Implementing Rules and Regulations on the National Policy for Expanding the Provision of Internet Services Through Inclusive Access to Satellite Services

September 28, 2021

DICT DEPARTMENT CIRCULAR NO. 002, S. 2021

 

WHEREAS, the State recognizes the vital role of communications and information in nation-building; 1

WHEREAS, it is the declared policy of the State to, among others, (a) ensure the provision of strategic, reliable, cost-efficient, and citizen-centric Information and Communications Technology (ICT) infrastructure, systems and resources as instruments of good governance and global competitiveness, (b) ensure universal access to quality, affordable, reliable and secure ICT services, (c) promote the development and widespread use of emerging ICT, and foster and accelerate the convergence of ICT and ICT-enabled facilities, (d) ensure the availability and accessibility of ICT services in areas not adequately served by the private sector, (e) promote the use of ICT for the enhancement of key public services, such as education, public health and safety, revenue generation, and socio-civic purposes, and (f) foster an ICT sector policy environment that will promote a broad market-led development of the ICT and ICT-enabled services (ICT-ES) sectors, a level playing Field, partnership between private and public sectors, strategic alliance with foreign investors, and balanced investment between high-growth and economically-depressed areas; 2

WHEREAS, it is likewise the government's policy to protect and promote the internet as an open platform that enables consumer choice, end-user control, and the freedom to innovate, thereby encouraging the development and advancement of ICT capabilities, the removal of barriers to infrastructure investments, and the promotion of lawful competition;

WHEREAS, the provision and expansion of internet services and its resulting ICT-enablement and empowerment are engines for urban and rural economic growth across the country, with the internet's ability to provide positive impacts upon various sectors at different levels, facilitate communication, financial inclusion, and commercial transactions, simplify and streamline processes and transactional activities, process large amounts of data and make them widely available to the public, exponentially increase the reach of the country and its people to both domestic and global markets, narrow the gap between the urban and rural divide in terms of knowledge, education, health, and access to relevant facilities and information, as well as unlock the various opportunities for job generation, employment, entrepreneurship, commerce, among other socio-economic benefits, all of which shall contribute greatly to the development, growth and prosperity of the people and the national economy; 3

WHEREAS, internet connectivity as an information service is recognized as part of the specialized services 4 that are separate and distinct from, 5 in addition to, or beyond 6 the categories of telecommunication services ordinarily provided by Enfranchised Telecommunication Entities and Public Telecommunications Entities (ETE/PTEs), such as the local exchange and inter-exchange operators, and overseas carriers, whose networks and services for their respective telecommunications categories require Congressional franchise coverage; 7

WHEREAS, modern advances in new and next generation technologies have now enabled broadband internet connectivity and information service networks to be propagated over a variety of alternative underlying transmission or conveyance mediums 8 that are separate and distinct from, or in addition to, the wired and wireless telecommunications service networks of duly enfranchised ETE/PTEs that were historically used as the initial undercarriage or medium for propagating the internet in the nascent stages of its deployment in the country; 9

WHEREAS, aside from or in addition to the networks for the telecommunications service categories reserved for duly enfranchised ETE/PTEs, modern developments in new and next generation technologies continue to accelerate the convergence of ICT and ICT-enabled facilities thereby enabling various other alternative transmission mediums to be utilized for providing the necessary and effective links for adequate connectivity to potentially expand the deployment of, and access to, internet services 10 across the Philippine archipelago, including its geographically isolated and/or disadvantaged areas (GIDAs), its remote or sparsely populated areas, and such other areas that have inadequate levels of internet connectivity to provide the community with quality, resilient, stable, and reliable ICT and ICT-enabled services;

WHEREAS, in addition to its historical and traditional use of providing links for radio, television, and telecommunications services, modern communications satellites equipped with new and next generation technologies now have the technological capability to also effectively propagate broadband internet access 11 as a means for rolling out much-needed internet connectivity in the unserved areas, as well as for enhancing, shoring up, or complementing the terrestrial deployments in the served and underserved areas of the country, for purposes of addressing the nation's need for adequate, quality, resilient, redundant, and stable ICT and ICT-enabled services in all areas pursuant to the State's policy objectives of promoting the development and widespread use of emerging ICT, 12 fostering and accelerating the convergence of ICT and ICT-enabled facilities, 13 and ensuring universal access to quality, affordable, reliable, and secure ICT services, 14 among others;

WHEREAS, Republic Act (RA) No. 10929, otherwise known as the "Free Internet Access in Public Places Act," declares it the policy of the State to promote an environment for the development of structures that would ensure the availability and accessibility of reliable and secure internet access suitable to the needs of the nation, 15 allows Internet Service Providers (ISPs) to acquire and utilize internet connectivity directly from satellites and other emerging technologies to ensure universal coverage, 16 and provides that the use of available or unassigned spectrum may be granted to other agencies and private entities under transparent, fair, reasonable, and non-discriminatory terms and conditions; 17

WHEREAS, RA No. 10929 explicitly provides that the use of satellites and other emerging technologies in order to provide internet connectivity shall be considered as value-added services; 18

WHEREAS, with RA No. 10929's express mandate to allow ISPs to acquire and utilize internet connectivity directly from satellites and other emerging technologies to ensure universal coverage, 19 it is both fair and logical for ISPs to be able to build, utilize, own, and operate such broadband facilities for internet access service for all segments of the broadband network, and to pursue such other collateral or subsidiary activities, as may be necessary or incidental 20 to effectuate their direct acquisition and use internet connectivity from satellites and other emerging technologies 21 in order to offer internet services to the people; 22

WHEREAS, RA No. 10844, otherwise known as the "Department of Information and Communications Technology Act of 2015," provides that one of the main functions of the DICT is to improve public access to ICT by prescribing rules and regulations for the establishment, operation, and maintenance of ICT infrastructure in unserved and underserved areas, in consultation with the local government units (LGUs), civil society organizations (CSOs), private sector, and the academe; 23

WHEREAS, RA No. 10844 likewise mandates the DICT to establish a free internet service that can be accessed in government offices and public areas using the most cost-effective telecommunications technology, through partnerships with private service providers as may be necessary; 24

WHEREAS, there is a compelling need to accelerate the provision of connectivity throughout the country, which the government must address by finding and taking advantage of responsive, doable, effective, and technically feasible means, technologies, and solutions in order to keep pace with the changing times;

WHEREAS, the declared state of public health emergency has made the country's need for internet connectivity all the more compelling and urgent;

WHEREAS, the government needs to undertake measures to accelerate the deployment of ICT infrastructure throughout the country to address the need for digital connectivity, internet speed and stability, and cybersecurity in E-Commerce, E-Government, online learning, telecommuting, and other digital activities, in order to meet the shift of the general public to online services and platforms, to home and mobile communications technology for doing work from home, for completing commercial and other transactions, for convening and conducting meetings, conferences, and seminars, and for obtaining training and educational instruction, which measures shall include streamlining government regulatory processes and procedures for establishing and operating the facilities and infrastructure needed to harness, utilize, and optimize the available digital, satellite, and other emerging technologies for the benefit of the public; 25

WHEREAS, under Section 5 of RA No. 10844, the DICT is the primary policy, planning, coordinating, implementing, and administrative entity of the Executive Branch of the government that will plan, develop, and promote the national ICT development agenda;

WHEREAS, RA No. 10844 expressly transferred to the DICT the powers and functions of all operating units of the former Department of Transportation and Communications (DOTC) with functions and responsibilities dealing with communications;

WHEREAS, RA No. 10844 mandates the DICT to support the promotion of trade and investment opportunities in the ICT and ICT-enabled services sectors, 26 and to ensure and protect the rights and welfare of consumers and business users to privacy, security, and confidentiality in matters relating to ICT; 27

WHEREAS, in recognition of the vital role of ICT in nation-building, the government's initiative to expand the provision of internet services in the country through inclusive access to satellite services shall be an effective means to achieve the State's policy objective of promoting an environment for the development of structures that will ensure the availability and accessibility to citizens of reliable and secure internet access to enable them to participate and compete in the evolving information and communication age; 28

WHEREAS, along with access to data, data security is likewise an important aspect of the country's digital transformation in view of its implications on national security, cross-border data flows, and data privacy, for which it is imperative in the public interest for the Government to provide reasonable interventions to address concerns relative to data sovereignty, data protection, and the localization of data;

WHEREAS, as a developing country, the Philippines is institutionalizing the policy of liberalizing and expanding the provision of internet services as an information service in light of its benefits for the people across the nation, it being an effective gateway to offering ICT and ICT-enabled services for accessing, generating, acquiring, storing, transforming, processing, retrieving, utilizing or making available much-needed data and information, thereby providing the people with more opportunities for livelihood, income generation, employment, and entrepreneurship, for bridging the education gap between the urban and rural populations, for accessing more of the modern economy at the domestic and global level, for financial inclusivity, and for increased ease of communications, among the plethora of other beneficial uses of the internet;

WHEREAS, in order to accelerate the expansion of internet services to the underserved and unserved areas of the country, there is a need to involve all sectors of the ICT industry, including public telecommunications entities (PTEs), Value-Added Service Providers (VASPs), and ISPs, in the propagation of much-needed networked information service infrastructure;

WHEREAS, upon the unanimous recommendation and support of the Financial Inclusion Steering Committee (FISC), the Cabinet-Level Inter-Agency Task Force on the Management of Emerging Infectious Diseases (IATF-MEID), the National Economic and Development Authority (NEDA), the DICT, and the National Telecommunications Commission (NTC), President Rodrigo Roa Duterte promulgated Executive Order (EO) No. 127, s. 2021, which amended EO No. 467, s. 1998, 29 in order to provide policy guidelines and regulations on expanding the provision of internet services through inclusive access to satellite services;

WHEREAS, in support of EO No. 127, s. 2021, the NEDA stated that the policy for expanding the provision of internet services through inclusive access to satellite services is aligned with the Philippine Development Plan (PDP) 2017-2022's goal of improving digital connectivity in the country, noting that liberalizing access to satellite technology will enable the different industry players, such as ISPs and VASPs, to fast-track the expansion of internet connectivity, especially in remote areas where construction of hard infrastructure may be difficult or infeasible;

WHEREAS, the liberalization of broadband internet access as an information service is in line with the declared policies of the State to ensure universal access to quality, affordable, reliable, and secure ICT services, 30 to promote the development and widespread use of ICT, 31 and to foster and accelerate the convergence of ICT and ICT-enabled facilities; 32

WHEREAS, satellite industries around the world have pioneered the launch of new generations of communication satellites offering performances as much as 100 times 33 superior to the previous generations, leading to the entry of more ICT-enabled satellite-based broadband service providers 34 into the world market;

WHEREAS, the DICT-Independent Task Force 35 recommended the inclusion of appropriate departmental accreditation mechanisms for domestic and international satellite service providers or operators as a means to foster and protect the rights and welfare of the users of satellite services and the consuming public within the jurisdiction of the Philippines;

WHEREAS, in accordance with EO No. 127, s. 2021, the DICT coordinated with the NTC for purposes of crafting the necessary rules and regulations for the implementation of the national policy for expanding the provision of internet services through inclusive access to satellite services;

WHEREAS, in accordance with the agency rulemaking process under Chapter 2, Book VII, Revised Administrative Code, and existing laws, rules and regulations, notices of the proposed rulemaking on the subject of inclusive access to satellite services have been circulated and published, pursuant to which all interested parties and stakeholders from the public and the private sectors were invited, consulted, and/or afforded a reasonable opportunity to submit their views prior to the adoption of this Circular, all towards a more effective and synoptic process for policy formulation, implementation, and improvement in pursuit of public interest.

NOW, THEREFORE, in light of the foregoing, in the public interest and exigency of the service, pursuant to the provisions of RA No. 10844, RA No. 10929, the Revised Administrative Code of 1987, and EO No. 467, s. 1998, as amended by EO No. 127, s. 2021, this Circular is hereby issued, adopted, and promulgated in order to provide guidance and regulations to govern the national policy for inclusive access to satellite facilities in order to expand the provision of internet services in the country:

TITLE I

Preliminary Provisions

SECTION 1.  Title. — This Circular shall be known as "The Implementing Rules and Regulations on the National Policy for Expanding the Provision of Internet Services through Inclusive Access to Satellite Services."

SECTION 2. Definition of Terms. — For purposes of this Circular, the following technical terms are defined:

a. Authorized Entity/ies refers to the entity or entities authorized under Executive Order (EO) No. 467, s. 1998, as amended by EO 127, s. 2021, and under the provisions of other existing laws, insofar as their conduct of activities and their rendition of services pursuant to the authorities granted therein.

b. BGAN refers to Broadband Global Area Network.

c. Broadband refers to high-speed internet access that is always-on and capable of multiple service provision simultaneously, 36 delivered via broadband networks, i.e., high capacity fixed or wireless data links, 37 that are propagated via ICT and ICT-enabled technologies that facilitate the use of various types of networks as underlying transmission mediums, 38 or through the deployment of computer-based area network configurations, or any combination thereof. As an information service, 39 broadband internet enables users to access information from the internet, and makes the data processing capabilities necessary to use the internet available to them, via several devices or any one or a combination of several high-speed transmission technologies. 40 Transmission is digital, meaning that text, images, and sound are processed, compressed, and transmitted as "bits" data. 41

d. Broadband Facilities refer to any and all types of facilities, equipment, or infrastructure for the construction, propagation, administration, operation, and/or maintenance of a broadband network for internet connectivity and the provision of internet services, including but not limited to, earth stations, VSATs, (indoor unit and outdoor unit) routers, and other similar or related technologies, devices, equipment, and facilities, as well as their accessions and accessories.

e. Broadcasting refers to the transmission of over-the-air commercial radio or television messages for the reception of a broad audience in a geographic area. 42 It is the electronic transmission of radio and television signals that are intended for reception by the general public. 43

f. Broadcast Service Providers refer to providers of broadcast services, such as entities duly enfranchised to provide radio broadcast, television (TV) broadcast, pay TV broadcast, or Direct-to-Home (DTH) broadcast services. 44

g. DICT or Department shall refer to the Department of Information and Communications Technology.

h. Direct Access refers to any one of a number of measures permitting direct dealings between Authorized Entities and Satellite System Providers or Operators at specified levels as defined by the NTC. 45 With direct dealings between Authorized Entities and Satellite System Providers or Operators being allowed, intervening third party arrangements with ETEs/PTEs shall not be imposed as a regulatory requirement by the government.

i. Direct-to-Home TV refers to a broadcasting system wherein television programs are transmitted directly to home/user receivers via satellite, thus making the reception cover not only individual(s) in their homes but other places as well. 46

j. Enfranchised Telecommunications Entity or Public Telecommunications Entity (ETE/PTE) refers to any person, firm, partnership or corporation, government or private, that holds a valid and existing Congressional franchise 47 authorizing it to operate in one or more of the telecommunications categories provided by law, 48 such as a local exchange operator, 49 inter-exchange carrier, 50 or international carrier, 51 pursuant to which it can put up, install, own, or operate the telecommunications service network appropriate for the telecommunications category for which it is enfranchised. 52 ETE/PTEs are utilities that offer and provide the public, for compensation, 53 with telecommunications services 54 covered within certain telecommunications categories for which the law requires a franchise. 55 An ETE/PTE is likewise required to be duly authorized as such under a valid Certificate of Public Convenience and Necessity (CPCN) issued by the NTC. 56

k. Financial Inclusion refers to efforts aimed at fostering, promoting, and facilitating the access of individuals, their businesses, and the general public to financial products and services for the socio-economic development of the nation and the improvement of overall quality of life. These efforts include, but are not limited to, the removal or easing of barriers that exclude or make it difficult for people and communities to participate in the financial sector, the pursuit of initiatives to facilitate the people's access to banking and other financial services, and the expansion of internet services and connectivity to enable the effective access and use of financial technology for the conduct of business and other transactions.

l. Franchise refers to a privilege conferred by Congress upon an entity authorizing the latter to engage in the business of a certain type of public service. 57 In the telecommunications sectors, a Congressional franchise is required by law for the rendition of services falling under certain telecommunications categories, 58 and the putting up of the telecommunications service networks concomitant to those categories. 59 Thus, engaging in the business of being an ETE/PTE 60 involves the rendition of telecommunications services, or the end-to-end transmission of user-supplied information, such as voice telephony, packet-switched and circuit-switched data transmission, telex, telegraph, fax, and leased lines, 61 that fall under a telecommunications category for which a franchise is required. 62 For the broadcast industry sector, a legislative franchise is required as a general rule 63 for engaging in the business of offering and providing broadcasting services for radio 64 or for TV. 65

m. FPIAP refers to the Free Public Internet Access Program under RA No. 10929, its IRR, and other related departmental issuances.

n. Geographically Isolated and/or Disadvantaged Areas (GIDAs) shall refer to areas with communities, populations or segments thereof, that are disadvantaged or marginalized in terms of having unsatisfactory or inadequate levels and/or quality of internet connectivity when compared to the mainstream of society. For purposes of internet connectivity, GIDAs range from the unserved areas, i.e., areas that are totally disconnected or separated, with no readily available terrestrial network infrastructure within the locality that can be used to provide internet services, to the underserved areas, i.e., areas which, despite having existing terrestrial network deployments, nevertheless have unsatisfactory, deficient, inadequate, insufficient, or unreliable levels of internet connectivity for purposes of providing the quality of ICT services that are the same or equivalent to those prevailing in the metropolitan and other areas with communities that are adequately served with quality internet services. GIDAs may be characterized by a variety of physical and/or socio-economic factors. Physical factors include, but are not limited to, being isolated, disconnected, separated, disadvantaged, or with accessibility limitations due to distance, topography, geographical features, weather conditions, or transportation difficulties, among other characteristics. Socio-economic factors include, but are not limited to, poverty incidences in the area, the presence of vulnerable, marginalized, or disadvantaged sectors in the community, or having communities or sectors that are either in or recovering from health or economic crisis, natural or man-made disaster or calamity, civil unrest, political instability, armed conflict, or other similar situations. For provinces, cities, and municipalities, GIDAs may exist within any area covered by their territorial jurisdiction, inclusive of areas within the territorial jurisdiction of their component local government units down to the barangay level. 66

o. Global Mobile Personal Communications by Satellite (GMPCS) refers to a satellite system providing information and communications services directly to end-users anywhere in the globe from a constellation of satellites.

p. IRR refers to Implementing Rules and Regulations.

q. Information Services refer to services that offer the capability for generating, acquiring, storing, transforming, processing, retrieving, utilizing or making available information or data, the networks for which may be established and propagated via several devices or any one or a combination of several high-speed transmission technologies 67 over one or more transmission mediums. 68

r. Internet Service Provider (ISP) refers to any person or entity, natural or juridical, public or private, that provides internet services or services for access to, use of, or participation in the Internet or the worldwide web, via any one or a combination of transmission or deliver systems or networks for internet services. 69 The term shall likewise include persons or entities that supply or propose to supply internet carriage services to the public. 70 Private sector or commercial ISPs provide access to and/or internetworking connectivity via the internet, usually for a fee, and their services may include other internet-based value added services. 71 Commercial and private sector ISPs are generally required to be registered with the NTC as VAS Providers when they rely on the telecommunications service network of an ETE/PTE as the underlying transmission medium for providing internet services. 72 As a VASP, an ISP need not secure a franchise 73 unless it intends to put up its own telecommunications service network for any of the telecommunications categories for which a franchise is required. 74

s. ITU refers to the International Telecommunications Union, a United Nations specialized agency for information and communications technology.

t. LGU refers to Local Government Units as defined by the Philippine Constitution, RA No. 7160, otherwise known as the Local Government Code, and its IRR.

u. MC refers to Memorandum Circular.

v. NTC refers to the National Telecommunications Commission, an agency attached to the DICT.

w. Network refers generally to a system consisting of many similar parts that are connected or interconnected together between or along the parts, or between the parts and a control center. 75 Networks are differentiated and particularized by the type of service or industry propagating them. Typical examples include cable television networks, 76 radio and/or television broadcast networks, 77 networks for electric power transmission and distribution, 78 telecommunications service networks, 79 satellite networks, 80 and networks for information services, such as the broadband network. Information service networks are peculiar in that rapid advances in modern wired and wireless ICT equipment, facilities, and technologies have enabled the propagation of internet connectivity either through independent, separate, and distinct stand-alone information service networks, i.e., computer networks such as personal area networks (PAN), local area networks (LAN), metropolitan area networks (MAN), and wide area networks (WAN); 81 or by riding through and/or above the networks of other more traditional sectors or industries, thereby effectively using the latter as underlying transmission mediums for providing broadband internet access typically on top of, in addition to, or in conjunction with that sector's traditional or basic services, examples of which include Broadband-over-Digital Subscriber Line (DSL) 82 or other wired networks for telecommunications services, 83 Broadband-over-Fixed or Mobile Wireless networks for telecommunications services, 84 Broadband-over-Power Line, 85 Broadband-over-Cable Modem also known as Cable Internet Services, 86 Broadband-over-TV White Spaces, 87 as well as Broadband-over-Satellite. 88

x. Satellite refers to "communications satellites" or earth-orbiting systems capable of receiving and relaying signals to and from the ground in order to provide links for use in the provisioning of a variety of ICT services, such as telephony, radio, television, or broadband internet. For purposes of this Circular, satellites used exclusively for space/earth exploration are not included.

y. Satellite Services — refer to:

i. Fixed Satellite Service (FSS) refers to a radio communications service between earth stations at given points, when one or more satellites are used; the given position may be a specified point or any fixed points within specified areas. 89

ii. Mobile Satellite Service (MSS) refers to a radio communications service between mobile earth stations and one or more space stations, or between space stations used by this service, or between mobile earth stations by means of one or more space stations. 90

z. Satellite Ground Station or Earth Terminal refers to an earth-based terminal or station capable of receiving signals from, or transmitting signals to, communications satellites.

aa. Satellite Earth Terminal Complex refers to the assemblage, collection, or complex of earth-based communications equipment and facilities, inclusive of the satellite ground station or terminal, that connects the space segment with the terrestrial segment of the satellite network, and provides operational interconnection with one or more terrestrial communications systems. As part of the satellite network's terrestrial segment, the earth terminal complex is comprised of the earth-based terminals/stations, as well as the technologies, devices, equipment, facilities, and infrastructure necessary for receiving signals from or transmitting signals to the space segment, and for interconnecting or integrating with one or more terrestrial communications systems or networks. The term shall likewise include satellite telecommunications ports or teleports.

bb. Satellite Systems Provider or Operator (SSPO) refers to providers or operators of satellite systems, whether fixed or mobile, international or domestic, that are duly authorized to engage in the provision of satellite communications services under the laws of their respective countries of domicile.

cc. Satellite Technologies refer generally to technologies for the operation, administration, deployment, or use of communication satellites, such as but not limited to, the following:

i. Very Small Aperture Terminal or VSAT refers to a small-sized ground station or earth terminal used for receiving or transmitting data, voice, and video signals over a satellite communications network;

ii. Global Internet Satellite Network or GISN refers to a global satellite network designed for internet connectivity enabled with voice and data communications; 91 and

iii. Other similar technologies refers to such other space or earth-based technologies, inclusive of but not limited to machineries, equipment, facilities, gears, instruments, apparatus, gadgets, devices, contraptions, tools, implements, mechanism, systems, programs, applications, among others, as may be similar, comparable, analogous, akin, or related to those utilized in connection with the operation, administration, deployment, and use of satellite communications. 92

dd. Spectrum refers to a frequency of electromagnetic radiation, managed and administered by the NTC, in the range at which radio signals are transmitted. 93

ee. Value-Added Service or VAS, 94 as applied to the telecommunications industry, refers to enhanced or specialized services and/or expertise that are beyond the telecommunications services ordinarily provided by ETE/PTEs, such as local exchange and interexchange operators, and overseas carriers. 95 The variety of enhanced 96 or specialized 97 VAS offerings that are outside or beyond the services in the telecommunications categories 98 ordinarily provided by ETE/PTEs, 99 include but are not limited to the provision of online databases, electronic mail, voice mail, internet, and other information services. 100 When offered on top of, in addition to, or in conjunction with the services falling under the ETE/PTE'S telecommunications category, a VAS serves to promote or add value to the telecommunications services ordinarily provided by the ETE/PTE. 101

ff. VAS Provider or VASP, 102 as applied to the telecommunications industry, refers to an entity which offers enhanced or specialized services beyond the telecommunications services ordinarily provided by ETE/PTEs, i.e., operators of local exchanges or interexchange, and overseas carriers, but are reliant on the carriers' transmission, switching and local distribution facilities. 103 As such, VASPs are duly registered with the NTC and allowed to competitively offer to the domestic and/or international markets, their enhanced 104 or specialized 105 service(s) as an added value over and above the services in the telecommunications category of the ETE/PTE whose telecommunications service networks composed of transmission, switching, and local distribution facilities are being relied upon by the VASP as the underlying transmission medium for the latter's enhanced or specialized service offerings, in accordance with network compatibility. 106 VASPs are generally not required to secure a franchise. 107

An ETE/PTE may provide its own VAS offerings on top of its telecommunications services, subject to the additional requirements that (a) prior approval of the NTC is secured to ensure that their VAS offerings are not cross-subsidized from the proceeds of their telecommunications service operations, (b) other VASPs are not discriminated against in rates nor denied equitable access to their facilities, and (c) separate books of accounts are maintained for the VAS. 108 In such cases, the ETE/PTE may likewise be considered as a VASP as regards its VAS offerings.

The term shall likewise include entities expressly recognized or mandated by special laws or legislative charters to offer a service or services that fall under any of the VAS categories, provided they are compliant with the said special law or legislative charter, as well as the applicable policies and requirements on governmental authorization or registration of their respective VAS offerings, inclusive of the submission of their schedule of rates. 109

SECTION 3. Official Language. — In accordance with Section 7, Art. XIV of the Constitution and the provisions of existing laws, English or Filipino shall be the principal language for all agreements, applications, requests, waivers, documents, reports, technical specifications, manuals of procedure, terms of reference, instruction manuals, system languages, notices, signs, safety guidelines, relevant documents, and all other forms of communications and instructions, written or otherwise, utilized for all ICT infrastructure assets, and all those by, between, and among persons and entities in the Philippine ICT sector.

The foregoing communications and instructions may be supplemented with accurate translations into foreign or regional languages appended as subsidiary attachments thereto. For purposes of interpretation and construction, the principal language shall prevail over the foreign or regional language.

SECTION 4. Encouraging the Propagation, Deployment, and Use of Modern Satellite Technologies in the Philippines. — The government's initiatives for inclusive access to satellite technologies, and its effective use as part of the plethora of transmission mediums for the expansion of internet services throughout the country, are hereby recognized as being well in line with the State's policy of fostering an ICT sector policy environment that promotes a broad market-led development of the ICT and ICT-enabled services sectors, a level playing field, partnership between the public and private sectors, strategic alliance with foreign investors, and balanced investments between high-growth and economically-depressed areas. 110

With the Philippines being an archipelago 111 having the topography and geographical features that continue to pose great challenges to the deployment of terrestrial technologies for internet connectivity, the new and next generations of satellite technologies shall be recognized and pursued as a viable means for providing broadband internet access service, as well as broadband backhaul in all the regions of the country in order to keep pace with the changing times, and address the pressing need in all the underserved and unserved areas for strategic, reliable, cost-efficient, and citizen-centric ICT infrastructure, systems, and resources as instruments of good governance and global competitiveness. 112 Even within the areas of the country where wired and wireless terrestrial infrastructure for internet access exist, the deployment and use of satellite technologies, especially the modern and emerging new or next generations thereof, may likewise provide a viable means for primary, alternative, complementary or supplemental ICT connectivity, for the provision of support or protection routes, and broadband backhaul, among others, in order to more effectively pursue the objectives of providing quality, efficient, fast, affordable, reliable, resilient, and secure ICT services across the nation and all of its areas, under a broad market-led approach to fostering connectivity between and among the people, their businesses, and governments, both at the domestic and global level.

In order to ensure universal access to quality, affordable, reliable, and secure ICT services, to promote the development and widespread use of emerging ICT, to accelerate the convergence of ICT and ICT-enabled facilities, to ensure the availability and accessibility of ICT services in areas not adequately served, to promote the development and use of ICT with due consideration to the advantages of convergence and emerging technologies, and to pursue the national policy favoring inclusive access to satellite services, the government shall foster and encourage the propagation, deployment, and use of modern satellite and other emerging technologies in the Philippines with due regard for the relevant laws on consumer protection, competition, data protection, data sovereignty, data ownership, and data localization.

SECTION 5. In-Country Satellite Earth Terminal Complexes to Support the Propagation of ICT Services through New and Next Generation Satellite Technologies. — In order to support the development and propagation of ICT services through the use of new and next generations of satellite technologies in the country, all SSPOs shall likewise be encouraged and incentivized to establish, own, maintain, and operate at least one (1) primary and at least one (1) secondary satellite earth terminal complex or teleport within the jurisdiction of the Philippines.

SECTION 6. New and Next Generations of Satellite Service Technologies, Establishment of Local Satellite Earth Stations or Teleports, as a Pioneering Industry in the Philippines. — The government shall foster and encourage the growth of satellite services as a pioneering industry sector in the Philippines for the birth, development, or use of new and next generations of satellite technologies, and the establishment of in-country satellite earth complexes, or teleports, pursuant to the State's policy objective of providing universal access to quality, affordable, reliable, and secure ICT and ICT-enabled services throughout the country.

In line with its mandate to support and promote trade and investment opportunities in the ICT and ICT-enabled services sectors, 113 the DICT shall pursue such plans, programs, activities, or initiatives as may be necessary or desirable to incentivize duly accredited SSPOs and Authorized Entities that invest in, adopt, roll out, implement, establish, own, maintain, operate or utilize new and next generation satellite technologies, inclusive of in-country satellite earth complexes or teleports, in order to propagate ICT and to expand the provision of quality internet services across the country through direct access to the services of satellites and other emerging technologies for purposes of ensuring universal coverage. 114

The departmental plans, programs, activities, or initiatives shall include, but not be limited to, effectively coordinating with the Board of Investments (BOI), Philippine Economic Zone Authority (PEZA), the LGUs, and other concerned government agencies or instrumentalities, for the issuance and implementation of policies for the grant of applicable incentives and benefits.

TITLE II

Satellite Systems Providers or Operators

SECTION 7. Requirements for Satellite Systems Providers or Operators (SSPOs). — All operators or providers of satellite systems desiring to provide satellite services in the Philippines by directly engaging with Authorized Entities under the provisions of Executive Order (EO) No. 467, s. 1998, as amended by EO No. 127, s. 2021, this Circular, and other existing laws, shall:

a. Digital Presence. — have adequate digital presence in the Philippines. Digital presence shall include, but not be limited to, having an official website, with sufficient content and information, that is readily accessible online in the Philippines.

b. Local Presence. — have adequate local presence in the Philippines. For foreign or international SSPOs, local presence shall mean having a branch office, representative office, institutional agent, official distributor, or a combination thereof, in the Philippines.

c. Capacity; Coverage or Satellite Footprint. — have the capacity, coverage, and satellite footprint in the Philippines for purposes of providing adequate satellite services to the areas covered therein.

d. SSPO Accreditation by the DICT. — be duly accredited with the DICT by fulfilling the application requirements for SSPO accreditation under this Circular.

SECTION 8. Reciprocity Requirement for Foreign or International SSPOs. — No foreign or international SSPO shall be allowed to provide satellite services in the Philippines, unless its country of domicile likewise:

a. Does not prohibit Philippine satellites to operate within its territories; and

b. Does not prohibit its citizens or subjects to access Philippine satellite systems.

SECTION 9. DICT Accreditation Certificate; Renewal. — No entity shall engage, continue to engage, or otherwise be engaged, in the provision of satellite services as an SSPO in the Philippines unless it is duly accredited by the DICT, as evidenced by a valid and subsisting SSPO Accreditation Certificate.

The SSPO Accreditation Certificate shall be valid for five (5) years, subject to renewal upon complete and proper application for renewal filed within the third (3rd) month preceding the prior certificate's expiration. The validity period for the succeeding renewal certificates shall not exceed five (5) years at any single instance.

No Authorized Entity shall engage any private entity purporting to be an SSPO, unless the latter is duly accredited as such by the DICT in accordance with this Circular.

SECTION 10. Contents of the SSPO Application for Accreditation. — To be accredited as an SSPO, the applicant must submit its application for accreditation to the DICT, complete with the following requirements:

a. Duly executed and notarized Accreditation Application Form, the contents of which shall be as prescribed by the DICT.

b. Company Profile.

c. Corporate or Company Documents of the applicant issued/approved by the SEC or its equivalent government agency or instrumentality in the applicant's country of domicile, to wit:

i. Certificate of Registration in the applicant's country of domicile;

ii. Articles of Incorporation and By-Laws;

iii. Latest General Information Sheet;

iv. Latest Audited Financial Statements;

v. Secretary's Certificate authorizing the filing of the application.

d. Acceptable documentary proof or evidence indicating that the applicant:

i. has established adequate digital presence in the Philippines.

ii. has established adequate local presence in the Philippines.

iii. has the capacity, coverage, and satellite footprint to provide adequate service in the Philippines, or any area therein.

e. For foreign or international applicants, acceptable documentary proof or evidence showing that its country of domicile likewise (a) does not prevent its citizens or residents to access Philippine satellite systems, and (b) does not prevent Philippine satellites to operate within its territories.

f. Official receipt issued by the DICT Cashier on the payment of the application processing fees.

g. Such other documents as may be necessary or required by the DICT.

The form and contents of the SSPO Accreditation Application Form may be revised or updated by the Department from time to time, as may be necessary: Provided, that, such revision or updating shall foster the simplicity and streamlining of the accreditation process, and encourage broader participation of legitimate SSPOs in the provision of quality satellite services in the country, in fine with the national policy for the expansion of internet services through inclusive access to satellite technology.

SECTION 11. SSPOs Desiring to Do Business as Authorized Entities. — All SSPOs desiring to do business as Authorized Entities providing services or product offerings directly to the general public in the domestic market shall, in addition to the requirements for SSPO accreditation, further strictly comply with all pertinent permitting, filing, registration, and/or authorization requirements for an ETE/PTE, ISP, VAS, or other Authorized Entity, whichever is applicable, pursuant to the provisions of EO No. 467, s. 1998, as amended by EO No. 127, s. 2021, this Circular, and other existing laws of general and special application in relation to doing business in the Philippines.

TITLE III

Expanding the Provision of Internet Services through Inclusive Access to Satellite Services

SECTION 12. Broadband Internet and Internet Access as an Information Service. — In line with modern ICT industry and global practices, 115 in order to address the global calls for all countries to prioritize universal access to the Internet 116 and develop concrete and effective policies to make the Internet widely available, accessible, and affordable to all segments of the population, 117 and for purposes, inter alia, of implementing the national policy of expanding the provision of internet services through inclusive access to satellite services, 118 the provisioning of broadband internet and internet access as an information service shall be recognized as a matter of departmental policy and guiding principle.

SECTION 13. Entities Allowed to Directly Access Satellite Systems for the Provision of Internet Services. — Pursuant to Sections 1 (a) and 2 of EO No. 467, s. 1998, as amended by EO No. 127, s. 2021, direct access to all satellite systems duly accredited in the Philippines shall be allowed in favor of the following entities for purposes of expanding the provision of internet services in the country:

a. Internet Service Providers. — All ISPs duly registered with the NTC 119 shall be allowed direct access to satellite systems for purposes of offering or providing internet services. 120

b. Value-Added Service Providers. — All VASPs duly registered with the NTC 121 shall be allowed direct access to satellite systems for purposes of offering or providing internet services. 122

c. Enfranchised Telecommunications Entities/Public Telecommunications Entities. — All ETE/PTEs duly authorized by the NTC 123 shall be allowed direct access to satellite systems for purposes of providing the services in the telecommunications categories for which they are enfranchised, and for offering or providing internet services as VAS. When providing internet services as VAS, the ETE/PTEs shall be subject to the additional requirements that (a) prior approval of the NTC is secured to ensure that their VAS offerings are not cross-subsidized from the proceeds of their telecommunications service operations, (b) other VASPs are not discriminated against in rates nor denied equitable access to their facilities, and (c) separate books of accounts are maintained for their VAS offerings. 124

d. Broadcast Service Providers. — Broadcast Service Providers duly authorized and registered to provide VAS, may be allowed direct access to satellite systems for purposes of providing the broadcast services for which they are enfranchised, and for offering or providing internet services as VAS, 125 subject to NTC rules, regulations, and authorizations. 126 Prior NTC authorization shall not be required when the Broadcast Service Provider's utilization of the space segment is limited to the supply or expansion of their station signals within their network or to other broadcast stations.

The foregoing enumerations shall be without prejudice to the provisions of special laws or legislative charters that expressly authorize or allow other entities to provide internet services in the Philippines.

SECTION 14. NTC Registration of VAS and ISP Offerings. — All Authorized Entities falling under the immediately preceding section shall comply with the policies and requirements on the registration of their respective VAS and ISP offerings, and the submission of their schedule of rates, under §2, EO No. 467, s. 1998, as amended by EO No. 127, s. 2021.

SECTION 15. Direct Access to Satellite Systems, Facilities, and Technologies for All Segments of the Broadband Network. — Authorized Entities shall be allowed to pursue any or all of the following activities for purposes of expanding their provision of internet services in accordance with EO No. 467, s. 1998, as amended by EO No. 127, s. 2021, and this Circular:

a. To have direct access to all satellite systems, whether fixed or mobile, international or domestic. 127 Accordingly, all Authorized Entities may pursue any one of a number of measures that permit direct dealings with any or all the SSPOs duly accredited by the DICT, at specified levels defined by the NTC. 128 No intervening third party arrangement with ETEs/PTEs shall be imposed by the government as a regulatory requirement for dealings or transactions between Authorized Entities and duly accredited SSPOs.

b. To build and operate Broadband Facilities to offer internet services, 129 inclusive of the ability to directly access, utilize, own, and operate facilities for internet access service, 130 for all segments of the broadband network. 131

c. To use satellite technologies such as, but not limited to, VSATs, BGAN, and other similar technologies, in conjunction with the aforementioned activities. 132

d. To perform any and all acts as may be necessary or incidental to any or all of the foregoing activities.

The NTC shall expedite its administrative processes in order to enable all Authorized Entities to effectively pursue and perform any or all of the foregoing activities in accordance with the national policy for expanding the provision of internet services through inclusive access to satellite services.

SECTION 16. Arrangements between and among Authorized Entities. — In addition to directly engaging the services of duly accredited SSPOs, Authorized Entities may also enter into such other lawful and reasonable arrangements with other Authorized Entities for purposes of expanding the provision of internet services through inclusive access to satellite technologies.

SECTION 17. Direct Negotiations and Submission of Agreements on Satellite Transponder Use. — The Authorized Entity's direct access shall likewise include their ability to directly negotiate and enter into contracts with duly accredited SSPOs for the lease, rent, or any other arrangement for the use of satellite transponders, or for subscription, in order to offer internet services for any or all segments of the broadband network, in which case the Authorized Entity shall submit the original or certified true copies of the relevant agreements, complete with supporting documents, to the NTC, copy furnished the DICT and the duly-accredited SSPO, prior to deployment.

SECTION 18. Access to Associated Spectrum. — All Authorized Entities shall be allowed to access and use associated spectrum in order to effectively expand the provision of internet services through inclusive access to satellite services, for any or all segments of their broadband network. For this purpose, the NTC shall ensure that sufficient spectrum shall be available for use by Authorized Entities.

No rule or regulation shall require the grant of a legislative franchise in order for ISPs and VASPs to utilize associated spectrum solely for purposes of providing internet services. Authorized Entities may also enter into leasing, rental, or other similar arrangements with existing spectrum grantees for their use of the latter's spectrum allocation in order to provide internet services.

The use of radio frequencies under this Circular shall be in accordance with the latest National Radio Frequency Allocation Table (NRFAT), as administered by the NTC.

SECTION 19. Administrative Processes to Facilitate Access to Satellite Services. — All government rules, regulations, and administrative processes shall be liberalized, streamlined, and expedited in order to enable the Authorized Entities to acquire and utilize internet connectivity directly from satellites and other emerging technologies, and to utilize, own, install, operate and maintain facilities for internet access service using satellite and other emerging technologies, such as Very Small Aperture Terminals (VSATs), Broadband Global Area Network (BGAN), and other similar technologies, for all segments of the broadband network.

SECTION 20. Administrative and Regulatory Fees; Licensing and Payment of Spectrum User Fees (SUF). — All Authorized Entities shall be subject to payment of applicable administrative and regulatory fees, including the payment of SUF.

TITLE IV

Use of Satellite Facilities for Other Purposes

SECTION 21. Access to Satellite Systems for Other Purposes. — The use of satellite facilities for purposes other than those covered by Title III of this Circular, inclusive of but not limited to, the following:

a. Use of satellite facilities for research development, education, health, safety and rescue;

b. Use of Satellite News Gathering (SNG) earth stations owned or operated by foreign news media organizations;

c. Operation and use of GMPCS; and

d. For DTH TV broadcasting services.

shall continue to be allowed under the terms and conditions prescribed by existing laws, circulars, rules, regulations, and other issuances.

TITLE V

Satellite Services and the Free Public Internet Access Program

SECTION 22. Satellite Systems and Technologies as Critical Components for Internet Connectivity. — In light of the country's geographical features as an archipelago, the topography of its land areas, and their resulting challenges to the deployment of terrestrial technologies for internet connectivity, the use of satellite systems and technologies for establishing internet connectivity — for achieving resilience, reliability, and universal coverage, for providing broadband backhaul, and for ensuring the provision of quality ICT and ICT-enabled services across the country, inclusive of all its areas that are unserved, underserved, or GIDAs — shall be recognized and included as part of the critical components for the government's timely and effective implementation of the FPIAP.

SECTION 23. Satellite Systems and Technology and the FPIAP. — Whenever deemed necessary or desirable in the public interest, the DICT may pursue any or all of the following activities in relation to the use of satellite systems and technology for implementing the FPIAP:

a. Participate in the use of satellite systems and other emerging technologies for its timely and effective implementation and propagation of the FPIAP under RA No. 10929 and in pursuit of its mandates under RA No. 10844;

b. Engage the services of duly-accredited SSPOs and/or Authorized Entities for the delivery of internet connectivity to the public places, and to ensure universal coverage, under the FPIAP;

c. Enter into such contracts or other arrangements for cooperation and/or partnerships with members of the public and/or private sectors, inclusive of SSPOs and Authorized Entities, as may be necessary or desirable for the effective implementation of the FPIAP program; 133

d. Pursue such activities as may be necessary or desirable for meaningful public and private sector participation in the implementation of the FPIAP, 134 including but not limited to establishing, institutionalizing, and implementing plans, programs, activities, or mechanisms for:

i. Ensuring that sufficient capacity and/or bandwidth is secured from any or all available sources in order to provide quality internet access in the public places covered under the FPIAP, subject to availability of funds and resources.

ii. Enabling the duly registered ISPs engaged by the DICT so that their capacity, in excess of that needed for the FPIAP, may be offered to deliver supplemental internet access services for a reasonable fee to the users in the areas where FPIAP facilities are located. 135

iii. Encouraging private sector service providers to exchange data traffic at domestic internet protocol (IP) exchanges, which may be designated by the DICT, for purposes of lowering costs, as well as increasing and improving the free internet access in public places. 136

e. Undertake the creation, establishment, installation, maintenance, or operation of infrastructure, equipment, systems, platforms, applications, and such other FPIAP requirements necessary to effectively provide free internet access in public places throughout the country; 137

f. Coordinate with national government agencies (NGAs), local government units (LGUs), the private sector, and concerned organizations for the timely and effective implementation of RA No. 10929, 138 and to ensure that the FPIAP, inclusive of the program's use of satellite systems and other emerging technologies, are integrated with the plans and budgets of all agencies mandated to provide free internet access; 139

g. Enter into such other contracts as may be necessary or desirable for the implementation of the FPIAP and RA No. 10929; 140

h. Provide personnel training, and institute accounting and fiscal practices for FPIAP operations, including in instances where the operation of the FPIAP is outsourced to qualified SSPOs or Authorized Entities; 141

i. Prescribe the regulations or subscribe to acceptable standards in the installation, construction, maintenance, and operation of infrastructure and equipment; 142

j. Prescribe such other policies and regulations as may be necessary or desirable for the timely and effective implementation of the FPIAP and RA No. 10929; 143

k. Perform any and all acts as may be necessary or incidental to any or all of the foregoing activities.

SECTION 24. Authority of the DICT to Establish Infrastructure and Install Equipment. — The authority of the DICT to undertake the creation, establishment, installation, maintenance, and operation of infrastructure, equipment, systems, platforms, applications, and such other FPIAP requirements 144 shall encompass those that are necessary for its effective use of satellite and other emerging technologies for purposes of providing free internet access in public places throughout the country. 145

Nothing in this Circular or RA No. 10929, its IRR, and other departmental issuances shall be construed as prohibiting the DICT from installing equipment and establishing infrastructure, 146 inclusive of those that are necessary or incidental to the effective use of satellite and other emerging technologies, for purposes of providing internet connectivity. 147

SECTION 25. Minimum Internet Speeds; Standards for Installation, Construction, Maintenance, and Operation of Infrastructure and Equipment. — The DICT shall pursue such reasonable measures as may be necessary or desirable to ensure that private sector participants in the FPIAP, inclusive of accredited SSPOs or Authorized Entities duly engaged by the DICT to provide satellite services for free public internet access in public places, are compliant with the applicable minimum internet speeds prescribed by existing departmental issuances, 148 as well as with the acceptable standards for the installation, construction, maintenance, and operation of infrastructure and equipment. 149

SECTION 26. Use of Spectrum for the FPIAP. — The frequencies assigned to and required by the DICT for the FPIAP, as well as the use of available or unassigned spectrum by other agencies and private entities, pursuant to RA No. 10929, its IRR, and existing departmental issuances, 150 shall likewise be made available for use in expanding internet services through inclusive access to satellite services and technologies, especially for the implementation of the FPIAP.

SECTION 27. Funding Requirements for the FPIAP. — For purposes of implementing the FPIAP, the DICT shall retain its authority to arrange funding from any source, whether private, government, foreign, or domestic, including official development assistance, and bilateral or multilateral loans, subject to existing laws and regulations. 151

TITLE VI

Streamlined Permitting and Clearance Processes for Building and Operating Facilities for Expanding Internet Services through Inclusive Access to Satellite Services

SECTION 28. Mandatory Timelines for Permits and Clearances. — In all instances where the law allows the imposition of a national or local permit or clearance as a requirement for the installation, repair, operation, and maintenance of internet infrastructure, the rollout of fiber, or the installation of poles, ground terminals, and other transmission or similar telecommunications and internet structure and facilities, the concerned LGU or NGA shall act promptly and strictly adhere to the statutory timelines mandated for the approval or disapproval of any and all pending and new applications filed by Authorized Entities in connection with the equipment and facilities covered by this Circular, 152 failing which the application shall be subject to the automatic approval mechanisms provided by law. 153

SECTION 29. Monitoring Timeline Compliance. — For purposes of data analytics and monitoring compliance with the timelines mandated by law, all Authorized Entities shall copy furnish the DICT and its concerned DICT Regional Offices with each duly completed application form and its supporting attachments as stamp received by the receiving unit of the LGU or NGA in which the application is filed. The DICT shall monitor compliance with the timelines for the processing and approval of the applications for permits or clearances filed in connection with the equipment and facilities covered by this Circular.

SECTION 30. Temporary Suspension of Requirements and Streamlining of Regulatory Processes as Part of the Government's COVID-19 Response and Recovery Interventions. — The advantages of the temporary suspension of requirements to secure permits and clearances for the construction of internet infrastructure, 154 and the streamlining of regulatory processes and procedures for the development and improvement of digital, internet, and satellite technology infrastructure 155 as provided under Section 4 (ii) of RA No. 11494, otherwise known as "Bayanihan to Recover as One Act," its IRR, and other pertinent laws and issuances, shall apply to all Authorized Entities in order to accelerate their establishment, operation, and use of the equipment, facilities, and technologies necessary to expand the coverage of broadband internet networks, and to provide connectivity to the unserved and underserved communities. 156

TITLE VII

Satellite Services and Government Interventions for COVID-19 Response and Recovery

SECTION 31. Satellite Systems and Technology for Accelerating the Deployment of Critical ICT Infrastructure for Digital Connectivity, Internet Speed and Stability, and Cybersecurity. — The DICT shall include the effective use of satellite systems and technologies as a necessary part of the measures to accelerate the deployment of critical ICT infrastructure throughout the country to address the urgent need for digital connectivity, internet speed and stability, and cybersecurity in E-Commerce, E-Government, online learning, and telecommuting in order to sufficiently meet the significant additional shift of the general public to online services and platforms and to home and mobile communication units for doing work from home, for completing commercial and other transactions, for convening meetings and conducting conferences and seminars/webinars, and for obtaining educational instruction during the COVID-19 pandemic. 157

TITLE VIII

Philippine Orbital Slot

SECTION 32. Securing Orbital Slots from the ITU. — The DICT, through the NTC, shall pursue policies to secure or preserve orbital slots from the International Telecommunications Union (ITU) for Philippine satellites, whether publicly or privately owned.

The DICT shall make the necessary representations with the ITI to secure and preserve orbital slots for Philippine satellites, and the NTC shall provide all necessary assistance in this effort. The DICT may likewise call on other concerned government agencies and instrumentalities for such assistance as may be deemed necessary for the purpose.

TITLE IX

Final Provisions

SECTION 33. Jurisdiction and Authority. — All SSPOs and all entities allowed to directly access satellite systems for the provision of internet services in the Philippines shall comply with the policies, orders, and directives issued by the DICT. They shall likewise be subject to the jurisdiction and authority of the NTC as the regulatory agency attached to the DICT.

SECTION 34. Direct Access to Other Emerging Technologies. — In addition to being allowed direct access to satellite technologies under the provisions of this Circular, and for purposes of ensuring universal coverage, promoting the development and widespread use of emerging ICT, and accelerating the convergence of ICT and ICT-enabled facilities, all Authorized Entities may likewise acquire and utilize internet connectivity directly from other emerging technologies, which when used to provide internet connectivity shall be considered as VAS. 158 The direct access of Authorized Entities to other emerging technologies for purposes of expanding the provision of internet services, and ensuring universal coverage, shall include the ability to perform any and all such lawful and reasonable acts as may be necessary or incidental to the pursuit thereof.

The direct access of Authorized Entities to satellite and other emerging technologies under this Circular and RA No. 10929 shall be complimentary and without prejudice to their acquisition and used of internet connectivity from other traditionally available sources.

SECTION 35. Enforcement, Investigation, Institution of Appropriate Proceedings. — Any violation or circumvention of the provisions of this Circular shall constitute sufficient grounds for the suspension, cancellation or revocation of the offending entity's accreditation, authorization, or registration, as the case may be, as well as the imposition of authorized administrative fines.

In addition, the offender shall be subjected to appropriate enforcement and investigation proceedings with a view towards instituting such civil, criminal, administrative cases, or any combination thereof, as may be warranted under the circumstances.

Failure or inability to enforce the strict compliance of this Circular shall not constitute a waiver of the rights of the DICT and/or NTC to subsequently enforce the provisions hereof, nor shall non-compliance of this Circular be considered a sufficient justification against its coverage and application.

SECTION 36. Construction and Interpretation. — (a) This Circular shall be liberally construed in order to attain and implement the national policy for inclusive access to satellite services under EO No. 467, s. 1998, as amended by EO No. 127 s. 2021.

(b) The provisions of this Circular shall be deemed written into, and shall constitute an integral part of, any and all contracts involving the rendition of satellite services for ICT in the Philippines. All agreements between SSPOs and Authorized Entities shall be subject to, and in accordance with EO No. 467, s. 1998, as amended by EO No. 127 s. 2021, this Circular, and applicable Philippine laws of general or special application, inclusive of those on data protection, data sovereignty, data ownership, and data localization.

(c) Nothing in this Circular shall be construed as allowing any entity to engage in any other service or activity for which a legislative franchise is required by law, 159 unless that privilege has been granted by law, legislative franchise, or statutory charter to that entity. Neither shall this Circular be construed as authorizing foreign entities to engage in services or activities reserved by law or the Constitution to Filipinos.

(d) Any and all concerns arising from the construction or interpretation of this Circular or any provision hereof, shall initially, and as a condition precedent to the filing of any other action, be submitted in writing, setting forth the particulars thereof and the specific basis therefor, to the Department. After due consideration of the documentary submission, the DICT shall provide its clarification, guidance or disposition thereon to the parties concerned within a reasonable period of time.

SECTION 37. Use of Alternative Modes of Dispute Resolution. — The parties to any agreement arising from or in connection with this Circular shall make every reasonable effort to reach an amicable settlement in good faith so as not to impede implementation of the national policy for inclusive access to satellite services.

Pursuant to §10, Chapter 3, Book VII of the Revised Administrative Code, the SSPOs and Authorized Entities are encouraged to settle, through any of the modes of alternative dispute resolution, any and all disputes or controversies, of any kind whatsoever, that may arise between and among them in connection with or arising from their respective agreements, prior to instituting appropriate adjudicatory proceedings. For this purpose, the parties may resort to the provisions of RA No. 9285, otherwise known as the "Alternative Dispute Resolution Act of 2004," and its IRR.

SECTION 38. Annual Review of Guidelines and Regulations. — The DICT shall, in consultation with the NTC and other concerned agencies and sectors, conduct a review, annually or as often as it may deem necessary, of the responsiveness of EO No. 467, s. 1998, as amended by EO No. 127, s. 2021, and this Circular, or any portion thereof, which review shall include but, not be limited to, the following considerations:

a. The opportunities and challenges of its implementation;

b. The areas served by terrestrial broadband network operators, as well as the quality and cost of internet services therein;

c. The areas that are underserved and unserved by terrestrial broadband network deployments, inclusive of GIDAs;

d. Potential areas for the deployment of satellite services, whether as a primary, complementary, or supplemental source of ICT connectivity, support, backhaul, or protection route;

e. Study and research towards an updated and coherent spectrum management policy that is compliant with international regulations, and beneficial to consumers and users of satellite technologies through the proper allocation of sufficient spectrum for VASPs and ISPs;

f. Further guidance on the use of international earth stations to the registered VASPs and ISPs that offer satellite broadband services;

g. Other matters as may be necessary, incidental, related to, or in connection with improving the effective implementation of the national policy for inclusive access to satellite services.

When deemed necessary, the DICT may create Task Forces, Technical Working Groups, Committees, or Advisory Bodies in accordance with Section 14, RA No. 10844 in order to assist in the conduct of the review.

The DICT shall from time to time, and as may be warranted by its review, submit its report to the Office of the President, with recommendations for such presidential action as may be needed for appropriate policy improvement towards a more responsive national policy for inclusive access to satellite services.

SECTION 39. Transitory Provisions. — For purposes of ensuring proper transition in light of this Circular, the following provisions shall be observed:

a. Applicants for SSPO accreditation that have yet to comply with the requirements under this Circular at the time of its effectivity, and for a period of eighteen (18) months thereafter, may submit their applications, together with their reasons, justifications, and timeframes for full compliance. The DICT may, in exceptional cases and upon good cause shown by the applicant, issue a provisional or temporary SSPO accreditation which shall be valid only for a limited time not exceeding the aforesaid eighteen (18)-month period after this Circular's effectivity, during which the applicant must show that it has fully complied with all the requirements for SSPO accreditation.

b. All existing agreements for the use of satellite systems owned and operated under the authority of a county that does not fulfill the reciprocity requirements under Section 8 of this Circular shall be allowed to continue operating in the Philippines only for a limited period, which shall not exceed eighteen (18) months from the effectivity of this Circular. Thereafter, any renewal, extension or new agreement thereon for the use of satellite systems for the provision of internet services in the Philippines shall be fully compliant this Circular.

c. All relevant authorizations, registrations, and permits for access to satellite systems for the provision of internet services in the Philippines issued and existing prior to the date of effectivity of this Circular shall continue in force and effect until their expiration. Thereafter, the renewal, extension, or new issuance thereof shall be fully compliant with this Circular.

d. The provisions of NTC MC No. 04-03-99, NTC MC No. 01-03-2008, and other NTC issuances promulgated pursuant to Section 1 (b, c, d), Section 3 (b, c, d, e, f) of EO No. 467, s. 2021, and the other provisions thereof unaffected by EO No. 127, s. 2021 and this Circular, shall continue in force until subsequently revoked, modified, amended, or repealed by the proper authority.

SECTION 40. Commencement of Acceptance of Application for Accreditation as SSPOs and Registration as Authorized Entity; Updating of Agency Regulations and Processes. — Upon issuance of this Circular, qualified parties may commence to seek accreditation with DICT as SSPO or registration as Authorized Entity. The NTC shall update its regulations, and expedite its administrative processes, to enable Authorized Entities to directly access, utilize, own, install, operate and maintain facilities and networks for internet access service using satellite technologies, for all segments of the broadband network. Broadcast Service Providers may, upon issuance of this Circular, already apply for the relevant accreditation/registration to directly access satellite systems and the NTC shall immediately accommodate the same, updating its regulations as necessary.

The DICT shall implement its streamlined accreditation process for SSPOs. The NTC shall likewise update its regulations to streamline its registration process for VASPs, ISPs, and other Authorized Entities.

The DICT and the NTC shall closely coordinate in order to ensure that all qualified applicants, who have duly submitted their complete application requirements and fully paid the assessed application fees, are duly accredited as SSPOs or registered as Authorized Entities, as the case may be, pursuant to the provisions of this Circular.

SECTION 41. Separability Clause. — If any provision of this Circular is declared invalid or unconstitutional, the other provisions not affected thereby shall remain valid and subsisting.

SECTION 42. Reservation Clause. — The Department may amend or modify the provisions of this Circular, or impose further conditions, as may be necessary in the public interest, and pursuant to Section 4 of EO No. 467, s. 1998, as amended by EO No. 127, s. 2021, the Revised Administrative Code, and existing laws. Nothing in this Circular shall be construed to limit, decrease, or restrain the Department's authority under RA No. 10844, RA No. 10929, the Revised Administrative Code, and other existing laws, rules, regulations, and issuances. Pursuant to RA No. 10929, nothing in this Circular shall prohibit the DICT from providing internet connectivity by installing its own equipment and establishing its own infrastructure.

SECTION 43. Repealing Clause. — The provisions of NTC MC No. 04-03-99, as amended by NTC MC Nos. 5-6-2003 and 01-03-2008, and all other issuances, orders, rules and regulations affected by and inconsistent with the provisions of EO No. 467, s. 1998, as amended by EO No. 127, s. 2021, and this Circular, are hereby repealed, amended, or modified accordingly. All other provisions of EO No. 467, s. 1998 and its IRR that are unaffected by the amendments introduced by EO No. 127, s. 2021 and this Circular shall remain in force and effect.

SECTION 44. Effectivity Clause. — This Circular shall take effect fifteen (15) days after its filing/publication in accordance with Sections 3 and 4, Chapter 2, Book VII of the 1987 Revised Administrative Code. 160 Let copies of this Circular be likewise posted and published in the Official Gazette, as well as the official DICT website and bulletin boards.

Further publication may likewise be made through a newspaper of general circulation, if available in light of the public health emergency.

(SGD.) GREGORIO B. HONASAN IISecretary

 

Footnotes

1. II Phil. Const. §24 (1987).

2. §§2 (b, c, d, e, f, h), RA No. 10844, otherwise known as the "DICT Act of 2015."

3.See for example Asian Development Bank, Internet P1ns Agriculture: A New Engine for Rural Economic Growth (2018), https://www.adb.org/publications/internet-plus-agriculture-prc; McKinsey Global Institute, The Great Transformer: The Impact of Internet on Economic Growth and Prosperity (2011), https://www.mckinsey.com/~/media/mckinsey/industries/technology%20media%20and%20telecommunications./high%20tech/our%20insights/the%20greatEconomic and Social Benefits (2016), OECD Digital Economy Papers, No. 257, OECD Publishing Paris, https://doi.org/10.1787/5jlwqf2r97g5-en.

4.See §3 (h) in rel. §11, RA No. 7925. "§3 (h). Value-added service provider (VAS) — an entity which, . . ., offer, enhancedservices beyond those ordinarily provided for by such carriers." "§11. 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."

5.See cf. §8, RA No. 10929, to wit: ". . . development of the broadcast, telecommunications, internet service, or value-added services authorized by on registered with the NTC."

6.See §3 (h), RA No. 7925; See also last par. §6, RA No. 10929, to wit: "Internet service providers (ISPs) shall be allowed to acquire and utilize internet connectivity directly from satellites and other emerging technologies to ensure universal coverage, which when used to provide internet connectivity shall be considered value-added services."

7.See cf. §§7, 8, 9, 10, 12, 13, in rel. §16, RA No. 7925. N.B. Internet services started in the Philippines only in March 1994, (https://dict.gov.ph/the-history-of-internet-in-the-philippines/), at a time when technological limitations limited the internet's propagation only through the traditional networks for the categories of telecommunications services reserved for ETE/PTEs by RA No. 7925 in 1995. Since then, transmission technologies for internet services have advanced well beyond such limitations, and enabled the internet to be propagated through information service networks that are either stand-alone area networks or in conjunction with the networks of other sectors or industries, aside from the networks for the telecommunications service categories that require Congressional franchises under RA No. 7925. An ISP, as a VAS Provider, need not secure a franchise, unless it intends to put up its own network for any of the categories of telecommunications services that require a Congressional franchise, i.e., Local Exchange Operator, Inter-Exchange Carrier, International Carrier.

8.See, for reference, Denis Du Bois, Broadband over Powerlines (BPL) in a Nutshell (2004), available at: https://web.archive.org/web/20141119232412/http://energypriorities.com/entries/2004/12/broadband_over_1.php; See also Ian Walden, Telecommunications Law and Regulation, p. 212 (5th ed. 2018), and https://www.fcc.gov/general/types-broadband-connections.

9.N.B. Because operating in certain telecommunications categories is currently reserved by law to ETE/PTEs, (see §7 and §16, RA No. 7925), an ETE/PTE can put up its own telecommunications service network — consisting of the transmission, switching and local distribution facilities for end-to-end transmission of user-supplied information, (see TWH, A Framework for Global Electronic Commerce 24 (July 1, 1997), re: World Trade Organizations (WTO) Negotiation on Basic Telecommunications), that it needs in order to operate in the telecommunications category for which it is authorized under its Congressional franchise, i.e., as a local exchange operator, inter-exchange operator, and/or overseas carrier, as the case may be. (See §§3 [b], 8, 9, 10, cf. §11, RA No. 7925). In that regard, RA No. 7925 also provides that a VASP that relies on the networks for telecommunications services falling under the specified categories reserved for ETE/PTEs — the transmission, switching and local distribution facilities of the local exchange and inter-exchange operators, and overseas carriers — for the VASP's underlying transmission or conveyance medium in order to offer their enhanced services, (see §3 [b], RA No. 7925), is prohibited from putting up on its own network to provide services under the telecommunications categories reserved for ETE/PTEs, unless it secures the appropriate Congressional franchise as an ETE/PTE. (See §3 and §11, RA No. 7925). Relevantly, no such prohibition exists in RA No. 7925 as regards ISPs that utilize other transmission or conveyance mediums for propagating their own information service network for internet services, it being distinct from the telecommunications service networks for operating in the telecommunications categories that require a Congressional franchise as an ETE/PTE, i.e., local exchange and inter-exchange operators, and overseas carriers.

10.See cf., Federal Communications Commission, Types of Broadband Connections (2014), https://www.fcc.gov/general/types-broadband-connections.

11.See Ian Walden, Telecommunications Law and Regulation (p. 212). OUP Oxford; See Federal Communications Commission, Types of Broadband Connections (2014), https://www.fcc.gov/general/types-broadband-connections; See also, for further reference, Denis Du Bois, Broadband over Powerlines (BPL) (2004), available at: https://web.archive.org./web/20141119232412/http://energypriorities.com/entries/2004/12/broadband_over_1.php.

12.See §2 (d), RA No. 10844.

13.See §2 (d), RA No. 10844.

14. See §2 (c), RA No. 10844.

15. §2, RA No. 10929, otherwise known as "Free Internet Access in Public Place Act."

16. §6, RA No. 10929.

17. §8, RA No. 10929. N.B. The terms and conditions of such use shall be transparent, fair, reasonable, and nondiscriminatory, as specified in the guidelines jointly issued by DICT, NTC, and the Philippine Competition Commission (PCC).

18. §6, RA No. 10929. N.B. "Internet services" are treated separately from "telecommunications services." See §8, RA No. 10929, enumerating "internet services" or "value added services" distinctly from "broadcast" and "telecommunications." See also, Government Procurement Police Board Resolution No. 19-06, re: Approving and Adopting the Guidelines on the Procurement of Water, Electricity, Telecommunications, and Internet Service Providers, on the separate treatment of Telecommunications under §3.2 (Landline and Cellular Phones [Existing Lines §3.2.1/New Lines §3.2.2]) from Internet Service Providers under §3.3 (Existing ISPs §3.3.1/New ISPs §3.3.2).

19. §6, RA No. 10929.

20.Id.; See cf. Chua v. CSC, G.R. No. 88979, February 7, 1992 (En Banc), citing Ruben E. Agpalo, Statutory Construction, pp. 118-119 (1986), citing In re: Dick, 38 Phil. 41 (1918); City of Manila v. Gomez, G.R. No. L-37251, August 31, 1981, 107 SCRA 98; Escribano v. Avila, G.R. No. L-30375, September 12, 1978, 85 SCRA 245 (1978), alsoGo Chioco v. Martinez, 45 Phil. 256 (1923); Gatchalian v. COMELEC, G.R. No. L-32560, October 22, 1970, 35 SCRA 435 (1970); People v. Uy Jui Pio, 102 Phil. 679 (1957) andPeople v. Aquino, 83 Phil. 614 (1949). "No statute can be enacted that can provide all the details involved in its application . . . Every statute is understood, by implication, to contain all such provisions as may be necessary to effectuate its object and purpose, or to make effective rights, powers, privileges or jurisdiction which it grants, including all such collateral and subsidiary consequences as may be fairly and logically inferred from its terms. Ex necessitate legis. And every statutory grant of power, right or privilege is deemed to include all incidental power, right or privilege. This is so because the greater includes the lesser, expressed in the Maxim, in eo plus sit, simper inest et minus."

21. §6, RA No. 10929.

22. See §§1 and 2, EO No. 467, s. 1998, as amended by EO No. 127, s. 2021.

23. §6 (d), RA No. 10844.

24. §6 (e), RA No. 10844.

25. See, for reference, §4 (ii) of RA No. 11494, otherwise known as the "Bayanihan to Recover as One Act."

26. See §6 (o), RA No. 10844.

27. See §6 (n), RA No. 10844.

28. §2, RA No. 10929.

29. §1, EO No. 467, s. 2021, "Providing for a National Policy on the Operation and Use of International Satellite Communications in the Country."

30. §2 (c), RA No. 10844.

31. §2 (d), RA No. 10844.

32. §2 (d), RA No. 10844.

33. Office of Engineering and Technology & Consumer and Governmental Affairs Bureau, Federal Communication Commission, Measuring Broadband America (Feb. 2013), available at https://www.fcc.gov/reports-research/reports/measuring-broadband-america/measuring-broadband-america-february-2013, citing "Next Generation Satellite Broadband Passes Important Test," December 8, 2011, at http://www.telecompetitor.com/next-generation-satellite-broadband-passes-important-test (last accessed February 3, 2013).

34. Office of Engineering and Technology & Consumer and Governmental Affairs Bureau, Federal Communication Commission, Measuring Broadband America (Feb. 2013), available at https://www.fcc.gov/reports-research/reports/measuring-broadband-america/measuring-broadband-america-february-2013. N.B.: "In the past, satellite broadband faced certain technological challenges not experienced by wireline technologies. Previous generations of satellites had limited bandwidth, which restricted the speeds available to the consumer. . . Starting in 2011, the consumer broadband satellite industry began launching a new generation of satellites which have greatly improved overall performance. . . ., with the improvements afforded by the new technology we find that it will support many types of popular broadband services and applications."

35. Department Order No. 72, s. 2021.

36. Department of Information and Communications Technology, National Broadband Plan (2017).

37. Walden, Ian. Telecommunications Law and Regulation, p. 111 (5th ed. 2018).

38.See cf. Federal Communications Commission, Types of Broadband Connections (2014), available at http://www.fcc.gov./general/types-broadband-connections; See also Federal Communications Commission, Getting Broadband Q&A (February 5, 2020), https://www.fcc.gov/consumers/guides/getting-broadband-qa; See Federal Communications Commission, FCC Consumer Facts, https://www.fcc.gov/bspc/factsheets/broadband-access.doc. N.B. The plethora of underlying transmission mediums for broadband internet also include the networks include those for satellite services/systems.

39.See cf. Federal Communications Commission, In the Matter of Restoring Internet Freedom, WC Docket No. 17-108, (December 14, 2017), available at https://docs.fcc.gov/public/attachments/FCC-17-166A1.pdf; See also Federal-StateJoint Board on Universal Service, CC Docket No. 96-45, Report to Congress, 13 FCC Rcd 11501, 11536, para. 73 (1998) (Stevens Report); US. v. Am. Tel. & Tel. Co., 552 F. Supp. 131, 228-29 (D.D.C. 1982) (MFJ Initial Decision), aff'd sub nom. Maryland v. U.S., 460 U.S. 1001 (1983).

40.See Federal Communications Commission, FCC Consumer Facts, https://www.fcc.gov/hspc/factsheets/broadband-access.doc; See for further references, Inquiry Concerning High-Speed Access to the InternetOver Cable & Other Facilities; Internet Over Cable Declaratory Ruling; Appropriate Regulatory Treatment for Broadband Access to the Internet Over Cable Facilities, GN Docket No. 00-185, CS Docket No. 02-52, Declaratory Ruling and Notice of Proposed Rulemaking, 17 FCC Rcd 4798, 4802, para. 7 (2002) (Cable Modem Order), upheld in National Cable & Telecommunications Association v. Brand X Internet Services, 545 U.S. 967 (2005); Appropriate Framework for Broadband Access to the Internet Over Wireline Facilities, et al., CC Docket Nos. 02-33, 01-337, 95-20, 98-10, WC Docket Nos. 04-242, 05-271, Report and Order and Notice of Proposed Rulemaking, 20 FCC Rcd 14853 (2005) (Wireline Broadband Classification Order), aff'd Time Warner Telecom, Inc. v. FCC, 507 F.3d 205 (3d Cir. 2007); United Power Line Council's Petition for Declaratory Ruling Regarding the Classification of Broadband over Power Line Internet Access Service as an Information Service, WC Docket No. 06-10, Memorandum Opinion and Order, 21 FCC Rcd 13281 (2006) (BPL-Enabled Broadband Order).

41. Federal Communications Commission, Getting Broadband Q&A (February 5, 2020), https://www.fcc.gov/consumers/guides/getting-broadband-qa; See also Federal Communications Commission, FCC Consumer Facts, https://www.fcc.gov/hspc/factsheets/broadband-access.doc, to wit: "High speed Internet access makes the data processing capabilities necessary to use the Internet available via one of several high-speed transmission technologies. These data processing capabilities are "digital" in nature, meaning that they compress vast amounts of voice, video, and data information that are broken down into what are called "bits." These bits become words, pictures, etc. on our computer screens. "The transmission technologies that make high speed Internet access possible move these bits much more quickly than do traditional telephone or wireless connections."

42.See §3 (c), RA No. 7925.

43.See Camacho, Jorge A. Broadcasting. Britannica (2018), https://www.britannica.com/technology/broadcasting.

44. §3 (j), RA No. 7925. N.B. "No single franchise shall authorize an entity to engage in both telecommunications and broadcasting, either through the airwaves or by cable."

45. §3 (a), Executive Order No. 467, s. 1998, as amended by EO No. 127, s. 2021.

46. §3 (b), Executive Order No. 467, s. of 1998, as amended by EO No. 127, s. 2021.

47.Cf. §16, RA No. 7925: "SEC. 16. Franchise. — No person shall commence or conduct the business of being a public telecommunications entity without first obtaining a franchise."

48. §7, RA No. 7925: "Sec. 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."

49. §8, RA No. 7925.

50. §9, RA No. 7925.

51. §10, RA No. 7925.

52. §3 (e, f, g,) RA No. 7925: 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.

53. §3 (b), RA 7925; §2 (rr), Art. II, NTC Memorandum Circular No. 14-7-2000, re: IRR for the Interconnection of Authorized Public Telecommunications Entities.

54.See §3 (a) and (b), RA No. 7925, to wit: "(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." For clarity, pls. see cf. In the Matter of Federal-State Joint Board on Universal Service, CC Docket No. 96-45 (Report to Congress) (April 10, 1998), available at https://transition.fcc.gov/Bureaus/Common_Carrier/Reports/fcc98067.pdf, 11540, par. 82; See also Status of Voice Communications on Internet Under Community Law and, in particular, Under Directive 90/388/EEC, Official Journal of the European Community OJ No C 6 (January 10, 1998) at 4; See also, TWH, A Framework for Global Electronic Commerce 24 (July 1, 1997), re: World Trade Organizations (WTO) Negotiations on Basic Telecommunications. "As a general matter, the participants in those negotiations characterized as "basic" those services thatinvolve end-to-end transmission of user-supplied information, such as voice telephony, packet-switched and circuit-switched data transmission, telex, telegraph, fax, and leased lines. Services such as the provision of online databases, electronic mail, and voice mail, by contrast, were characterized as "value-added."

55. §7 and §16, RA No. 7925.

56. §6, RA No. 7925.

57.See XII Phil. Const. §11; See Albano v. Reyes, G.R. No. 83551, July 11, 1989, J. Paras, (Supreme Court En Banc); Seealso DOJ Legal Opinion Letter, dated June 20, 1991, to NTC Acting Commissioner Lichauco. "Even if . . . considered a public utility, or a public service . . . as contemplated under the Public Service Act, its operation would not necessarily call for a franchise from the Legislative Branch. Franchises issued by Congress are not required before each and every public utility may operate. . . Id.Albano v. Reyes. "In the recent case of Albano v. Reyes (175 SCRA 264), the Supreme Court held that "franchises issued by Congress are not required before each and every public utility may operate." Administrative agencies may be empowered by law 'to grant licenses for or to authorize the operation of certain public utilities.' . . . Our statute books are replete with laws granting specified agencies in the Executive Branch the power to issue such authorization for certain classes of public utilities."

58.See §3 (b) in rel. to §7, RA No. 7925, to wit: "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."

59.See §11 in rel. §§3 (h) and 16, RA No. 7925. N.B.: As a general rule, a VAS provider need not secure a franchise. (§11, id.). By way of exception, however, a VAS Provider will need to secure a franchise if it intends to (a) put up its own "transmission, switching and local distribution facilities of a local exchange and inter-exchange operators, and overseas carriers," (§3 [b] in rel. §11), and (b) commence/conduct the business of being an ETE/PTE. (§16, id.). Absent these two (2) elements, the general rule would apply.

60.See §16, RA No. 7925.

61.See §§3 (a) and (b), RA No. 7925; See cf. In the Matter of Federal-State Joint Board on Universal Service, CC Docket No. 96-45 (Report to Congress), April 10, 1998, available at https://transition.fcc.gov/Bureaus/Common_Carrier/Reports/fcc98067.pdf, 11540, par. 82; See also Status of Voice Communications on Internet Under Community Law and, in particular, Under Directive 90/388/EEC, Official Journal of the European Community OJ No C 6 (January 10, 1998) at 4; See also, TWH, A Framework for Global Electronic Commerce 24 (July 1, 1997), re: World Trade Organizations (WTO) Negotiations on Basic Telecommunications.

62.See §§7 and 16 in rel. §§8, 9 and 10, RA No. 7925.

63.See Albano v. Reyes, G.R. No. 83551, July 11, 1989, J. Paras, (Supreme Court En Banc); See also DOJ Legal Opinion Letter, dated June 20, 1991, to NTC Acting Commissioner Lichauco. "Even if . . . considered a public utility, or a public service . . . as contemplated under the Public Service Act, its operation would not necessarily call for a franchise from the Legislative Branch. Franchises issued by Congress are not required before each and every public utility may operate. Thus, the law has granted certain administrative agencies the power to grant licenses for or to authorize the operation of certain public utilities. Id.Albano v. Reyes." "In the recent case of Albano v. Reyes (175 SCRA 264), the Supreme Court held that "franchises issued by Congress are not required before each and every public utility may operate." Administrative agencies may be empowered by law 'to grant licenses for or to authorize the operation of certain public utilities.' . . . Our statute hooks are replete with laws granting specified agencies in the Executive Branch the power to issue such authorization for certain classes of public utilities." N.B.: No franchise is required for the rendition of internet services because it is categorized as a VAS under telecommunications regulations. A VASP need not secure a franchise (§11, RA 7925) unless it intends to put up its own network to render services in any of the telecommunications categories for which the law requires a Congressional franchise, i.e., Local Exchange Operator (id. at §8), Inter-Exchange Carrier (id. at §9), International Carrier (id. at §10), Mobile Radio Services or Mobile Radio Telephone System Operators (id. at §12), or Radio Paging Service Operators (id. at §13). For the rendition of telecommunications or telecommunications-related services that fall outside of these telecommunications categories, there appears to be no franchise requirement imposed by RA 7925.

64.See §§1 and 2, RA No. 3846, as amended. N.B. By the way of exception, "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." Id. at §1.

65.See §§1 and 6, Presidential Decree (PD) No. 576-A.

66. N.B. In the identification of GIDA sites, due consideration shall be accorded to the determinations and certifications issued by the partner LGUs engaged by the DICT in the provinces, cities, or municipalities of the areas within their respective jurisdictions.

67.See Federal Communications Commission, FCC Consumer Facts, https://www.fcc.gov./hspc/factsheets/broadband-access.doc; See for further references, Inquiry Concerning High-Speed Access to the Internet Over Cable & Other Facilities; Internet Over Cable Declaratory Ruling; Appropriate Regulatory Treatment for Broadband Access to the Internet Over Cable Facilities, GN Docket No. 00-185, CS Docket No. 02-52, Declaratory Ruling and Notice of Proposed Rulemaking, 17 FCC Rcd 4798, 4802, para. 7 (2002) (Cable Modem Order), upheld in National Cable & Telecommunications Association v. Brand X Internet Services, 545 U.S. 967 (2005); Appropriate Framework for Broadband Access to the Internet Over Wireline Facilities, et al., CC Docket Nos. 02-33, 01-337, 95-20, 98-10, WC Docket Nos. 04-242, 05-271, Report and Order and Notice of Proposed Rulemaking, 20 FCC Rcd 14853 (2005) (Wireline Broadband Classification Order) aff'd Time Warner Telecom, Inc. v. FCC, 507 F.3d 205 (3d Cir. 2007); United Power Line Council's Petition for Declaratory Ruling Regarding the Classification of Broadband over Power Line Internet Access Service as an Information Service, WC Docket No. 06-10, Memorandum Opinion and Order, 21 FCC Rcd 13281 (2006) (BPL-Enabled Broadband Order).

68.Id.; See Walden, Ian. Telecommunications Law and Regulation, (pp. 209-211), OUP, Oxford.

69.See for example, Internet-over-Cable (Cable internet Service Providers, §3 (f), RA No. 10515). See Federal Communications Commission, FCC Consumer Facts, https://www.fcc.gov./hspc/factsheets/broadband-access.doc; See for further references, InquiryConcerningHigh-Speed AccesstotheInternet Over Cable & Other Facilities; Internet Over Cable Declaratory Ruling; Appropriate Regulatory Treatment for Broadband Access to the Internet Over Cable Facilities, GN Docket No. 00-185, CS Docket No. 02-52, Declaratory Ruling and Notice of Proposed Rulemaking, 17 FCC Rcd 4798, 4802, para. 7 (2002) (Cable Modem Order), upheld in National Cable & Telecommunications Association v. Brand X Internet Services, 545 U.S. 967 (2005); Appropriate Framework for Broadband Access to the Internet Over Wireline Facilities, et al., CC, Docket Nos. 02-33,01-337, 95-20,98-10, WC Docket Nos. 04-242, 05-271, Report and Order and Notice of Proposed Rulemaking, 20 FCC Rcd 14853 (2005) (Wireline Broadband Classification Order), aff'd Time Warner Telecom, Inc. v. FCC, 507 F.3d 205 (3d Cir. 2007); United Power Line Council's Petition for Declaratory Ruling Regarding the Classification of Broadband over Power Line Internet Access Service as an Information Service, WC Docket No. 06-10, Memorandum Opinion and Order, 21 FCC Rcd 13281 (2006) (BPL-Enabled Broadband Order).

70. §3 (h), RA No. 9775.

71.§4, RuleI, IRR of RA No. 10929 (June 14, 2018).

72. §§3 (h) and 11, RA No. 7925.

73. §11, RA No. 7925.

74. §11 in rel. §7, 8, 9, 10, 16, RA No. 7925. N.B. A VASP or ISP intending to commence or conduct the business of being a PTE must first obtain a franchise. Id. at §16.

75.See Cambridge Dictionary, https://dictioranary.cambridge.org/us/dictionary/english/network.

76.Seealso §3 (c), RA No. 10515; §3 (d), NTC Memorandum Circular No. 04-10-13.

77.Seeforreference, Federal Communications Commission, Report on Chain Broadcasting, Commission Order No. 37, Docket No. 5060 (May 1941).

78.See for example, Electricity Explained: How Electricity is Delivered to Consumers, available at https://www.eia.gov/energyexplained/electricity/delivered-to-consumers.php; Seealso Federal Communications Commission, FCC Classifies Broadband Over Power Line-Enabled Internet Access as "Information Service" (November 3, 2006), https://www.fcc-gov/document/fcc-classifies-broadband-over-power-line-enabled-internet-access; Federal Communications Commission, FCC Adopts Rules for Broadband Over Power Lines to Increase Competition and Promote Broadband Service to All Americans (October 14, 2004), https://www.fcc.gov/document/fcc-adopts-rules-broadband-over-power-lines-increase-competition-and.

79.See cf. §3 (e, f, g) in rel. §§8, 9, and 10, RA No. 7925. N.B. The telecommunications service network consists of the transmission, switching and local distribution facilities of the local exchange and inter-exchange operators, and overseas carriers.

Network a facility or equipment used in the provision of telecommunications service. (Implementing Rules and Regulations(IRR) for the Interconnection of Authorized Public Telecommunications Entities, NTC Memorandum Circular No. 14-7-2000, (July 21, 2000).

80.See for example, low earth orbit (LEO) and Geostationary/Geosynchronous Earth Orbit (GEO) networks.

81. Majumdar, Arun K., Optical Wireless Communications for Broadband Global Internet Connectivity: Fundamentals and Potential Applications, Chap. 2 (2019).

82. Federal Communications Commission, Types of Broadband Connections (June 23, 2014), https://www.fcc/gov/general/types-broadband-connections. DSL is a wireline transmission technology that transmits data faster over traditional copper telephone lines already installed to homes and businesses.

83.See Federal Communications Commission, Types of Broadband Connections (June 23, 2014), https://www.fcc.gov/general/types-broadband-connections.

84.Id.

85. Federal Communications Commission, FCC Classifies Broadband Over Power Line-Enabled Internet Access as "Information Service" (November 3, 2006), https://www.fcc.gov/document/fcc-classifies-broadband-over-power-line-enabled-internet-access.

86.See §3 (d), RA No. 10515; §3 (c & d), NTC Memorandum Circular No. 04-10-2013, re: IRR of RA 10515; see also Federal Communications Commission, Types of Broadband Connections (June 23, 2014), https://www.fcc.gov/general/types-broadband-connections.

87.See Unlicensed Operation in the TV Broadcast Bands; Additional Spectrum for Unlicensed Devices Below 900 MHz and in the 3 GHz Band, Et Docket Nos. 04-186 and 02-380, Second Report and Order and Memorandum Opinion and Order, 23 FCC Rcd 16807 (2008) (White Spaces Second Order); see also Unlicensed White Space Device Operations in the Television Bands: Report and Order, available at https://www.fcc.gov/document/fcc-increases-unlicensed-wireless-operations-tv-white-spaces-0.

88. Also known as internet over satellite or Satellite Broadband. See for reference, European Commission, Satellite Broadband, https://digital-strategy.ec.europa.cu/en/policies/satellite-broadband.

89. §3 (c), Executive Order No. 467, s. of 1998, as amended by EO No. 127, s. 2021.

90. §3 (d) Executive Order No. 467, s. of 1998, as amended by EO No. 127, s. 2021; See also Art. 1.25, §IV, ITU Radio Regulations, definition: mobile-satellite services/mobile-satellite radio communication service.

91.For example, see Broadband Global Area Network (BGAN) by Inmarsat satellite communications company.

92.See for example, High-Throughput Satellite (HTS), O. Vidal, G. Verelst, J. Lacan, E. Alberty, J, Radzik, and M. Bousquet, Next Generation High Throughput Satellite System, In: First International IEEE-AESS Conference in Europe on Space and Satellite Telecommunications, 02-05 Oct. 2012, Rome, Italy; See also H. Fenech, S. Amos, A. Tomatis and V. Soumpholphakdy, "High throughput satellite systems: An analytical approach," in IEEETransactionsonAerospaceandElectronicSystems; vol. 51. no. 1, pp. 192-202, January 2015, doi: 10.1109/TAES.2014.130450.

93. §4, Rule I, IRR of RA No. 10929.

94. N.B. "Value-Added Service" refers generally to other services that add value to a core [or basic] service being provided in a specific industry or sector.

95. §3 (h), RA No. 7925.

96. §3 (h), RA No. 7925.

97. §11, RA No. 7925.

98.See for example, Government Procurement Policy Board Resolution No. 19-06, re: Approving and Adopting the Guidelines on the Procurement of Water, Electricity, Telecommunications, and Internet Service Providers, on the separate treatment of Telecommunications under §3.2 (Landline and Cellular Phones [Existing Lines §3-2.1/New Lines §3.2.2]) from Internet Service Providers under §3.3 (Existing ISPs §3.3.1/New ISPs §3.3.2).

99. §3 (h), RA No. 7925.

100.For reference, see cf. In the Matter of Federal-Stare Joint Board on Universal Service, CC Docket No. 96-45 (Report to [U.S.] Congress), April 10, 1998, available at https://transition.fcc.gov/Bureaus/Common_Carrier/Reports/fcc98067.pdf, 11540, par. 82; See also Status of Voice Communications on Internet Under Community Law and, in particular, Under Directive 90/388/EEC, Official Journal of the European Community OJ No C 6 (January 10, 1998) at 4; See also, TWH, A Framework for Global Electronic Commerce 24 (July 1, 1997), re: World Trade Organizations (WTO) Negotiations on Basic Telecommunications. "As a general matter, the participants in those negotiations characterized as "basic" those services that involve end-to-end transmission of user-supplied information, such as voice telephony, packet-switched and circuit-switched data transmission, telex, telegraph, fax, and leased lines. Services such as the provision of online databases, electronic mail, and voice mail, by contrast, were characterized as "value-added."

101. See §3 (h), RA No. 7925.

102. VAS Provider refers generally to entities that offer services that add value to a core [or basic] service being provided in a specific industry or sector.

103.Value Added Service (VAS) Provider — is 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.

104. §3 (h), RA No. 7925.

105. §11, RA No. 7925.

106.See id. at §3 (h).

107. See §11 in rel. §3 (h), §7, §16, RA No. 7925. N.B. A VASP will need to secure a franchise only if it intends to put up its own telecommunications network to provide services in one or more of the telecommunications categories that require a franchise under RA No. 7925, i.e., local exchange operator (id. at §8), inter-exchange carrier (id. at §9), or international carrier (id. at §10), for then it would be commencing/conducting the business of providing telecommunications services ordinarily provided by such carriers, (id at §3 [b]), which services are reserved by law only to duly enfranchised entities. (Id. at §16).

108.See par. 2, §11, RA No. 7925.

109. §2, EO No. 467, s. 1998, as amended by EO No. 127, s. 2021.

110.See §2 (f), RA No. 10844.

111.See I Phil. Const. (1987).

112.Cf. §§2 (b), 6 (q), RA No. 10844.

113. See §6 (o), RA No. 10844.

114. §6, RA No. 10929.

115.See, Federal Communications Commission, FCC Consumer Facts, https://www.fcc.gov/hspc/factsheets/broadband-access.doc; See for further references, Inquiry Concerning High-Speed Access to the Internet Over Cable & Other Facilities; Internet Over Cable Declaratory Ruling; Appropriate Regulatory Treatment for Broadband Access to the Internet Over Cable Facilities, GN Docket No. 00-185, CS Docket No. 02-52, Declaratory Ruling and Notice of Proposed Rulemaking, 17 FCC Rcd 4798, 4802, para. 7 (2002) (Cable Modem Order), upheld in National Cable & Telecommunications Associations v. Brand X Internet Services, 545 U.S. 967 (2005); Appropriate Framework for Broadband Access to the Internet Over Wireline Facilities, et al., CC Docket Nos. 02-33, 01-337, 95-20, 98-10, WC Docket Nos. 04-242, 05-271, Report and Order and Notice of Proposed Rulemaking, 20 FCC Rcd 14853 (2005) (Wireline Broadband Classification Order), aff'dTime Warner Telecom, Inc. v. FCC, 507 F.3d 205 (3d Cir. 2007); United Power Line Council's Petition for Declaratory Ruling Regarding the Classification of Broadband over Power Line Internet Access Service as an Information Service, WC Docket No. 06-10, Memorandum Opinion and Order, 21 FCC Rcd 13281 (2006) (BPL-Enabled Broadband Order).

116. United Nations General Assembly, Report of the Special Rapporteur La Rue on the Promotion and Protection of the Right to Freedom of Opinion and Expression, (May 16, 2011), available at https://www2.ohchr.org/english/bodies/hrcouncil/docs/17session/A.HRC.17.27_en.pdf.

117. United Nations General Assembly, Report of the Special Rapporteur La Rue on the Promotion and Protection of the Right to Freedom of Opinion and Expression, (May 16, 2011 available at https://www2.ohchr.org/english/bodies/hrcouncil/docs/17session/A.HRC.17.27_en.pdf.

118. EO No. 127, s. 2021.

119.See §1, EO No. 467, s. 1998, as amended by EO No. 127, s. 2021.

120. See also §6, RA No. 10929, to wit: "ISPs shall be allowed to acquire and utilize internet connectivity directly from satellites and other emerging technologies to ensure universal coverage, which when used to provide internet connectivity shall be considered value-added services."

121.See §1, EO No. 467, s. 1998, as amended by EO No. 127, s. 2021.

122.See §2, EO No. 467, s. 1998, as amended by EO No. 127, s. 2021.

123.See §1, EO No. 467, s. 1998, as amended by EO No. 127, s. 2021.

124.See par. 2, §11, RA No. 7925.

125.See §1 (a), EO No. 467, s. 1998, as amended by EO No. 127, s. 2021.

126.See §1 (a), EO No. 467, s. 1998, as amended by EO No. 127, s. 2021.

127. §1 (a), EO No. 467, s. 1998, as amended by EO No. 127, s. 2021.

128. §3 (a), EO No. 467, s. 1998, as amended by EO No. 127, s. 2021.

129. §1 (a), EO No. 467, s. 1998, as amended by EO No. 127, s. 2021.

130. §2, EO No. 467, s. 1998, as amended by EO No. 127, s. 2021.

131. §2, EO No. 467, s. 1998, as amended by EO No. 127, s. 2021.

132. §2, EO No. 467, s. 1998, as amended by EO No. 127, s. 2021.

133. §5 (e), §6, RA No. 10929; §6 (e), RA No. 10844.

134. §6, RA No. 10929.

135. §6, RA No. 10929.

136. §6, RA No. 10929.

137. 5 (g), RA No. 10929.

138. §5 (c), RA No. 10929.

139. §5 (b), RA No. 10929.

140. §5 (d) RA No. 10929.

141. §5 (h), RA No. 10929.

142. §5 (i), RA No. 10929; §6 (d), RA No. 10844.

143. §5 (c), RA No. 10929.

144. §5 (g), RA No. 10929.

145. §5 (g), RA No. 10929.

146. Last par., §5, RA No. 10929.

147. Last par., §5, RA No. 10929.

148. See §5 (f), RA No. 10929.

149. See §5 (i), RA No. 10929.

150. §8, RA No. 10929.

151. §5 (e), RA No. 10929.

152. Sec cf. §4 (ii), RA No. 11494.

153. See §4 (ii), RA No. 11494; See also §10, RA No. 9485, as amended by RA No. 11032, and its IRR.

154. See §4 (ii) (1), RA No. 11494.

155. See §4 (ii) (2), RA No. 11494.

156. See §4 (ii) (1, 2), RA No. 11494.

157. See §4 (ii), RA No. 11494.

158. §6, RA No. 10929.

159.N.B. Such as, but not limited to, (a) the business at radio, and TV broadcasting reserved by law to duly enfranchised broadcasting entities; (b) the business of providing; services in specific telecommunications categories reserved by law to ETE/PTEs, i.e., local exchange operators, inter-exchange carriers, and international carriers. See RA No. 3846, RA No. 7925.

160.See cf. Quezon City PTCA Federation, Inc. v. Department of Education, G.R. No. 188720 (En Banc), February 23, 2016.