In the year 2002, the telecommunications industry experienced a decrease in investment in network infrastructure expansion except in the wireless communications sector. The fixed line service had a slight decrease in number of subscribed Lines mainly due to the decrease in the affordability level and the availability and use of Cellular Mobile Telephone Systems (CMTS). The growth in the number of subscribers of cellular phone service was phenomenal in the last few years with the introduction of prepaid cards and text messaging service. To some extent, it provided a substitute for local telephone service.

Last year, wireless multimedia messaging service was introduced to enhance the wireless communications networks. However, the multimedia messaging service has yet to gain grounds.

The rates for Internet Services, which provides cheaper messaging with global coverage, had decreased to around Phpl 1.00 per hour. The decrease in rates could be attributed to increased competition under a deregulated environment.

To ensure Level playing field and healthy competition, the Commission has issued guidelines setting interconnection principles to be observed by all public telecommunication entities. Memorandum Circular providing rules and regulations setting cost-based interconnection charges is being prepared.

The Commission has issued Memorandum Circulars to address the following issues confronting the telecommunication industry, namely:

• Provision of high-speed networks and connectivity at rates comparable to neighboring countries in order to make IT and IT-related industries globally competitive;
• Allow local exchange carriers pricing flexibility for their local telephone service including the introduction of local measured service and prepaid service to address oversupply of local telephone lines;
• Encourage small, medium and micro enterprises to invest in telecommunications through the installation of public calling stations and/or telecenters particularly in the rural areas to help promote universalaccess; and
• To address quality of service of cellphone companies, minimum service performance standards were set and prescribed.

The Commission has also allocated more radio frequencies for wireless access networks such as Wireless Local Loop (WLL), Multi-Access Radio (MAR), VSAT and Satellite Phones provide coverage for hard to reach areas

Telecommunications Data as of December 31, 2002

Telecommunications Industry Structure

Local Exchange Carrier Service

Regional Distribution of Telephone Lines

Telephone Distribution by Operator

Smart Data are included in PLDT figures. ETPI, ISLACOM and PILTER figures are based on old reports.

TELEPHONE DENSITY INDEX (1998-2002)

Teledensity (1998-2002)

Cellular Mobile Telephone Service

CELLULAR MOBILE SUBSCRIBER DISTIBUTION
ISLACOM 2002 figure is based on old report.

PUBLIC TRUNK REPEATER SERVICE

TRUNK RADIO SUBSCRIBER DISTRIBUTION
WORLDWIDE, OMNINET, TNRI, BAYANTEL and CORONA 2002 figures are based on old reports.

INTERNET SERVICE

ISP SUBSCRIPTION
Based on paying accounts, the number of dial-up subscibers is estimated at 675,000 and the number of broadband subscribers is estimated at 125,000.

Relative to the proposed amendment to the FM Broadcast Technical Standard on Frequency Separation from the original 800 KHz. to 400 KHz, the Commission, in the past year, has initiated meetings and gathered inputs and recommendations from the industry and affected parties to come up with a memorandum circular to effect the said amendment. The NTC is now in the process of reviewing this proposal in the light of its impact to the FM broadcast industry and the consumers or the listening public as well.

The Commission has also made consultations with the cable television industry in coming up with Guidelines on Program Provisioning for cable television in the light of the recent event involving the pulling out of programs being offered by Star Television from Destiny Cable, Inc. The move is being initiated in order to protect other cable operators who may have experienced the same problem with program providers.

The Commission continuously addresses such issues as cable piracy and pornography. Thus, coordination’s were made with the Intellectual Property Office (IPO) and the Movie and Television Review and Classification Board (MTRCB). A directive regarding the mandatory taping of programs aired by the television stations were issued by the Commission which required the TV networks to tape or record their programs and to submit the unedited copy of the programs to the Commission within five (5) days from airing.

The Philippine Congress is expected to give more attention to updating the country’s laws governing convergence of information and communications technology. Broadcasters can play a more active role in pursuing this because the opportunities in convergence are already here.

To wrap it up, the future development of the Philippine broadcast industry will depend on the use of appropriate technologies, establishing local production capabilities, identifying the right mix of programs, and solidifying the legal framework.

Broadcast Data as of December 31, 2002

Regional Distribution Of Broadcast Stations and CATV Networks

Growth of Brodacast Stations and CATV Networks