SAVERS INSPECTION

February 4, 2005

MR. VICTOR HERRERA
Bldg. Administrator
Saver’s Mart

Dear Mr. Herrera,

Olongapo Telecom and IT Board created under City Ordinance No. 24, Series of 2004 and Executive Order No. 84, Series of 2004 in coordination with SBMA Telecommunications Department is currently assessing Telecommunication Towers within Olongapo City to verify its compliance with existing standards, specifications, rules and regulations.

Furthermore, Site Acquisition Officer of Mohave Communications submitted a request for approval of a cell site to be situated at your building.

In this regard, we would like to request access to the rooftop of Savers Mart Building on February 7, 2005 at 3:00 o’clock in the afternoon in order to conduct visual inspection of the site being requested by cell site applicant.

Hoping for your cooperation on this matter


Respectfully yours,



EDWIN J. PIANO
City Councilor
Chairman, Olongapo Telecom and IT Board


Copy to:
Office of the City Mayor
Business Permit Division
City Engineer’s Office
SBMA Telecommunications Department
National Telecommunications Commission R-03

Globe nets P11.3 B in 2004, up 9.7%

With subscriber take-up still going strong in 2004, Globe Telecom Inc. earned P11.3 billion net profit last year, 9.7 percent higher from last year’s P10.3 billion on P52.7 billion revenues.

It reported an 18 percent drop in net profit in the fourth quarter of 2004 due to tough competition in the mobile market.

Globe’s total wireless subscriber base shot up by 41 percent to 12.5 million as of end-2004. Quarterly gross additions totaled 2.8 million while net subscriber additions totaled 0.8 million in the fourth quarter.

“We will continue our aggressive expansion program with P17 billion earmarked to build even more cell sites that will enable Globe to continue growing its revenue and income base in the coming years,” announced Globe Chairman Jaime Augusto Zobel de Ayala II.

Obviously, the telephone company’s mass market thrust has paid off. “Despite the challenges in 2004, Globe has strengthened its position in the mass market arena as we aggressively served the provincial markets, in line with the continued growth momentum of the wireless industry,” confirmed Gerardo C. Ablaza, Jr., President and CEO.

Globe’s service revenues increased by 11 percent from 2003 while operating costs and expenses grew by only 4 percent to P22.6 billion.

As a result, earnings before interest, taxes, depreciation and amortization (EBITDA) rose to R33.0 billion while EBITDA margin improved to 63 percent from 59 percent the previous year.

“We have laid the platform for future growth by introducing breakthrough innovations in the areas of value-transfer and m-commerce, and aggressively expanding our network into the provincial areas,” Ablaza pointed out.

For 2005, “We will proactively seek and explore new opportunities that lie ahead and strive to keep our tradition of breaking new ground in the mobile experience through the conceptualization and creation of further innovative services,” he declared.

Consistent with Globe’s dividend policy, the Board of Directors declared the first semi-annual cash dividend of R20 per share payable to common stockholders of record as of February 18, 2005. This represents an increase of 11 percent over last year’s first semi-annual cash dividend.

Globe will pay a total of P2.8 billion dividends on March 15, 2005.

Globe’s Board of Directors also approved an offer to purchase one share for every fifteen shares of the outstanding common stock of Globe, from all shareholders of record as of February 10, 2005, at a price of R950 per share.

The approval allows Globe to purchase up to 9,326,924 shares representing 6.67 percent of the company’s outstanding common shares. Each shareholder is entitled to tender a proportionate number of shares at the 1:15 ratio for purchase by Globe upon and subject to the terms and conditions of the tender offer.

Assuming all shareholders participate in the tender offer to the full extent, the total purchase price will be about P8.86 billion.

“Our intent to buyback Globe shares is also in line with our desire to return value back to shareholders,” Ayala explained. “The dividend policy and the share purchase transaction signal our confidence in the company’s business fundamentals and positive outlook for the long-term.”

Text scam nets P5M

Text scammers pocketed P5 million from "gullible" Pinoys last year who bit their raffle winner bait according to the Anti-Money Laundering Council.

AMLC executive director Vicente Aquino said the modus operandi involves texting someone advising he had won a promo but needs to deposit some amount as tax or fee before he can get the prize.

All of this of course is a ruse to rob the person.

Aquino said text scams fall within the crime of swindling or estafa which is a predicate crime both under the Revised Penal Code and RA 9160 or AMLA, as amended, and therefore is punishable.

Aquino believes that the P5 million estimate he had given is much smaller than the actual problem since most victims are too proud to admit that they have been duped.

Text scam, he added has already reached and victimized people not only in the urban areas but in the provinces as well.

In "text scam" deceiving messages are being sent to prospective victims through cellular phones, using the names of the Bangko Sentral ng Pilipinas, the Philippine Charity Sweepstakes, the Philippine Amusement and Gaming Corp., and other institutions, advising recipients of the message about winning a huge prize in a supposed raffle draw.

National Telecommunications Commission commissioner Ronald Solis meanwhile said the regulatory body has received about 487 complaints last year. As of the first four months of this year, the NTC has received 104 complaints.

Solis said the NTC has already asked telecommunications firms to block the SIM card of the suspected swindlers. In 2003, 389 SIMs were blocked for complaints on text scams while this year, they have already sent blocking orders for 102 SIM cards.

However, Solis admitted that this initiative is not really that effective as this acts continue to proliferate.

The NTC then, together with the AMLC and the Department of Trade and Industry and the National Bureau of Investigation formed a task force and a technical working group to focus on this issue of text scam.

The first phase of the group is to give information to the public about the "modus operandi" of some groups to collect money from potential victims.

"First of all, if the message asked for anything of value in return, it's a scam. And also, if the message you receive comes from an ordinary 7-digit number it's bogus," Solis said.

He explained that the NTC approves three to four-digit numbers, specifically for promos or raffle draws.

The NTC commissioner also said that they would ask the Congress to define text scam as a crime under a special law that would also provide for a heavier penalty

MINUTES of 3rd Telecom Board Meeting

Republic of the Philippines
TELECOM BOARD
OLONGAPO CITY

3rd Telecom Board Meeting
January 31, 2004
9:00 Am
Session Hall


PRESENT:

Hon. Edwin J. Piano Chairman
Mr. Leonardo C.Perez Member (Telecommunications Expert)
Engr. German E. Ebue Member (Electronics & Communications Expert)
Mr. Danilo J. Piano Member (IT Expert)
Mr. Mark Anthony M. Orpiano Board Secretariat
Mr. Jerico Ballon Legislative Assistant, City Council


ABSENT: (On Official Business)
Hon. Marey Beth D. Marzan Vice Chairman for IT
Hon. Gina G. Perez Vice Chairman for Telecommunications


EXCERPTS FROM THE MINUTES OF MEETING

1. The meeting was called to order 9:05am. Board Chairman Edwin Piano presided.

2. The Agenda was adopted as read.

3. With no correction, the minutes of the 2nd board meeting was adopted.

4. Hon.Edwin J. Piano suggests to the Board that the draft Guidelines / Internal Rules for Olongapo City Telecom Board will be discussed on the next meeting since Hon. Gina Perez had already submitted the draft for our review.

5. Hon. Edwin J. Piano approved the floor layout/plan of PABX room as submitted by Engr. German Ebue. The board agreed to make a resolution, copy to Hon. James “Bong” Gordon, Jr. in order to finally approve the plan and obligate fund for the project.

6. The board deliberated on a Resolution Establishing Guidelines, Rules and Regulation for Cell Site Application in the City of Olongapo. It was agreed that the following Documents, Clearances and Permits be the requirements for telecom applications:
a) Letter of intent to build a tower within the vicinity of the Olongapo City addressed to the City Mayor (Copy to Telecom Board)
b) Vicinity map / location map of the proposed site.
c) Engineering plan / design of the proposed tower to be erected to be approved by City Engineering
d) Air Transportation Office clearance
e) Subic Bay International Airport clearance
f) Approved Radio Frequency from SBMA Telecom
g) CENRO/DENR certificate
h) Department of Health clearance
i) Locational clearance
j) Office of the City Planning clearance
k) ECC certificate (application)
l) Barangay resolution (Clearance)
m) Neighbors consent (within the 50 meters radius from the cell site)
n) Mayor’s Permit (must be displayed in location)
o) Business Permit
p) Building Permit / Construction Permit
q) Agreement between lot/property owner and telecom provider
r) Affidavit of undertaking/waiver for government lot/property
s) Non-refundable application fee (50% of annual supervision fee)
t) City Council Resolution

7. Mr. Leonardo C. Perez suggest to request ATO flight path/MAP from SBMA Telecom to serve as reference guide for Olongapo Telecom Board. Hon. Edwin J. Piano suggests drafting a letter to SBMA Telecom requesting for the said map.

8. Hon. Edwin J. Piano put forward to draft a resolution recommending the establishment of Penalty, fees and lease rates for telecommunication facilities in Olongapo City.

9. WHEREAS, Olongapo Telecom Board is tasked with advancing telecommunication facilities in Olongapo City while ensuring that safety of its constituents is not compromised and that applicable city revenues from telecommunication entities are aptly collected.

10. WHEREAS, based on recommendations from the Olongapo City Appraisal Board, SBMA Telecommunications Department and a public hearing held January 24, 2004 at SP Session Hall, the following fees and lease rates for Telecommunications Facilities are hereby recommended. A non-refundable application fee and annual supervision fee shall be charged to all Telecommunication Entity intending to operate within Olongapo City, following rates shall apply.

11. Application to acquire telecommunication site is Php.5, 000.00 or 50% of Supervisory Fee whichever is higher. Supervision Fee is 30 centavos (Annually) for every 100 pesos or fraction thereof of the applicable cost of plant with a minimum of Php.5, 000.00.

12. The body agreed to charge PILTEL a Supervisory Fee as an alternative to its franchise fee/tax, since Republic Act.7293 exempted PilTel from paying local franchise tax, as stated in Section 6 of Piltel’s legislative franchise.

13. The following lease rates for telecommunication facilities utilizing government land and structures such as buildings, water tanks, poles and the likes shall apply as agreed by the telecom board. Self-Supporting Towers located at green fields/land lease is Php.25, 000.00 per month for a maximum of 100 square meters. Point to Point Microwave Antenna Towers using government-building lease is Php.15, 000.00 per month. Repeaters on monopoles using government structures lease is Php. 5,000.00 on a monthly basis. Antenna and Wi-Fi transceiver on pole lease is Php. 1,000.00 monthly.

14. Penalty for telecom provider not complying with Olongapo City requirements:

1st Offense - Citation giving 5 working days to correct discrepancy and comply w/ rules.
2nd Offense - Php. 10,000.00 penalty with 5% escalation per day of non-compliance up to maximum of 30 days.
3rd Offense – Stop of Operation plus fine accrued due to above and 3 days imprisonment of the Site Acquisition Officer or Operations Officer.

15. The board made initial discussions on the report of Mr. Danny J. Piano regarding high cost of Internet Service in Olongapo City, The Chairman suggest to continue gathering data and discuss on the next meeting.

16. Mr. German Ebue reported that Mr. Rossano Danoog will leave his position as manager of Piltel effective March 31, 2005. Mr. Ebue said that all area in Zambales is under the management of PLDT except Digitel. Mr. Perez added that inter-connection with all the telecom player in the subject area is possible. In this regard, the board passed a resolution urging the city council for the immediate approval of the draft resolution “Requiring the implementation and enforcement of one rate, one province policy as mandated by National Telecommunications Commission (NTC) Memorandum Circular no. 14-7-2000 to public telecommunication entities concern”.

17. Hon. Edwin J. Piano advised Mr. Ballon and Mr. Orpiano to furnish a copy to the National Telecommunication Commission (NTC) regarding on the one rate, one province implementation.

18. The Chairman reported about the TV Chat rooms turned into cyber-sex, drug trafficking and other illegal activities. Authorities believe that several Cyber sex syndicates in the countru are using Internet cafes and TV Chat Rooms as venues of their illegal operations. The Chairman advised Mr. Mark Anthony M. Orpiano and Jerico Ballon to acquire summary the result of the public hearing of the said issue held at NTC main building last January 28, 2005.

19. Hon. Edwin J. Piano invited the telecom board member to attend the public hearing on Anti-Vandalism regarding telecommunications equipment and facilities on February 1, 2005, 10:00 am at the SP Session Hall.

20. The Chairman instructed the secretariat to invite Mr. Sunny Basubas from City MIS Department to present his program or plan regarding the city’s computerization program.

21. The Chairman further instructed the secretariat to ensure that the Mayor’s office be given copies of all board resolutions and activities. Mr. Ballon informed the board that Mayor James Gordon, Jr. actually wishes to meet the board.

22. Hon. Edwin J. Piano requested Mr. Leonardo C. Perez and Engr. German E. Ebue to make accomplishment report for submission to the Mayor.

23. Calendar of next meeting February 14, 2005 at 9:00 am. However the Chairman advised members of the board to get ready for the mayor’s invitation to a meeting which is expected on the second week of February.

24. With no other matter to discuss, the meeting adjourned at 11:05 am.


Prepared by:


Mark Anthony Orpiano
and Jerico Ballon
Secretariat

RESOLUTION NUMBER 03, SERIES OF 2005

RESOLUTION NUMBER 03, SERIES OF 2005

RESOLUTION RECOMMENDING ESTABLISHMENT OF FEES AND LEASE RATES FOR TELECOMMUNICATION FACILITIES IN OLONGAPO CITY.

WHEREAS, Olongapo Telecom Board is tasked with advancing telecommunication facilities in Olongapo City while ensuring that safety of its constituents is not compromised and that applicable city revenues from telecommunication entities are aptly collected.

WHEREAS, Based on recommendations from the Olongapo City Appraisal Board, SBMA Telecommunications Department and a public hearing held January 24, 2004 at SP Session Hall, the following fees and lease rates for Telecommunications Facilities are hereby recommended;

A non-refundable application fee and annual supervision fee shall be charged to all Telecommunication Entity intending to operate within Olongapo City, following rates shall apply:

Application to acquire telecommunication site PhP5,000 or 50% of Supervisory Fee
either in private or public property: whichever is higher

Supervision Fee (Annually) 30 centavos for every 100 pesos or fraction thereof of the applicable cost of plant (P5,000 min)

The following lease rates for telecommunication facilities utilizing government land and structures such as buildings, water tanks, poles and the likes shall apply:

Self Supporting Towers located at green fields PhP25,000 per month, max 100 square meters
Point to Point Microwave Towers on govt bldg. PhP15,000 per month
Repeaters on monopoles at govt. structures PhP 5,000 per month
Antenna & Wi-Fi transceivers on poles PhP 1,000 per month

Penalty:
1st Offense - Citation giving 5 working days to correct discrepancy and comply w/ rules.
2nd Offense- PhP10,000 penalty with 5% escalation per day of non-compliance
up to maximum of 30 days.
3rd Offense - Stop of Operation plus fine accrued due to above and 3-days
imprisonment of the Site Acquisition Officer or Operations Officer

NOW THEREFORE, on a unanimous accord of all members present on a meeting held January 31, 2005, resolved as it is hereby resolved, to recommend to the City Council the establishment of fees and lease rates for telecommunication facilities in Olongapo City



EDWIN J. PIANO
Chairman, Telecom Board

Attest:


MARK ANTHONY ORPIANO
Board Secretary

RESOLUTION NUMBER 02, SERIES OF 2005

RESOLUTION NUMBER 02, SERIES OF 2005

A RESOLUTION ESTABLISHING GUIDELINES, RULES AND REGULATION FOR CELL SITE APPLICATION IN THE CITY OF OLONGAPO

WHEREAS, with the rapid advancement of communication technology, cellular sites or microwave/telecom antenna towers are mushrooming in the city:

WHEREAS, Ordinance No. 24, series of 2004, mandated Olongapo Telecom Board to formulate guidelines, rules and regulation for compliance of Telecommunications and IT providers in the city of Olongapo;

WHEREAS, it is the duty of the Telecom Board to ensure that all cellular sites or microwave/telecom antenna towers meet all the necessary requirements and clearances to ensure the safety and protection to life and property;

NOW THEREFORE, with the unanimous accord of the board members present;

RESOLVED, AS, IT HEREBY RESOLVED, by the members of the Telecom Board in a meeting assembled, to enact the following guidelines, rules and regulation for cell site application in the City of Olongapo:

1. Documents, Clearances and Permits required

• Letter of intent to build a tower within the vicinity of the Olongapo City addressed to the City Mayor (Copy to the City Council and Telecom Board)
• Vicinity map / location map of the proposed site.
• Engineering plan / design of the proposed tower to be erected to be approved by City Engineering
• Air Transportation Office clearance
• Subic Bay International Airport clearance
• Approved Radio Frequency from SBMA Telecom
• CENRO/DENR certificate
• Department of Health clearance
• Locational clearance
• Office of the City Planning clearance
• ECC certificate (application)
• Barangay resolution (Clearance)
• Neighbors consent (within the 50 meters radius from the cell site)
• Mayor’s Permit (must be displayed in location)
• Business Permit
• Building Permit / Construction Permit
• Agreement between lot/property owner and telecom provider
• Affidavit of undertaking/waiver for government lot/property
• Non-refundable application fee (50% of annual supervision fee)
• City Council Resolution




2. All applications must be submitted to the Telecommunications and Information Technology Board for proper recording and examination of the requirements to ensure that it complies with all the requirements

3. A yearly supervision fee will be collected for time-to-time inspection and supervision of the Telecom Board to monitor whether the facility is with-in the submitted and approved plans

4. The Telecom and Information Board shall have the right to order stoppage of construction and / or operation of the cellsite if cellular company failed to comply with all the requirements. The City Government will not be liable on any service interruption resulted from non-compliance of the requirements.

5. All photocopies of the documents required shall be submitted to Telecommunications and Information Technology Board before the constructors will be given the construction and building permit

6. All Telecommunications operators/company operating in the City using antenna towers are bounded to this guidelines, rules and regulations

7. This guidelines, rules and regulation shall take effect upon its approval and with the concurrence of the City Council.

APPROVED UNANIMOUSLY, January 31, 2005.




EDWIN J. PIANO
Chairman, Telecom Board


Attest:


MARK ANTHONY ORPIANO
Board Secretary

RESOLUTION NUMBER 01, SERIES OF 2005

RESOLUTION NUMBER 01, SERIES OF 2005

RESOLUTION STRONGLY RECOMMENDING TO THE OLONGAPO CITY COUNCIL THE PASSAGE OF DRAFT RESOLUTION NUMBER 2005 – R-04 ENTITLED “RESOLUTION REQUIRING IMPLEMENTATION AND ENFORCEMENT OF ONE RATE, ONE PROVINCE POLICY AS MANDATED BY NATIONAL TELECOMMUNICATIONS COMMISSION (NTC) MEMORANDUM CIRCULAR NO. 14-7-2000 TO PUBLIC TELECOMMUNICATION ENTITIES CONCERN”


WHEREAS, pursuant to the provision of the NTC Memorandum Circular No. 14-7-2000 entitled, “Implementing Rules and Regulations (IRR) for the inter connection of Authorized Public telecommunications Entities (PTE).” NTC are mandated to implement uniformity and applicability by PTE’s within the zone and outside the zone of the local calling (Service) area;

WHEREAS, the adoption of the Memorandum Circular No. 14-7-2000 is long overdue for enforcement and implementation by Public Telecommunication Entities operating in the subject area since its approval for implementation commenced since February 21, 2000;

WHEREAS, the application of the Local Calling Service area had been specified by NTC Memorandum Circular as “ the present areas forming part of the numbering plan “47” is considered as the local calling service area”. In this case, the subject area comprises SBMA, Olongapo City and all local towns in the province of Zambales;

WHEREAS, the implementation of the toll free calls in the subject area would directly benefit more or less 30,000 telephone line-subscribers; with multiplier beneficial effect in social, economic and development activities, since the accessibility and affordability of telecommunications are with-in their finger tips;

WHEREAS, an overwhelming clamor for immediate implementation of One Rate One Province had been expressed during a public hearing held last January 24, 2005 at Sangguniang Panlungsod Session Hall.

NOW THEREFORE, RESOLVED, AS IT HEREBY RESOLVED, by members of the Telecommunications and Information Technology Board on an official meeting held January 31, 2005 to strongly recommending to the Olongapo City Council the passage of draft resolution number 2005 – R-04 Requiring the implementation and enforcement of one rate, one province policy as mandated by National Telecommunications Commission (NTC) Memorandum Circular no. 14-7-2000 to public telecommunication entities concern

Approved Unanimously, January 31, 2005.


EDWIN J. PIANO
Chairman, Telecom Board

Attest:

MARK ANTHONY ORPIANO
Board Secretary