DIONISIO C. LEDRES, JR.

Vice-Chair, RDC2-EDC and

Regional Director, NEDA Region 02

Dear Director Ledres:

In connection to the possible LGU-led investments in Information and Communication

Technology (ICT) discussed during the Economic Development Committee (EDC) meeting
held on March 22, 2021, may we humbly inform you of the following articles, rules and
regulations relating thereto.

DOTC Circular No. 92-269: Cellular Mobile Telephone System Policy and NTC MC 20-12-92:
Implementing guideline for Cellular Mobile Telephone System (CMTS) Operations in the
Philippines provides that No CMTS may be operated on a nationwide or regional basis unless
said operator is a holder of a franchise and has secured a Certificate of Public Convenience
and Necessity (CPCN) or Provisional Authority from NTC.

A Rappler article, Permits, Health Concerns Delay Cell Site Expansion, dated March 10, 2017,
states that “lengthy permit applications are still the biggest reason why Philippine internet is so
slow.” Telcos are having trouble putting up new cell sites according to this article. To solve this
issue, DICT promulgated DICT Circular no. 008.

DICT Circular No. 008: Policy Guidelines on the Co-location and Sharing of Passive
Telecommunications Tower Infrastructure for Macro Cell Sites was promulgated to
build/convert at least two thousand five hundred (2,500) common towers in DICT owned
properties, hard-to-access areas as identified by the MNOs (Mobile Network Operators) and
common towers in other government agencies’ properties.

Under the guidelines, the DICT allowed qualified Independent Tower Companies (ITC) to build
cell sites to be leased to the MNOs on the “same or reasonably equivalent terms, conditions,
fees and charges.” ITC is a common tower provider which is not a related party, as defined by
SEC, to any of the incumbent MNOs.

For more information on the guidelines, may we refer the in-depth discussion of it to DICT.

Thank you and more power.

Yours truly,

ENGR. NELSON C. DAQUIOAG

OIC-Regional Director