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Executive Orders

Prescribing the Policy Guidelines for 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

Executive Order No. 59

EXECUTIVE ORDER NO. 59

PRESCRIBING THE POLICY GUIDELINES FOR 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

WHEREAS, in recognition of the vital role of communications in nation-building, it has become the objective of government to promote advancement in the field of telecommunications and the expansion of telecommunications services and facilities in all areas of the Philippines;

WHEREAS, there is a need to enhance effective competition in the telecommunications industry in order to promote the State policy of providing the environment for the emergence of communications structures suitable to the balanced flow of information into, out of, and across the country;

WHEREAS, there is a need to maximize the use of telecommunications facilities available and to encourage investment in telecommunications infrastructure by service providers duly authorized by the National Telecommunications Commission (NTC);

WHEREAS, there is a need to ensure that all users of the public telecommunications service have access...

Summary of Executive Order No. 59

Objective: To prescribe policy guidelines for compulsory interconnection of authorized public telecommunications carriers to create a universally accessible and fully integrated nationwide telecommunications network, and encourage greater private sector investment in telecommunications.

Provisions:
• The National Telecommunications Commission (NTC) shall expedite the interconnection of all NTC-authorized public telecommunications carriers into a universally accessible and fully integrated nationwide telecommunications network for public benefit. (Section 1)
• Interconnection between NTC-authorized public telecommunications carriers shall be compulsory. Interconnection is defined as the linkage of two or more existing telecommunications carriers or operators to enable subscribers of one carrier to access or reach subscribers of other carriers. (Section 2)
• Interconnection shall be established and maintained at local exchanges and trunk exchanges as required within a reasonable time frame, with sufficient capacity and number to meet all reasonable traffic demands. (Section 3)
• Interconnection shall permit customers freedom of choice on whose system they wish their call to be routed, initially through distinct carrier access codes and ultimately through pre-programmed options. (Section 4)
• Interconnection shall be mandatory for connecting other telecommunications services such as value-added services, radio paging, trunking radio, store and forward systems, packet switching, circuit data switching, and other services determined by the NTC to be in the public interest. (Section 5)
• Interconnection shall be negotiated and effected through bilateral negotiations between parties, subject to technical/operational and traffic settlement rules promulgated by the NTC. If parties fail to reach an agreement within 90 days, the NTC shall determine the terms and conditions necessary for a workable and equitable interconnection and traffic settlement. (Section 6)
• Interconnection shall permit rerouting of calls from an inoperative international gateway operator to another operator not affected, in case of strikes, disasters, calamities, etc. A public telecommunications carrier shall be allowed permits to operate international gateways necessary to service its own network requirements, but its subsidiaries shall not be given another permit. (Section 7)
• The NTC shall consider relevant CCITT and ITU recommendations for technical/operational rules, and specific principles for traffic settlement rules, including meet-on-the-air and/or midpoint circuit interconnection, local exchange point settlement based on traffic volume per minute with day and night rate differential, junction exchange point settlement based on short haul (<150 km) and long haul (>150 km) traffic volume per minute with day and night differential, operator surcharge for operator-assisted calls, and access charge to assist unprofitable rural telephone development. (Section 8)
• Interconnection shall satisfy the requirements of effective competition and be effected in a non-discriminatory manner. (Section 9)
• The NTC shall define the Points of Connection (PC) between public telecommunications carriers, and approve or prescribe the apportionment of costs and division of revenues resulting from interconnection. (Section 10)
• Interconnecting parties shall share the cost of interconnection in accordance with their respective responsibilities, maintain and operate their facilities, and comply with their obligations as agreed upon and approved or prescribed by the NTC. (Section 11)
• Interconnection and revenue-sharing agreements approved or prescribed by the NTC may be revoked, revised, or amended as the NTC deems fit in the interest of public service. (Section 12)
• The NTC may impose penalties for violations, including administrative fines and sanctions, suspension of pending applications, withholding of loan releases, disqualification of employees/officers/directors, and suspension of authorized rates without service disruption. (Section 13)
• The NTC shall promulgate implementing rules within 90 days from the effectivity of this Executive Order. (Section 14)
• This Executive Order shall take effect immediately. (Section 16)

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