REPUBLIC OF THE PHILIPPINES

HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila FIFTEENTH CONGRESS First Regular Session House Resolution No . 1093

Introduced by Kabataan Party-List Representative Raymond V Palatino .

A RESOLUTION DIRECTING THE COMMITTEE ON INFORMATION AND COMMUNICATIONS TECHNOLOGY TO CONDUCT AN INQUIRY, IN AID OF LEGISLATION, ON THE CONTINUED CLASSIFICATION OF MOBILE AND BROADBAND INTERNET SERVICES AS A V ALUE ADDED SERVICE EFFECTIVELY JUSTIFYING THE DEREGULATION AND LACK OF MINIMUM SERVICE STANDARDS ON SUCH SERVICES
WHEREAS , the Public Telecommunications Act of 1995 telecommunications industry in the Philippines ;
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(PTA) is the law that governs the

WHEREAS , the PTA introduces the concept of “value added service” (V AS) which is defined as “an entity which relying on the transmission, switching and local distribution facilities of the local exchange and inter-exchange operators, and overseas carriers, offers enhanced services beyond those ordinarily provided for by such carriers”; WHEREAS , the Implementing Rules and Regulations (IRR) of the PTA defines “enhanced services” as “a service which adds a feature or value not ordinarily provided by a public telecommunications entity such as format, media conversion, encryption, enhanced security features, computer processing, and the like” ; WHEREAS , there is “an implicit recognition that V is not strictly a public service offering in AS the way that voice-to-voice lines are... but merely supplementary to the basic service,” and that “ultimately, the regulatory attitude of the State towards V offerings by [public telecommunications entities] is to AS treat its provisioning as a 'business decision' subject to the discretion of the offeror, so long as such services do not interfere with mandatory public service requirements”; WHEREAS , the National Telecommunications Commission (NTC) is the government agency with the task of overseeing and regulating the telecommunications industry in the country; WHEREAS , because of the dynamic nature of the telecommunications industry with the quick development of inventions and innovations ever since the enactment of the PTA and its IRR in 1995, it is
1 Republic Act 7925

necessary for the NTC to continuously promulgate issuances that address present conditions and needs by consumers with regard to telecommunication services; WHEREAS , at present, the NTC continues to classify mobile and broadband internet merely as V despite the development of internet technologies and infrastructure and its growing role in the lives of AS people; WHEREAS , telecommunications companies continue to insist that mobile and broadband internet services are V and in a statement by the Philippine Chamber of Telecommunications Operators AS, (PCTO) 2 they assert that, “requiring the providers of such service [to] specify their minimum connection speed, service reliability, service level and service rates would amount to regulating the same,” and that, “in keeping with broadband access services' true character as value-added service, we respectfully submit that broadband service providers be allowed to retain present setup where no minimum service standard is required,”; WHEREAS , from how the PTA and its IRR defines V it is clear that mobile and broadband AS, internet services are no longer merely “enhanced services” but are already one of the primary means of communication by the people and must be considered as one of telecommunication companies' main services; WHEREAS , in fact, telecommunications companies offer mobile and broadband internet services separately from its basic CMTS (Cellular Mobile Telephone System) and other core voice communication services; WHEREAS , consumers have long been complaining of substandard mobile and broadband internet services and have thus demanded that minimum standards be set by the government through the NTC; WHEREAS , the continued classification of mobile and broadband internet services as V has AS continuously been used by the NTC and telecommunications companies to challenge any demand and attempt to set reasonable standards on internet services;
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NOW THEREFORE BE IT RESOLVED, AS IT IS HEREBY RESOLVED

, that the

Committee on Information and Communications Technology conduct an inquiry, in aid of legislation, on the continued classification of mobile and internet services as “value added service” effectively justifying the deregulation and the lack of minimum service standards on such services;

Adopted,

HON. RAYMOND V PALATINO . Representative, Kabataan Party-list

2 “Minimum broadband speed to violate NTC rules: service providers,” Business World, January 14, 2011

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