Board Review

NTC Memorandum Circulars 2005-2006

Pertinent information
Contents: MC NO. 07-08-2005 SUBJECT: RULES AND REGULATIONS ON THE ALLOCATION AND ASSIGNMENT OF 3G RADIO FREQUENCY BANDS MC NO. 06-08-2005 SUBJECT: Frequency Band Allocations for Broadband Wireless Access MC NO. 09-11-2005 SUBJECT: Frequency Allocation for Telemetry and Other Similar Data Systems MC NO. 05-08-2005 SUBJECT: VOICE OVER INTERNET PROTOCOL (VOIP) MC NO. 08-11-2005 SUBJECT: Reiterating Strict Compliance with Executive Order No. 255 dated July 25, 1987. MC NO.: 03-08-2006 SUBJECT: USE AND OPERATION OF RADIO FREQUENCY IDENTIFICATION (RFID) WITHIN THE 13.55313.567 MHz, 918920 MHz, and 2446 2454 MHz BANDS MC NO. 02-06-2006 SUBJECT: GUIDELINES FOR THE GRANT AND AUTHORIZATION OF 500 WATT FM BROADCAST STATIONS MC NO: n/a SUBJECT: Additional Frequency Band Allocation, 410-430 MHz for Broadband Wireless Access __________________________________________________________________________________________________ _ MEMORANDUM CIRCULAR No. 07-08-2005 SUBJECT: RULES AND REGULATIONS ON THE ALLOCATION AND ASSIGNMENT OF 3G RADIO FREQUENCY BANDS SIGNED: 23 AUGUST 2005 SIGNATORIES: RONALD OLIVAR SOLIS Commissioner JORGE V. SARMIENTO JAIME M. FORTES, JR. Deputy Commissioners 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), namely: 825 845 MHz* 870 890 MHz* 1880 1900 MHz 1920 1980 MHz 2110 2170 MHz 2010 2025 MHz *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). Qualifications (Section 3) 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. 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 4 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 RADIO 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 RADIO 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 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. 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 5 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 S 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. Obligations (Section 7) 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; 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; __________________________________________________________________________________________________ _ MEMORANDUM CIRCULAR NO. 06-08-2005 SUBJECT: Frequency Band Allocations for Broadband Wireless Access SIGNED: 23 AUGUST 2005 SIGNATORIES: RONALD OLIVAR SOLIS Commissioner JORGE V. SARMIENTO JAIME M. FORTES, JR. Deputy Commissioners WHEREAS, pursuant to RA7925 (Public Telecommunications Policy Act) and its Implementing Rules and Regulations, the radio spectrum allocation and assignment shall be subject to review in the interest of public service and in order to keep pace with the development in the wireless technology with the end in view of insuring a wider access to the limited radio spectrum and the use of cost effective technology; 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. i.

__________________________________________________________________________________________________ _ MEMORANDUM CIRCULAR NO. 09-11-2005 SUBJECT: Frequency Allocation for Telemetry and Other Similar Data Systems SIGNED: 23 NOVEMBER 2005 SIGNATORIES: RONALD OLIVAR SOLIS Commissioner JORGE V. SARMIENTO JAIME M. FORTES, JR. Deputy Commissioners Whereas, pursuant to Rule 600 of MC 8-9-95, Implementing Rules and Regulations on RA 7925, the radio spectrum allocation and assignment shall be subject to review in the interest of public service; Wherefore, 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 & 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. __________________________________________________________________________________________________ _ MEMORANDUM CIRCULAR NO. 05-08-2005 SUBJECT: VOICE OVER INTERNET PROTOCOL (VOIP) SIGNED: 23 AUGUST 2005 SIGNATORIES: RONALD OLIVAR SOLIS Commissioner

JORGE V. SARMIENTO JAIME M. FORTES, JR. Deputy Commissioners WHEREAS, RA 7925 introduces the novel concept of a value-added service (VAS) provider which is defined as an entity which relying on the transmission, switching and local distribution facilities of the local exchange and inter-exchange operators, and overseas carriers, offers enhanced services beyond those ordinarily provided for by such carriers. WHEREAS, Section 11 of RA 7925 provides that that VAS providers need not secure a franchise, provided that they do not put up their own network. WHEREAS, VAS is not strictly a public service offering in the way that voice-to- voice lines are, but is merely supplementary to the basic service. WHEREAS, added competition in and deployment of VOIP can help achieve the broader policy objectives of RA 7925 to develop and maintain a viable, efficient, reliable and universal Telecommunications infrastructure using the best available and affordable technologies, and to improve and extend services to areas not yet served; Local exchange and interexchange 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.

__________________________________________________________________________________________________ _ November 09, 2005 MEMORANDUM CIRCULAR NO. 08-11-2005 SUBJECT: Reiterating Strict Compliance with Executive Order No. 255 dated July 25, 1987. Under Presidential Memorandum Order No. 193 dated October 4, 2005, the Office of the President directed the National Telecommunications Commission to ensure strict compliance with Executive Order No. 255 dated July 25, 1987 on the mandatory playing of original Pilipino musical compositions in all radio stations with musical format programs. Pursuant to the said Memorandum, all radio stations are hereby mandated to play/broadcast a minimum of four (4) original Pilipino musical compositions in every clockhour of a program with musical format in accordance with Section 1 of Executive Order No. 255. For immediate compliance. Quezon City, Philippines.

(signed) RONALD OLIVAR SOLIS Commissioner

__________________________________________________________________________________________________ _ MEMORANDUM CIRCULAR No.: 03-08-2006 SUBJECT: USE AND OPERATION OF RADIO FREQUENCY IDENTIFICATION (RFID) WITHIN THE 13.553-13.567 MHz, 918920 MHz, and 2446 2454 MHz BANDS SIGNED: August 14, 2006. SIGNATORIES: RONALD OLIVAR SOLIS Commissioner JORGE V. SARMIENTO JAIME M. FORTES, JR. Deputy Commissioners Whereas, pursuant to EO 546 series of 1979, Act 3846, RA 7925 and to Rule 600 of Memorandum Circular 8-995 (Implementing Rules and Regulations of RA 7925), the radio spectrum allocation and assignment shall be subject to review in the interest of public service and in order to keep pace with the development in the wireless technology with the view of insuring a wider access to the limited radio spectrum and the use of cost effective technology; Whereas, the Commission had received several interest from stakeholders, local and international, regarding the use of Radio Frequency Identification (RFID); 1. DEFINITION OF TERMS 1.1 RFID (Radio Frequency Identification Systems) are 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, goods in transit, a location, the identity of persons and/or their belongings, a vehicle or assets, an animal or other types of information. RFID (radio Frequency Identity) systems employ tiny chips and wireless antennas that can be imbedded into products and used for unique identification purposes. It is a contact- less solution that works with proximity readers and RFID tags.

1.2 Proximity readers a device which transmits an interrogating/querying signal to an RFID tag and receives unique information from the tag. Readers have two high level versions- those that store data and those that simply store a reference key for look-up on a host system. Readers maybe classified into: a) low power with erp not exceeding 500 milliwatts, and b) high power with erp not exceeding 2 watts (or 4 watts eirp). 1.3 RFID tag a microchip attached to an antenna that picks up signals from and sends signals to a reader. A tag contains a unique number, but may have other information, such as customers account number. RFID tags maybe classified as: a) active tag - used for long distance purposes such as in toll highways, parking areas, gas stations. This tag uses small batteries which enable it to send signals at a longer distance, and b) passive tags - used very near or in close proximity to a reader and does not use any internal battery. 2. OPERATING PARAMETERS 2.1 The use and operation of RFIDs shall be allowed in the following frequency bands: 13.553 - 13.567 MHz 918 920 MHz 2446 2454 MHz The maximum effective radiated power for readers is a) low power: 500 milliwatts, and b) high power: 2 watts (or 4watts eirp). 4. FEES AND CHARGES 4.1 Proximity readers shall be covered by a certificate of registration to be issued upon one-time payment of the following fees: a. low power readers, PHP 100.00 b. high power readers, PHP 300.00 4.2 Imported RFID tags shall be covered by Permit to Import to be issued upon payment of Permit fee of PHP 100.00 per 1,000 units. __________________________________________________________________________________________________ _ MEMORANDUM CIRCULAR No. 02-06-2006 SUBJECT: GUIDELINES FOR THE GRANT AND AUTHORIZATION OF 500 WATT FM BROADCAST STATIONS SIGNED: June 28, 2006 SIGNATORIES: RONALD OLIVAR SOLIS Commissioner JORGE V. SARMIENTO

JAIME M. FORTES, JR. Deputy Commissioners WHEREFORE, this Commission, pursuant to E.O. 546, S. 1979 and Act 3846, as amended, hereby set forth the following 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: Class-B Station 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 ESTABLISHED 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. 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. 13. Radio broadcast networks applying for authority to operate additional FM radio broadcast stations under this Memorandum Circular must show proof of financial capacity in support of the proposed network expansion.

__________________________________________________________________________________________________ _ MEMORANDUM CIRCULAR NO: ____________________ SUBJECT: Additional Frequency Band Allocation, 410-430 MHz for Broadband Wireless Access SIGNED: 2006 SIGNATORIES: RONALD OLIVAR SOLIS Commissioner JORGE V. SARMIENTO JAIME M. FORTES, JR. Deputy Commissioners WHEREFORE, National Telecommunications Commission, pursuant to RA 7925 and its Implementing Rules and Regulations, EO 546 series of 1979 and Act No, 3846, as amended, hereby reallocates the band

410 - 430 MHz

for broadband wireless access in addition to the frequency bands in MC 06-08-2005 and shall form part of the National Frequency Allocation Table. The transfer of previously authorized persons or entities with operating radio stations within the above radio frequency bands shall be governed by Rule 603 of MC 3-3-96.