July 15, 2011

NTC MEMORANDUM ORDER NO. 07-07-2011

WHEREAS, the

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

WHEREAS,

WHEREAS,

WHEREAS, it has been observed that the service providers are offering broadband/internet connections specifying only the maximum speed;

WHEREAS, customers/subscribers/users have the right to be informed of the quality of the broadband/internet connection service being provided;

WHEREAS, fixed, fixed wireless and mobile broadband/internet access differ in transmission characteristics; SECcIH

WHEREAS, mobile broadband/internet access suffer from signal fading more than fixed and fixed wireless broadband/internet access;

NOW, THEREFORE, pursuant to

1. Broadband service providers shall specify the minimum broadband/internet connection speed and service reliability and the service rates in their offers to consumers/subscribers/users in their advertisements, flyers, brochures and service agreements and service level agreements. The minimum service reliability shall be 80%.

Service Reliability is measured over a period of one (1) month and calculated as:

(Hours in a day x Days in a month) - (Time internet connection speed is below minimum)

(Hours in a day x Days in a month)

The service offers shall specify the service rates for a minimum broadband/internet connection speed and the service reliability. For example: a broadband service provider can offer PhP900.00/month for 512Kbps minimum connection speed and 80% service reliability, or PhP1,000.00/month for 512Kbps minimum connection speed and 85% service reliability, or PhP1,000/month for 1Mbps minimum connection speed and 80% reliability, etc.

2. The subscribers/consumers shall be properly informed of the broadband/internet connection service being offered to them.

3. Service providers offering committed information rate (CIR) shall comply with NTC MC No. 12-19-2004.

4. Failure on the part of a broadband service provider to comply with this Order, the Commission shall file appropriate administrative case against said broadband service provider. HIAESC

5. Any circular, order, memoranda or parts thereof inconsistent herewith are deemed repealed or amended accordingly.

6. This Order 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.

Quezon City, Philippines, July 15, 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