National Telecommunications Commission

Alban, Micheal John C.

I. Introduction

The Philippines' National Telecommunications Commission (Filipino: Pambansáng Komisyón sa

Telekomunikasyón), abbreviated as NTC, is an attached agency of the Department of Information and
Communications Technology responsible for the supervision, adjudication and control over all
telecommunications services throughout the country.

NTC is currently headed by Commissioner Gamaliel Cordoba, who assumed office on August 2009,
and served within the three administrations of former presidents Gloria Macapagal Arroyo and Benigno
Aquino III, and incumbent President Rodrigo Duterte. Commissioner Delilah F. Deles and
Commissioner Edgardo V. Cabarios are the department’s current Deputy Commissioners.

II. History and Background

The National Telecommunications Commission (NTC) was created under Executive Order No. 546
promulgated on July 23, 1979, and conferred with regulatory and quasi-judicial 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 promotes such guidelines, rules, and regulations relative to the
establishment operation and maintenance of various telecommunications facilities and services
nationwide.
Although independent insofar as its regulatory and quasi-judicial functions are concerned, the NTC
remains under the administrative supervision of the Department of Information and Communication
Technology as an attached agency. However, with respect to its quasi-judicial functions, NTC's
decisions are appealable only and directly to the Supreme Court of the Philippines.

2.1 EXECUTIVE ORDER NO. 546

CREATING A MINISTRY OF PUBLIC WORKS AND A MINISTRY OF TRANSPORTATION

AND COMMUNICATIONS

WHEREAS, the accelerated pace of national development requires the effective, purposeful and unified
implementation of public works projects and the effective control and supervision of transportation and
communications facilities and services;

WHEREAS, the development, rehabilitation, improvement, construction, maintenance and repairs of

ports, flood control and drainage systems, buildings, water supply systems; and other public works
facilities involve the utilization of technologies and manpower different from those required for the
control and supervision of transportation and communications facilities and services;

WHEREAS, a rational distribution of the functions of government pertaining to public works on one
hand and control and supervision of facilities and services related to transportation and communications
on the other would enhance the efficiency of government;

WHEREAS, in keeping with the policy of government to effect continuing reforms in the organizational
structure to enhance efficiency and effectiveness, it is necessary to entrust in one ministry all functions
pertaining to the construction, repair and maintenance of public works facilities and restructure the
organization for the control and supervision of transportation and communications facilities and
services in the country;

B. MINISTRY OF TRANSPORTATION AND COMMUNICATIONS

Sec. 6. Creation of a Ministry of Transportation and Communications. There is hereby created a

Ministry of Transportation and Communications, hereinafter referred to as the Ministry, which shall be
the primary policy, planning, programming, coordinating, implementing, regulating and administrative
entity of the executive branch of the government in the promotion, development, and regulation of a
dependable and coordinated network of transportation and communication systems in pursuance of the
following objectives:

e. Develop an integrated nationwide transmission system by itself or through or together with

other entities in accordance with national and international telecommunications service
standards to meet all telecommunications service requirements including, among others, radio
and television broadcast relaying, leased channel services and data transmission;

f. Establish, operate and maintain by itself or through or together with other entities an
international switching system for incoming and outgoing international telecommunications
services;

g. Encourage the development of a domestic telecommunications industry in coordination with

the concerned entities, particularly the manufacture of communications/electronics equipment
and components to complement and support, as much as possible, the expansion, development,
operation and maintenance of the nationwide telecommunications network;

Sec. 9. Organization of the Ministry. The Ministry shall be composed of the ministry proper made up
of immediate Office of the Minister, an Administrative Service, a Financial and Management Service
and a Planning Service; four (4) bureaus, namely, Bureau of Land Transportation, Bureau of Air
Transportation, Bureau of Telecommunications, and Bureau of Posts; and a National
Telecommunications Commission.

Sec. 13. Bureau of Telecommunications. The Bureau of Telecommunications shall continue to be

responsible for providing telecommunications facilities, including telephone systems for government
offices; providing communications services for purposes of augmenting limited or inadequate existing
similar private communication services; extending communications in areas where no such services are
available; and assisting the private sector engaged in telecommunications services by providing and
maintaining backbone telecommunication networks.

Sec. 14. National Telecommunications Commission. The Board of Communications created under
Article III, Chapter I, Part X of the Integrated Reorganization Plan, as amended, and the
Telecommunications Control Bureau created under Article IX, Chapter I, Part X of the same Plan, as
amended, are integrated into a single entity to be known as the National Telecommunications
Commission and hereinafter referred to as the Commission.

Sec. 16. Organization of the Commission. The Commission shall be composed of a Commissioner and
two Deputy Commissioners, preferably one of whom shall be a lawyer and another, an economist. The
Commissioner and Deputy Commissioners shall be of unquestioned integrity, proven competence, and
recognized as experts in their fields, related, as much as possible, to communications.
Sec. 17. Telecommunication Stations Operated by the Armed Forces of the Philippines.
Telecommunication stations owned and operated by the Armed Forces of the Philippines shall not be
subject to the provisions of this Executive Order except that all such stations shall use frequencies as
may be allowed/assigned by the Commission.

C. OTHER PROVISIONS

Sec. 19. Abolished/Transferred Agencies.

d. The Board of Communications and the Telecommunications Control Bureau are abolished
and their functions are transferred to the National Telecommunications Commission.

2.1.1 After Executive Order No. 546

Following after Executive Order No. 546 was enacted; there are other Executive Orders and Republic
Act that caused changes over the years.

 1987: President Corazon Aquino issued Executive Order 125-A making the NTC an attached
agency of the Department of Transportation and Communications.
 2004: President Gloria Macapagal-Arroyo issued Executive Order 269 creating the
Commission on Information and Communications 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.
 2011: Benigno S. Aquino III issued Executive Order No. 47 (June 23, 2011) which retains the
NTC under the Office of the President as part of the Other Executive Offices (OEO).
 2016: Benigno S. Aquino III signed Republic Act No. 10844 creating the Department of
Information and Communications Technology (DICT) and making the NTC an attached agency
of the newly created executive department.

2.2 Mandate, Mission and Vision

2.2.1 MANDATE

 To regulate the installation, operation and maintenance of radio stations both for private and
public use. (Radio Control Law, Act No. 3846, as amended)
 To regulate and supervise the provision of public telecommunications services (Radio Control
Law, Act No. 3846, as amended and Public Telecommunications Policy Act of 1995, RA No.
7925)
 To manage the radio spectrum (Radio Control Law, Act No. 3846, as amended and Public
Telecommunications Policy Act of 1995, RA No. 7925)
 To regulate and supervise radio and television broadcast stations, cable television (CATV)
and pay television (EO No. 546 and EO No. 205)

2.2.2 VISION

By 2025, the NTC is a world class regulatory agency meeting the challenges of the digital world.
2.2.3 MISSION

Maintain a responsive regulatory environment for an effective telecommunications/ICT sector.

2.3 Effectiveness

The National Telecommunications Commission has been “hands off” since 1995 with the passage of
Republic Act No. 7925 also known as the Public Telecommunications Policy Act of the Philippines,
which has effectively deregulated and privatized the telecom industry. It is argued, that the “hands off”
approach resulted in the Philippines having one of the slowest Internet in Asia. NTC itself stated the
said law as "reason why the government has difficulty in regulating internet service today.

NTC is working hand in hand with DOST-ASTI and DICT to succeed in reaching both NTC’s Mission,
Vision, Performance Pledge and E-Government Master Plan 2.0 (2016-2022), which aim to improve
processes in government, to provide better services to both citizens and businesses, as well as promote
public participation.

Salamanca, Patrick Angelo A.

3. Organizational Structure and Functions

The National Telecommunications Commission composes of a commissioner, deputy

commissioner and under are six branches having their specific function for the commission.
These are Administrative Branch (AB), Planning, Financial and Management Branch (PFMB),
Industry Planning and Management Branch (IPMB), Special Licensing Branch (SLB), Legal
Branch (LB), and Regulation Branch (RB).

3.1 Administrative Branch

3.1.1 Human Resource Division – focuses on human resource management and development
programs.
3.1.2 General Service Division – provides policy guidance on the maintenance and disposition
of records involving procurement, storage of supplies in accordance with the government
standards.

3.2 Planning, Financial and Management Branch

3.2.1 Corporate Planning and Programming Division – organization and update of strategic
plans and compliances, preparation of programs and projects with its funding estimates with
the help of Finance Division.
3.2.2 Finance Division – preparation and execution of financial work plans and maintenance
of accounting records.
3.2.3 Management Division – develop plans and programs and examine the management of
the Agency.
3.3 Industry Planning and Management Branch undertake sectoral planning and ensure the
quality, safety, reliability, security, compatibility and interoperability 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.

3.3.1 Industry Planning and Research Division – responsible for the provision of services
relating to broadcast and public telecommunications industry planning and development, and
advice to management on the status, current trends and developments in the broadcast and
telecommunications industry.
3.4 Special Licensing Branch acts on all non-decentralized radio service licenses pursuant to
local and international radio rules and regulations, conventions, and treaties where the
Philippines is a party.
3.4.1 Special Radio Services Division – act on all non-decentralized licensing functions of
non-carrier radio communications network in the fixed and land mobile services, and all
applications for permit to import radio communications equipment, wireless data network
equipment and devices filed through the Philippine National Single Window.
3.4.2 Safety Radio Services and STCW Compliance Division – act on all non-decentralized
licensing applications for maritime, aeronautical, and safety services pursuant to local laws and
international radio regulations and undertake the functions of the Radio Operators and Training
Schools Division on the implementation of the Standards of Training, Certification and
Watchkeeping Code of the International Maritime Organization.

3.5 Legal Branch

3.5.1 Internal Legal Affairs Division - conducts investigation of personnel, review
administrative charges against erring employees of the Commission and administer oaths on
matters generally involving the Commission and the units and ROs under it, among others.
3.5.2 Adjudication Division – conduct formal hearings on applications for Certificates of
Public Convenience and Necessity, investigate complaints and/or prosecute Infractions and
prepare draft decisions of cases involving violations on the Public Service Act,
telecommunications laws and regulations, and such other applicable laws.
3.5.3 Consumer Welfare and Protection Division - Develop and implement plans, programs
and procedures on matters related to the promotion and enhancement of consumer welfare and
protection pursuant to RA No. 7925 and other existing laws, rules and regulations, continually
conduct researches and studies on ways and means to further improve and enhance consumer
affairs.

3.6 Regulation Branch supervise and regulate all public telecommunications entities by
formulating and developing rules and regulations.
3.6.1 Networks and Facilities Division – conduct studies and recommend policies, rules and
regulations on the installation and operation of public telecommunications networks and
facilities.
3.6.2 Services and Interconnection Division – conduct studies and recommend policies, rules
and regulations on the provision of public telecommunications services and on all aspects of
interconnection.
3.7 Other Offices under the Office of the Commissioner
3.7.1 Radio Spectrum Planning Division – provide long term policies in planning,
coordinating, regulating and administering the use of radio spectrum within the country, except
for radio services with pre-allocated frequency bands, undertake continuing studies of
frequency allocations to various services in accordance with the ITU Table of Frequency
Allocations to meet local requirement.
3.7.2 Broadcast Services Division – assigns frequencies of broadcast stations and auxiliary
broadcast facilities, prepares and maintains records of frequency assignments made and call-
signs issued, act of applications for the issuance of permits and licenses for broadcast TV and
radio, conduct evaluations and give recommendation to new applications for AM, FM, TV and
CATV stations.
3.7.3 Commission Secretariat – record and report the proceedings of the Commission, docket
all cases filed with Commission and schedule them for hearing, assist the Commission on
matters affecting petitions and applications for authorizations, prepare and serve summons,
compile orders, rulings and decisions for publication, issue certified copies of decisions, orders
and other related papers to interested parties, and act as clerk of the Commission.
3.7.4 Equipment Standard Division – undertake research, formulate and develop technical
regulations and standards for telecommunications and broadcast equipment; promulgate
technical regulations and standards in accordance with local standards or regulations and align
them with international standards.
3.7.5 Regional Offices – enforce and implement telecommunications laws and other pertinent
laws, decrees, letters of instructions, and rules and regulations promulgated; conduct hearings
for the grant of authorization to operate telecommunications public utilities or services and
submit recommendation; conduct studies on telecommunications service requirement of the
region and submit recommendation; collect, consolidate and update statistical data and other
related information on telecommunications services.

Bernal, Jarold C.

Laws, Rules and Regulations

4.1 REPUBLIC ACTS

4.1.1 REPUBLIC ACT NO. 7925 - AN ACT TO PROMOTE AND GOVERN THE
DEVELOPMENT OF PHILIPPINE TELECOMMUNICATIONS AND THE DELIVERY OF
PUBLIC TELECOMMUNICATIONS SERVICES

Section 1. Short Title - This Act shall be known as the "Public Telecommunications Policy Act
of the Philippines."

Section 2. Scope and Application - This Act shall apply to all public telecommunications
entities in the Philippines.
Section 4. Declaration of National Policy - 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 strengthen the economic, cultural, social and political
fabric of the Philippines.

Section 5. Responsibilities of the National Telecommunications Commission. - The National

Telecommunications Commission (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.

Section 6. Responsibilities of and Limitations to Department Powers. - The Department of

Transportation and Communications (Department) shall not exercise any power which will
tend to influence or effect a review or a modification of the Commission's quasi-judicial
functions.

Section 7. Categories of Telecommunications Entities. - A telecommunications entity shall be

authorized to operate in one or more of the telecommunications categories mentioned in this
Act provided each category is covered by its franchise.

4.1.2 REPUBLIC ACT No. 3846 - AN ACT PROVIDING FOR THE REGULATION OF
PUBLIC AND RADIO COMMUNICATIONS IN THE PHILIPPINES AND FOR OTHER
PURPOSES.

Section l. No person, firm, company, association, or corporation shall construct, install,

establish, or operate a radio transmitting station, or a radio receiving station used for
commercial purposes, or a radio broadcasting station, without having first obtained a franchise
therefore from the Congress of the Philippines: Provided, however, That no franchise from the
Congress of the Philippines shall be necessary for the construction, installation, establishment,
or operation of an amateur station, an experimental station, a training station, a station on board
a mobile vessel, a train, or aircraft, or a private station in a place so outlying and so remote as
to afford no public communication system with the outside world: Provided, further, That radio
broadcasting stations established and operating at the time of the approval of this Act without
the franchise herein required shall be exempt from obtaining such franchise.
Section 2. The construction or installation of any station shall not be begun, unless a permit
therefor has been granted by the Secretary of Commerce and Industry. No station shall be
operated except under and in accordance with the provisions of a license issued therefor by the
Secretary of Commerce and Industry. The license shall state the dates between which the
station may be operated. If a renewal is desired, the licensee shall submit an application to the
Secretary of Commerce and Industry at least two months before the expiration date of the
license to be renewed. The Secretary of Commerce and Communication shall determine the
period for which each license is issued; Provided, that no license shall be issued for a longer
period than three (3) years.
Section 4. No radio station license shall be transferred to any person, firm, company,
association or corporation without express authority of the Secretary of Commerce and
Communications, and no license shall be granted or transferred to any person who is not a
citizen of the United States of America or of the Philippine Islands; or to any firm or company
which is not incorporated under the laws of the Philippine or of any state or territory of the
United States of America; or to any company or corporation in which any alien is employed as
officer or director, or to any company or corporation twenty percent of whose capital stock
may be voted by aliens or their representatives, or by a foreign government or its
representatives, or by any company, corporation, or association organized under the laws of a
foreign country.

4.2 PRESIDENTIAL DECREE

4.2.1 PD 576-A – REGULATING THE OWNERSHIP AND OPERATION OF RADIO

AND TELEVISION STATIONS AND FOR OTHER PURPOSES

SECTION 1. No radio or television channel may obtain a franchise unless it has sufficient
capital on the basis of equity for its operation for at least one year, including purchase of
equipment.

SECTION 2. Every radio station or television channel shall allocate at least two hours a day as
a program or programs rendering public service, during such broadcast hours as are normally
regarded in the industry as prime time for a particular type of program and its appropriate
audience.

SECTION 3. No person or corporation may own, operate, or manage more than one radio or
television station in one municipality or city; nor more than five AM and five FM radio station;
nor more than five television channels in the entire country, and no radio or television station
shall be utilized by any single-interest group to disseminate information or otherwise influence
the public or the government to serve or support the ends of such group.

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.

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, g rants, licenses, permits, certificates or other forms of authority
to operate radio or television broadcasting systems shall terminate on December 31, 1981.

SECTION 7. 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.
4.3 EXECUTIVE ORDERS

4.3.1 E.O 205 – REGULATING THE OPERATION OF CABLE ANTENNA TELEVISION

(CATV) SYSTEMS IN THE PHILIPPINES AND FOR OTHER PURPOSES

SECTION 1 The operation of Cable Antenna Television (CATV) system in the Philippines
shall be open to all citizens of the Philippines, or to corporations, cooperative or associations
wholly owned and managed by such citizens under a Certificate of Authority granted by the
National Telecommunications Commission, hereinafter referred to as the Commission.

SECTION 2 A Certificate of Authority to operate Cable Television (CATV) system shall be

granted by the Commission a non-exclusive basis and for a period not to exceed fifteen (15)
years, renewable for another similar period: Provided That such certificate shall be subject to
the limitation that the authority to operate shall not infringe on the television and broadcast
markets.

SECTION 3 Subject to the limitations and procedures prescribed by law, the grantee is hereby
authorized to exercise the right of eminent domain for the efficient maintenance and operation
of Cable Television (CATV) System.

SECTION 4 A special right is hereby reserved to the President of the Philippines, in times of
war, rebellion, public peril or other national emergency and/or when public safety requires, to
cause the closure of any grantee's Cable Antenna Television (CATV) system or to authorize
the use of possession thereof by the government without compensation.

SECTION 5 The grantee shall pay the income tax levied under Title II of the National Internal
Revenue Code, as amended, and a franchise tax equivalent to three per centum (3%) of all gross
receipts from business transacted under the Certificate of Authority.

SECTION 6 The National Telecommunications Commission is hereby authorized to issue the

necessary rules and regulations to implement this Executive Order.

SECTION 7 Presidential Decree No. 1512 dated June 11, 1978 and all laws, orders, issuances
and rules and regulations or part thereof inconsistent with this Executive Order are hereby
repealed or modified accordingly.

SECTION 8 This Executive Order shall take effect immediately

Dayandayan, Alliah Danica F.

4.3.2 E.O 196 - VESTING THE JURISDICTION, CONTROL AND REGULATION OVER
THE PHILIPPINE COMMUNICATIONS SATELLITE CORPORATION WITH THE
NATIONAL TELECOMMUNICATIONS COMMISSION

WHEREAS, current developments stress the need to supervise and regulate the activities of
all
satellite terminal stations with satellite facilities for delivery to common carriers; and
WHEREAS, the Philippine Communications Satellite Corporation is one corporation with
such
satellite facilities;

NOW, THEREFORE, I, CORAZON C. AQUINO, President of Republic of the Philippines,

by
virtue of the powers vested in me by the Constitution, do hereby order:

SECTION 1. The Philippine Communications Satellite Corporation is hereby placed under

the
jurisdiction, control and regulation of the National Telecommunications Commission,
including
all its facilities and services, and the fixing of rates.

SECTION 2. All laws, orders, rules and regulations inconsistent with this Executive Order
are
hereby repealed or modified accordingly.

SECTION 3. This Executive Order shall take effect immediately.

4.4 JOINT MEMORANDUM CIRCULARS

4.4.1 NTC-DICT-DTI JOINT MC 05-12-2017 - PRESCRIBING A ONE (1) YEAR

EXPIRATION PERIOD FOR PREPAID LOADS

SECTION 2. This Memorandum Circular shall cover all prepaid loads of all ICT providers and
public telecommunications entities.

SECTION 3. Prepaid loads of whatever amount shall expire one (1) year from date of top-up
of prepaid loads. The one (1) year validity of the prepaid loads shall be reckoned from the date
of the latest top-up. Public telecommunications entities may offer longer validity or expiry
periods for prepaid loads.

SECTION 4. Prepaid loads purchased for promos and bucket of services with specific period
of use duly approved by the Department of Trade and Industry (DTI) and/or the National
Telecommunications Commission (NTC) shall be excluded from the coverage of this
Memorandum Circular.

SECTION 5. All violations of this Memorandum Circular on the period of the expiry for
prepaid loads shall be penalized accordance with the pertinent provisions of the Public
Telecommunications Policy Act of the Philippines, the DICT act of 2015, their IRR, and other
relevant laws, rules and regulations of the NTC and DICT. All violations on False, deceptive
and misleading advertisement and promotions on prepaid loads and buckets of services shall
be penalized in accordance with the pertinent provisions of the Consumer Act of the
Philippines, its IRR, and other relevant laws, rules and regulations of the DTI.

SECTION 6. All rules and regulations of the DTI, NTC, and DICT not consistent with this
Order are hereby repealed or amended accordingly.

SECTION 7. Any circular, memorandum order, guidelines, rules or any parts thereof
inconsistent herewith are considered superseded or amended.
SECTION 8. 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.

Dimaculangan, Joven L.

5. Information in Relation to National Telecommunications Commission

5.1 A Certificate of Public Convenience and Necessity (CPCN) or authorization predicted on

a valid congressional franchise is required before an entity is allowed to install, operate and
maintain public telecommunications facilities and services in the country. To obtain a CPCN,
an applicant has to file an application with the National Telecommunications Commissions
Commission (NTC), pay the required filing fee, and after which, the application will be
assigned a case number. A Notice of Hearing is published in a newspaper of general circulation.
The application undergoes public hearings, is evaluated and an Order/Decision is issued
granting the CPCN or Provisional Authority (PA). Foreign ownership is limited to 40% to the
company who’s intending to apply CPCN or authorization.

5.2 Push messages are information transmitted to the mobile phone, either subscribed or
unsolicited messages without a user request and are initiated by the public telecommunications
entity or content provider. Under NTC Memorandum Circular No. 03-03-2005, as amended,
commercial and promotional advertisements, surveys, and other Broadcast/Push messages
shall be sent only to subscribers who have prior consent or have specifically opted-in to receive
messages. Subscribers/recipients who do not reply to Broadcast/Push messages shall be
considered to have no opted-in and such broadcast shall be stopped. Broadcast/Push messages
shall not be sent between 9:00 PM to 7:00 AM except on paid subscription services.

5.3 Spam messages are unsolicited or unwanted commercial and promotional advertisements
and surveys.

5.4 Interconnection, as defined by Republic Act 7925 is the linkage, by wire, radio, satellite or
other means, of two or more existing telecommunications carriers or operators with one another
for the purpose of allowing or enabling the subscribers of one carrier or operator to access or
reach the subscribers of the other carriers or operators.