22 December 2008 draft
MEMORANDUM CIRCULAR
No. ______________________
SUBJECT: GUIDELINES ON THE
PROVISION OF CONTENTS, INFORMATION, APPLICATIONS, AND ELECTRONIC GAMES
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;
WHEREAS, the promotion of competition in the telecommunications market is a key objective of Republic Act No. 7925 (RA7925, for brevity), otherwise known as The Public Telecommunications Policy Act of the Philippines, which mandates that a healthy competitive environment shall be fostered, one in which telecommunications carriers are free to make business decisions and interact with one another in providing telecommunications services, with the end in view of encouraging their financial viability while maintaining affordable rates.
WHEREAS,
RA7925 further defines the role of the government to promote a fair, efficient
and responsive market to stimulate growth and development of the
telecommunications facilities and services;
WHEREAS, the provision of contents, information, applications, and electronic games to the consumers creates demand for telecommunication networks and services the development of contents, information, applications, and electronic games should therefore be encouraged and facilitated;
WHEREAS, the entry of more contents, information, applications and/or electronic games providers in the market will result to lower prices benefiting the consumers;
WHEREAS,
to further encourage the development of contents, information applications and
electronic games, the prevailing access charge regime between the
contents, information, applications and electronic games providers and the
networks providers which is revenue sharing should be replaced by fixed access
charge;
WHEREAS,
in the power sector the consumers can purchase their power requirements from
independent power producers power producers are not subject to nationality
requirement;
NOW,
THEREFORE, pursuant to RA7925, Executive Order (EO) No. 546 series of 1979, and
in order to encourage and facilitate the development of contents and the
provision thereof to the consumers, the National Telecommunications Commission
(Commission) hereby promulgates the following guidelines:
A DEFINITIONS
1. The following terms as used in this Circular shall have the
following definitions:
a. Content refers to all
types of contents delivered to/accessed by the users/subscribers such as music,
ring tones, logos, video clips, etc.
b. Information refers to all
types of information delivered to/accessed by the users/subscribers, e.g. road
traffic information, financial information, visa application information, etc.
c. Application refers to all
types of applications delivered to/accessed by the users/subscribers, e.g.
mobile banking, electronic payments, point of sale service, etc.
d. Electronic Game refers to
games played online except gambling.
e. Contents Providers are
persons or entities offering and providing contents to the public for
compensation through the networks, systems and/or facilities of authorized
networks, systems and/or facilities providers.
f.
Information Providers are persons or entities offering and providing
information to the public for compensation through the networks, systems and/or
facilities of authorized networks, systems and/or facilities providers.
g. Applications Providers are
persons or entities offering and providing applications to the public for
compensation through the networks, systems and/or facilities of authorized
networks, systems and/or facilities providers.
h. Electronic Games Providers
are persons or entities offering and providing electronic games to the public
for compensation through the networks, systems and/or facilities of authorized
networks, systems and/or facilities providers.
i.
Contents Developers are persons or entities creating contents.
j. Information Sources are persons or entities providing information to Information Providers.
k. Applications Developer are
persons or entities creating applications.
l.
Electronic Games Developer are persons or entities creating
electronic games.
B REGISTRATION
1. Contents, Information, Applications and/or
Electronic Games Providers, Contents Developers, Information Sources,
Applications Developers, and Electronic Games Developers are required to have
commercial presence in the country and shall secure Certificate of Registration
(COR) from the Commission.
2. There shall be no nationality requirement for contents,
information, applications and/or electronic games providers, contents,
applications and/or electronic games developers and information sources.
3. The application for registration shall be filed and acted upon by the Commission not later than seven (7) working days from date of application.
4. The application shall include the following documents:
a. Valid registration from the
Securities and Exchange Commission or from the Department of Trade and Industry
and Articles of Incorporation;
b. Facilities lease agreement
with duly enfranchised and certificated public telecommunications entity; and
5. The Certificate of Registration shall be valid for a maximum
period of five (5) years. Applicants for registration may opt to apply for
shorter period not shorter than one (1) year. Certificates of Registration
shall be renewable.
D FEES AND CHARGES
1. The following fees and charges shall be imposed:
a. Filing Fee : PhP 300.00
b. Annual Registration Fee: 6,000.00
c. Surcharge for late :
50% of the annual registration fee if application
filing of application is filed within six (6) months
from date of expiry
for renewal 100% if filed after
six (6) months from date of expiry
E RATES
1. The rates shall be deregulated. The contents, information,
applications and/or electronic games provider shall inform the Commission of
the rates for each of the content, information, application or electronic game offered
at least three (3) days prior to the offering of such content, information,
application or electronic game. Contents, information, applications and/or
electronic games providers seeking increases in rates shall inform the
Commission of the details of such increases at least five (5) days prior to the
implementation of the increase. The Commission in the exercise of its mandate
to protect consumers may not allow the increase. If the Commission does not act
on the information within five (5) days from receipt of the same, the contents,
information, applications and/or electronic games provider can impose the new
rates.
F ACCESS CHARGES
1. Networks, systems and/or facilities providers shall provide access
to contents, information, applications and/or electronic games providers upon
request and based on an access agreement. Access to the networks, systems
and/or facilities of duly authorized providers by registered contents,
information, applications and/or electronic games providers shall be
mandatory.
2. The access charge shall be negotiated. The access charge shall be
cost-oriented and shall not be higher than the prevailing retail rates, not
promotional rates, for the service where the contents, information,
applications and/or electronic games are offered/provided.
G CONSUMER WELFARE AND INTEREST
1. Contents, Information, Applications and/or Electronic Games
Providers shall strictly comply to the provisions of
MC No. 05-06-2007 (Consumer Protection Guidelines), MC No. 04-06-2007 (Data Log
Retention of telecommunications traffic), and MC No. 03-03-2005 (Rules and
Regulations on Broadcast Messaging Service) and its amendments.
2. Complaints from the subscribers/users shall be presumed to be
valid. The burden of proof shall be upon the contents, information,
applications and/or electronic games providers.
H Sanctions
1. Violation of any of the provisions of this Circular shall be a
ground for the revocation or cancellation of the registration as Contents,
Information, Applications and/or Electronic Games Provider.
2. The Commission may direct the disconnection of the access to the
networks, systems or facilities of authorized providers pending the investigation
of a complaint filed by a subscriber/user if the Commission finds that there is
strong evidence against the contents, information, applications and/or
electronic games provider.
3. Any violation of this circular shall be dealt with in accordance with
law.
E Final Provision
1. Any circular, order, memoranda or parts thereof inconsistent
herewith are deemed repealed or amended accordingly.
2. 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
RUEL V. CANOBAS
Commissioner
JORGE V. SARMIENTO JAIME
M. FORTES, JR.
Deputy Commissioner
Deputy Commissioner