REPUBLIC OF THE PHILIPPINES DEPARTMENT OF TRANSPORTATION AND COMMUNICATIONS NATIONAL TELECOMMUNICATIONS COMMISSION BIR Road, East Triangle, Diliman, Quezon City SUBJECT: Frequency Band Allocations for Broadband Wireless Access WHEREAS, pursuant to RA7925 (Public Telecommunications Policy Act) and its Implementing Rules and Regulations, the radio spectrum allocation and assignment shall be subject to review in the interest of public service and in order to keep pace with the development in the wireless technology with the end in view of insuring a wider access to the limited radio spectrum and the use of cost effective technology; WHEREAS, the Commission is mandated to promote and sustain a healthy competitive telecommunications environment; WHEREAS, pursuant to RA 7925, the growth and development of telecommunications networks and services shall be pursued; WHEREAS, under the same Act, the Government shall allocate the spectrum to service providers to meet public demand for telecommunications services; WHEREAS, in line with the thrust of the government to promote and facilitate the growth and development of information and communications technology (ICT) throughout the country; and Recognizing, that ~ ICT access, connectivity and development of ICT facilities, services and skills are becoming more important in economies around the world, improving efficiency and welfare and creating an equitable and efficient information society ; - wireless access technology is one of the recognized solutions in providing ICT access in developing and remote (rural), and marginalized areas, hard and costly-to-reach areas using the traditional wirelines, and, thus, prevent the widening of the digital divide; ~ new advances in wireless technologies offering high-speed portable and mobile connectivity can help bridge the widening digital divide; _f ¢ * a5- the World Summit of the Information Society (WSIS) Plan of Action to which the Philippines is a signatory, has set out objectives to help increase connectivity for unserved and underserved areas such as remote and sparsely populated areas. NOW, THEREFORE, in support of the government's objectives to push the country’s socio-economic agenda through information and communication technologies and achieving the goal of digital inclusion, enabling universal, sustainable, ubiquitous and affordable access to ICT by all, the National Telecommunication Commission hereby re-allocates the following bands for broadband wireless access for fixed, nomadic and mobile networks: 450 -470 Mhz.; 1900 - 1910 MHz; 1980 - 1990 MHz; 2400 - 2483 MHz; 2500 - 2700 MHz; 3400 - 3600 MHz 5150 - 5350 MHz; 5470 - 5850 MHz; 10150 - 10650 MHz; The transfer of previously authorized persons or entities operating radio stations within the above listed radio frequency bands shall be governed by Rule 603 of MC 3-3-96. REPEALING CLAUSE Any circular, memorandum, order or parts thereof inconsistent with the provision of this circular shall be deemed amended or superseded accordingly. EFFECTIVITY This circular shall take effect (15) days after publication in a newspaper of general circulation and three (3) certified true copies furnished the UP Law Center. Quezon City, Philippines, _Aug.23, JO! V. SARMIENTO Lf JAI JRTES, JR. Deputy Commissioner Deputy LommissionerFR REPUBLIC OF THE PHILIPPINES DEPARTMENT OF TRANSPORTATION AND COMMUNICATIONS NATIONAL TELECOMMUNICATIONS COMMISSION BIR Road, East Triangle, Diliman, Quezon City sik « Sanat” EXPLANATORY MEMORANDUM and NTC MEMORANDUM CIRCULAR ON FREQUENCY BAND ALLOCATIONS FOR BROADBAND WIRELESS ACCESS ( BWA ) On June 20, 2008, the National Telecommunications Commission ( NTC ) pursuant to the requirements of administrative due process leading to the re- allocation of certain frequency bands for the use of broadband wireless access (BWA) for fixed , nomadic and mobile network services, issued a Draft Memorandum Circular on Frequency Band Allocations For Broadband Wireless Access. On June 21, 2005, a Notice of Public Hearing was published in a newspaper of general circulation and on July 12, 2008, a public hearing was conducted by the Commission. Taking into account the various comments presented during the public hearing and position papers later submitted by interested parties, particularly the radio and telecommunications industry and those who will be affected by the proposed memorandum circular, the Commission hereby issues the following explanatory memorandum to clarify the concerns raised in their submissions. Rationale for the Proposed Circular In order to put in proper perspective this initiative by NTC in proposing this memorandum circular, it is important to discuss and explain its reasons. The primordial objective of the proposed memorandum circular is for NTC to keep pace with the rapid development of broadband wireless technologies and to ensure that access to the limited radio spectrum be made widely available. The NTC believes that with the re- allocation of bands for broadband wireless access for fix, nomadic and wireless networks, this move is supportive of the government's thrust to develop telecommunications networks and services using broadband technology, widely recognized as the infrastructure of the information society which makes it not only important but critical for Government to meet its various information and communications technology (ICT) goals and bridge the digital divide still prevalent in the country. Today, broadband wireless access systems are emerging as a new and growing area of telecommunigaions, by reason of its ability to provide ( FFs gyaccess without extensive installation of copper or fiber infrastructures making wireless technology well suited for broadband services. The capability of wireless technology to provide instant networks in areas which typically lack existing fiber or copper infrastructure is an example of how wireless access has made the deployment of fixed narrowband telephone services possible, where the cost and time to deploy a conventional network would have been prohibitive. The challenge is to innovate and deploy the wireless access technology that will drive this evolution to include nomadic and mobile networks, and at the same time, maintain the high quality of service that the telecommunications already provide The obvious attraction of wireless networking is its attribute to rapidly provide wider public access and connectivity with minimal infrastructure, and to support an initially sparse subscriber base with low penetration rates. One can easily see that wireless technology offers unique capabilities over conventional systems. It is the position of the Commission that significant economic benefits and improved quality of life in many areas will be reaped from the proliferation of broadband wireless access technology like job creation, improved education systems, research and development, improved government efficiencies and service delivery, improved access to health, education, communications, e-commerce, banking, culture, information services and increased levels of community services available Moreover, broadband connectivity encourages innovation, stimulates economic growth and attracts foreign investments. ‘There is, therefore, a recognized need for the Commission to support the development and deployment of telecommunications networks and services using broadband wireless technologies by re-allocating certain frequency bands for the use of broadband wireless access ( BWA) to pave the way for it to flourish in the country. ISSUES AND CONCERNS FROM POSITION PAPERS : ‘The Commission received several position papers from interested parties containing both objections and support for the memorandum circular. ‘The objections are primarily directed against the re-allocation of the band 410-495 Mhz.. First, from the amateur radio associations and other similar groups. But their objections, upon careful study of their position paper, are more directed to the re-allocation of 430 -440 Mhz. on the ground that the band is being used by the amateur groups, not only as a form of hobby, buj-ynore importantly, for rescue and relief ("Fs 29efforts during calamities and natural disasters. They further argued that the country, as a member of the International Telecommunications Union (ITU) and the World Radio Conference (WARC), should honor the various treaties and agreements relative to the allocation of frequencies for amateur and amateur satellite service. Second, the radio telecom dealers while supportive of the general objectives of the proposed memorandum circular, would not want the inclusion of 410-495 mhz because they are at present being used for military, emergency, disaster relief, public safety, commercial, amateur and industrial use. The FMD has confirmed that the band is currently allocated for these users. Third, the radio users are concerned about the frequency assignments within the band which have been earlier assigned to them and are now being proposed for re-allocation. They are apprehensive that they may not be able to use them anymore. One telecom service provider, opposes the proposed memorandum circular because having been granted authorization to operate trunk radio service with several channels within the band 410 -430 Mhz. band, now fears that they may be recalled or re- allocated in favor of other parties. The Commission also received favorable comments and positive support from the telecom service providers and equipment stakeholders, specifically from CDMA technology developer, who expressed support to the proposed re-allocation of frequency band for broadband wireless access technology. More specifically, they favor the re-allocation of 450 — 470 Mhz for broadband wireless access technology to allow CDMA systems, the world’s fastest growing wireless communications technology and ideal for rural coverage, be deployed in unserved and underserved areas of the country. As for the other bands, no serious objections were noted except for the concern of the amateur radio service in the bands 2300 -2400 mhz. , 3400 -3500 mhz., and 10000 -10500 mhz. However, these bands are allocated for amateur use on secondary basis only and that their use for amateur satellite service is defined by Footnote 5.282 of the ITU Radio Regulations ( RR ), the full text of which reads as follow: 5.282 In the bands, 435-438 Mhz, 1260-1270 Mhz, 2400-2450 Mhz, 3400-3410 Mhz (in Regions 2 and 3 only) and 5650-5670 Mhz, the amateur-satellite service may operate subject to not causing harmful interference to other services operating in accordance with the Table (see No. $5.43), Administrations authorizing such use shall ensure that any harmful interference caused by emission from a stations in the amateur-satellite service is immediately eliminated in accordance with the provision of no.S25.11. The use of the bands 1260-1270 Mhz and 5650-5670 Mhz by the amateur-satellite service is limited to the carth-to-space directio, ( 8 Fe? /DISCUSSION OF ISSUES AND CONCERNS To answer the issues and concerns raised against the proposed memorandum circular providing for the re-allocation of certain frequencies in favor of broadband wireless access, it is the Commission’s position that it is well-within the purview of its authority to review periodically radio spectrum allocation and assignment in the interest of public service. Moreover, when the Commission deems it necessary and essential to the interest of the country, to be able to support the government’s policy thrust to develop telecommunications networks and services using new and enabling technologies, the Commission can review, revise and amend as necessary the assignment and allocation of radio spectrum. And more importantly, if the Commission believes that the issuance of relevant rules and circulars would allow the telecommunications industry to keep pace with the development in the wireless technology to ensure wider access to the limited radio spectrum and the use of cost effective technology, the Commission can go ahead and do so. The exercise of these powers and authority by the Commission are expressly mentioned in Rule 600 of MC 8-9-95, Implementing Rules and Regulations of RA 7925 and in Memorandum Circular 3-3-96, Guidelines to the Review, Allocation and Assignment of Radio Spectrum. On the issue of a telecom service provider and/or radio users who have been earlier assigned frequencies, debating with the Commission that the same cannot be recalled and re-allocated, such situation is governed by the provisions of Rule 602 under Frequency Assignment Authorization, MC 3-3-96 wherein it is provided that previous assignments not in conformity with the approved and current National Frequency Allocation Table shall be recalled and those affected shall be re-located based on availability of frequencies, However, special efforts shall be extended by the Commission to assist those affected ( Section b, Rule 602 MC 3-3-96 ). Also, assigned frequencies to private networks covered by valid permits and licenses issued by the Commission unused for a period of at least one (1) year from date of issuance of permits and licenses shall be recalled after service of notice in writing. And radio frequencies assigned to PTEs unused for at least one (1 ) year from date of issuance of permits and licenses may likewise be recalled after service of notice and hearing ( Section e, Rule 602 MC 3-3-96 ). Furthermore, non-payment of SUF, SRF and other fees, including violations of the terms and conditions of one’s authorizations, are likewise grounds for the recall and re-allocation of one's assigned frequencies. { yo 4.2and other fees, including violations of the terms and conditions of one’s authorizations, are likewise grounds for the recall and re-allocation of one’s assigned frequencies. Regarding the question of those who may possibly be affected by the reallocation as a result of the issuance of this Memorandum Circular, the Commission, in accordance with present rules and regulations, shall allocate available radio frequencies for assignment to those affected parties ( Section a, Rule 603 MC 3-3-96 ). The cost of the transfer to new radio frequencies of affected authorized users shall be borne by the new assignees to the radio frequency channel/band where the radio frequencies of the previously authorized users fall within ( Section b, Rule 603 MC 3-3-96 ). And when the transfer to a new set of radio frequencies would require additional radio links, the cost of these links shall also be taken into consideration ( Section c, Rule 603, MC 3-3-96 ). Moreover, the manner and the cost of the transfer shall be negotiated in good faith between the affected authorized users and the assignees within 90 days from receipt of notice of relocation (Section d, Rule 603, MC 3-3-96). The Commission shall extend all the necessary assistance to all affected authorized users and shall mandate settlement if the parties fail to come to an agreement within 90 days from receipt of notice of relocation or when warranted under the circumstances (Section e, Rule 603, MC 3-3-96). CONCLUSION The views and comments submitted in writing by other parties which we deem meritorious will be addressed by the Commission when it issues implementing guidelines and additional rules and regulations to govern this broadband wireless access technology In view of the foregoing, the NTC, after having considered the various views and comments during the public consultation, consistent with the government’s goal to develop and maintain a viable, efficient, reliable and universal telecommunications infrastructure using the best available and affordable technologies as a vital tool to nation building and development, has decided to ised the accompanying Memorandum Circular on Frequency Band Aljécayfons for Broadband Wireless Access. { JORGE V. SARMIENTO, RTES, JR. issi Commissioner