THE CENTRAL OFFICE

The Common Carrier Authorization Department (CCAD)

Recognizing that wireless technology will powerfully impact the way we work and live, and provide significant benefits to our country’s notional development, the NTC via the Common Carrier Authorization Department issued the Following memorandum circulars:

• M.C. 05-08-2005, Rules on Voice over Internet Protocol (VoIP) classifying it as a Value Added Service;
• M.C. 07-08-2005, Rules on the 3rd Generation Mobile Telecommunications System (3G). Under the provisions of this circular, existing duly authorized CMTS operators shall be allowed to upgrade their networks to 3G using their assigned frequencies, provided that they comply with the rules on 3G and the SUF prescribed for 3G shall be paid.
• M.C. 03-03-2005, Rules and regulations on broadcast messaging service, which was prompted by the increasing number of consumers’ complaints
  on push broadcast messages, from the growing number of mobile content providers;
• Preparation of draft rules to enhance the development of Wireless Data Network (WiFi) to compensate for some areas of the country where IT infrastructure needs to be established or improved

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The Radio Regulations and Licensing Department (RRLD)

In 2004, the Radio Regulations and Licensing Department (RRLD) implemented the Following office orders:

• The Guidelines and Procedures to the Registration of WDN Indoor Equipment (RRLD Office Order No.03-04);
• Resumption in the Processing of Permits and Licenses of Certain Companies subject to the Investigation of RRLD, AFD, and COA related to the Collection of Permits and Licenses” (NTC Office Order No 49-04 -2004);
• Creating a Pool of inspectors  at the Radio Regulations and licensing Department (RRLD Of lice Order No.05-04).

Computerization played an important port in the RRLD’s activities  for 2004. It upheld the ongoing maintenance of the existing database of permits and licenses, developed and continued to maintain the database for issued WDN Indoor Equipment Registration Numbers and SRRS Special Permit Numbers, and interconnected six (6) workstations of the local area network of the Division o the other units for the easy access of important Files and databases.

Collection of permit and license fees, brought about by spurious receipts from companies that have been subject to the investigation of RRLD, AFD, and COA, have totaled Php635,193.64.

Regulating all radio operators and radio training schools/centers nationwide, in coordination with all NTC Regional Offices, is the Radio Operators and Training Schools Division (ROTSD). The ROTSD has conducted inspections of Four other radio training centers, issued 5,770 licenses and permits, -and collected Php3,04 4,497.00 It has issued three (3) memorandum circulars and four (4) (Of ice Orders designed to improve the policies and procedures stipulated in the approved Quality Standards System
(QSS).

The Safety and Special Radio Services Division (SSSD) of the RRLD revised the Amateur Radio Regulations in line with other countries. It registered radio communications on board commercial fishing vessels of 3.1 tonnage and above.

In compliance with the International Telecommunications Union (ITU) directive
requiring all Philippine registered ships engaged in international trade to subscribe to the services of an Accounting Authority (AA) for the billing and settlement of maritime accounts,  the SSSD approved the Memorandum Circular on the grant of certificates of recognition of Accounting Authorities and Point of Service Activation.

The SSSD also approved the Memorandum  Circular for the mandatory installation of Automatic Identification System and the Ship Security Alert System (SSAS) in compliance with the newly added chapter XI-2 of the SOLAS Convention and tire International Ship and Port Facility Security Code.

The approval of this circular ensures that all Philippine registered vessels going through international routes follow international regulations and, thus, will be allowed entry to foreign ports.

The SSSD posted a significant income increase of 19.5 percent from Php3,874,228.25 in 2003 to Php4,810,050.00

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The Telecommunications Planning & Development
Department (TPDD)

The Telecommunications Planning & Development Department (TPDD), through its Equipment Standards Division (ESI)), issued certificates and permits to  the following: 249 type-acceptances of radio communication equipment, 167 type-approvals of customer premises equipment; 1 62 CPE supplier accreditation certificates; and 1,772 CPE permits to import / release clearances. The total revenues collected for the issuance of these certificates and permits by the ESD amounted to Php1,703,395.00.

The ESD also earned revenues that exceeded its initial target collection for 2004 by 400 percent. The projected target collection was Php446,400.00 but ESD earned Php1,703,395.00

The ESD issued memo circulars and office orders for mobile phone dealers and service centers.

It also opened an ongoing discussion between members of various Technical Working Groups (TWGs) for the formulation of Technical Regulations and Standards for Radio and Telecommunications Terminal Equipment. These regulations and standards are critical in the implementation of the APEC and ASEAN Mutual Recognition Arrangements (MRAs) in 2005; where the Philippines will be one of the participants.

The Legal Department

The Legal Department accomplished the following in the year 2004:

• A total of 632 hearings and an issuance of 140 orders that resolved pertinent issues significant  to the disposition of both administrative and authoritative cases,
• 115 applications received from the Security and Exchange Commission acted upon on a non-objection basis;
• 339 issues out of 387 resolved and submitted in the form of briefs, position papers, and draft letters for the consideration of the Commissioners,
• 8,680 affidavits administered for the OSPAC office;
• Certificates of Public Convenience and Necessity issued to the following:

1. Western Batangas Telephone System, which covered municipalities in the Botongas Province
2. The Radio City Telephone Company, which modernized the telephone service in Meycauayan, Bulacan;
3. The San Carlos Telephone System, which installed, operated and maintained a telephone system in the municipality of Colavatra, Negros Oriental;
4. Innove Communications, Inc.;
5. Sultan Kudarat Telephone System, Inc., which installed a digital telephone system in various municipalities in Sultan Kudarat;
6. Panay Telephone Corporation, which established a telephone system in Antique
7. Sealand Telecommunication Co. Inc., which provided a public coastal radio communications network in Paranaque, Caloocan, Las Piños, Muntinlupa, Pasig, Taguig, Quezon City, Valenzuela, Navotas, Malolos, Bulacan, San Pedro Laguna, Aritipolo, Bacoor, Dasmariñas, Gen. Moriana Alvarez, lmus, Silang, and certain areas in Cebu;
8. Datelcom Corporation, which converted the CPCN into a telephone system in Pampanga

The Frequency Management Division (FMD)

For the year 2004, the Frequency Management Division (FMD) accomplished the following:

• Issued Memorandum Circular 03- 05-2004 for Wireless Local Loop (WLL) Technology and Memorandum Circular 04-05- 2004 for the Aeronautical Mobile
  Satellite Services on Secondary Basis;
• Conducted a public hearing for the proposed MC on Frequency Allocation and Block Arrangements for Fixed Wireless Access Systems in the band 3400-3600 Mhz and 10.15-10.65 GHz.;
• Prepared a Draft MC on Rules and Regulations for the use and operation of Short Range Radio Devices;
• Identified Frequency bands for 3G networks;
• Issued the Office Order on the Decentralization of VHF and UHF narrow band Frequency channels For Fixed and Land Mobile Services for the NTC-NCR;
• Prepared and submitted design guidelines for Automated Spectrum Management Systems Protect (ASMS Project) and created the ASMS Prolect Team;
• Created the NTC Committee For Radio Communication Issues and Concerns at the National, Regional, and Institutional Levels;
• The detailing of three engineers to augment the existing technical manpower complement of FML);
• The creation of an interim frequency assignment database that is being utilized by the staff;
• Training programs attended by staff and engineers;
• The processing of a total of 669 frequency applications consisting of 47 Notices of Frequency Supportability for 576 stations; 366 Frequency Assignment Sheets for 9,338 stations and 256 Frequency Assignment Notices For 2,54 I stations;
• A total of 8,437 equipments were granted storage;
• A total of 323,155 coordinations were made;
• 44 Applications were included to dead files for applicants’ lack of interest.

The Broadcast Services Division (BSD)

During 2004, the Broadcast Services Division (BSD) came up with draft circulars in line with its mandate to institute policy guidelines for broadcast technology for future implementation, and, to encourage a wider use of the spectrum:

• Draft on Digital FM Radio Broadcasting;
• Draft on Low Power FM Radio stations, after two public hearings in 2004, and now currently for the consideration and approval of the Commissioners;
  
• The CATV Headend Consolidation/Shoring, which established procedures to allow two or more cable television operators to share the usage of one common headend facility.

The BSD has also prepared a proposed office order that sets a minimum requirement for the issuance of Certificates of Authority. This requirement will include the operation of three channels for community, news and information, and education, cultural and civic channels. Another proposal is the evaluation of all CATV applications to determine each one’s economic viability and financial capability.

The approval of the circular on Mandatory Taping has further empowered the Commission in its supervisory, adjudicatory, and regulatory functions over all radio and television broadcast stations.

The BSD has represented the Commission in the following important consultation meetings:

• The deliberation on the on-going Japan-Philippines Economic Partnership Agreement (JPEPA) spearheaded by the National Economic arid Development Authority;
• Meetings called by the Intellectual Property Office on the Proposed WIPO Broadcasting Treaty;
• Series of Senate and Congres­sional meetings with respect to certain committees’ concerns that directly deal with radio, television, and CATV operations;
• Regional visits and provincial meetings that help the BSD fully appreciate regional developments and their implications.
  

The BSD issued a total of 1,217 licenses, and noted the growth of broadcast stations and CAN networks to 2,747 in all the regions.

It also reported the following fees for 2004:

• Php 59,447,799.80 - Total Collectibles for Supervision and Regulation Fees;
• Php 9,410,11242 - Total Collectibles for Surcharges;
• Php 48,301,846.06 - Total Amount Collected on SRF;
• Php 3,445, 552.67 - Total Amount Collected on Surcharges;
• Php 11,145,953.74 - Total Accounts Payables on SRF;
• Php 5,964,559.75 - Total Accounts Payable on Surcharges.•

REGIONAL OFFICES

National Capital Region (NCR)

The launching of the Express Serbisyo so Publiko improved services for the public and effectively implemented the mandate of the NTC. Filipinos in the NCR felt the impact of three of the qualities that the NTC emphasized within its ranks and for its services: professionalism, integrity, and transparency.

Total revenue collection for 2004 surpassed the year-end objective by more than 258 percent and showed an increase from last year’s collection. The collection For 2004 totaled Php42,130,363.35 in contrast to 2003’s Php2 1,122,41 0.40.

One reason attributed to this revenue increase was the public’s positive response to NTC’s streamlining of processes and procedures in order to attend immediately to the filing of applications. The “normal” processing time of one to two weeks was reduced, which led to the elimination of unnecessary red tape and, more importantly, put fixers out of business. This last development further enhanced the public’s trust in and goodwill for the NTC.

The drive to weed out “colorum” users and expired licensees and permits intensified as 694 cases were filed in comparison to the 131 cases filed in 2003.

Cordillera Administrative Region (CAR)

In 2004, the NTC CAR implemented the hollowing:

• Six (6) inspections of broadcast stations;
  
• Inspections of 13 CATV stations;
  
• Five (5) 1VRO registrations;
  
• The NTC CAR web page;
  
• Interconnection of NTC CAR computers with local area network;
  
• Information dissemination campaign for the registration of the MPDs and MPSC prior to the implementation of NTC MC 07-08-2004 and 08-08-2004;
  
• Inspection of 934 radio installations within the region;
  Outreach programs in far-flung areas down to the barangay-level;
• Five (5) training seminars for CAR personnel;
• Computerization of the processing of ROCs.

NTC CAR issued New and Renewals of Radio Station Licenses, Radio Operators’ Certificates, and other Permits totaling to 2,792, resulting to a generated revenue collection of Php2,654,4 18.04 for various regulatory fees, a 15.24 percent increase from 2003 collections.

Region I

NTC Region I was visible in various outreach projects during 2004. Telecommunications Executives in the region attended a dialogue initiated by the NTC Commissioner and Deputy Commissioners.

Also conducted were NTC on Wheels
Campaign Projects in Dagupan City,
Urdaneta City, Alaminos City, and Tayug in Pangasinan.

Region I issued a total of 3,367 radio licenses, permits, and certificates completed within the specified time frame. A total of 286 cell phone dealers and service centers were registered, and another 1,654 various radio installations were inspected.

Concerning its radio frequency monitoring, NTC Region I reached 18.82 percent higher than its target, a total of 4,753 various frequencies monitored.

Region I collected Php3,202,231.06 in revenues from licenses, permits, certificates, fines, and administrative penalties, about 6.74 percent higher than its target.

Eighty (80) percent of over-all personnel were sent to training as part of human resource development.

The following projects were undertaken for NTC-. Region l’s ICT development:

• Active participation in the Regional Information Technology and e-Commerce Committee, an inter-agency work group that addresses the IT and e-commerce needs of Region I;
  
• The government e-procurement project which accesses the e­procurement for the purchase of government units;
  
• Maintenance and improvement of the NTC- Region I website;
  
• Procurement of 3 additional computer units and maintenance of existing computer systems;
  
• A total of 574 complaints and cellular phone blocking requests have been forwarded to the OSPAC Central Office

Region III

Revenue collections in 2004 soared by 194.65 percent compared to the target, and 10.87 percent compared to 2003.Total revenues for 2004 were Php14,732,349.12 compared to Phpl3,287,621.10 in 2003.

NTC R-IIl also registered 554 mobile phone dealers and mobile phone service centers in compliance with MC 07-07-2004 and 08-08-2004.

NTC R-III extended its support to various institutions in the regions:

• Strengthening of linkages with RIII-Consumernet through the Department of Trade and Industry, local government units and other concerned government agencies;
• Participation in the first Regional Seminar/Orientation on Disaster Management with the different radio groups in the region in support and coordination of the Regional Disaster Coordinating Council;
• Organizations of series of meetings with different Provincial Disaster Coordinating Councils to assess and enhance communications capabilities of different provinces;
• Mobilization of the different radio groups in the region for assistance in the operations of SUMVAC 2004 and OPLAN KALULUWA 2004

Region IV

NTC R-lV extended a network of support to the Quezon province victims hit by the super typhoon in December of last year by establishing a radio communication network that served as a means of receiving and forwarding critical messages to the concerned parties. This was done in cooperation with the various local government units and civic groups. This network now provides access for various radio groups and other government entities doing relief, rescue, and rehabilitation efforts in areas where cell phones and landlines have been rendered useless.

Bases were installed in strategic locations in the various municipalities of Infanta and Quezon. Portable radios were also loaned to the temporary evacuation center at Central Elementary School in Real.

As a member of the Agencies of the Regional Disaster Coordinating Council, NIC R-IV continues to work with government agencies in assisting the catastrophe victims.

Region V

NTC R-V had inspected a total of 3,028 stations, made 13 frequency assignments, and issued permits to 30 mobile phone dealers and 31 mobile phone service centers. During its inspection, six radio transceivers had been confiscated.

To promote public awareness of its services, mission, vision, and related government policies and programs, NTC R-V created its own website with its own interactive message board where readers and/or users can give their feedback.

In line with this, engineers have been interviewed by the media to provide more information on radio laws and circulars, complaints mostly related to cell phone thefts, as well as oilier problems in the broadcasting arid telecommunication services. Two engineers have also been assigned as public relations officers to regularly conduct live programs on this su4bject using the Philippine Information Agency’s chain of broadcast stations, Its seminars on RLM reached 363 participants who came mostly From the local government units.

The Licensing Database is 98 percent updated.

NTC R-V has conducted a survey on the municipal level to determine the universal access to CT infrastructure and services. It has also become a member of the Regional Information Technology and Electric Commerce Committee, which is entrusted with the task of promoting the application and development of CT in the Bicol Region.

NTC R-V collected Php2, 144,100.24, which is merely 7.7% lower than 2003 despite the tremendous decrease in the usage of conventional radio which was affected by the massive use of cell phones, as well as, the economic crisis.

The 3,500 square meter perimeter once covering the entire NTC R-V property was extended to include the parcel of land that the NTC acquired from TelOf.

Region VI

The encoding of permits and licenses in NTC R-VI exceeded the year’s targets by 449 percent from a projected 500 to an actual 2,746. Monitoring activities also exceeded targets by more than 200 percent, from a projected 5,250 to an actual 16,035. Revenue collection showed a slight increase from Php5.207 million in 2003 to Php5.455 million in 2004.

NTC R-VI continued with implementing policies designed to speed up the issuance of license permits, reduction of red tape, and the improvement of efficiency with NTC ON WHEELS and the WHILE YOU WAIT POLICY.

As a result of active information dissemination, another 52 cell phone dealers, and 79 cell phone service centers were issued permits.

In its fight to combat crimes against cell phone users, NTC R-Vl reported the allowing: 774 blocking of lost or stolen cell phones; 1 2 unblocking of recovered lost or stolen cell phones; and 58 complaints for illegal texting received.

The rehabilitation of the NTC Regional Office continues, supported by IT infra­structure such as one server, wireless LAN, two access points, and 13 workstations.

Region VII

In 2004, NTC R-Vll inspected 1,468 radio stations, which represents a 120.82 percent increase compared to last year, but still amounts to only 58 percent of its actual target. The shortfall is attributed to the pressing matters that must be attended to by engineers, specifically the reduction of processing time of permits and licenses and the acceptance and inspection of cell phone dealers and service centers.

Sixty six (66) administrative cases were filed against violators of existing radio lows, a 104.76 percent increase compared to lost year and keeps within 110 percent from the total target of 60. Administrative cases decided totaled 36 representing 60 percent from the target of 60.

Radio monitoring included 45,163 radio frequency channels, 25,092 broadcasts, and 9,983 OPMs. Compared to last year’s activity, this shows an increase of 172.68 percent, 1 95.48 percent, and 177.06 percent, respectively.

A total of 105 frequency assignments were made in 2004, or 175 percent of the year-end target of 60. New and renewals of radio station licenses, radio operator certificates and other permits, accounted to 12,327 or 123.27 percent of the year-end target of 10,000.

Revenues for the year 2004 amounted to Php11,527,764.54 compared to Php11,327,136.67 for the year 2003; this represents 101.78 percent increase com­pared to the collection in 2003 and 104.79 percent against the projected target for 2004.

In 2004, NTC R-VIl received 1,459 requests for cell phone blocking, 51 complaints for malicious texting and 58 reports on text scams.

NTC R-VII also showed a high visibility profile in 2004 with the following activities:

• Halad sa Katawhan with President Gloria Macapagal-Arroyo;
  
• Infocaravans, seminars, and weekly radio programs on consumer education and awareness.

Region VIII

In 2004, NTC R-VIII inspected 1,748 radio stations. Radio monitoring oversaw 5,665 radio frequency channels.

Concerning licensing, nine frequency assignments were made for the period. A total of 2,555 radio issuances were made for both new and renewal of radio station licenses, radio operator certificates and other permits. Processing time of RSL was reduced from ten days to three, and renewal from ten days to one; meanwhile, new ROCs can be obtained within ten days from the previous 15 days, and ROC renewal was reduced from live days to one.

Total revenues generated for the year
2004 amounted to Php3,384,503.40, a
36.75  percent increase from the 2003
figure of Php2,474,963.27.

Region IX

In 2004, NTC R-IX accomplished the following;

• Collection of Php1,295,361.00 in license fees compared to actual target of Php940,000;
• Collection of miscellaneous receipts of Php916,290.50
  compared to the actual target of Php740,000.00;
  
• Total collections of Php2,871,862.15 compared to the actual target of Php2,350,000.00;
• Operation Tumba Radyo implemented radio laws and
  regulations by the setting up of mobile check points with the cooperation of the Philippine National Police and local municipalities;
• The Outreach Licensing Program brought the licensing to the target public;
• Frequency assignments increased from 12 to 18 percent

Region X

NTC R-X was able to achieve the following in 2004;

• 3,739 licenses, permits, and certifications issued (actual target 3,650);
• 3,428 inspections (target was 2,300);
• 48,827 frequency channels monitored (target: 22,000);
  
• 88 administrative cases disposed;
  
• 44 frequency assignments made compared to the target of 20;
  
• 29,415 broadcast programs monitored compared to target of
  20,000;
• 3 mobile licensing via the NTC on Wheels for the month of December.

NTC R-X’s OSPAC arm received 58 requests for the blocking of cell phones, 3 complaints against malicious texting, and 5 requests for the mandatory taping of radio and TV programs.

Public goodwill was also enhanced by serving free coffee to transacting clients while processing their licenses and permits.

In 2004, NTC R-X collected revenues totaling Php4,609,426.65, a 139.68 percent increase from the target of Php3,300,000.00

Region XI

NTC R-XI was involved with very high profile projects in 2004. These included the massive ocular inspection and investigations of all existing CT infrastructure and services in the Davao region, the inventory and assessment of city provincial/municipal and barangay ICT infrastructure and services, and extensive information dissemination on mobile phone dealership and repair shop registration.

NTC R-XI also made significant property moves such as the rehabilitation and repair of the Regional Office building and facilities; the disposal and transfer of unserviceable property to TESDA; and the closure of the FM Madayaw Station in Mati, Davao Oriental.

NTC R-XI also strengthened the enforcement of its laws and regulations. The Enforcement Division monitored 12,404 frequencies and investigated 5,349; these exceeded targets by 248.08 percent and 152.83 percent respectively.

One hundred forty two cases were filed against violators, 105 were decided, and as of Dec. 31, 2004, another 261 cases are pending. Fine collection amounted to Php446,500.

The intensified enforcement operation in the region was instrumental in increasing the total revenue generated to Php7,476,362.13 or a 187.5 percent increase from the projected target.

Region XII

NTC R-XII points to o list of accomplishments for 2004:

• Actual revenues of Php4,499,364.37 compared to the Php2,000,000.04 target set by the DBM;
• 
  Actual 57 administrative cases disposed compared to the target of ten;
• 
  A total of 3,047 licenses, permits, and certificates issued compared to the target of 1,300;
• 
  A total of 3,481 inspections conducted compared to the
  target of 900;
• 
  Six frequency assignments made, compared to the target of five;
• 
  Attendance in the Technical Working Group on the revision of Deportment Order No. 97-1 113 in Zamboanga City in February 2004;
• Participation in the NTC Strategic Planning/ Workshop in Antipolo on March 3.5, 2004;
• The first regional visit and signing of MOU between NTC and AM/FM broadcast stations for both KBP and non-KBP members alike;
• Implementation of the common obligation and agency responsibilities pursuant to a Memo-Agreement in the joint Mobile Registration and Licensing Team between BFAR-MARINA, PCG and NTC;
• Seminar conducted for eight companies and local government units as per their request which had 407 participants.

Region XIII

In 2004, NTC R-Xlll inspected 1,424 radio stations which included 6 AM stations, 10 FM stations, 4 TV stations/TV translators and 13 CATV stations.
Eighteen administrative cases were filed against radio law violators and 15 were decided.

Radio monitoring oversaw 20,161 radio frequency channels, 10,376 broadcasts, and 8,460 OPMs.

Concerning licensing, 25 frequency assignments were made for the period. A total of 1,124 issuances were mode for both new and renewal of radio station licenses, radio operator certificates and other permits, which amount to 112.40 percent increase from the year’s target. Processing time of RSL was reduced from 3 days to one or two, and renewal from one day to half a day. Meanwhile, new ROCs can be obtained within one week from the previous 15 days, and ROC renewal was reduced from one day to 20 minutes.

Total revenues generated for the year 2004 amounted to Php1,218,655.30 or 121.865 percent from the target of Php1 million.

Other activities of NTC R-XIII include:

• Public hearings on apparent radiation caused by cell sites in Agusan del Norte;
• Assistance in 29 complaints from cell phone users;
• Personnel training
• Mobile licensing in Surigao and San Francisco, Agusan del Sur;
• Implementation of Memorandum Circular 10-09-2004;
• Information dissemination on cellular phone dealers and service centers in the Caraga region;
• Formation of the Northern Mindanao ICT Task Force(Surigao);              
• Coordination with the Agusan del Norte Provincial Governor Erlpe John M. Amante for the possible acquisition of a 400 square meter lot located at the Provincial Capitol Business Park.•