Rules on the Mandatory Interconnection of Cable Landing Stations to Backhaul Networks

October 7, 2008

NTC MEMORANDUM CIRCULAR NO. 06-10-08

SUBJECT : Rules on the Mandatory Interconnection of Cable Landing Stations to Backhaul Networks

WHEREAS, the 1987 Constitution fully recognizes the vital role of communications in nation building;

WHEREAS, the promotion of competition in the telecommunications market is a key objective of Republic Act No. 7925 (R.A. 7925, for brevity), otherwise known as "The Public Telecommunications Policy Act of the Philippines", which mandates that "a healthy competitive environment shall be fostered, one in which telecommunications carriers are free to make business decisions and interact with one another in providing telecommunications services, with the end in view of encouraging their financial viability while maintaining affordable rates"; EICDSA

WHEREAS, R.A. 7925 further defines the role of the government to "promote a fair, efficient and responsive market to stimulate growth and development of the telecommunications facilities and services";

WHEREAS, the existing authorized cable landing stations are connected to the national networks through the backhaul facilities of the operator of the cable landing stations, that is, PLDT cable landing station in Nasugbu, Batangas is connected to the national networks through the backhaul facilities of PLDT, Globe Telecom cable landing station in Nasugbu, Batangas is connected through Globe Telecom backhaul network, and Digitel cable landing station in Cavite is connected through the backhaul network of Digitel;

WHEREAS, traffic passing through the international optical submarine cable systems landing in the PLDT cable landing station is transmitted to the national networks through PLDT's own backhaul network. Similarly, traffic passing through the international optical submarine cable systems landing in the Globe Telecom cable landing station is transmitted to the national networks through Globe Telecom's own backhaul network and traffic passing through the international optical submarine cable systems landing in the Digitel cable landing station is transmitted to the national networks through Digitel's own backhaul network. Since the backhaul networks are necessary to bring traffic to and from the international optical submarine cable systems, the cost of the backhaul networks is part of the prices of international circuits; aIETCA

WHEREAS, opening the backhaul network service to other suppliers will bring prices to market level to the benefit of the consumers.

NOW THEREFORE for and in consideration of the above premises and pursuant to the powers vested upon the National Telecommunications Commission (Commission) by E.O. 546 series of 1979, E.O. 59 series of 1993 and R.A. 7925 the following guidelines are hereby promulgated.

1. The following terms as used in this Circular shall mean:

 Backhaul Network Operator — refers to duly enfranchised and authorized inter-exchange carriers or international gateway facilities or international carriers.

 Interconnection — refers to the linkage by wire or wireless systems of the backhaul networks and cable landing stations for the purpose of connecting to international cable systems.

 Access — refers to the access by the backhaul network operator to the facilities of cable landing station operator for the purpose of connecting to the international cable systems.

2. The interconnection of backhaul networks to all cable landing stations shall be mandatory.

3. Each backhaul network operator shall provide the trunks/circuits necessary to interconnect its backhaul network to the cable landing stations. Each backhaul network operators shall ensure that the number of trunks/circuits is sufficient to meet at least the minimum prescribed grade of service of P01. SCaITA

4. The cable landing station operator shall provide sufficient space within its premises and terminating equipment to interconnect the backhaul networks to the international cable systems.

5. If interconnection would require the installation of radio equipment, said radio equipment shall be provided by the backhaul network providers. The cable landing station operator shall provide the required space and termination equipment.

6. The cable landing station operator shall allow ingress of personnel from the backhaul network operators for the sole purpose of repair and maintenance of the radio facilities installed within its premises. A letter-request to the cable landing station operator shall be made for each ingress. The request shall allow the cable landing station operator at least 24 hours to prepare.

7. The cable landing station operator and the backhaul network operator shall negotiate and enter into an interconnection agreement. The negotiation and agreement shall comply with the rules and guidelines on interconnection. The interconnection agreement shall be submitted to the Commission not later than thirty (30) days from the date of the agreement for approval. IHCDAS

8. This circular amends or supersedes any Circular, Order and Memorandum or any part/s thereof inconsistent herewith.

9. This Circular shall take effect fifteen (15) days after its publication in a newspaper of general circulation and three (3) certified true copies furnished the UP Law Center.

Quezon City, Philippines, October 7, 2008.

(SGD.) RUEL V. CANOBASCommissioner

(SGD.) JORGE V. SARMIENTODeputy Commissioner

(SGD.) JAIME M. FORTES, JR.Deputy Commissioner