. Finally, Globe alleged that the Order is a patent nullity as it imposed an administrative penalty for an offense for which neither it nor Smart was sufficiently charged nor heard on in violation of their right to due process.

Issues:

1. Whether NTC may legally require Globe to secure NTC approval before it continues providing SMS;

2. Whether SMS is a VAS under the PTA, or special feature under NTC MC No. 14-11-97;
3. Whether NTC acted with due process in levying the fine against Globe; and

4. Whether Globe should have first filed a motion for reconsideration before the NTC, but this relatively minor question can be resolved in brief.

Held

The NTC relied on Section 420(f) of the Implementing Rules of the PTA ("Implementing Rules") as basis for its claim that prior approval must be secured from it before Globe can operate SMS. Section 420 of the Implementing Rules, contained in MC No. 8-9-95. In short, the legal basis invoked by NTC in claiming that SMS is VAS has not been duly established. The fault falls squarely on NTC. With the dual classification of SMS as a special feature and a VAS and the varying rules pertinent to each classification, NTC has unnecessarily complicated the regulatory framework to the detriment of the industry and the consumers

 But

does that translate to a finding that the NTC Order subjecting Globe to prior approval is void? There is a fine line between professional mediocrity and illegality. NTC's byzantine approach to SMS regulation is certainly inefficient. Unfortunately for NTC, its actions have also transgressed due process in many ways, as shown in the ensuing elucidation granted. The decision of the court of appeals, as well as its resolution and the assailed order of the NTC are hereby set aside. No cost

Petition

Globe and ISLA communications co., INC. (ISLACOM) vs. CA and NTC

Facts:
The National Telecommunications Commission (NTC) issued on June 16, 2000 Memorandum Circular No. 13-6-2000, promulgating rules and regulations on the billing of telecommunications services. The Memorandum Circular provided that it shall take effect 15 days after its publication in a newspaper of general circulation and three certified true copies thereof furnished the UP Law Center. It was published in the newspaper, The Philippine Star, on June 22, 2000. Meanwhile, the provisions of the Memorandum Circular pertaining to the sale and use of prepaid cards and the unit of billing for cellular mobile telephone service took effect 90 days from the effectivity of the Memorandum Circular.

Isla Communications Co., Inc. and Pilipino Telephone Corporation filed against the National Telecommunications Commission, Commissioner Joseph A. Santiago, Deputy Commissioner Aurelio M. Umali and Deputy Commissioner Nestor C. Dacanay, an action for declaration of nullity of NTC Memorandum Circular No. 13-62000 (the Billing Circular) and the NTC Memorandum dated October 6, 2000, with prayer for the issuance of a writ of preliminary injunction and temporary restraining order.

Globe Telecom, Inc and Smart Communications, Inc. filed a joint Motion for Leave to Intervene and to Admit Complaint-inIntervention and this was granted by the trial court. Respondent NTC and its co-defendants filed a motion to dismiss the case on the ground of petitioners' failure to exhaust administrative remedies. Likewise, Globe and Islacom filed a petition for review, docketed as G.R. No. 152063, assigning the following errors. Thus, two petitions were consolidated in a Resolution dated February 17, 2003.

Issues:
1.

Whether NTC has a jurisdiction and not the regular courts over the case; and Whether Billing Circular issued by NTC is unconstitutional and contrary to law and public policy.

2.

Ruling:

Contrary to the finding of the Court of Appeals, the issues raised in the complaint do not entail highly technical matters. Rather, what is required of the judge who will resolve this issue is a basic familiarity with the workings of the cellular telephone service, including prepaid SIM and call cards and this is judicially known to be within the knowledge of a good percentage of our population and expertise in fundamental principles of civil law and the Constitution. Hence, the consolidated petitions are granted but the decision of the Court of Appeals on the civil cases are reversed and set aside. Thus, it is remanded to the court a quo for continuation of the proceedings.

Globe Telecom, Inc v. NTC et. al.

Facts: On 4 June 1999, Smart filed a Complaint with NTC to interconnect Smart's and Globe's GSM networks, particularly their respective SMS or texting services. The Complaint arose from the inability of the two leading CMTS providers to effect interconnection. Smart alleged that Globe, with evident bad faith and malice, refused to grant Smart's request for the interconnection of SMS. But NTC also declared that both Smart and Globe have been providing SMS without authority from it, in violation of Section 420 (f) of MC No. 8-9-95 which requires PTEs intending to provide value-added services (VAS) to secure prior approval from NTC through an administrative process.

Globe filed with the Court of Appeals a Petition for Certiorari and Prohibition to nullify and set aside the Order and to prohibit NTC from taking any further action in the case. It reiterated its previous arguments that the complaint should have been dismissed for failure to comply with conditions precedent and the non-forum shopping rule. It also claimed that NTC acted without jurisdiction in declaring that it had no authority to render SMS, pointing out that the matter was not raised as an issue before it at all. Finally, Globe alleged that the Order is a patent nullity as it imposed an administrative penalty for an offense for which neither it nor Smart was sufficiently charged nor heard on in violation of their right to due process.

Issues: 1. Whether NTC may legally require Globe to secure NTC approval before it continues providing SMS;
2. Whether SMS is a VAS under the PTA, or special feature under NTC MC No. 14-11-97; 3. Whether NTC acted with due process in levying the fine against Globe; and 4. Whether Globe should have first filed a motion for reconsideration before the NTC, but this relatively minor question can be resolved in brief.

Held:

The NTC relied on Section 420(f) of the Implementing Rules of the PTA ("Implementing Rules") as basis for its claim that prior approval must be secured from it before Globe can operate SMS. Section 420 of the Implementing Rules, contained in MC No. 8-9-95.

In short, the legal basis invoked by NTC in claiming that SMS is VAS has not been duly established. The fault falls squarely on NTC. With the dual classification of SMS as a special feature and a VAS and the varying rules pertinent to each classification, NTC has unnecessarily complicated the regulatory framework to the detriment of the industry and the consumers

But does that translate to a finding that the NTC Order subjecting Globe to prior approval is void? There is a fine line between professional mediocrity and illegality. NTC's byzantine approach to SMS regulation is certainly inefficient. Unfortunately for NTC, its actions have also transgressed due process in many ways, as shown in the ensuing elucidation Petition granted. The decision of the court of appeals, as well as its resolution and the assailed order of the NTC are hereby set aside. No cost

GLOBE and ISLA COMMUNICATIONS CO., INC. (ISLACOM), petitioners, vs. COURT OF APPEALS and NTC, respondents.
Facts: The National Telecommunications Commission (NTC) issued on June 16, 2000 Memorandum Circular No. 13-6-2000, promulgating rules and regulations on the billing of telecommunications services. The Memorandum Circular provided that it shall take effect 15 days after its publication in a newspaper of general circulation and three certified true copies thereof furnished the UP Law Center. It was published in the newspaper, The Philippine Star, on June 22, 2000. Meanwhile, the provisions of the Memorandum Circular pertaining to the sale and use of prepaid cards and the unit of billing for cellular mobile telephone service took effect 90 days from the effectivity of the Memorandum Circular.

Isla Communications Co., Inc. and Pilipino Telephone Corporation filed against the National Telecommunications Commission, Commissioner Joseph A. Santiago, Deputy Commissioner Aurelio M. Umali and Deputy Commissioner Nestor C. Dacanay, an action for declaration of nullity of NTC Memorandum Circular No. 13-6-2000 (the Billing Circular) and the NTC Memorandum dated October 6, 2000, with prayer for the issuance of a writ of preliminary injunction and temporary restraining order. Globe Telecom, Inc and Smart Communications, Inc. filed a joint Motion for Leave to Intervene and to Admit Complaint-inIntervention and this was granted by the trial court. Respondent NTC and its co-defendants filed a motion to dismiss the case on the ground of petitioners' failure to exhaust administrative remedies. Likewise, Globe and Islacom filed a petition for review, docketed as G.R. No. 152063, assigning the following errors. Thus, two petitions were consolidated in a Resolution dated February 17, 2003.

 Issues:

1. Whether NTC has a jurisdiction and not the regular courts over the case; and 2. Whether Billing Circular issued by NTC is unconstitutional and contrary to law and public policy.

Ruling: Contrary to the finding of the Court of Appeals, the issues raised in the complaint do not entail highly technical matters. Rather, what is required of the judge who will resolve this issue is a basic familiarity with the workings of the cellular telephone service, including prepaid SIM and call cards and this is judicially known to be within the knowledge of a good percentage of our population and expertise in fundamental principles of civil law and the Constitution. Hence, the consolidated petitions are granted but the decision of the Court of Appeals on the civil cases are reversed and set aside. Thus, it is remanded to the court a quo for continuation of the proceedings.

Globe Telecom asks NTC to cancel all licenses granted to PLDT, Smart, CURE
Globe

Telecom has asked the National Telecommunications Commission (NTC) to cancel and revoke all licenses, frequencies, and authorizations granted to Philippine Long Distance Telephone Co. (PLDT) and its subsidiaries Smart Communications Inc. and Connectivity Unlimited Resource Enterprise Inc. (CURE) since they are not Filipino-owned companies. -ABSCBN news

Globe

noted that PLDT, earlier, admitted that of its total voting shares, foreign ownership represents roughly 60%, which is against the Foreign Investment Act of 1991 which defines a Philippine national as a corporation organized under the laws of the Philippines of which at least 60% of the capital stock outstanding and entitled to vote is owned and held by citizens of the Philippines.

NTC issues circular putting minimum speed on broadband service

one

of its most important issuances yet, the National Telecommunications Commission (NTC) has formally released a new circular that orders Internet broadband providers to specify a minimum speed in their service offerings. It compels broadband service providers to specify the minimum Internet connection speed and service reliability, as well as service rates in their advertisements and service level agreements. The circular said that the acceptable minimum service reliability is 80 percent.