REPUBLIC ACT No. 7925
AN ACT TO PROMOTE AND GOVERN THE DEVELOPMENT OF PHILIPPINE
TELECOMMUNICATIONS AND THE DELIVERY OF PUBLIC TELECOMMUNICATIONS
SERVICES
ARTICLE I
GENERAL PROVISIONS
Section 1. Short Title. - This Act shall be known as the "Public Telecommunications Policy Act of the
Philippines."
Section 2. Scope and Application. - This Act shall apply to all public telecommunications entities in
the Philippines.
Section 3. Definitions and Interpretations. - For purposes of this Act, the following terms shall be
used:
(a) Telecommunications - any process which enables a telecommunications entity to relay
and receive voice, data, electronic messages, written or printed matter, fixed or moving
pictures, words, music or visible or audible signals or any control signals of any design and
for any purpose by wire, radio or other electromagnetic, spectral, optical or technological
means.
(b) Public telecommunications entity - any person, firm, partnership or corporation,
government or private, engaged in the provision of telecommunications services to the public
for compensation.
(c) Broadcasting - an undertaking the object of which is to transmit over-the-air commercial
radio or television messages for reception of a broad audience in a geographic area.
(d) Franchise - a privilege conferred upon a telecommunications entity by congress,
authorizing that entity to engage in a certain type of telecommunications service.
(e) Local exchange operator - an entity providing transmission and switching of
telecommunications services, primarily but not limited to voice-to-voice service, in a
geographic area anywhere in the Philippines.
(f) Inter-exchange carrier - an entity, sometimes referred to as carrier's carrier or national
backbone network operator, authorized to install, own and operate facilities which connect
local exchanges within the Philippines and to engage in the business of inter-exchange
national long distance services.
(g) International carrier - an entity primarily engaged in the business of providing
transmission and switching of any telecommunications service between the Philippines and
any other point of the world to which it has an existing correspondent or prospective
interconnection agreements.
(h) Value-added service provider (VAS) - 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.
(i) Public toll calling station - a non-exclusive facility at which the public may, by the payment
of appropriate fees, place as well as receive telephone calls and/or telegrams or other
messages.
(j) Mobile radio telephone system - a wide area mobile radio telephone system with its own
switch, base stations and transmission facilities capable of providing high capacity mobile
telecommunications by utilizing radio frequencies.
(k) Interconnection - the linkage, by wire, radio, satellite or other means, of two or more
existing telecommunications carriers or operators with one another for the purpose of
allowing or enabling the subscribers of one carrier or operator to access or reach the
subscribers of the other carriers or operators.
ARTICLE II
POLICY AND OBJECTIVES
Section 4. Declaration of National Policy. - Telecommunications is essential to the economic
development, integrity and security of the Philippines, and as such shall be developed and
administered as to safeguard, enrich and strength the economic, cultural, social and political fabric of
the Philippines. The growth and development of telecommunications services shall be pursued in
accordance with the following policies:
(a) A fundamental objective of government is to develop and maintain a viable, efficient,
reliable and universal telecommunication infrastructure using the best available and
affordable technologies, as a vital tool to nation building and development;
(b) The expansion of the telecommunications network shall give priority to improving and
extending basic services to areas not yet served. For this purpose, government shall
promote a fair, efficient and responsive market to stimulate the growth and development of
the telecommunications facilities and services, with emphasis on the accessibility by persons
to basic services in unserved and underserved areas at affordable rates;
(c) The radio frequency spectrum is a scarce public resource that shall be administered in
the public interest and in accordance with international agreements and conventions to which
the Philippines is a party and granted to the best qualified. The government shall allocate the
spectrum to service providers who will use it efficiently and effectively to meet public demand
for telecommunications service and may avail of new and cost effective technologies in the
use of methods for its utilization;
(d) Rates and tariff charges shall be fair, just and reasonable and for this purpose, the
regulatory body shall develop tariff structures based on socioeconomic factors and on
financial, technical and commercial criteria as measures to ensure a fair rate of return and as
a tool to ensure economic and social development;
(e) Public telecommunications services shall be provided by private enterprises. The private
sector shall be the engine of rapid and efficient growth in the telecommunications industry;
(f) A healthy competitive environment shall be fostered, one in which telecommunications
carriers are free to make business decisions and to interact with one another in providing
telecommunications services, with the end in view of encouraging their financial viability
while maintaining affordable rates;
(g) A fair and reasonable interconnection of facilities of authorized public network operators
and other providers of telecommunications services is necessary in order to achieve a viable,
efficient, reliable and universal telecommunications services;
(h) The government shall give all the assistance and encouragement to Philippine
international carriers in order to establish interconnection with other countries so as to
provide access to international communications highways on a competitive basis;
(i) For efficiency, practicability, and convenience, but with due regard to the observance of
due process at all times, regulation of telecommunications entities shall rely principally on an
administrative process that is stable, transparent and fair, giving due emphasis to technical,
legal, economic and financial considerations;
(j) No single franchise shall authorize an entity to engage in both telecommunications and
broadcasting, either through the airwaves or by cable;
(k) Ownership of public telecommunications entities to as wide a number of people as
possible, preferably to its customers, in order to encourage efficiency and public
accountability and to tap personal savings shall be encouraged;
(l) The development of a domestic telecommunications manufacturing industry to meet the
needs of the Philippines and to take advantage of export opportunities shall be promoted
without preventing, deterring or hampering the goal of full universal service; and
(m) Human resources skills and capabilities must be harnessed and improved to sustain the
growth and the development of telecommunications under a fast changing
telecommunications environment.
ARTICLE III
ADMINISTRATION
Section 5. Responsibilities of the National Telecommunications Commission. - The National
Telecommunications Commission (Commission) shall be the principal administrator of this Act and
as such shall take the necessary measures to implement the policies and objectives set forth in this
Act. Accordingly, in addition to its existing functions, the Commission shall be responsible for the
following:
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(a) Adopt an administrative process which would facilitate the entry of qualified service
providers and adopt a pricing policy which would generate sufficient returns to encourage
them to provide basic telecommunications services in unserved and underserved areas;
(b) Ensure quality, safety, reliability, security, compatibility and inter-operability of
telecommunications facilities and services in conformity with standards and specifications set
by international radio and telecommunications organizations to which the Philippines is a
signatory;
(c) Mandate a fair and reasonable interconnection of facilities of authorized public network
operators and other providers of telecommunications services through appropriate modalities
of interconnection and at a reasonable and fair level of charges, which make provision for the
cross subsidy to unprofitable local exchange service areas so as to promote telephone
density and provide the most extensive access to basic telecommunications services
available at affordable rates to the public;
(d) Foster fair and efficient market conduct through, but not limited to, the protection of
telecommunications entities from unfair trade practices of other carriers;
(e) Promote consumers welfare by facilitating access to telecommunications services whose
infrastructure and network must be geared towards the needs of individual and business
users;
(f) Protect consumers against misuse of a telecommunications entity's monopoly or quasimonopolistic powers by, but not limited to, the investigation of complaints and exacting
compliance with service standards from such entity; and
(g) In the exercise of its regulatory powers, continue to impose such fees and charges as
may be necessary to cover reasonable costs and expenses for the regulation and
supervision of the operations of telecommunications entities.
Section 6. Responsibilities of and Limitations to Department Powers. - The Department of
Transportation and Communications (Department) shall not exercise any power which will tend to
influence or effect a review or a modification of the Commission's quasi-judicial functions.
In coordination with the Commission, however, the Department shall, in accordance with the policies
enunciated in this Act, be responsible for:
(a) the development and maintenance of a long-term strategic national development plan for
telecommunications to serve as a guide to the industry and potential investors as well as to
the Commission;
(b) the coordination of research and development activities in government with the work of
other institutions in the field of telecommunications;
(c) the representation and promotion of Philippine interests in international bodies, and the
negotiation of the nation's rights and obligations in international telecommunications matters;
and
(d) the operation of a national consultative forum to facilitate interaction amongst the
telecommunications industries, user groups, academic and research institutions in the airing
and resolution of important issues in the field of communications.
ARTICLE IV
TELECOMMUNICATIONS ENTITIES
Section 7. Categories of Telecommunications Entities. - A telecommunications entity shall be
authorized to operate in one or more of the telecommunications categories mentioned in this Act
provided each category is covered by its franchise.
Section 8. Local Exchange Operator. - A local exchange operator shall:
(a) provide universal basic telephone service to all subscribers who applied for such service,
within a reasonable period and at such standards as may be prescribed by the Commission
and at such tariff as to sufficiently give it a fair return on its investments.
(b) be protected from uncompensated bypass or overlapping operations of other
telecommunications entities in need of physical links or connections to its customers in the
area except when it is unable to provide, within a reasonable period of time and at desired
standard, the interconnection arrangements required by such entities.
(c) have the first option to provide pay telephone services or public calling stations in the
area covered by its network.
(d) be entitled to a fair and equitable revenue sharing arrangement with the inter-exchange
carrier or such other carriers connected to its basic network.
Section 9. Inter-Exchange Carrier. - The number of entities allowed to provide inter-exchange
national long distance services may be limited, but as a matter of policy, where it is economically
viable, at least two (2) carriers, shall be authorized: Provided, however, That a local exchange
carrier shall not be restricted from operating its own inter-exchange carrier service if its viability is
dependent thereto. Such inter-exchange carrier shall have the following obligations:
(a) It shall interconnect with other networks in the same category and with local exchange
carriers or other telecommunications entities, upon application and within a reasonable time
period, and under fair and reasonable level charges, in order that domestic and international
long distance services are made possible; and
(b) It shall have the right to establish and operate its own tandem switching facilities to which
international calls or overseas carriers have to course their messages or signals.
Section 10. International Carrier. - Only entities which will provide local exchange services and can
demonstrably show technical and financial capability to install and operate an international gateway
facility shall be allowed to operate as an international carrier.
The entity so allowed shall be required to produce a firm correspondent or interconnection
relationships with major overseas telecommunications authorities or carriers within one (1) year from
the grant of the authority.
The international carrier shall also comply with its obligations to provide the local exchange service
in unserved or underserved areas within three (3) years from the grant of the authority as required
by existing regulations: Provided, however, That said carrier shall be deemed to have complied with
the said obligation in the event it allows an affiliate thereof to assume such obligation and who
complies therewith.
Failure to comply with the above obligations shall be a cause to cancel its authority or permit to
operate as an international carrier.
Section 11. Value-added Service Provider. - Provided that it does not put up its own network, a VAS
provider need not secure a franchise. A VAS provider shall be allowed to competitively offer its
services and/or expertise, and lease or rent telecommunications equipment and facilities necessary
to provide such specialized services, in the domestic and/or international market in accordance with
network compatibility.
Telecommunications entities may provide VAS, subject to the additional requirements that:
(a) prior approval of the Commission is secured to ensure that such VAS offerings are not
cross-subsidized from the proceeds of their utility operations;
(b) other providers of VAS are not discriminated against in rates nor denied equitable access
to their facilities; and
(c) separate books of accounts are maintained for the VAS.
Section 12. Mobile Radio Services. - In a local telephone exchange area, more than one duly
enfranchised provider of mobile radio services, distinct and separate from the local exchange carrier,
may be allowed to operate. However, such entities shall secure prior authority from the Commission
and, in addition, comply with the conditions imposed on VAS and with the norms on radio frequency
spectrum utilization.
The operator of a mobile radio telephone system shall comply with its obligations to provide local
exchange service in unserved and underserved areas in accordance with existing regulations.
Failure to comply with this obligation within (3) years from the grant of the authority shall be a cause
to cancel its authority or permit to operate a mobile radio telephone system.lawphil&159;
Section 13. Radio Paging Services. - Duly enfranchised radio paging services involving either voice
or data messages, shall be allowed to compete freely in rates, number of operators, or variety of
operating modalities, subject only to the norms on radio frequency spectrum utilization.
ARTICLE V
OTHER SERVICES AND FACILITIES
Section 14. Customer Premises Equipment. - Telecommunications subscribers shall be allowed to
use within their premises terminal equipment, such as telephone, PABX, facsimile, data, record,
message and other special purpose or multi-function telecommunication terminal equipment
intended for such connection: Provided, That the equipment is type-approved by the Commission.
Section 15. Radio Frequency Spectrum. - The radio frequency spectrum allocation and assignment
shall be subject to periodic review. The use thereof shall be subject to reasonable spectrum user
fees. Where demand for specific frequencies exceed availability, the Commission shall hold open
tenders for the same and ensure wider access to this limited resource.
ARTICLE VI
FRANCHISE, RATES AND REVENUE DETERMINATION
Section 16. Franchise. - No person shall commence or conduct the business of being a public
telecommunications entity without first obtaining a franchise.
The Commission, in granting a Certificate of Public Convenience and Necessity (CPCN), may
impose such conditions as to duration and termination of the privilege, concession, or standard or
technical aspects of the equipment, rates, or service, not contrary to the terms of the franchise. In no
case, however, shall the CPCN be shorter than five (5) years, nor longer than the life of the
franchise. A CPCN expiring at the same time as the franchise shall be deemed to have been
renewed for the same term if the franchise itself is also renewed or extended.
Expansion and financing of networks and services, utilizing equipment compatible with or
homologous to existing or previously approved plant and facilities, in order to service additional
demand in the same areas where the previously approved network and services have been
installed, shall not require any approval by the Commission.
The upgrading of existing plant and network facilities including the financing thereof, for the purpose
of retiring or replacing obsolete or outmoded equipment with state of the art equipment and
technology in order to improve the quality or grade of service being rendered to the public within the
same areas covered by the existing plant and facilities previously approved, shall likewise not
require the approval of the Commission.
The Commission, however, shall not grant a subsequent CPCN for another segment of service or
extend the area service coverage of an entity which has failed to satisfactorily comply with its
commitments to the Commission to provide a particular service in the original area coverage under
an earlier authorization.
Section 17. Rates and Tariffs. - The Commission shall establish rates and tariffs which are fair and
reasonable and which provide for the economic viability of telecommunications entities and a fair
return on their investments considering the prevailing cost of capital in the domestic and international
markets.
The Commission shall exempt any specific telecommunications service from its rate or tariff
regulations if the service has sufficient competition to ensure fair and reasonable rates or tariffs. The
Commission shall, however, retain its residual powers to regulate rates or tariffs when ruinous
competition results or when a monopoly or a cartel or combination in restraint of free competition
exists and the rates or tariffs are distorted or unable to function freely and the public is adversely
affected. In such cases, the Commission shall either establish a floor or ceiling on the rates or tariffs.
Section 18. Access Charge/Revenue Sharing. - The access charge/revenue sharing arrangements
between all interconnecting carriers shall be negotiated between the parties and the agreement
between the parties shall be submitted to the Commission. In the event the parties fail to agree
thereon within a reasonable period of time, the dispute shall be submitted to the Commission for
resolution.
In adopting or approving an access charge formula or revenue sharing agreement between two or
more carriers, particularly, but not limited to a local exchange, interconnecting with a mobile radio,
interexchange long distance carrier, or international carrier, the commission shall ensure equity,
reciprocity and fairness among the parties concerned. In so approving the rates for interconnection
between the telecommunications carriers, the Commission shall take into consideration the costs of
the facilities needed to complete the interconnection, the need to provide the cross-subsidy to local
exchange carriers to enable them to fulfill the primary national objective of increasing telephone
density in the country and assure a rate of return on the local exchange network investment that is at
parity with those earned by other segments of the telecommunications industry: Provided, That
international carriers and mobile radio operators which are mandated to provide local exchange
services, shall not be exempt from the requirement to provide the cross-subsidy when they
interconnect with the local exchanges of other carriers: Provided, further, That the local exchanges
which they will additionally operate, shall equally be entitled to the cross-subsidy from other
international carriers, mobile radio operators, or inter-exchange carriers interconnecting with them.
Section 19. Uniform System of Accounts. - The Commission shall require telecommunications
entities to set up a uniform system of accounts which shall be one of the bases in establishing rates
and tariffs. Where a single entity spans more than one category of telecommunications service, a
separate book of accounts shall be maintained for each category or specialized classification.
ARTICLE VII
RIGHTS OF TELECOMMUNICATIONS USERS
Section 20. Rights of End-Users. - The user of telecommunications service shall have the following
basic rights:
(a) Entitlement of utility service which is non-discriminatory, reliable and conforming with
minimum standards set by the Commission;
(b) Right to be given the first single-line telephone connection or the first party-line
connection within two (2) months of application for service, against deposit; or within three
(3) months after targeted commencement of service in the barangay concerned per the
original schedule of service expansion approved by the Commission, whichever deadline
comes later;
(c) Regular, timely and accurate billing, courteous and efficient service at utility business
offices and by utility company personnel; and
(d) Thorough and prompt investigation of, and action upon complaints. The utility shall
endeavor to allow complaints to be received over the telephone and shall keep a record of all
written or phoned-in complaints.
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ARTICLE VIII
TELECOMMUNICATIONS DEVELOPMENT
Section 21. Public Ownership. - In compliance with the Constitutional mandate to democratize
ownership of public utilities, all telecommunications entities with regulated types of services shall
make a bona fide public offering through the stock exchanges of at least thirty percent (30%) of its
aggregate common stocks within a period of five (5) years from effectivity of this Act or the entity's
first start of commercial operations, whichever date is later. The public offering shall comply with the
rules and regulations of the Securities and Exchange Commission.
Section 22. Privatization of Existing Facilities. - The Department shall, within three (3) years from
effectivity of this Act, privatize all telecommunications facilities currently owned and/or operated by
the government for public use, plus those facilities currently being planned under various bilateral
funding arrangements. Unless otherwise authorized by law, privatization of telecommunications
facilities as well as construction of telephone infrastructure shall be made through public bidding.
Section 23. Equality of Treatment in the Telecommunications Industry. - Any advantage, favor,
privilege, exemption, or immunity granted under existing franchises, or may hereafter be granted,
shall ipso facto become part of previously granted telecommunications franchises and shall be
accorded immediately and unconditionally to the grantees of such franchises: Provided, however,
That the foregoing shall neither apply to nor affect provisions of telecommunications franchises
concerning territory covered by the franchise, the life span of the franchise, or the type of service
authorized by the franchise.
ARTICLE IX
FINAL PROVISIONS
Section 24. Transitory Provision. - All telecommunications services deregulated hereby and which
are operating at the effectivity of this Act, may continue to have their rates and tariffs approved by
the Commission until the end of the calendar year of the effectivity of this Act.
Existing franchises that are not operating or without pending applications for certificates of public
convenience at the time of effectivity of this Act are deemed revoked.
All interconnection agreements previously entered into between telecommunications carriers shall
remain in full force and effect but the parties shall, within six (6) months from the effectivity of this
Act, review their access charging/revenue sharing formula and submit to the Commission an
amendment thereof, if necessary, in order to comply with the guidelines on the access
charging/revenue sharing formula contained in Section 18 of this Act.
Section 25. Separability Clause. - Any portion or provisions of this Act that may be declared
unconstitutional or invalid shall not have the effect of nullifying other portions or provisions hereof as
long as such remaining portions or provisions can still subsist and be given effect in their entirety.
Section 26. Repealing Clause. - All laws, ordinances, rules, regulations, and other issuances or
parts thereof, which are inconsistent with this Act are hereby repealed or modified accordingly.
Section 27. Effectivity Clause. - This Act shall take effect fifteen (15) days from the date of its
publication in at least two (2) newspapers of general circulation.
Approved: March 1, 1995
REPUBLIC ACT No. 6849
February 8, 1990
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
Be it enacted by the Senate and House of Representatives of the Philippines in Congress
assembled:
Section 1. Title. - This act shall be known as the "Municipal Telephone Act of 1989."
Section 2. Declaration of National Day Policy. - Recognizing that the benefits of modern
communication technology are as important to rural development as they are to urban areas, the
State shall pursue and foster, in an orderly, purposive and vigorous manner, the interconnection of
all municipalities in the country through the establishment and early realization of a nationwide
network of public calling stations.
Section 3. Projects Office. - For purposes of administering the provisions of this Act, there is
hereby created a Municipal Telephone Projects Office in the Department of Transportation and
Communications (DOTC) with the following functions:
(a) Develop, in coordination with all other agencies concerned, a plan for providing public
calling stations with technology capable of voice and data transmission in every municipality
and, when feasible, in such barangay not otherwise served by an existing telephone
exchange using appropriate technology and for this purpose formulate or cause to be
formulated, engineering studies;
(b) Undertake the implementation of the said plans and programs and toward this end, to
enter into contracts subject to existing laws and regulations for the procurement of
equipment, construction of facilities and the installation of the system;
(c) Arrange for funding form any source, private, government, foreign or domestic, including
official development assistance, bilateral and multilateral loans subject to applicable laws
and regulations;
(c) Prescribe and ensure compatibility with minimum standards and regulations to assure
acceptable standards of construction, maintenance, operation,
(d) personnel training, accounting and fiscal practices for the municipal telecommunications
operators of public calling stations;
(e) Furnish technical assistance and personnel training programs for the municipal
telecommunications operators of public calling stations;
(f) Monitor and evaluate local telecommunications and effect system integration and
operations whenever economically and technically feasible
Provided, however, That the approval of the provincial government of the province where any or all
of the functions above mentioned are to be discharge is first secured.
Section 4. Management of the Projects Office. - A projects Director, who shall be a person of
integrity, competence and experience in technical fields related to the purposes of this Act, shall be
appointed by the President of the Philippines upon the recommendation of the Secretary of
Transportation and Communications. He shall have the rank, position and emoluments of an
undersecretary.
The Projects Director shall have the following powers and duties;
(a) To execute and administer the plans and projects for the realization of the policy set forth
in this Act;
(b) To direct and supervise the operation and internal administration of the Projects Office
and, for this purpose, to delegate some or any of his powers and duties to appropriate
subordinate officials;
(c) Subject to the guidelines and policies established by the Secretary of Transportation and
Communications, to appoint and in coordination with the Department of Budget and
Management fix the number and compensation of officials and employees of the Projects
Office, subject to Civil Service Law;
(d) To prepare an annual report on the activities of the Projects Office on or before the end of
the first quarter after the fiscal year completed and to submit a copy thereof to the President
of the Philippines and the Congress of the Philippines; and
(e) To exercise such other powers and duties that are proper or necessary to carry out the
purposes of this Act as may be vested in him by the Secretary of Transportation and
Communications.
Section 5. Rights of First Option. - All domestic telecommunications carriers or utilities existing at
the time of the affectivity of this Act, and franchised to service a province or region WHICH shall
have been certified by the National Telecommunications Commission (NTC) as rendering
satisfactory and competent service in its area of operation, are hereby given, under equal conditions
and circumstances, the first option to provide, install and operate public calling stations or
telephones in provincial communications network which shall be capable of voice and data
transmission and shall be interconnected to the public switched telephone network or other national
transmission facilities. The intention to exercise the option shall be made specifically in writing to the
Projects Office within six (6) months of the affectivity of this shall indicate the preferred province and
the time frame of development. Private operators or franchisees of such public calling stations shall
be entitled to the same benefits and privileges enjoyed by those installed and operated by
Government in so far as tax concessions and/or incentives are concerned.
Section 6. Frequency Allocation. - In order to accelerate the implementation of this project,
National Telecommunication Commission (NTC) is authorized to assign or reassign, when
necessary, existing radio frequency users currently operating.
Section 7. Rates and Mandatory Sharing of Toll Revenue. - The NTC, subject to its standard
guidelines and in consultation with the regional development councils concerned, shall fix an
equitable, reasonable and uniform rate of charges for every type of call. A rate schedule shall be set
for all municipal telephone calls under the following classifications:
(a) Municipal to International;
(b) Municipal to Metro Manila, and other domestic long distance calls;
(c) Municipal to Provincial Capital;
(d) Municipal to Municipal;
(1) of the same province
(2) of difference provinces, other than domestic long distance.
In connection with the rates, the National Telecommunications Commission (NTC), in consultation
with the toll network operators or interchange carriers and the provincial government concerned,
shall authorize and cause the implementation of an equitable toll revenue sharing and collection
scheme. The share of the local exchange operators in toll revenues shall be remitted by the
interchange carries to them within ninety days (90) form receipt.
Section 8. Timetable of Implementation. - The Projects Office shall install all public calling stations
for provinces and municipalities not covered by private communication utilities under Section 5
hereof, such that each one of the municipalities in the Philippines still unserved by telephone at the
affectivity of this Act, shall have at least one (1) public calling station or public telephone by the third
year of effectively of this Act. Where resources permit, the Projects Office shall also extend the
services concurrently or subsequently to other remote barangays of the country. The public calling
stations shall be interconnected to the public switched telephone network or other national
transmission facilities, subject to the technical interconnection standards prescribed by the NTC.
Section 9. Operation by Local Governments. - Provinces and municipalities are hereby
authorized to set up, operate and maintain their respective public calling stations or to grant
franchise to private entities for the operation and maintenance of telephone systems and/or public
calling stations: Provided, That the NTC certifies that the proposed grantee is technically and
financially capable of complying with all the requirements of public services.
Section 10. Appropriation. - The amount of two hundred million pesos (P200,000,000.00), or so
much thereof as may be necessary to implement the provisions of this Act, shall be taken from the
appropriations provided under Title 1 - Telecommunications of Executive Order No. 182. In addition,
the sum of three hundred million pesos (P300,000,000.00), or so much thereof in equivalent foreign
currencies as may be necessary, shall be source, in their order of preference, from foreign grants,
concessional loans, official development assistance, commercial loans, and/or export credits to meet
the objective of this Act.
Section 11. Official Development Assistance. - The provisions of Executive Order No. 230 of
1986, on the power of the NEDA Board, and the rules and regulations governing the evaluation and
authorization for the availment of Official Development Assistance notwithstanding, the municipal
telephone program provided for in this Act shall be eligible for foreign loans and grants without
further evaluation by the NEDA Board, subject to Section 21, Article XII of the Constitution.
TRANSITORY PROVISIONS
Section 12. Sunset Clause. - The projects Office shall not have a life exceeding ten (10) years from
the d ate of the approval of this Act and may only be extended by act of Congress. At the options of
the provincial government, the systems operating in each province shall be turned over to it, except
those operating under Section 5 thereof.
Section 13. Separability of Provisions. - Any portion or provisions of this Act that may be declared
unconstitutional or invalid shall not have the effect of nullifying other portions and provisions hereof
as long as such remaining portions or provisions can still subsist and be given effect in their entirety.
Section 14. Repealing Clause. - All acts or parts of acts inconsistent herewith are repealed or
modified accordingly.
Section 15. Effectivity. - This act shall take effect fifteen (15) days after its publication in at least
two (2) national newspapers of general circulation.
Approved,
(Sgd.) RAMON V. MITRA
Speaker of the House of
Representatives
(Sgd.) JOVITO R. SALONGA
President of the Senate
This Act which is a consolidation of Senate Bill No. 892 and House Bill No. 3452 was finally passed
by the Senate and the House of Representatives on December 20, 1989 and December 21, 1989,
respectively.
(Sgd.) QUIRINO D. ABAD SANTOS,
JR.
Secretary of the House of
Representatives
(Sgd.) EDWIN P. ACOBA
Secretary of Senate
Approved: February 8, 1990
(Sgd.) CORAZON C. AQUINO
President of the Philippines
REPUBLIC ACT No. 3846
AN ACT PROVIDING FOR THE REGULATION OF RADIO STATIONS AND RADIO
COMMUNICATIONS IN THE PHILIPPINE ISLANDS, AND FOR OTHER PURPOSES
Section 1. No person, firm, company, association or corporation shall construct, install, establish, or
operate a radio station within the Philippine Islands without having first obtained a franchise therefor
from the Philippine Legislature; Provided however, That no franchise from the Legislature shall be
necessary for the construction, installation, establishment or operation of a broadcasting station, an
amateur station, an experimental station, a training station, a station on board a mobile vessel, train,
or aircraft, or a private station in a place without any means of communication.
Section 2. The construction or installation of any station shall not be begun, unless a permit therefor
has been granted by the Secretary of Commerce and Communications. No station shall be operated
except under and in accordance with the provisions of a license issued therefor by the Secretary of
Commerce and Communications. The license shall state the dates between which the station may
be operated. If a renewal is desired, the licensee shall submit an application to the Secretary of
Commerce and Communication at least two (2) months before the expiration date of the license to
be renewed. The Secretary of Commerce and Communication shall determine the period for which
each license is issued; Provided, that no license shall be issued for a longer period than three (3)
years.
Section 3. The Secretary of Commerce and Communication is hereby empowered to regulate the
establishment, use, and operation of all radio stations and of all forms of radio communications and
transmissions within the Philippine Islands and to issue such rules and regulations as may be
necessary. In addition to the above, he shall have the following specific powers and duties:
(a) He shall classify radio stations and prescribe the nature of service to be rendered by each
class and by each station within any class;
(b) He shall assign call letters and assign frequencies for each station licensed by him and
for each station established by virtue of a franchise granted by the Philippine Legislature and
specify the stations to which each such frequency may be used;
(c) He shall make rules and regulations to prevent and eliminate interference between
stations and to carry out the provisions of this Act and the provisions of International Radio
Regulations: Provided however, that changes in the frequencies or in the authorized power,
or in the character of omitted signals, or in the type of the power supply, or in the hours of
operation of any licensed station, shall not be made without first giving the station a hearing;
(d) He may establish areas or zones to be served by any station;
(e) He may make special rules and regulations applicable to radio stations engaging in chain
broadcasting;
(f) He may make general rules and regulations requiring stations to keep records of traffic
handled, distress, frequency watches, programs, transmissions of energy, communications
or signs;
(g) He may conduct such investigations as may be necessary in connection with radio
matters and hold hearings, summon witnesses, administer oaths and compel the production
of books, logs, documents and papers;
(h) He may prescribe rules and regulations to be observed by radio training schools; he may
supervise the course and method of instruction therein, and he may refuse to admit to
examinations for radio operators' licenses graduates of any radio school not complying with
the regulations;
(i) He shall prescribe rates of charges to be paid to the Government for the inspection of
stations, for the licensing of stations, for the examination of operators, for the licensing of
operators, for the renewal of station or operator licenses, and for such other services as may
be rendered;
(j) He is hereby empowered to approve or disapprove any application for the construction,
installation, establishment or operation of a radio station;
(k) He may approve or disapprove any application for renewal of station or operator license:
Provided however, that no application for renewal shall be disapproved without giving the
licensee a hearing;
(l) He may, at his discretion, bring criminal actions against violators of the radio law or the
regulations; or simply suspend or revoke the offender's station or operator's licenses; or
refuse to renew such licenses; or just reprimand and warn the offenders;
(m) The location of any station, and the power and kind or type of apparatus to be used shall
be subject to his approval;
(n) He shall prescribe rules and regulations to be observed by stations for the handling of
SOS messages and distress traffic: Provided, that such rules and regulations shall not
conflict with the provisions of the International Radio Regulations.
Section 4. No radio station license shall be transferred to any person, firm, company, association or
corporation without express authority of the Secretary of Commerce and Communications, and no
license shall be granted or transferred to any person who is not a citizen of the United States of
America or of the Philippine Islands; or to any firm or company which is not incorporated under the
laws of the Philippine Islands or any state or territory of the United States of America; or to any
company or corporation twenty percent (20%) of whose capital stock may be voted by aliens or their
representatives, or by a foreign government or its representatives, or by any company, corporation,
or association organized under the laws of a foreign country.
Section 5. The privileges granted in any station license shall not be exclusive.
Section 6. The President of the United States of America, or the Governor-General of the Philippine
Islands, in time of war, public peril, calamity, or disaster, may cause the closing of any radio station
in the Philippine Islands; or may authorize the temporary use or possession thereof by any
department of the Government upon just compensation to the owners. SECTION 7. A person to
whom or through whom a message has been submitted for transmission shall not willfully publish or
divulge the contents, substance, purport, effect, or meaning thereof to any unauthorized person; and
no person not being authorized by the sender or the addressee shall intercept any message or
communication and willfully divulge or publish the contents, substance, purport, effect, or meaning of
such intercepted message or communication to any person; and no person not being entitled thereto
shall receive, or assist in receiving, any message or communications and use the same or any
information therein contained for his benefit or for the benefit of another not entitled thereto; and no
person having received such intercepted message or communication, or having become acquainted
with the contents, substance, purport, effect, or meaning of the same or any part thereof, knowing
that such information was so obtained, shall divulge or publish the contents, substance, purport,
effect, or meaning of the same or any part thereof, or use the same or any information therein
contained for his own benefit or for the benefit of another not entitled thereto: Provided, that this
section shall not apply to the transmitting, receiving, divulging, publishing or utilizing the contents of
any message or communication broadcasted or transmitted by amateurs or others for the use of the
general public or relating to ships in distress.
Section 8. The Secretary of Commerce and Communication is hereby authorized to create a Radio
Regulation Section, Division, or Office, which shall take charge of carrying out the provisions of this
Act and of the regulations prescribed by him, or to delegate temporarily the duties herein conferred
upon him and the enforcement of the regulations prescribed by him, to any bureau or office under
his department, subject to his general supervision and control.
Section 9. The provisions of this Act shall not apply to radio stations of the United States
Government and those of the Philippine Government. Foreign mobile stations temporarily located
within the Philippine Islands shall be exempt from the provisions of this Act: Provided, however, That
they shall be subject to the provisions of the International Radiotelegraph Regulations.
Section 10. The powers vested in and the duties imposed upon the Director of Posts by Act
Numbered Thirty-three hundred and ninety-six are hereby transferred to the Secretary of Commerce
and Communication, who is hereby empowered to include in the general radio regulations under this
Act, regulations governing radio apparatus compulsory required on vessels of Philippine registry by
Act Numbered Thirty-three hundred and ninety-six, notwithstanding the fact that such regulations
may be different from those specifically provided in said Act Numbered Thirty-three hundred and
ninety-six: Provided however, that such regulations shall not be inconsistent with the provisions of
the International Convention for the Safety of Life at Sea: Provided further, that this section or any
part thereof shall not be construed as in any way affecting the provisions of Act Numbered Thirtythree hundred and ninety-six making compulsory the installation of radio apparatus on certain
vessels and penalizing violations thereof.
Section 11. Act Numbered Thirty-two hundred and seventy-five, entitled, "An Act to Amend Article
One of Chapter Fifty-two and Section Twenty-seven hundred and fifty-seven of the Administrative
Code, Providing for the Effective Radio Control," is hereby repealed: Provided however, that such
repeal shall not affect any act done, or any right accrued, or any suit or proceeding had or
commenced in any criminal or civil cause, prior to said repeal.
Section 12. Any person who shall violate any mandatory or prohibitory provision of this Act, or any
mandatory or prohibitory provision of the regulations prescribed by the Secretary of Commerce and
Communication under this Act, or any mandatory or prohibitory provision of the International Radio
Regulations, upon conviction thereof by a court of competent jurisdiction, shall be punished by a fine
of not more than three hundred pesos or by imprisonment for not more than three months, or both,
for each and every offense.
Section 13. Any firm, company, corporation or association failing or refusing to observe or violating any provision of
this Act, or any provision of the regulations prescribed by the Secretary of Commerce and Communication under this
Act, or any provision of the International Radio Regulations, shall be punished by a fine of not more than one
thousand pesos for each and every offense.
Section 14. This Act shall take effect three months