REPUBLIC ACT No.

6849

REPUBLIC ACT No. 6849

AN ACT PROVIDING FOR THE INSTALLATION, OPERATION, AND

MAINTENANCE OF PUBLIC TELEPHONES IN EACH AND EVERY MUNICIPALITY IN THE
PHILIPPINES, APPROPRIATING FUNDS THEREFOR AND FOR OTHER PURPOSES

 Republic Act no. 6849 or the “Municipal Telephone Act of 1989 is an

act wherein the installation, operation and maintenance of public
telephones or calling station in every municipality in the Philippines is
conceded and providing funds to implement this act. It is a consolidation
of Senate Bill No. 892 and House Bill No. 3452 and it was passed at
December 20 -21, 1989 by Quirino D. Abad Santos, Jr. and Edwin P. Acoba.
It was approved at February 8. 1990 by the Late President Corazon C.
Aquino.

Section 1. Title.

This act shall be known as the "Municipal Telephone Act of 1989."

Section 2. Declaration of National Day Policy.

Because of the recognition of the benefits of having communication technology

to the rural and urban countries, the state should establish the interconnection of all
municipalities in the country through installation of establishment of a nationwide public
network calling stations.

 It states that the reason why this act being propose is for the community
to have better communication through telephone calling machines
and to have better livelihood community in all municipalities.

Section 3. Projects Office.

To administer the provision of this act, this need to create a Municipal Telephone
Project Office in Department of Transportation and Communication (DOTC) that can
provide the following functions;

a. Can develop a plans and programs for creating a public calling stations in
every municipality capable of voice and data transmission together with other
agencies concerned, and if possible, in Barangays without any existing
telephone exchange and to formulate or to cause to formulate a strategy
through engineering studies.

b. Can implement the formulated plans and programs and can sign the contract
subjected to the rules and regulations for the use of equipment, constructions
of facilities and the installation of the system to be used.
 REPUBLIC ACT No. 6849

c. Can manage of the funding source from any private, government, foreign or
domestic source including the development aid, bilateral and multilateral
loans that is subjected to the applied laws and regulations.

d. Require the compatibility with minimum standards and regulation to

guarantee the standards of construction, maintenance, operation.

e. Can handle the human resource management training for the municipal
telecommunication operators of public calling stations

f. Can furnish enough technical assistance and personnel training programs for
the municipal telecommunications operators of public calling stations

g. Can check if the local telecommunications are economically and

technologically capable through monitoring and evaluation.

Provided that the provincial government of the provinces are established any or
all functions above, are approved.

 In order to operate or administer this act a municipal telephone Project

Office is created under the Department of Transportation and
Communication (DOTC). This municipal Project Office has functions that
need to meet in order to be qualified as one.

o The first function is the ability to develop a plans and programs in

creating public calling stations. Every municipality that is capable of
voice and data transmission and if attainable in every Barangays
must have this telephone Act with the help of other agencies.

o The Project office must sign a contract subjected to the rules and
regulations for the equipment to be use building of facilities and
installation of the system to avoid problems and have legal
operation.

o This kind of act will be needing funds in order to be implemented.

The Project Office should know how to manage the funding source
from any private, government, foreign or domestic source that is
subjected to the applied laws and regulations.

o The project office must handle the project subject to the standards
and regulation of construction, maintenance and operation based
on the situation where the stations will be installed.

o Has the ability to manage the human resource training, accounting

and of relating to financial matters of the public calling stations.
 REPUBLIC ACT No. 6849

o Provide technical assistance and personnel training programs to

have a qualified operators of the public calling stations

o The Project Office should have the ability to check and assess if the
local telecommunications are economically and technically
feasible in such operations.

Section 4. Management of the Projects Office.

The Project Director, have the quality of incorruptibility, competent and

experienced in the technical field related to this Act, must be appointed by the President
of the Philippines through the recommendation of the Secretary of Transportation and
Communications. He must have the rank, position and emoluments of an undersecretary.

Powers and duties that the Project Director must have:

a. To implement/execute the plans and projects to accomplish the policy of this

Act.

b. To supervise and instruct the operators and the administration of the Project
Office and to appoint the candidates for subordinates.

c. To follow the guidelines that the Secretary of Transportation and

Communication provided, to coordinate to the Department of Budget and
Management to fix the proper salary of the subordinates of the Project Office
that is subjected to the Civil Service Law.

d. To always prepare an annual report on or before of the end of the first quarter
after the fiscal year and to be submitted to the President of the Philippines and
give a copy of annual report to the Congress of the Philippines.

e. To practice the said powers and duties effectively and appropriately to portray
the purpose of this Act.

 In this section, it states that the Project Director shall be appointed by

the President of the Philippines recommended by the Secretary of the
Transportation and Communications. He shall not only a person of
integrity, competence and experience in technical field related to the
act, but shall have the followings powers and duties aside from having
the rank, position and salary of an undersecretary.

o He has the power to implement and administer the plans and

projects to achieve the policy set forth in this act.

o He has the power to instruct and supervise the operation and

administration and for the purpose to appoint appropriate
subordinate officials.
 REPUBLIC ACT No. 6849

o He must follow the guidelines to the Secretary of Transportation and

Communication and liaise to the Department of Budget and
Management to enable himself to regulate the salary of his
subordinate according to the Civil Service Law.

o He must prepare an annual report on the activities of the Project

Office on or before the end of the first quarter after the fiscal year
completed. Fiscal year is a one year period that government use for
financial reporting and budgeting and submit a copy to the
President of the Philippines and Congress of the Philippines.

o He has the responsibility to practice such other powers and acts that
are necessary to portray the purpose of his Act as may be assigned
in him by the Secretary of the Transportation and Communications.

Section 5. Rights of First Option.

All new and existing telecommunication carriers, public or private, and have been
certified by the National Telecommunication Commission as an official services provider
are have the Rights of the First Order under equal conditions and circumstances. To
provide, install, and operate public calling stations in provincial communications network
that connects to the other network stations or to the other national transmitting facilities.
This shall execute through writing to the Project Office within six (6) months after the
effectiveness of this Act to indicate their province of choice and the date of the
execution.

 All new and existing telecommunication carriers, public or private, and have
been certified by the National Telecommunication Commission as an official
services provider are have the Rights of the First Order under equal conditions
and circumstances.

Section 6. Frequency Allocation.

The National Telecommunication Commission (NTC) has given the power to assign
or reassign the existing radio frequency in order to haste the implementation of this
Project.
 The National Telecommunication Commission (NTC) is authorized to
assign and reassign when necessary, radio frequency in every stations
in order to accelerate the operation of this Project

Section 7. Rates and Mandatory Sharing of Toll Revenue.

The National Telecommunications Commission will give the fix, reasonable, and
uniform rate of charges for every transactions of calls in category of:

a) Municipal to International;

b) Municipal to Metro Manila, and other domestic long distance calls;

 REPUBLIC ACT No. 6849

c) Municipal to Provincial Capital;

d) Municipal to Municipal;

(1) Of the same province

(2) Of difference provinces, other than domestic long distance.

National Telecommunications Commission will also authorize and implement the

toll revenue from sharing and collection scheme. The share of the local exchange
operators in toll revenues will be remitted within ninety (90) day form receipt.

 The NTC shall state an affordable, uniform and reasonable call cost rate and
charges for every single call in the public calling station. It must be also
respect to the standards and guidelines within the conduction of cost rate
with the Regional Development Councils.

 It will also authorize the toll revenue scheme which they must repay the locals
with the fees that they can get from the call charges. The share of exchange
operators will be forwarded within ninety (90) days from the receipt.

Section 8. Timetable of Implementation.

Each of the municipalities in the Philippines that doesn’t have a telephone

system must have at least one (1) public calling station or public telephone by the
third year of effectivity of the act, if the project office didn’t mount public calling
stations for some provinces and municipalities not covered by private
communication utilities, under section 5. The office can extend the installation at
remote barangay if the resources that will be used is allowed and capable at the
place wherein the project is installed. The public calling station shall interconnect
to the public switched telephone network or other national transmission facilities,
subject to the technical interconnection standards prescribed by the NTC.

 Under Section 5, which all telecommunication carriers must install within six
(6) months in every municipality or provinces. If not, there should be at
least one (1) public calling station within three (3) years of the
implementation of the act.

 The Project Office should extend the installation of the public telephone
station to another remote areas/barangay where resources permitted.

 Accordance to the technical interconnection by the NTC, Public Calling

stations should be connected to each other even the provider does not
the same and consistent to the public switched telephone network or
National Transmission Facilities.
 REPUBLIC ACT No. 6849

Section 9. Operation by Local Governments.

Provinces and Municipalities such as barangay was given permission to set

up, operate and maintain their respective public calling stations or to facilitate to
franchise the stations to the private areas for the operation and maintenance of
the telephone system or calling stations. They should provide the proof of validity
that the National Telecommunications Commission approved.

 Provinces and Municipalities should manage the implementation,

installation, operation and maintenance of the public calling station in
their respective places and to authorize to franchise private entities to
maintain the operation of the public calling system. Also, the NTC must
guarantee to shoulder the requirements; technical and financially of
public services.

Section 10. Appropriation.

The allotted amount for this act to be implement is two hundred million
pesos (₱200,000,000) provided under Title 1 – Telecommunications of Executive
Order of No. 182. In addition, another three hundred million pesos (₱300,000,000)
of foreign currencies from their order of preference, from foreign grants,
concessional loans, official development assistance, commercial loans, and/or
export credits will be necessary to meet the need to implement this Act.

 To implement the act, two hundred million pesos (₱200,000,000) is the

estimated amount, accordance to the Title 1 - Telecommunications of
Executive Order no.182. Additional three hundred million pesos
(₱300,000,000) is also the estimated amount from other sources to meet
the intent of the act.

Section 11. Official Development Assistance.

The municipal telephone program in this Act will have the authority to
have foreign loans and grants without further evaluation by the NEDA Board by
the Section 21, Article XII of the Constitution.

 According to the National Economic and Development Authority, The

Municipal Telephone Program will be permitted to avail foreign loans
and grants without the further evaluation of the NEDA subject to
Section 21, Article 12 of the Constitution.

TRANSITORY PROVISIONS

Section 12. Sunset Clause.

The Project Office will not have more than ten (10) years from the date this
Act approved and may only extend through the Congress. The System operating
in each province shall be turned over in exception to the mentioned in Section 5.
 REPUBLIC ACT No. 6849

 The project office doesn't have more than 10 years life span and can
extend through the approval of the congress of the Philippines. When
the term is over, the systems that are still functioning will turned over to
the Office except to the mentioned in the Section 5 of this Act and can
continue the operation per se.

Section 13. Separability of Provisions.

Any portion or provisions of this Act that maybe declared unconstitutional

or invalid does not grant any nullifying effect to the other portions and provisions
as long as it is stated and approved.

 Any part of this constitution that was not declared legible are not
functioning and does not affect the other part unless it is declared
legible.

Section 14. Repealing Clause.

All acts or parts of acts that had been inconsistent shall be repealed or
change accordingly.

 Anytime, all parts of this act can be change accordingly if they are
erratic and unfeasible.

Section 15. Effectivity.

The effect of this act shall take fifteen (15) days after proven and it will be
published at least two (2) National Newspapers of general circulation.

 After this act proven and executed, it will take fifteen (15) days to take
effect and it shall broadcast by at least two (2) National Newspapers of
general circulation.
 REPUBLIC ACT No. 6849

Case Study 1:
The Project Office installs one (1) telephone station to all the municipalities of a
very remote province. The director thinks that they should extend the installation of the
calling station to some barangay but then their staffs said that the province is too remote
and the reception of any telecom provider is bad so they thought that they must stop
and the municipality telephone's is enough for the province in order to budget their funds
in this project.

Answer:
According to the Section 8 of the Act, They can extend the installation of the
telephone station in remote areas if the resources does fit to the place of installation.
Also, it is possible to fix this in order for the resources to fit, if they resolve to get a loan.
Accordance to the Section 11, this act is eligible to get foreign loans as long as it
subjected to section 21, article 12 of the constitution.

Case Study 2:
In that very remote province, the uttermost one (1) telephone in the municipality
has been destroyed by a super typhoon. The locals submitted their complaint to the
project office but then the installation of the telephones in the Philippines has not been
finished and the budget allocation is for only those for municipalities that does not have
telephone stations. So their complaint goes from the bottom and disregarded.

Answer:
According to Section 11, the Project office can have loans from foreign countries
without the approval of the NEDA Board as long as it is subjected to article 12, Section 21
of the Constitution in order to supply the needed funds for the requested funds for the
repair of the public telephone station. In Section 8, as long as there is a fund, the project
office should extend the services concurrently or subsequently to other remote
barangays of the country. Also according to Section 3, the Project Office should manage
the budget provided by Department of Budget and Management in order to implement
the act, and can manage the circumstances like this.
 REPUBLIC ACT No. 6849

Questions
Multiple Answers
1. The Republic Act No. 6849 is also known as the ___________
a. Project Office Telephone Act of 1989
b. Municipal Telephone Act of 1949
c. Public Telephone Act of 1989
d. Municipal Telephone Act of 1989

2. In Section 4, it states that the Project Director shall be appointed by the President
of the Philippines upon the recommendation of __________
a. Secretary of the Transportation and Communications
b. Secretary of National Economic and Development Authority
c. Secretary of Public Office
d. Secretary of the Congress

3. In what section does the Right of the First Option Stated?

a. Section 4
b. Section 3
c. Section 6
d. Section 5

4. How long shall be made the writing of the company to the Project Office and
indicating the preferred province and the time frame of the development?
a. Four (4) months
b. Five (5) months
c. Six (6) months
d. Seven (7) months

5. They are authorized to assign or reassign a radio frequency uses that is currently
operating
a. National Telecommunications Commissions (NTC)
b. National Economic and Development Authority (NEDA)
c. Department of Transportation and Communications (DOTC)
d. Department of Science and Technology (DOST)

6. What is NTC
a. National Telephone Commissions
b. National Telephone Communications
c. National Transportations Community
d. National Telecommunications Commissions

7. According to the Section 11, the Act have a life span of ______ after It was
implemented unless it is extended by the Congress
a. Ten (10) years
b. Twenty (20) years
c. Fifteen (15) years
 REPUBLIC ACT No. 6849

d. Thirty (30) years

8. It states that the RA 6849 had the allotted Two hundred million Pesos (₱200,000,000)
provided under Title 1 – Telecommunications of Executive Order of No. 182.
a. Section 9
b. Section 10
c. Section 11
d. Section 12

9. When does the RA 6489 was passed?

a. December 8, 1990
b. January 10, 1998
c. February 8, 1989
d. February 8, 1990

10. Who is the president at the time that this act is implemented?
a. Fidel V. Ramos
b. Corazon C. Aquino
c. Joseph Estrada
d. Ferdinand E. Marcos

Answer key:
1. D
2. A
3. D
4. C
5. A
6. D
7. A
8. D
9. D
10. B