NTC Memorandum and Circulars 51

Note: Some portions of the following NTC circulars were deleted for the purpose of easy comprehension.
These circulars specially those latest are added in this manual to provide additional information and
factual reference pertinent to rules and technical standards in telecommunications field in the Philippines.

Memorandum Circular No. 02-06-2006

GUIDELINES FOR THE GRANT AND AUTHORIZATION OF 500 WATT FM BROADCAST STATIONS

1. Section 4.2, Class B station, of the Technical Standards and Operating Requirements for FM Broadcast
stations is hereby amended to include Class B-1 as a commercial FM Broadcast station. Consequently,
said section shall read as follows :

A Class-B station shall have an authorized transmitter power of not exceeding 10 kilowatts and an
Effective Radiated Power (ERP) of not exceeding 30 kilowatts, and limited in antenna height of 500
feet above average terrain. The minimum transmitter power shall be 1 kilowatt (KW).
A Class B-1 station is a commercial station having an authorized Effective Radiated Power (ERP) not
exceeding five (5) kilowatts and in no case lower than one kilowatt; and with an authorized transmitter
power output of 500 watts; antenna height shall be limited to 200 feet above average terrain

2. ESTABLISHED SERVICE AREAS is defined herein as the SERVICE AREAS where Class A or
Class B stations have been established prior to the establishment of a 500 Watt (Class B-1) FM station.

3. Only Class A or Class B FM broadcast stations, as defined in Section 4 of the Technical Standards
and Operating Requirements for FM Broadcast Stations, shall be allowed to operate in ESTABLISHED
SERVICE AREAS. The list of ESTABLSIHED SERVICE AREAS is hereto attached as Annex A and
made integral part hereof.

4. Class B-1 stations shall be allowed to operate in areas outside of the ESTABLISHED SERVICE
AREA as defined in Item No. 2 of this Memorandum Circular.

5. New and pending applications for 500 Watt (Class B-1) FM stations shall be evaluated, for compliance
with existing Technical Standards for protection ratios, as Class B applications, provided that the same
shall not be put up in ESTABLISHED SERVICE AREAS as defined in Item No. 2 of this Memorandum
Circular.

6. Existing 500 Watt (Class B-1) FM broadcast stations located in ESTABLISHED SERVICE AREAS
shall be required to operate in accordance with the existing Technical Standards for Class A or Class B
stations. These stations shall be allowed continued operation after validating the technical feasibility of the
same.

7. When a 500 Watt (Class B-1) FM broadcast station has been licensed to operate in a service area prior
to the establishment of any Class A or Class B station in its service area, the same shall be allowed to
continue operating as a 500 Watt station. This area shall not be considered as an ESTABLISHED
SERVICE AREA as defined in Item No. 2 of this Memorandum Circular.
8. All other classifications and requirements for FM Broadcast Stations as provided for in Section 4 of the
Technical Standards and Operating Requirements for FM Broadcast Stations shall be strictly observed.
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9. The 800 Khz. minimum frequency separation requirement for FM broadcast stations having the same
service area shall be strictly observed.

10. A maximum of two hundred (200) Low Power FM (500 Watt) radio broadcast stations shall be allowed
to be established nationwide. However, the Commission may opt to review this cap as the
circumstances warrant.
11. For any geographical region, only a maximum of thirty (30) Low Power FM (500 Watt) radio broadcast
stations may be operated.

12. All classes of FM stations shall be protected up to the 1 mV/m or 60 dBu contour as provided for in
Section 4.5 of the Technical Standards and Operating Requirements for FM broadcast stations.

Memorandum Circular No. 05-08-2005

VOICE OVER INTERNET PROTOCOL (VOIP)

Pursuant to RA 7925, Executive Order (EO) No. 546 series of 1979, and Department of
Transportation and Communications (DOTC) Memorandum dated November 25, 2003, and in order to
maintain and foster fair competition in the telecommunications industry, and to bring the benefits of
efficient VoIP technology to the general public, the National Telecommunications Commission hereby
promulgates the following guidelines:

Sec. 1: Voice over Internet Protocol (VoIP) shall be classified as a Value Added Service within the
contemplation of RA 7925, otherwise known as the Public Telecommunications Policy Act.

Sec. 2: Definitions

a. Customer Premises Equipment (CPE) refers to equipment located in the premises of a

customer which is not part of but are connected directly to the system or network of the PTE.

b. Enhanced Services shall mean those services that improve upon the quality and/or
functionality of services ordinarily offered by local exchange and inter-exchange operators
and overseas carriers.

c. Public telecommunications entity (PTE) refers to any person, firm, partnership or corporation,
government or private, engaged in the provision of telecommunications services to the public
for compensation.

d. Services Ordinarily Provided for by Local Exchange and Inter-Exchange Operators and
Overseas Carriers refer to voice services offered through circuit switched networks.

e. Value-added services (VAS) refer to enhanced services beyond those ordinarily

provided for by local exchange and inter-exchange operators, and overseas carriers
through circuit switched networks.

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f. Voice over Internet Protocol (VoIP) Service is the provision of voice communication using
Internet Protocol (IP) technology, instead of traditional circuit switched technology.

Sec. 3: Any person or entity seeking to provide VoIP for use by the public for compensation shall
register themselves as such with the Commission prior to operation as a VoIP provider. Local
exchange and inter-exchange operators and overseas carriers are hereby allowed to offer VoIP
without need of further registration, provided that, consistent with RA 7925:
a. they ensure that such VoIP offerings are not cross-subsidized from the proceeds of their utility
operations;

b. other providers of VoIP are not discriminated against in rates nor denied equitable access to
their facilities; and

c. separate books of accounts are maintained for VoIP.

Sec. 4: No value-added service provider shall provide VoIP services to the public for compensation
where such services require access to and/or use of a network providers network, facilities
and/or equipment unless it has entered into an agreement with such network provider as to
the terms and conditions of fair and reasonable access and/or interconnection charges for such
access and/or use. In cases where the VAS provider and network provider refuse to negotiate
for the interconnection of their networks, the Commission may, upon the complaint of any
interested party or upon its own initiative, intervene and assume jurisdiction over the matter and
immediately direct physical interconnection of the networks of the parties under such terms and
conditions it may deem proper under the circumstances. Nothing in this paragraph shall,
however, prevent the parties from negotiating and executing an interconnection agreement, and
from submitting the same to the Commission for approval. For this purpose, the parties shall be
given a period of ninety (90) days from receipt of notice of the filing of the complaint within
which to negotiate and execute an interconnection agreement, provided, that until an
interconnection agreement is executed the interconnection mandate adverted to in the
immediately preceding paragraph, if any, shall remain in full force and effect.
Sec. 5: Network providers shall ensure equal access in terms of quantity and quality, at the same prices
for substantially similar services to VAS providers; and shall not discriminate between VAS
providers. For this purpose, the parties shall submit a copy of their agreements on these
matters for purposes of the monitoring and supervision by the Commission within thirty (30)
days upon their execution.
Sec. 6: No public telecommunications entity, network provider or other entity providing Internet access
to subscribers and VAS providers shall impede or degrade the access of such subscribers and
VAS providers to the Internet content of another applications or service provider, except where
such access demonstrably threatens the integrity of the network or facilities.
Sec. 7: Network and/or internet service providers shall not require subscribers to purchase/use or to
refrain from purchasing/using any IP-enabled service as a precondition to obtaining their
broadband service.

Sec. 8: The sale, lease, importation, distribution and/or provision of VOIP equipment, software and/or
accessories that are not directly connected with the network of PTEs, such as those that are
connected directly to computers to enable access to purely Internet-based VoIP services, shall
be allowed. Customer premises equipment (CPE) designed to enable or ease the use of VoIP
shall be governed by the existing rules and regulations on CPEs.

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Memorandum Circular No. 06-08-2005

FREQUENCY BAND ALLOCATIONS for BROADBAND WIRELESS ACCESS

In support of the governments objectives to push the countrys socio-economic agenda through
information and communication technologies and achieving the goal of digital inclusion, enabling
universal, sustainable, ubiquitous and affordable access to ICT by all, the National Telecommunication
Commission hereby re-allocates the following bands for broadband wireless access for fixed, nomadic
and mobile networks:

450 - 470 MHz

1900 - 1910 MHz
1980 - 1990 MHz
2400 - 2483 MHz
2500 - 2700 MHz
3400 - 3600 MHz
5150 - 5350 MHz
5470 - 5850 MHz
10150 - 10650 MHz

The transfer of previously authorized persons or entities operating radio stations within the above listed
radio frequency bands shall be governed by Rule 603 of MC 3-3-96.

Memorandum Circular No. 07-08-2005

RULES AND REGULATIONS ON THE ALLOCATION AND ASSIGNMENT OF 3G RADIO FREQUENCY

BANDS

Pursuant to RA 7925 (Public Telecommunications Policy Act), Act 3846, as amended (Radio
Control Law), and EO 546 series of 1979, the following rules and regulations on the allocation and
assignment of Third Generation Mobile Telecommunications system (3G) radio frequency bands are
hereby promulgated.

SECTION 1: ALLOCATION OF RADIO FREQUENCY BANDS FOR INTERNATIONAL MOBILE

TELECOMMUNICATIONS 2000 (IMT2000) OR THIRD GENERATION (3G) MOBILE
TELECOMMUNICATIONS
1.1 The following radio frequency bands as identified by the International Telecommunications Union
(ITU) are hereby re-allocated for the use of international mobile telecommunications (IMT2000) or
3G mobile telecommunications in the Philippines and shall form part of the National Radio.

Frequency Allocation Table (NRFAT):

825 845MHz*
870 890MHz*
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1880 1900MHz
1920 1980MHz
2110 2170MHz
2010 -2025MHz

*These frequencies are currently assigned to existing CMTS operators.

The above-allocated frequency bands shall be made available for assignment to not more than five (5)
qualified public telecommunications entities (PTE).

SECTION 2: TRANSFER OF AFFECTED USERS

2.1 The transfer of affected duly authorized users of the herein allocated 3G radio frequency bands
shall be governed by Section 603 of Memorandum Circular No. 03-03-96.

SECTION 3: CRITERIA TO BE USED IN THE SELECTION OF QUALIFIED PUBLIC

TELECOMMUNICATIONS ENTITIES

3.1 Only entities with authorizations to install operate and maintain cellular mobile telecommunications
system (CMTS) or 3rd generation mobile telecommunications system (3G) shall be accepted as
applicants for the assignment of herein allocated 3G radio frequency bands.

3.2 Existing duly authorized cellular mobile telephone service providers opting to upgrade their
networks to 3G shall qualify as applicants for the assignment of 3G frequencies subject to the
provisions of the applicable Sections hereof, more particularly, Section 3.6 and Sections 4, 5, 6,
and 7.

3.3 An entity intending to operate a 3G mobile telecommunications system shall file its application for
authority or certificate of public convenience and necessity (CPCN) to install, operate and maintain
a 3G mobile telecommunications system to the Commission not later than thirty (30) calendar days
from the effectivity of this Circular. The applicant shall possess the following minimum
qualifications:

a. Holder of a valid Congressional franchise;

b. For new public telecommunications entities, the minimum paid-up capital stock shall be PhP100
million;

c. For existing duly authorized PTEs, debt to equity ratio shall be 70:30 with total investments in the
CMTS or 3G networks of at least PhP400 million already included in the calculation of the debt to
equity ratio; and

d. Must prove that it has the technical capability to install, operate and maintain the proposed CMTS
or 3G networks. The application shall undergo quasi-judicial process. The process shall be
completed within sixty (60) calendar days from date of the effectivity of this circular.

3.4 The documentary as well as oral evidence submitted by applicants for the assignment of the radio
frequency bands for Second Generation Mobile Telecommunications System (2G) (public mobile
telecommunications system or PMTS) networks shall be updated. The process of updating shall
be completed not later than sixty (60) calendar days from the date of effectivity of this Circular.

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3.5 Entities with more than 50% of common stocks owned by the same person or group of persons
shall be considered as associated applicants, at the time of application, and such entities shall be
allowed to elect one of them to proceed in the filing of application before the Commission.

3.6 Applications for the assignment of 3G radio frequency bands shall be accepted not later than ninety
(90) calendar days from the effectivity of this Circular. The qualified applicants shall be determined
using the following criteria:

a. For existing authorized PTEs, no outstanding unpaid supervision and regulations fees (SRF),
spectrum user fees (SUF), radio station license fees, permit fees and other fees imposed by the
National Telecommunications Commission pursuant to law, rules and regulations.

b. Must submit a written undertaking that it shall interconnect with all 3G networks, cellular mobile
telephone networks, local exchange networks and all other public networks pursuant to existing
laws, rules and regulations on mandatory interconnection.

c. Must submit a written undertaking that is shall allow the sharing of its network and facilities with
other 3G players in areas where demand does not allow more than one (1) 3G network.

d. Must submit written undertaking that it shall negotiate roaming agreements with other 3G
networks or existing duly authorized CMTS service providers.

e. Must submit a written undertaking that it shall abide by the terms and conditions set by the
Commission in cases where its negotiations for interconnection, sharing of networks and facilities
and/or roaming fail to reach agreements within ninety (90) days from date of the start of
negotiations for the same.

f. Must submit proof of track record in the operation of mobile telecommunications systems
particularly 3G networks.

g. Must submit a 5-year roll-out plan to cover at least 80% of the provincial capital towns/cities and
80% of the chartered cities.

h. Must submit schedule of rates for the different types of 3G services to be offered. The schedule of
rates shall be the maximum rates that can be charged within the first twenty four (24) months
from start of commercial operations which shall not be later than thirty (30) months from date of
award of the 3G radio frequency bands. Other 3G services not included in the submitted list may
be offered subject to prior approval by the Commission;

3.7 Entities with applications for the assignment of the 3G radio frequency bands may form a
consortium. A consortium formed must provide the details of all its members, including the details
of their ownership and control structure.
3.8 Applicants for the assignment of the herein allocated 3G radio frequency bands shall be ranked
based on the track record, roll-out commitments and rates to be charged from consumers /
subscribers / users.

SECTION 4: DETERMINATION OF QUALIFIED APPLICANTS

4.1 The Commission shall, not later than ninety (90) days from the effectivity of this Circular, evaluate all
applications for the assignment of the 3G radio frequency bands and determine the best qualified
applicants using the criteria described in Sec. 3.6 of this Circular. Within ten (10) days after the

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determination of the best qualified applicants, the Commission shall send notices of the results of
the evaluation to all applicants.

SECTION 5: PERFORMANCE BONDS

5.1 All applicants for the assignment of 3G radio frequency bands shall post performance bond
equivalent to PhP300M. The performance bond shall be submitted to the Commission not later
than ninety (90) days from the effectivity of this Circular.

SECTION 6: SPECTRUM USER FEES

6.1 The annual spectrum user fees (SUF) for the allocated and assigned 3G radio frequency bands
shall be:

For Paired 3G Frequency Bands:

a. for the first 5MHz, the SUF shall be PhP5,000,000.00 per MHz;

b. for each additional 1MHz or fraction thereof in excess of the first 5MHz but not exceeding
10MHz, the SUF shall be PhP8,000,000.00 per MHz;

c. for each additional 1MHz or fraction thereof in excess of the first 10MHz but not exceeding
15MHz, the SUF shall be PhP10,000,000.00 per MHz;

d. for each additional 1MHz or fraction thereof in excess of the first 15MHz, the SUF shall be
PhP15,000,000.00 per MHz.

For Unpaired 3G Frequency Bands:

a. for the first 5MHz, the SUF shall be PhP3,000,000.00 per MHz;

b. for each additional 1MHz or fraction thereof in excess of the first 5MHz but not exceeding
10MHz, the SUF shall be PhP6,000,000.00 per MHz;

c. for each additional 1MHz or fraction thereof in excess of the first 10MHz but not exceeding
15MHz, the SUF shall be PhP8,000,000.00 per MHz;

d. for each additional 1MHz or fraction thereof in excess of the first 15MHz, the SUF shall be
PhP12,000,000.00 per MHz.

6.2 The SUF shall be paid not later than 31 January of each year. A penalty of 25% shall be imposed if
the amount is not paid within the prescribed period. If the SUF is not paid in full the 25% penalty
shall be imposed on the balance. Additional 1% per month penalty shall be imposed on the
outstanding unpaid SUF.

6.3 An additional SUF of PhP2M shall be imposed on each authorized 3G network operator for every
100,000 additional subscribers/users in excess of the first 4 million subscribers/users. The number
of subscribers/users to be used in he computation of the SUF for the current year shall be based
on the number of subscribers/users reported by each authorized 3G network operator at the end of
the immediately preceding year or one-half (1/2) of the maximum capacity of the access codes
assigned as of the immediately preceding year; whichever is higher.

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6.4 Existing duly authorized cellular mobile telephone service providers opting to upgrade their
networks to 3G using their existing assigned radio frequencies, and qualified pursuant to Sec.3.2
hereof, shall pay annual SUF of PhP65M for the first 10MHz x 2 radio frequency band plus PhP8M
for each additional 1MHz x 2 of radio frequency in excess of the first 10MHz x 2. An additional
SUF of PhP2M shall also be imposed for every 100,000 additional subscribers/users in excess of
the first 4 million subscribers/users. The number of subscribers/users to be used in the
computation of the SUF for the current year shall be based on the number of subscribers/users
reported by each authorized 3G network operator at the end of the immediately preceding year or
one-half (1/2) of the maximum capacity of the access codes assigned as of the immediately
preceding year; whichever is higher. The SUF shall be paid not later than 31 January of each year.
A penalty of 25% shall be imposed if the amount is not paid within the prescribed period. If the
SUF due is not paid in full the 25% penalty shall be imposed on the balance. Additional 1% per
month penalty shall be imposed on the outstanding unpaid of the SUF for the current year shall be
based on the number of subscribers/users reported by each authorized 3G network operator at the
end of the immediately preceding year or one-half (1/2) of the maximum capacity of the access
codes assigned as of the immediately preceding year; whichever is higher SUF.

SECTION 7: OBLIGATIONS OF THE ASSIGNEES

7.1 The assignees shall comply with the following obligations:

a. Within fifteen (15) days from the award of the 3G frequencies, they shall remit to the Commission
payments for the SUF equivalent to one-half (1/2) of the amount specified in Section 6 if the
award is made on or before 30 June and the full amount if award is made after 30 June covering
the year when the award is made, and thereafter, pay annual spectrum user fees prescribed in
Sec. 6 hereof;

b. Increase the paid capital to PhP400 million not later than thirty (30) days from date of assignment
of 3G radio frequencies (for new public telecommunications entities);

c. Begin the installation and construction of the 3G network and facilities not later than twelve (12)
months from date of award;

d. Start commercial operation not later than thirty (30) months from date of award;

e. Cover at least 80% of the provincial capital cities and towns and 80% of the chartered cities
within sixty (60) months from date of award;

f. Strictly comply with the schedule of rates submitted;

g. Strictly comply with the prescribed service performance standards;

h. Interconnect with all 3G networks, cellular mobile telephone networks, local exchange networks
and all other public networks pursuant to existing laws, rules and regulations on mandatory
interconnection;

i. Share its 3G network and facilities with other 3G players in areas where demand does not allow
more than one 3G network at mutually agreed prices or at prices set by the Commission. Only
3G operators that have complied with their approved roll-out plans can share their networks and
facilities subject to mutually agreed commercial terms and conditions; All assignees of 3G radio
frequencies shall within one hundred twenty (120) days from date of assignment of the 3G radio

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frequencies shall jointly submit to the Commission list of areas where sharing of networks and
facilities shall be implemented including the pricing for the use of the networks and facilities.

j. Negotiate roaming agreements with other 3G networks and existing duly authorized CMTS
service providers. Only 3G operators that have complied with their approved roll-out plans can
negotiate roaming agreements among themselves and with existing duly authorized CMTS
service providers; Where parties fail to enter into a mutual agreement within ninety (90) days
from the start of commercial operations of the 3G operators, the Commission shall prescribe the
terms and conditions for roaming. The terms and conditions for roaming prescribed by the
Commission shall only be effective for a period not exceeding three (3) years.

k. Submit an application for authority to install, operate and maintain local exchange lines or public
calling stations in unserved and underserved areas pursuant to Sec. 12 of RA7925 not later than
ninety (90) days from the assignment of the herein allocated 3G radio frequencies; and

l. Comply with all relevant laws and regulations.

Memorandum Circular No. 10-11-2005

GUIDELINES ON THE CABLECASTING of CATV CHANNELS with

CHATROOM FORMATS
:

Section 1 Scope and Coverage

1.1 All Cable TV (CATV) stations cablecasting channels with chatroom formats shall be covered by
this Memorandum Circular and the measures contained herein in connection with the operation of
their chatroom channels.

1.2 Cable TV (CATV) channels with chatroom formats refer to interactive channels that enable
viewers to interact and send messages via SMS (short message service) for reception by the
viewing public.

Section 2 General Provisions

2.1 All Cable TV (CATV) stations cablecasting channels with chatroom formats are required to employ
the use of Automated Filter Dictionary (AFD) for their chatroom channels. The software for the
Automated Filter Dictionary (AFD) shall have the following capability:

a. to automatically mask pre-determined words or phrases not suitable for cablecasting

b. to preview all messages prior to cablecasting

c. to provide the operator the facility to edit or delete messages, upon examination of the same

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d. to automatically screen and block messages from cellular mobile numbers previously banned from
the chatroom 2.2 Cable TV (CATV) operators with chatroom channels shall be responsible for
putting up an Administrator to oversee the operation of the chatroom. The Administrator shall be
responsible for the operation of the Automated Filter Dictionary and the updating of its database,
among others.

2.3 The Administrator shall be operated whenever the channel is cablecasted and shall be situated at
the head-end station of the Cable TV or at a remote location duly registered and approved by the
Commission.

2.4 All chatroom channels shall be required to place an Advisory informing all chatroom users to
refrain from sending messages containing indecent, profane, obscene, malicious language and
content, and all other words and phrases not suitable for cablecasting.

2.5 All Cable TV (CATV) operators are hereby reminded to strictly comply with the terms and conditions
of their Provisional Authority or Certificate of Authority and shall ensure that their signal shall not
contain any profane, obscene or malicious language and content

Memorandum Circular No.11-11-2005

GUIDELINES FOR SHARING/CONSOLIDATI0N OF HEAD-END

FACILITIES OF CABLE TELEVISION STATIONS

In order to allow cable television operators to take advantage of economies of scale and optimize
the use of resources, and to further improve their service to subscribers, the Commission hereby sets
forth the following procedure for consolidation/sharing of head-end facilities by two or more cable
television operators:
1. The sharing of head-end facilities by two or more CATV systems shall require the approval of the
Commission.

2. A CATV operator intending to share head-end facilities shall duly notify the Commission of its intent. A
grantee of a Provisional Authority or Certificate of Authority (PA/CA) shall file a motion before the
Commission, while applicant shall either indicate in its original application or in a motion filed for
such purpose.

3. A Memorandum of Agreement (MOA) and a technical feasibility report shall be submitted together
with the petition, motion or application. The concerned CATV operator/s shall warrant in its MOA and
demonstrate in its technical feasibility report, full compliance with the technical standards for CATV
systems, especially with the cable size requirements, and good signal quality at all times in
accordance with Section 5 of Memorandum Circular 04- 08-88.

4. The MOA shall also include an assignment of liability for violations of NTC technical standards, rules
and regulations that results from or in relation to the sharing of the head-end, between or among the
concerned parties.

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5. Existing CATV operator serving adjoining/contiguous municipalities/cities may be allowed to

consolidate its individual head-end facilities into a single head-end station. A motion shall be filed for
the purpose, attaching with it a technical feasibility report indicating compliance with the technical
standards for CATV systems.

6. The concerned CATV operators shall still secure and maintain their respective TVRO and CATV
licenses notwithstanding the sharing of head-end facilities.

7. The Commission shall not approve the sharing of head-end facilities by CATV operators who have
failed to fully comply with the conditions indicated in their authorities, or against which there are
pending administrative cases for unauthorized retransmission of cable programs.

Memorandum Circular No. 09-11-2005

FREQUENCY ALLOCATIONS for TELEMETRY and OTHER SIMILAR

SYSTEMS

Pursuant to Republic Act 7925 and its Implementing Rules and Regulations, Executive Order 546
series of 1979 and Act No. 3846, as amended, and in the interest of the service, the National
Telecommunications Commission, hereby reallocates the bands 481.250-481.475 MHz and 486.250-
486.475 MHz for the use of Telemetry and Other Similar Data Systems and shall form part of the National
Radio Frequency Allocation Table (NRFAT), The channeling plan is attached as Annex to this circular.

This circular shall take effect fifteen (15) days after publication in a newspaper of general
circulation and three (3) copies furnished the UP Law Center.

Any circular, order or memorandum inconsistent herewith is deemed superseded.

Memorandum Circular No. _____

(draft)

FREQUENCY BANDS FOR THE USE AND OPERATION OF

SHORT RANGE DEVICES (SRDs)

The Commission hereby issues the following rules and regulations for the allocation of
frequencies for, and the use and operation of Short Range Devices (SRDs):

1. Definition of Terms

1.1 Alarms refer to the use of radio communication system for indicating an alarm condition at a distant
location

1.2 Commission refers to the National Telecommunications Commission

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1.3 Equipment for detecting movement and equipment for alert are low power radar systems for radio
determination purposes

1.4 HIPERLANs (High Performance Radio Local Area Networks) are radio systems based on local area
networking solutions that require higher data rates and consequently greater bandwidth for new
multimedia applications spectrum requirements. They are intended for connectivity between
traditional business products such as PCs, laptops, workstations, servers, printers and other
networking equipment as well as digital consumer electronic equipment in the wireless home
network environment.

1.5 Inductive application systems are communication systems based on magnetic fields generally at
low RF frequencies. Inductive applications include: car immobilizers, car access systems or car
detectors, animal identification, alarm systems, item management and logistic systems, cable
detection, waste management, personal identification, wireless voice links, access control,
proximity sensors, anti-theft systems including RF anti-theft induction systems, data transfer to
handheld devices, automatic article identification, wireless control systems and automatic road
tolling.

1.6 Radio determination refers to the determination of the position, velocity and/or other characteristics
of an object, or the obtaining of information relating to these parameters, by means of the
propagation properties of radio waves.

1.7 Radio microphones also referred to as wireless microphones or cordless microphones, are small,
low power (50 mW or less) unidirectional transmitters designed to be worn on the body, or hand
held, for the transmission of sound over short distances for personal use.

1.8 RFID (Radio Frequency Identification Systems) is intended to carry data in suitable transponders,
generally known as tags, and to retrieve data, by hand- or machine-readable means, at a suitable
time and place to satisfy particular application needs. Data within a tag may provide identification of
an item in manufacture, goods in transit, a location, the identity of persons and/or their belongings,
a vehicle or assets, an animal or other types of information.

1.9 RLANs are radio systems for the purpose of replacing physical cables for the connection of data
networks within a building, providing a more flexible and, possibly, a more economic approach to
the installation, reconfiguration and use of such networks within the business and industrial
environments.

1.10 RTTTs (Road Transport and Traffic Telematics), also referred to as dedicated short-range
communications for transport information and control systems (TICS), are systems providing data
communication between two or more road vehicles and between road vehicles and the road
infrastructure for various information-based travel and transport applications, including automatic
toll-collection, route and parking guidance, collision avoidance and similar applications.

1.11 Short Range Devices (SRDs) are devices cover radio transmitters that have low capability of
causing interference to other radio equipment. In general, such devices are permitted to operate on
a non- interference, no protection from interference basis. SRDs offer a low risk of interference with
other radio services, because their transmitted power, and hence, their range, is low.

1.12 Telecommand refers to the use of radio communication devices for the transmission of signals to
initiate, modify or terminate functions of equipment at a distance.

1.13 Telemetry refers to the use of radio communication for indicating or recording data at a distance.
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1.14 Ultra Low Power Active Medical Implant Communication Systems (MICS) are part of a MICS for
use with implanted medical devices, like pacemakers, implantable defibrillators, nerve stimulators,
and other types of implanted devices. The MICS uses UHF transceiver modules for radiofrequency
communication between external devices referred to as a programmer/controller and a medical
implant placed within a human body.

1.15 Wireless Audio Applications are systems that include the following: cordless loudspeakers,
cordless headphones, and cordless headphones for portable use, i.e. portable compact disc
players, cassette decks or radio receivers carried on a person, cordless headphones for use in a
vehicle, for example for use with a radio or mobile telephone etc. in-ear monitoring, for use in
concerts or other stage productions.

2. Operating Parameters

Operation of SRDs shall be on an unprotected and strictly non- interference basis i.e. operators
cannot claim protection against interference and are not permitted to cause harmful interference to other
radio services to which the bands are also allocated. The technical parameter limits hereto prescribed
should not be exceeded by any function of the equipment or by any means.

Type of SRD Frequency Band Power (maximum) Remarks

Ultra Low Power Active MICS
402 405 MHz * 25 uW erp

Biomedical Devices
40.66 40.70 MHz 1000 uV/m at 3m
868.6 868.7 MHz 10 mW
869.2 869.25 MHz 10 mW
869.25 869.3 MHz 10 mW

Alarms
869.65 869.7 MHz 25 mW
2400 2483.5 MHz 25 mW eirp
9200 9500 MHz 25 mW eirp
9500 9975 MHz 25 mW eirp
13.4 14.0 GHz 25 mW eirp

Equipment for Detecting Movement and Alert

24.05 24.25 GHz 100 mW eirp
2400 2483.5 MHz 100 mW eirp
5150 5350 MHz 200 mW eirp
5470 5850 MHz 250 mW eirp

HIPERLANs and RLANS

17.1 17.3 GHz 100 mW eirp
9 59.750 KHz 72 dBuA/m at 10 m
59.750 60.250 KHz 42 dBuA/m at 10 m
60.250 70 KHz 69 dBuA/m at 10 m
70 119 KHz 42 dBuA/m at 10 m
119 135 KHz 66 dBuA/m at 10 m
135 140 KHz 42 dBuA/m at 10 m
140 148.5 KHz 37.7 dBuA/m at 10 m
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3155 3400 KHz 13.5 dBuA /m at 10 m

6765 6795 KHz 42 dBuA/m at 10 m
7400 8800 KHz 9 dBuA/m at 10 m
13.553 13.567 MHz 42 dBuA/m at 10 m
26957 27.283 MHz 42 dBuA/m at 10 m

Inductive Applications
10.2 11 MHz 9 dBuA/m at 10 m
6765 6795 KHz 42 dBuA/m at 10 m
13.553 13.567 MHz 42 dBuA/m at 10 m
26.957 27.283 MHz 10 mW erp /42 dBuA/m at 10 m

Non-specific Short Range Devices, Telemetry, Telecommand, Alarms,

Data In
40.660 -40.700 MHz 10 mW erp
138.2138.45 MHz 10 mW erp
433.050 434.790 MHz 10 mW
868.000 868.600 25 mW erp
868.700 869.200 MHz 25 mW erp
869.3-869.4 25 mW erp
869.700 870.000 MHz 5 mW erp
2400 2483.5 MHz 10 mW eirp
5725 5875 MHz 25 mW eirp
24.00 24.25 GHz 100 mW eirp
61.0 61.5 GHz 100 mW eirp
122 123 GHz 100 mW eirp

Alarms, Data in General and Other Similar Applications

244 246 GHz 100 mW eirp
5795 5805 MHz * 2 W
63 64 MHz * 8 W

Road Transport and Traffic Telematics

76 77 GHz 55 dBm peak
*Individual license required
72.0 73.0 MHz * 80 mV/m at 3 m (field strength)
75.4 76.0 MHz * 80 mV/m at 3 m (field strength)
863 865 MHz 10 mW erp

Wireless Audio Applications

864.8 865.0 MHz 10 mW erp
* for auditory assistance device only.

In case of analogue systems, the maximum occupied bandwidth should not exceed 300 KHz
29.7 47.0 MHz 10 mW erp
173.965 174.015 MHz 2 mW erp
174 216 MHz (a) 10 mW erp/50 mW erp
470 862 MHz (b) 10 mW erp/50 mW erp
863 865 MHz 10 mW erp

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Wireless Microphones
1785 1800 MHz (c) 10 mW eirp/50 mW eirp
630 710 MHz 76 dBuV/m at 3 m
5 8 MHz

Wireless Video Transmitter

24002483.5 MHz
(Narrowband)
100 mW eirp

3. Channel Spacing
Channel spacing for SRDs are defined according to the needs of the different applications.

4. Antenna Requirements
Three types of transmitter antennas can be used for short-range radio communication
transmitters:

4.1 integral (no external antenna socket);

4.2 dedicated (type-approved with the equipment);
4.3 external (equipment type approved without antenna)

Short-range radio communication transmitters shall be designed to ensure that no type of

antenna can be used other than the one that has been designed and type- approved or accepted by the
Commission to show conformity with the appropriate emission level. This means that short-range radio
communication transmitters must have permanently attached or detachable antennas with a unique
connector. A unique connector is one that is not of a standard type found in electronic supply stores or not
normally used for RF connection purposes. Manufacturers are allowed to design transmitters in such a
way that the user can replace a broken antenna with an identical one.

5. Type of Approval/Acceptance Registration and Licensing

5.1 Only type-approved/type accepted equipment shall be allowed to operate.

5.2 For wireless data networks and devices, Section 5 of NTC Memorandum Circular 09-09-2003 shall
apply.

6. Fees and Charge

6.1 Except for registration fee for RFID tags, the schedule of fees under Section 6 of NTC
Memorandum Circular 09-09-2003, shall apply.

6.2 Registration fee for RFID tags shall be Php10. 00 per unit.

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Memorandum Order No. 3-11-2005

GUIDELINES FOR THE REGISTRATION OF VoIP SERVICE

PROVIDERS AND RESELLERS

Pursuant to MC 05-08-2005 (Voice over Internet Protocol), the National Telecommunications

Commission (Commission) hereby issues the following guidelines for the registration of VoIP service
providers.

1. A VOIP Service Provider shall refer to a person or entity providing VoIP services to the public, directly
or through resellers, for compensation. Any person or entity that intends to derive or source VOIP
from a duly registered VOIP provider under an agreement to resell the service directly to retail end-
user customers, shall register with the Commission as a Reseller.

2. Entities intending to register as a VoIP service provider are required to submit/pay the following
documents/fees, in addition to those required to be submitted/paid for VAS registration:

a. Certified true copy of the Securities and Exchange Commission (SEC) Registration or Department
of Trade and Industry (DTI) Registration showing, among others, that the entity is at least sixty
percent (60%) owned by Filipino citizens, and that the paid up capital is at least ten million pesos
(P10,000,000.00);

b. Valid facilities/network lease agreement with duly authorized facilities/network providers;

c. Valid interconnection agreements with duly authorized access facilities/network providers, such as
the local exchange network, cellular mobile network, trunk radio network, broadband access
network, etc., where applicable under Section 4 of MC 05-08-2005; and

d. List of cities and municipalities where the VoIP service will be offered;

e. Filing Fee: PhP 180.00;

f. Registration Fee: PhP50, 000.00/year.

3. Persons or entities intending to register as a VoIP service reseller are required to submit/pay the
following documents/fees, in addition to those required to be submitted/paid for VAS registration:
a. Certified true copy of the Securities and Exchange Commission (SEC) Registration or Department
of Trade and Industry (DTI) Registration showing, among others, that the entity at least sixty
percent (60%) owned by Filipino citizens;

b. Certified true copy of a reseller agreement with a duly registered VoIP service provider;

c. Filing Fee: PhP 180.00;

d. Registration Fee: PhP5, 000.00/year.

4. Certificates of Registration (COR) issued to VOIP Providers and Resellers shall be valid for a period
of one (1) year, and are renewable thereafter.

5. Each VoIP service provider shall post a performance bond in the amount of five million pesos (PhP
5,000,000.00) to guarantee the delivery of VoIP service to the public. VOIP Resellers shall likewise

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post a performance bond in the amount of one million pesos (PhP 1,000,000.00). The performance
bond shall be from a registered insurance or surety company preferably from the Government
Service Insurance System. The performance bond shall be for the duration of the validity of the
certificate of registration as a VoIP service provider or reseller. These entities shall at all time be
covered by a performance bond. The performance bond shall be forfeited in favor of the government
in the event that these entities fail to deliver VoIP service pursuant to NTC rules and regulations.

6. Each registered VoIP service provider shall be assigned a VoIP service prefix 09xx. Only a
user/customer/subscriber with an assigned VoIP subscriber number shall be allowed to originate
and/or receive VoIP calls/traffic.

7. Only duly registered VoIP service provider shall be allowed to offer VoIP service using Toll Free
service. Each registered VoIP service provider offering this type of service shall be assigned a Toll
Free access telephone number 1801-xxxyyyy. Code yyyy shall be assigned to duly registered
VoIP service providers. Code xxx shall be assigned to duly authorize local access network
providers as follows:

Code Local Access Network Provider

100 199 PAPTELCO Members

200 Bayan Telecommunications, Inc.
201 Bell Telecommunications Philippines, Inc.
203 Digital Telecommunications Philippines, Inc.
204 Innove Communications, Inc.
205 Philcom Corporation
206 Philippine Long Distance Telephone Corp.
207 Pilipino Telephone Corporation
208 Telecom Technologies Philippines, Inc.
209 Telecommunications Office (CICT)
302 Express Telecommunications, Inc.
303 Globe Telecom, Inc.
306 Smart Communications, Inc.
400 404 3G Network Operators

8. All VoIP calls/traffic, outgoing and incoming, shall pass through duly registered/authorized VoIP
service providers.
.

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Memorandum Circular
No. 08-08-2004A

ADDITIONAL RULES AND REGULATIONS ON THE PURCHASE, SALE, LEASE AND/OR RETAIL OF
MOBILE PHONES

PURPOSE
The primary purpose of this Circular is to enable the NTC to monitor and effectively regulate the
purchase, sale, lease and/or retail of mobile phone units, parts and accessories thereof, in the interest of
the public.

DEFINITION OF TERMS
a. Commission National Telecommunications Commission.
b. Mobile phone a handheld radio communications device employing cellular mobile telephone
system (CMTS) and similar technologies, popularly referred to as cellular phones or cell phones, capable
of transmitting and receiving voice, data and other multimedia services by means of radio waves.
c. Mobile Phone Supplier/Distributor (MPSD) a person or entity accredited by the Commission
to engage in the importation of mobile phones, including parts and accessories thereof from
manufacturers and in the sale/distribution thereof to mobile phone dealers.
d. Mobile Phone Dealer (MPD) a person or entity authorized by the Commission to purchase
mobile phones, locally, including parts and accessories thereof from mobile phone supplier/distributor and
engage in the sale to end users/customers. An MPD may put up as many branches which shall pay the
corresponding permit fees as provided for herein below.
e. Mobile Phone Retailer/Reseller (MPRR) a person or entity registered with the Commission to
buy mobile phones, including parts and accessories thereof from mobile phone dealer and engages in a
limited scale in the buy and sell to end users/customers for a limited period.

GENERAL PROVISIONS
a. No person shall engage in the business of a MPD, MPSD and MPRR without first securing the
necessary accreditation/permit/registration certificate from the Commission.
b. No MPD and MPRR shall keep on stock mobile phones which are illegally acquired, and/or
without NTC type-approval/type acceptance labels/stickers on the mobile phones.
c. MPD and MPRR shall register with the Commission all their available mobile phone units in
their stock and/or possession by submitting the list of its International Mobile Equipment Identity (IMEI)
code on a monthly basis. Likewise, they shall also submit a list of all available subscriber identification
module (SIM) numbers in their stock and/or possession.
d. The Regional Offices of the Commission shall furnish the Telecommunication Planning and
Development Department (TPDD), this Commission of all monthly sales and stock report submitted by
authorized MPD.

OPERATING GUIDELINES FOR AUTHORIZED MOBILE PHONE DEALERS AND

RETAILERS/RESELLERS
a. All grantees of permits authorized to operate as an MPD, and MPRR shall in the purchase,
sale, lease and/or retail of mobile phone units, parts and its accessories strictly comply with the provision
of this Circular and other existing radio laws, rules, and regulations.
b. An MPD and MPRR shall not acquire, purchase, sell, lease and/or retail mobile phones from
any unauthorized or illegal source.
c. An MPD and MPRR shall not advertise the purchase, sale, lease and/or retail of mobile phone
units, parts and accessories coming from any unauthorized or illegal source.
d. An MPD and MPRR shall properly identify its business and location by posting conspicuously
at the entrance of its premises a signboard of at least 50cm x 100cm dimension, which shall indicate
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clearly its registered business name, the type of services it offers, its full business address and the MPD
permit number.
e. An MPD and MPRR shall not have in its possession an inventory/stock of mobile phone units,
parts and accessories from any unauthorized and illegal sources.
f. An MPD shall submit a monthly sale s and stock report to the Commission.

PERMITS, REGISTRATION AND FILING OF APPLICATIONS

The following fees and charges shall apply:
Filing Fee PHP 500.00
MPD Permit Fee PHP 2,500.00/year
MPD Branch Permit Fee PhP 1,500.00/yr/branch
MPRR Registration Fee PhP 1,500.00/year
Mobile Phone Supplier/
Distributor Accreditation PhP 2,500.00/year
Inspection Fee PHP 1,500.00/year
Non payment of any of the required fees shall be a ground for the denial, disapproval, suspension and or
revocation of permits.

VALIDITY OF PERMIT
A permit/registration issued to a qualified MPD/MPRR shall be valid for a period of one (1) year,
renewable upon presentation of continued compliance with the above-mentioned requirements.

ADMINISTRATIVE SANCTIONS
a. Illegal purchase, sale, lease and/or PHP 5000.00 retail of mobile phone acquired from (per
unit/violation) any illegal source.
b. Purchase, sale, lease and/or retail of PHP 5000.00 mobile phones without NTC type (per
unit/violation) approval/type acceptance labels/ stickers
c. Illegal importation of mobile phone, parts PHP 5000.00 and accessories thereof (per unit)
d. MPD/MPRR operating without valid NTC Permit PHP5000.00 to include the closure of the
establishment

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