1. Executive Orders 59 & 109 Interconnection Rules & Regulations

2. EXECUTIVE ORDER NO. 59 Prescribing the policy guidelines for 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. EO 59 Section 2. Interconnection between NTC authorized public telecommunications carriers shall be compulsory. Interconnection shall mean the linkage, by wire, radio, satellite or other means, of tow or more existing telecommunications carriers or operators with one another for the purpose of allowing or enabling the subscribers of one carrier or operator to access or reach the subscribers of the other carriers or operators. 4. EO 59 Section 3 Interconnection shall be established and maintained at such point or points of connections, preferably at the local exchanges level and at the junction side of trunk exchanges as are required 1. within a reasonable time frame and 2. shall be for sufficient capacity and in sufficient number to enable messages conveyed or to be conveyed to conveniently meet all reasonable traffic demands for conveyance of messages between the system of the parties involved in the interconnection. 5. EO 59 Section 4. Interconnection shall permit the customer of either party freedom of choice on whose system the customer wishes his call to be routed regardless which system provides the exchange line connecting to the local exchange. Such a choice may be done initially through the use of distinct carrier access code assigned to the relevant connectable system and ultimately, as the local exchange providers upgrade to stored-program- controlled (SPC) exchanges, comparatively efficient interconnect (CEI) or equal access pre-programmed option. 6. EO 59 Section 5. Interconnection shall be mandatory with regard to connecting other telecommunications services such as but not limited to value-added services of radio paging, trunking radio, store and forward systems of facsimile or messaging (voice or data), packet switching and circuit data switching (including the conveyance of messages which have been or are to be transmitted or received at such points of connection), information and other services as the NTC may determine to be in the interest of the public and in the attainment of the objective of a universally accessible, fully integrated nationwide telecommunications network. 7. EO 59 Section 6. Interconnection shall be negotiated and effected through bilateral negotiations between the parties involved subject to certain technical/operational and traffic settlement rules to be promulgated by the NTC; Provided, that if the parties fail to reach an agreement within ninety (90) days from date of notice to the NTC and the other party of the request to negotiate, the NTC shall, on application of any of the parties involved, determine the terms and conditions that the parties have not agreed upon but which appear to the NTC to be reasonably necessary to effect a workable and equitable interconnection and traffic settlement. 8. EO 59 Section 7 Interconnection among public communications carriers shall be effected in such a manner that permits rerouting of calls from an international gateway operator which is rendered inoperative, whether in whole or in part, in the event of strikes, lock-outs, disasters, calamities and similar causes, to another international gateway operator not so affected. A public telecommunications carrier shall be allowed such permits to operate an international gateway as may be necessary to service its own network requirements; Provided, that its subsidiaries shall not be given a permit to operate another international gateway. 9. EO 59 For traffic settlement rules: (a) Either meet-on-the-air and/or midpoint circuit interconnection between parties; (b) For local exchange point of interconnection, settlement shall be on the basis of volume of traffic on the local connection based on per minute with day and night rate differential. In case of store and forward services for facsimile, data and voice mail, settlement shall be on the basis of equivalent monthly trunk line charges as generally charged by the local exchange carrier (LEC) to its customer owning their own PABX; (c) For junction exchange point of interconnection, settlement shall be on the basis of volume of traffic carrier over: (i) short haul connection not exceeding 150 kilometers; and (ii) long haul connection exceeding 150 kilometers. Similarly, a per minute rate shall be evolved with day and night differential. The determination of the per minute rate is based on the principle of recognizing recovery of the toll related cost and fair return of the investment of the facilities employed in making the toll call exchange between the systems. 10. EXECUTIVE ORDER NO. 109 Policy to improve the provision of Local Exchange Carrier Service 11. EO 109 Section 1. Definition of Terms. The following definitions shall apply within the context of this policy: (a) Basic Telecommunications Service - refers to local exchange residence and business telephone service and telegraph service without additional features; (b) Cost-based pricing - refers to a system of pricing in which the actual cost of providing service establishes the basic charge to which a fixed mark-up is added to collect a standard charge to all users without discrimination; (c) Local Exchange Carrier Service - refers to a telecommunications service, primarily but not limited to voice-to-voice service, within a contiguous geographic area furnished to individual 12. EO 109 (d) Value-based pricing - also known as value of service pricing refers to a system of pricing where cost of service establishes the minimum charge and a variable mark-up is added to collect revenue from those who value the service more highly; and (e) Universal Access - refers to the availability of reliable and affordable telecommunications service in both urban and rural areas of the country. 13. EO 109 Section 4. Cross-Subsidy. Until universal access to basic telecommunications service is achieved, and such service is priced to reflect actual costs, local exchange service- shall continue to be cross-subsidized by other telecommunications services within the same company. 14. EO 109 Section 5. Service- Packaging. Authorized international gateway operators shall be required to provide local exchange service in unserved and underserved areas, including Metro Manila, within three (3) years from the grant of an authority from the NTC, under the following guidelines: (a) Authorized gateway operators shall provide a minimum of three hundred (300) local exchange lines per international switch termination; (b) At least one (1) rural exchange line shall be provided for every ten (10) urban local exchange lines installed; (c) The establishment of Public Calling Offices at the rural barangay level shall be given an appropriate credit by the NTC towards the obligation to provide local exchange service. 15. EO 109 Section 5. Service- Packaging. The above figures are derived from the following factors: number of exchange lines, number of international switch- terminations, traffic, grade of service and demand; (d) No permit for an international gateway facility shall be granted tom an applicant unless there is a clear showing that it can establish the necessary foreign correspondenceships; and (e) Carriers already providing local exchange service in accordance with Section (a) , (b) and (c) shall be authorized to operate an international gateway subject to applicable laws. Section 6. Subsidiary. The subsidiaries of a public telecommunication carrier operating an authorized international gateway shall not be allowed to operate another gateway in accordance with Executive Order No. 59 (1993). 16. EO 109 Section 7. Cellular Mobile Telephone System. Authorized international gateway operator may also be authorized to provide Cellular Mobile Telephone System (CMTS) service and other non-basic telecommunications service which are possible source of subsidy for local exchange carrier 17. Telecom Laws, Rules & Regulations By: Engr. S. Sabile 18. Telecom Laws, Rules And Regulations MEMORANDUM CIRCULAR NO. 14-07-2000 SUBJECT : Implementing rules and regulations (IRR) for the interconnection of authorized public telecommunications entities 19. R.A. 7925 The passage of Republic Act No. 7925, the Philippines has effectively liberalized the telecommunications services and has demonstrated its commitment to healthy and sustainable competition by allowing multiple operations by local service providers in partnership with firms of varying nationalities in most segments of the domestic and international telecommunications markets. 20. Article I APPLICABILITY OF THE PROVISIONS These rules shall be applicable to all duly authorized public telecommunications entities as defined hereunder. 21. Terms and Definitions Access Charges remuneration paid to a PTE by an interconnecting PTE for accessing the facilities and/or customer base of such PTE, which are needed by the interconnecting PTE for the origination, termination and/or transiting of all types Access Provider a PTE that is requested to provide access to its network, system, facilities and./or customer base by an access seeker. Access Seeker a PTE that requests access to the network, system, facilities or customer base of another PTE. Access Service service given by access provider to enable the access seeker to avail of any or all of its services of traffic derived from the interconnection. Customer Premises Equipment (CPE) equipment located in the premises of a customer which is not part of but connected to the system or network of the PTE. Direct Access the situation where a customer is directly connected to a telecommunications operator by a wire, fiber-optic or radio link to connect that customer to the public telecommunications network. 22. ACCESS CHARGES 23. Terms and Definitions Indirect Access is a situation where a customers call is routed and billed through the network of a PTE even though the call originated from the network of another PTE. Interconnection the linkage, by wire, radio, satellite or other means, of two or more existing PTEs with one another for the purpose of allowing or enabling the subscribers or customers of one PTE to access or reach the subscribers or customers of the other PTE. Interconnection Links or Facilities facilities consisting of, but not limited to, equipment, devices and materials required to interconnect two telecommunications systems or networks of two (2) PTEs for the interchange of traffic between them. Interconnect Services network interconnects services, access services or access facility services. Interconnect Usage Charges the network usage charges applicable to direct and indirect interconnections between networks for call origination, call termination and call transit, as the case may be. 24. Terms and Definitions Inter-Exchange Carrier (IXC) a PTE providing transmission and switching facilities which connect the networks of two (PTEs) that are not located within the same numbering plan area (NPA) or even if located within the same NPA, are not located within the common or overlapping service area, enabling them to offer telecommunications services of any type, whether of voice, data or images, to each others subscribers or customers. International Gateway Facility (IGF) a facility consisting of international transmission, switching and network management facilities that serves as point of entry and exit in the Philippines of international traffic between a PTEs network and point/s outside the Philippines. International Gateway Facility Operator a telecommunications carrier providing IGF services. Interoperability - the technical features of a group of interconnected systems, which ensure end-to-end provisions of a given service in a consistent and predictable way. 25. Terms and Definitions Local Calling (Service) Area the province within which telecommunications services are furnished subscribers under specific scheduled rates and without toll charges. Local Calls Calls originating and terminating from one and the same PTE, or two (2) separate PTEs within the same local calling area. Local Exchange Carrier (LEC) a PTE providing transmission and switching of telecommunications services, primarily but not limited to voice-to-voice service, in a geographic area anywhere in the Philippines. Numbering Plan Area (NPA) a geographic area in the country, which has been given a specific area code by the Commission. 26. Article III GENERAL PRINCIPLES OF INTERCONNECTION 1. Interconnection should enable subscribers or customers of two (2) PTEs to communicate with each other. (any-to-any). 2. Interconnection should be across interfaces of sufficient functionality (end-to-end interoperability) 3. Interconnection should directly follow the principle of fair compensation, compliance on commercial obligation (timely settlement, including payment) and service specific usage of interconnect facilities (no irregular and/or illegal traffic access or bypass). 4. PTEs should have equal responsibility to interconnect and should ensure that interconnection is carried out and in a swift and efficient manner (equal responsibility). 5. A request for interconnection should be satisfied in a timely fashion (interconnection on request). 6. Interconnection should be prompt, efficient and seamless to the subscriber or consumer of both of the interconnecting PTEs (prompt, efficient and seamless). 27. Article III GENERAL PRINCIPLES OF INTERCONNECTION Interconnection Agreements between PTEs should satisfy the governments telecommunications policies and its commitments or obligations under international agreements. Section 4. It is mandatory for all duly authorized PTEs to interconnect with one another. Section 5. Interconnection should be ensured to any technically feasible point in the network. 28. Article VI MEASUREMENT OF CALLS AND COLLECTION OF CHARGES Section 16. The parties shall measure both outgoing and incoming calls from their respective networks. Section 17. Each party shall undertake the billing and collection of payments for all outgoing paid calls made by its own subscriber or customer and, if agreed upon by the parties, incoming collect calls made by a subscriber of customer of another party. Section 18. The parties shall submit to each other settlement statements within sixty (60) days from the end of the month to which the statement pertains. 29. LEC to LEC Single-switch LEC to Single-switch LEC within a local (calling) service area. The LECs shall interconnect their local switches directly. Single-switch LEC to Multi-switch LEC within a local (calling) service area. The switch of the single-switch LEC shall be interconnected to at least one (1) tandem switch of the Multi-switch LEC. Multi-switch LEC to Multi-switch LEC within a local (calling) service area. At least one (1) tandem switch of both LECs shall be interconnected. Section 29. Unless specified by the Commission, the point of interconnection (POI) shall be as follows: 30. LEC to IXC The LEC network shall be interconnected to the nearest point in the IXC network, provided that the POI is established within the LECs service area. LEC to IGF The LEC network shall be interconnected to the IGF network directly or indirectly through the IXC network, provided that the POI is established within the LECs service area. Section 29. Unless specified by the Commission, the point of interconnection (POI) shall be as follows: 31. Interconnection diagram 32. LEC to CMTS Single-switch LEC to CMTS The LEC switch shall be interconnected to the CMTS network or through an IXC at the nearest point in the CMTS network, provided that the POI is established within the LECs service area. Multi-switch LEC to CMTS The tandem switch of the multi-switch LEC shall be interconnected to the CMTS network or through an IXC at the nearest point in the CMTS network, provided that the POI is established within the LECs service area. Section 29. Unless specified by the Commission, the point of interconnection (POI) shall be as follows: 33. LEC to CMTS INTERCONNECTION 34. LEC to Trunk Radio Network (TRN) Single-switch LEC to TRN The LEC switch shall be interconnected to the TRN network or through an IXC at the nearest point in the CMTS network, provided that the POI is established within the LECs service area. Multi-switch LEC to CMTS The tandem switch of the multi-switch LEC shall be interconnected to the TRN network or through an IXC at the nearest point in the TRN network, provided that the POI is established within the LECs service area. Section 29. Unless specified by the Commission, the point of interconnection (POI) shall be as follows: 35. LEC to Radio Paging Network (RPN) Single-switch LEC to the RPN The switch of the single-switch LEC shall be directly interconnected to RPN. Multi-switch LEC to the RPN The RPN shall be interconnected to the nearest tandem or local switch of the multi-switch LEC. Section 29. Unless specified by the Commission, the point of interconnection (POI) shall be as follows: 36. IXC to IXC The IXC networks shall be interconnected at all regions if technically feasible. Regions shall refer to political, autonomous and/or administrative regions. IXC to IGF The IGF shall be interconnected to the nearest point in the IXC network. CMTS and CMTS The CMTS networks shall be interconnected at all technically feasible points in their networks or through an IXC. TRN to CMTS Their networks shall be interconnected at all technically feasible points. Section 29. Unless specified by the Commission, the point of interconnection (POI) shall be as follows: 37. Private to Public Telephone System Interconnection Type Diagram 38. Interconnection Diagram 39. INTERCONNECTION ARCHITECTURE 40. Article X EFFICIENT PROVISIONIONING OF CAPACITY Interconnection shall be affected for sufficient capacity and in sufficient number to meet all reasonable traffic demands for conveyance of messages between the systems of the PTEs involved, and shall be implemented within a reasonable time frame. 41. End of presentation.. QUESTION What is the significance of these rules to the industry? ......to you as future electronics engineers? 42. END OF PRESENTATION