Republic of the PhilippinesCountry Report AsiaAsia-Pacific Regional Workshop on Equal Access of Women in ICT 2222-26 October 2001, Seoul, R.O.Korea Name of Country : Republic of the Philippines Location & a Brief History : The archipelago, named Felipinas for Spain's Philip II, was composed of 7,107 islands and islets spanning 1854 kilometers from north to south. The Philippines, also is a window to the New World, stretched from China to the North and the Indonesian archipelago to the south. The northern most tip of the country, Y'ami of the Batanes Island group, is 241 kilometers south of Taiwan while the southernmost tip, Sibutu of the Tawi-Tawi group of islands, is just 14.4 kilometers north of Borneo. Capital : Manila. Metropolitan Manila is where the country's most prestigious business addresses and the trendiest leisure establishments are found. Area : 300,000 sq. kilometers land - 298,170 sq. kilometers water - 1,830 sq. Kilometer Coastline : 36,289 kilometers Climate : Tropical Marine, Northeast monsoon (November to April); Southwest monsoon (May to October) Terrain : Mostly mountains with narrow to extensive coastal lowlands Language : Pilipino (official language : English) Religion : 80% Catholic, 15% Moslems & 5% Christian & Buddhist Population : 76.5 Million (as of May 2000) GDP (2nd quarter 2001) : 3.3 % Currency : Peso (PhP) 1 STRUCTURE OF THE PHILIPPINE TELECOMMUNICATIONS SECTOR D O T C OTHER GOVERNM ENT A G E N C IE S CO N G RESS T E L O F R A D IO & T V BROA DCAST NETW ORK P R IV A T E NETW ORKS P U B L IC NETW ORKS N T C IN D U S T R Y A S S O C IA T IO N S E Q U IP M E N T M ANUFACTURERS & S U P P L IE R S C A R R IE R S ’ C A R R IE R V O IC E C A R R IE R S RECORD C A R R IE R S OTHER S E R V IC E C A R R IE R S DOTC - Department of Transportation and Communications. providing telecommunications facilities in areas where no such services are available. Rio. It is the policy-making body for telecommunications Head : Secretary Pantaleon Alvarez NTC - National Telecommunications Commission It is the regulatory arm with quasi-judicial powers. 2 . Head : Assistant Secretary Delia R. TELOF - Telecommunications Office It is the operating arm of the government. Head : Commissioner Eliseo M. It also maintains the telecommunications network backbone. Jr. Hoy-Ganaden CONGRESS is empowered to enfranchise private telecommunications carriers while the NTC grants specific authorities called as Certificate of Public Convenience and Necessity (CPCN). including Metro Manila with an obligation of 10:1 urban:rural ratio. O. 7. Department Circular No. E. efficient. as a vital tool to nation building and development. subject to availability of frequency spectrum. 87-188 (March 22. 1993) This Circular opened the domestic satellite communications service market to competition. O. Department Circular No. 92-269 "Cellular Mobile Telephone System Policy" (November 11. 59 and its Implementing Guidelines "Interconnection Policy" (February 24. 436 (September 9. E. 1995) “An Act to Promote and Govern the Development of Philippine Telecommunications and the Delivery of Public Telecommunications Services”. 2. reliable and affordable technologies. This act is also known as the "Public Telecommunications Policy Act of the Philippines. E. 7925 and its Implementing Guidelines (March 1. O. 4. PHILIPPINE TELECOMMUNICATION HISTORY A. Telecommunications Policy Issuances 1. 1992) This Circular allows open entry to the CMTS market. 1993) “Policy to Improve the Provision of Local Exchange Carrier Service” This mandate authorized international gateway operators and CMTS operators to provide 300.I. 109 and its Implementing Guidelines (July 12. Republic Act No. 1997) 3 . 93-273 "Domestic Satellite Policy" (June 14. 6.000 local exchange lines respectively in unserved and underserved areas. 5.000 and 400. among others to extend basic services to areas not yet served. Department Circular No. This act encourages network operators." The objective of the government is to develop and maintain a viable. 1987) A landmark document which contained policy statements intended to rationalize and guide the orderly and competitive development of Philippine telecommunications. 1993) This mandates compulsory interconnection of authorized public telecommunications carriers in order to create a universally accessible and fully integrated nationwide telecommunications network and thereby encourage greater private sector investment in telecommunications. 3. how and where to operate cable television system. 467 (March 17. 98-01 " Global Mobile personal Communications by Satellite (GMPCS) Policy (February 27. 1998) This Circular allows authorized Public Telecommunications Entities to provide GMPCS service in the country." This Act is also known as the "Electronic Commerce Act. No. O. E. the NTC. agreements. 1997) This Circular provides guidelines for the DOTC. 1998) "Providing for a National Policy on the Operation and Use of International Satellite Communications in the Country." The executive order allows all international carriers and broadcasters access to fixed and mobile international satellite. Republic Act No. 97-01 "Guidelines on the Procurement of Orbital Slots and Frequency Registration of Philippine Satellite(s) (October 17. optical and similar medium. Also."Electronic Commerce Act" (June 14. transactions. 9. Department Circular No. 8792 . 2000) "An Act Providing for the Recognition and Use of Electronic Commercial and Non-Commercial Transactions." The Act aims to facilitate domestic and international dealings. Of Operators per Telecom Service As of December 2000 4 . arrangements. 11. it clearly states that cable television services is separate and distinct from telecommunications or broadcast. 8. contracts and exchanges and storage of information through the utilization of electronic."Prescribing Policy Guidelines to Govern the Operations of Cable Television in the Philippines" This executive order specifies the rules and regulations on who. instrumentality and technology to recognize the authenticity and reliability of electronic data messages or electronic documents related to such activities and to promote the universal use of electronic transactions in the government and by the general public. Penalties for Unlawful Use thereof. Department Circular No. and Other Purposes. B. mode. and prospective satellite operators in the acquisition of orbital slot(s) and registration of frequency assignments of Philippine satellite(s). 10. Service Providers Below is a list of telecommunication services and corresponding number of operators providing such services. Fixed Lines Teledensity (per 100 Persons) TELEPHONE DENSITY INDEX 9.000 600. of Subscribers TELEPHONE DISTRIBUTION BY OPERATOR 1.200.12 9.01 0 1992 1996 1998 2000 Year No.000 1. OPERATORS 77 5 15 10 11 3 5 6 5 12 5 156 Sector Statistics The following are sector statistics showing growth rate for selected telecommunications services.000 0 1 2 3 4 5 6 7 8 9 10 11 Operators Legend: Operator No.07 10 4.TELECOM SERVICE Local Exchange Carrier Service Cellular Mobile Telephone Service Paging Service Public Trunk Repeater Service International Gateway Facility Satellite Service International Records Carrier Domestic Record Carrier Very Small Aperture Terminal Public Coastal Station Radiotelephone Value-Added Service C.800.66 5 1.05 8.08 9. 1 2 Operator PLDT DIGITEL 5 . 1.17 2. BAYANTEL ISLACOM GLOBE TELECOM SMART PT&T PILTEL PHILCOM ETPI OTHER OPERATORS Cellular Mobile Telephone Services 4.620 No.000.343.359 2.849.000. Other telecommunications statistics.733. 6 .000.652 6.000 2. of Subscribers GROWTH IN CELLULAR MOBILE TELEPHONE SERVICE SUBSCRIPTION 1997 1998 1999 2000 Year CMTS Subscriber Share Per Operator PILTEL 10% EXTELCOM 3% ISLACOM 3% SM ART 44% GLOBE TELECOM 40% 3.880 8.3 4 5 6 7 8 9 10 11 2.000 6.000 1.454.000 1.000. 000 2000 1999 1998 1997 No.000 60. Growth of Broadcast Stations and CATV Networks 7 .000 20. Trunk Radio Subscriber Share per Operator TRUNK RADIO SUBSCRIBER SHARE PER OPERATOR BAYANTEL TNRI OMNINET LBNI 8% 5% UTS CORONA 0%RA DI OM A RI NE 4% 3% 0% NEXTEL 51% 5% CONTEL 10% WORLDWIDE 14% c.A.000 80.000 40. of Subscribers STATUS OF PUBLIC TRUNK REPEATER SERVICE SUBSCRIPTION Year b. Public Trunk Repeater Service 100. introduction of new technologies. and direct investments. sometimes referred to as carrier's carrier or national backbone network operator.5 M worth of investments from fund companies. backbone/trunking. Local Exchange Operator It is an entity providing transmission and switching of telecommunications services. Inter-Exchange Carrier It is an entity. Telecommunication Entities" of the Republic Act 7925. In 1999. and interconnection. relying on the transmission. Most of the investments made in telecommunications services were focused on switching technology. and 8 .GROWTH OF BROADCAST STATIONS AND CATV NETWORKS 1200 1000 800 1997 600 1998 1999 400 2000 200 0 AM D. The liberalization of the industry beginning in the mid-80s saw major changes in the fixed (or wired) telecommunications sector. International Carrier It is 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. own and operate facilities which connect local exchanges within the Philippines and to engage in the business of interexchange national long distance services. 4. authorized to install. Liberalization resulted in increased competition. categorizes the telecommunication entities as follows: 1. Value-added Service Provider (VAS) It is an entity which. primarily but not limited to voice-to-voice in a geographic area anywhere in the Philippines. switching and local distribution facilities of the local exchange and inter-exchange operators. telecommunications firms attracted $769. 3. 2. FM TV CATV DTU Telecommunication Entities "Article IV. Inc. thus it is not regulated. which offered alphanumeric and numeric radio paging service. INFORMATION AND COMMUNICATIONS TECHNOLOGY (ICT) 9 . VAS providers who do not build their own networks are not regulated by NTC. Romasanta (DigiPage) was authorized to provide numeric radio paging service. Between 1992 up to 1998. T. 6. Radio Paging Services Radio Paging Service was introduced in the country when Pocketbell Philippines. twelve more companies were authorized to provide the service. particularly with new developments in technology that allow users to download data from the internet through WAP (wireless application protocol)-enabled phones.overseas carriers. Mobile Radio Services Mobile radio telephone system is a wide area mobile radio telephone system with its own switch. These two operators were authorized to provide the service nationwide. The cellular mobile telephone service is growing at a rapid pace since the deregulation of the sector in the early 90s. At present Internet Services fall within value-added services. The only requirement is to register with the NTC and submit quarterly reports on the operation. Foreign Ownership Limitation Section 11. Article XII of the 1987 Philippine Constitution limits 40% foreign ownership and participation in telecommunication entities. 5. EasyCall Philippines. In 1989. II. E. this service began to decline.N. was given authority to provide paging service in 1975. It started offering tone only radio paging and later expanded to introducing voice paging. Wireless data has become a service for mobile phone operators. offers enhanced services beyond those ordinarily provided by such carrier. After ten (10) years. Inc. the NTC authorized a second operator. base stations and transmission facilities of providing high capacity mobile telecommunications by utilizing radio frequencies. The influx was mainly due to the partial deregulation of this segment of the industry with the enactment of Republic Act 7925. With the introduction of short messaging system (SMS) in cellular phones. The law provides that possession of a valid franchise and availability of frequencies are the only prerequisites to obtain authorization to render the service. signed by President Gloria Macapagal Arroyo restructured ITECC with President Arroyo acting as its chair. Executive Order 18. Each committee is co-chaired by a private sector representative.chaired by the Department of Justice Focus Areas: • Finalize draft bill for creation of DICT 10 . Legal and Regulatory Committee . update and revise frequency management policies and practices Pursue and resolve interconnection issues E-Government Committee . Below are the five Sub-committees of the ITECC with their corresponding lead agencies. promotion and application of national ICT and e-commerce initiatives.chaired Transportation and Communication (DOTC) by the Department of Focus Areas: • • • • • • 2. 2001. Information Infrastructure Committee . 1.chaired by the Department of Science and Technology Focus Areas: • Commission study on developing an implementation plan for GISP • Review and consolidate all networking requirements of government agencies • Study feasibility of a single government portal • Review all government ISPs to ensure alignment with GISP and maximize synergy through use of common resources • Review mandate of NCC and align with ITECC directions • Monitor compliance of agencies to E-Commerce Act 3. dated May 25. The Information Technology and Electronic Commerce Council (ITECC) ITECC was formed through the merging of the National Information Technology Council (NITC) and the Electronic Commerce Promotion Council (ECPC). ITECC was established to function as the primary planning and policy body on development. Identify priority hubs for Network development Develop Project Study on bandwidth requirements plan Develop incentive programs for private sector network capacity build-up in non-commercially viable areas Develop policy on interconnect charges Review. The Council is composed of ten (10) members from government and eight (8) members from the private sector.A. chaired by the Department of Trade and Industry Focus Areas: • Enhance fiscal incentives for investors • Enhance financing schemes for SMEs • Plan and set policy for venture capital market • Promote Philippines as E-Services Hub • Develop an inventory of existing IT skill in the country III. PENDING BILLS/REGULATIONS A. IV. Philippine Convergence Project 11 . E-Business Development Committee . Bills on Cable TV The bill aims to bring the Philippine Cable Television Industry at par with its global counterparts and encourages foreign participation in the local industry through capital infusion and technology transfer. RECENT ITU ACTIVITIES A.• • • • • • 4.chaired by the Commission on Higher Education Focus Areas: • Develop policy and programs on E-learning • Develop guidelines on enhancement of Basic Education • Develop programs on government/private sector initiatives in increasing supply of IT skills • Monitor implementation of HR Cluster recommendations 5. Bills on Interconnection The bill aims to penalize officers and personnel of Public Telecommunications Entities that Refuse or Fail to Interconnect their Facilities to those of other Telecommunications Operators. Monitor all IT related bills filed in both houses Finalize IRR for E-Commerce Act Develop programs for enforcement of IPR laws Pursue legislation in Internet privacy and security Develop guidelines on regulatory issues related to ICT Develop guidelines on ownership and security of data in BOT/BOO IT projects Human Resource Development Committee . B. To make use of latest available technology and introduce knowledge management into the training. interactive discussions. special lectures and access to information arranged on-line. work-based assignments. 3. 12 . 3. The course will involve a combination of workshop sessions as well as case studies. 2. The tentative date of implementation is on October 2001. 1. 2.This project has been undertaken by the Department with funding assistance from the ITU. Revised Draft Convergence Bill National Convergence Policy Framework. and Outline of a Convergence Master Plan Telecommunication Policy and Regulatory Training Program for the Philippines The Philippines is one of the recipients of ITU Asia and Pacific Center of Excellence one-country programme for training on policy and regulation with the following objectives. To provide an important component of capacity building for developing countries in Asia and Pacific region. B. It has involved the preparation of three key deliverables namely: 1. To provide innovative training for high level personnel in the public and private sectors in policy and regulation.