Preparation and Development of an Operational National Telecommunications Plan

February 24, 1978

LETTER OF INSTRUCTIONS NO. 674

In line with the objectives and purpose of the approved Five-Year Philippine Development Plan, among which are (a) to establish one homogenous nationwide telecommunication network which will pave the way for an orderly and progressive development of the telecommunication sector; (b) to establish a framework for the national regulatory system to effectively oversee compliance by both public and private operators with government standard requirements for efficient telecommunication services; and (c) to provide safeguards and ensure vigilance in the interest of national security, I hereby order and direct the following: aisa dc

1. Preparation of an operational national telecommunications plan both public and private giving primary importance to the design of the nationwide telecommunications network.

2. Rationalization of government investments in the sector and preparation of evaluation criteria to guide investment decisions by Government in the sector to determine advisability of every capital investment of Government; integration and coordination of expansion and improvement plans and programs as well as operations of all private and government owned telecommunication facilities and networks with the view of eliminating wasteful competition and instead, effecting maximum utilization of all resources. aisa dc

3. Recommendations on policies towards complementary development of the operating and manufacturing sectors of the industry giving due consideration to both incentives and regulation of (a) tariffs and taxes (b) rate of return on investments and service rates (c) service and manufacturing standards (d) licensing and franchising, and (3) all other relevant matters.

4. Creation of a Telecommunication Development Committee for this purpose composed of the Secretary of Public Works, Transportation and Communications, as Chairman, Secretaries of Finance and Industry and the Chairman of the Board of Communications, as members.

5. Creation of a Secretariat under the Department of Public Works, Transportation and Communications to assist the Telecommunication Development Committee, to be composed of technical and administrative personnel from the Department of Public Works, Transportation and Communications, the Department of Finance and Industry, the Bureau of Telecommunications, the Telecommunications Control Bureau, and the Board of Communications and a representative from the Department of National Defense. casia

The Committee may call upon any service operator, private telecommunications firm/corporation, telecommunication organization/association, and related agencies to provide necessary information and assistance in order to carry out the above instructions. If necessary, the Committee may conduct public hearings to secure relevant information on telecommunications.

The Committee shall submit within 60 days from date of formal organization of the Committee and Secretariat, a preliminary report on the preparation of the Integrated National Communication plan, and recommendations to rationalize the regulatory policies pertaining to the sector.

The Committee may draw from available funds of the DPWTC, BUTEL, BOC, and NEDA to support the requirements of the Committee.

Reimbursement of actual transportation and representation allowances is hereby authorized to be granted to Members of the Committee and the Secretariat.

DONE in the City of Manila, this 24th day of February, in the year of Our Lord, Nineteen Hundred and Seventy-Eight.