October 24, 2011

NTC MEMORANDUM CIRCULAR NO. 02-10-2011

WHEREAS, the 1987 Constitution fully recognizes the vital role of communications in nation building and provides for the emergence of communications structures suitable to the needs and aspirations of the nation; caSDCA

WHEREAS, promotion of competition in the telecommunications market is a key objective of

WHEREAS,

WHEREAS, Sec. 5c of

WHEREAS, the short messaging service (SMS) is widely used by the citizens in their day-to-day activities; DTSIEc

WHEREAS, the existing interconnection charge for SMS is PhP0.35 per SMS;

WHEREAS, public telecommunications entities (PTEs) are offering SMS at a price as low as PhP0.10 per SMS within their respective networks;

WHEREAS, the retail price of SMS consists of the cost of the network sending the short message or text plus cost of the network receiving the text plus the cost of the interconnection facilities;

NOW, THEREFORE, pursuant to

SECTION 1. The interconnection charge for SMS between two (2) separate networks shall not be higher than PhP0.15 per SMS.

SECTION 2. SMS network providers shall ensure that facilities are sufficient to guarantee that 99% of short messages or texts sent are received by the addressees within 30 seconds from the time the texts are sent.

SECTION 3. Each of the parties to the interconnection shall provide the interconnection links or circuits required to carry their respective SMS traffic. The parties shall ensure that termination equipment is sufficient to connect the interconnection links or circuits to their respective networks. The parties shall provide the interconnection links and facilities with sufficient capacity in a timely manner. cDTSHE

SECTION 4. The PTEs shall amend their respective interconnection agreements to comply with this Circular within ten (10) days from the effectivity of this Circular. The new interconnection charges shall be imposed not later than twenty (20) days from the effectivity of this Circular.

SECTION 5. Violations of herein prescribed guidelines shall be imposed penalties pursuant to existing laws, rules and regulations.

SECTION 6. This memorandum circular shall take effect fifteen (15) days after publication in a newspaper of general circulation, and three (3) certified true copies furnished to the UP Law Center.

Quezon City, Philippines, October 24, 2011.

(SGD.) GAMALIEL A. CORDOBA
Commissioner
National Telecommunications Commission

(SGD.) CARLO JOSE A. MARTINEZ
Deputy Commissioner
National Telecommunications Commission

(SGD.) DELILAH F. DELES
Deputy Commissioner
National Telecommunications Commission