Olongapo Telecom & Information Technology

Tuesday, June 21, 2005


Republic of the Philippines
City of Olongapo





Ordinance No. 24 Series of 2004 was passed by the Sangguniang Panlungsod entitled an Ordinance Creating the Local Telecommunications and Information Technology (I.T.) Board and defining their Jurisdiction, Powers and Duties.

The Mayor of Olongapo City, Honorable James J. Gordon, Jr; by the powers vested by law, issued Executive Order No. 84-A, Series of 2005; Confirming creation of the board and appointing members to Olongapo City Telecommunications and Information Technology Board.


The primary purpose in the creation of the local Telecom and I.T Board is to develop, formulate, review, assist and monitor the implementation of policies, rules, and regulations, standard and specification and guidelines related to Telecommunication and IT activities provided for and consistent with applicable national laws, Executive Orders, Memorandum Circulars and Local City.

The procedures or guidelines use by the Telecom and I.T Board are to be kept continually under review, techniques improved, whenever and whatever necessary, by amending this internal rules, or by executive orders from the City Mayor and or through legislative function of the city council.


The board functions as a “Working Board,” it is involved in both:
1) Policy Planning and
2) Operations and Enforcement

Policy Planning
a. Develop over all plans and policies for Telecommunication matters in aid of legislation
b. Formulate and review technical standards specification, rules and regulations and guidelines for compliance by Telecommunication providers operating in the City of Olongapo
c. Formulate operating system procedures and criteria for issuance of license/permits monitoring and inspection of Telecommunication providers facilities/equipment to determine compliance
d. Review the penalties for non-compliance with rules and regulations, standards, specification and guidelines set by the City Council Ordinances and by NTC on a regular basis
e. Develop plans and programs and strategies to meet the future Telecommunication requirements of the city
f. Gather market, financial and technological information and monitor the development of Telecommunications both domestic and international in scope
g. Receive and review complaints of subscribers against Telecommunication provider’s poor quality of service. Notify Telecommunication provider concern for resolution
h. Liaise and consult, as necessary, for the effective executions of above functions with such agencies, entities, whether Government or private as authorize by the city council or City Mayor.
i. To perform all others acts as instructed by the City Mayor or the city Administrator.

Operations and Enforcement

a. Assist in processing of application for permit to purchase, possess, own, construct and operate Telecommunication facilities in accordance with the city ordinances, NTC and other existing laws

b. Assist in issuance of reminders for and process renewals of permit to purchase, possess, own, construct and operate Telecommunication facilities under its jurisdiction

c. Monitor and conduct regular inspection on Telecommunications facilities with-in the city to ensure compliance with rules and regulations, standard specifications and guidelines stipulated by NTC and city ordinances. Recommend for approval and impose the relevant penalties for non-compliance

d. Provide relevant information as to standards, specifications and accepted practices for in-building pre-plan wiring, installation of costumer provided equipment

e. Provide direct technical and operational assistance in the installation, maintenance and repair of the City Government Private Automatic Branch Exchange (PABX)

f. Develop preventive and corrective maintenance program for the PABX system to maximize operational efficiency and continuity of service

g. Provide technical and operational information as required by Telecommunication investor or city council in aid of legislation

h. To perform all others acts as instructed by the City Mayor or the city Administrator.


Executive Order No. 84-A, Series of 2005 appointed members to Olongapo City Telecommunications and Information Technology Board, which are as follows:

1. Hon Edwin J. Piano, Chairman
City Councilor
2. Hon Marey Beth D. Marzan, Vice-Chairman for IT
City Councilor
3. Hon. Gina G. Perez, Vice-Chair for Telecommunications
City Councilor
4. Mr. Leonardo C. Perez, Member
Telecommunications Expert
5. Engr. German E. Ebue, Member
Electronics and Telecommunications Expert
6. Atty. Angelito R. Orozco, Member
City Legal Officer
7. Mr. Danilo J. Piano, Member
IT Expert
8. Mr. Jerico C. Ballon, Board Secretariat
9. Mr. Jamir C. Comendador, Board Secretariat

Designated further the following as ex-officio members of the said Board:

1. Arch. Tony-Kar Balde III, Head City Planning and Development Office
2. Mr. Eduardo M. Santos, Engineering Office
3. Mr. Sunny G. Basobas, Head, MIS Office
4. Mr. Oscar Agustin, City Assessors Office
5. Mr. Marcelino D. Andawi, City Treasurer’s Office
6. Mr. Emmanuel Ramos, Business Permit Office
7. Engr. Oliver Macaspac, National Telecommunications Commission RO3
8. Mr. Jose Ma. Abola, Jr., Representing Private Telecom Sector
9. Mr. Gary Marasigan, President of OCCSA
10. Representative from Local Radio Amateur and Civic Communications Group
11. Representative From Public Utilities Department
12. Representative from Mobile Phone Dealers and Service Centers

Remunerations / Reimbursements

Members of the “Board” give their services and share their expertise in a voluntary manner. They may however be rewarded per diem as per applicable Department of Budget and Management circulars. Costs incurred during official travels and attendance to functions directly associated with the function of the board may be reimbursed upon presentation of approved travel orders and official receipts.

Conduct of Meetings

In conducting a meeting, the "Board" being considerably small in terms of membership will follow the Robert's Rules of Order provided that the procedure may be more relaxed and free from unnecessarily rigorous guidelines that would otherwise prevent the board from arriving at desirable decisions in the most efficient manner.

Four (4) regular members present constitute a QUORUM. In case only three (3) regular members are present, they may elect one (1) from the list of ex-officio members who may become regular member (thereby achieving required number to constitute a quorum) but only for that particular meeting.

The Telecom and IT Board, true to its name, considers “On-Line” board meeting as an official and therefore, valid meeting; provided however that written minutes of the on-line meeting must be approved on the next regular meeting and records kept in the official filing system by the secretariat. On-Line virtual meetings are accepted Telecom & IT industry standard. It utilizes a personal computer with video camera, a microphone and soundcard. By accessing the Internet and using appropriate software, members of the board, wherever they may be, will be able to participate in the discussion and decision-making.

The Chairman of the Board presides over meetings. In his absence, provided that quorum is satisfied, a temporary presiding officer may be elected from among the regular members present.

In case, any part of the provisions of this Rules, shall be held invalid or inconsistent with other related rules and laws, other parts or provision hereof are not affected thereby shall continue to be in effect.

This “Internal Rules” shall take effect on the date of its adoption.

Monday, June 20, 2005

NTC okays Innove‘s bid to install telephone lines nationwide

By Mary Ann Ll. Reyes The Philippine Star

Innove Communications, a wholly-owned subsidiary of Globe Telecom, becomes the country’s second nationwide local exchange carrier (LEC) with the approval by the National Telecommunications Commission (NTC) of its year-long application to install telephone lines all over the Philippines.

With an estimated total capital expenditure of P5 billion, Innove which is Globe’s landline business subsidiary, will roll out an initial 145,000 lines in regions where it believes there is demand from business and residential subscribers.

The company estimates that there will be an initial demand of 50,000 lines in the NCR; 35,000 lines in Region 4; 20,000 in Region 3; among others.

The project is expected to generate P331 million in the first year growing to P1.5 billion in year five and P1.8 billion in year eight.

Innove’s application for a certificate of public convenience and necessity (CPCN) to establish, install, operate, and maintain a LEC service, particularly integrated local telephone service with public payphone facilities and public calling stations in areas nationwide, specifically in areas not yet covered by its existing CPCN, was filed last year.

The application was opposed by the Philippine Long Distance Telephone Co. (PLDT) which has a nationwide LEC license, Bayan Telecommunication (Bayantel) whose LEC license already covers most of the country, Philcom, PT&T, and 35 others, mainly on the ground that its approval will result in ruinous competition.

The regions applied by Innove are: NCR (50,000 lines), CAR (2,500), Region I (10,000), Region II (10,000), Region III (20,000), Region IV (35,000), Region V (10,000), Region 9 (2,500), Region 10 (2,500), and Region 11 (2,500).

Innove cited the low telephone density rate in the targeted areas, ranging from 1.29 percent in Region 9 to 22 percent in Metro Manila.

At present, Innove provides LEC and wireline data services in Makati, Mandaluyong, Marikina, Pasig and San Juan in the National Capital Region; and in the provinces of Batangas, Cavite, Mindoro Oriental, Palawan, Lanao del Norte and Lanao del Sur, North Cotabato, Sultan Kudarat and Maguindanao. It also operates in Regions VI, VII and VIII. It has 341,877 subscribers as of the first quarter of 2005.

The project, to be financed by internally-generated funds, is expected to generate revenues of P331 million in the first year alone, growing to P1.5 billion in year five and P1.8 billion in year eight. Operating expenses are projected to reach P184 million in the first year, increasing to P577 million in the fifth year to P677 million in the 10th year.

Innove proposed to charge the same Monthly Service Fee (MSF) and call rates currently charged by the existing operators in the affected areas.

The NTC’s common carrier authorization department (CCAD) recommended the approval of Innove’s application "in order to provide universal access in unserved and underserved areas, and ensure efficient competition in local access services."

It added: "The local access networks are the bottlenecks in the telecommunications market. In the past, they are considered natural monopoly because of the notion that cost per subscriber decreases as the number of subscriber lines increases. The decrease in the cost however has its limits. A further increase in the subscriber lines after reaching a point would not result to a further decrease in the cost. This point is much less in wireless access networks than in fixed line networks. Because there is virtual monopoly in local access lines, interconnection access charges are set by the local access network operators. In order to decrease the power of these network providers to influence interconnection access charge negotiations, multiple local access networks should be allowed."

Thus, in its previous decisions, the NTC has allowed up to three LEC operators in a local service area.

Before being given a CPCN by the NTC, Innove was first awarded a provisional authority (PA) by the commission to establish, install, operate and maintain an LEC service, particularly integrated local telephone service with public payphone facilities and public calling stations in all areas across the nation that are not yet covered by its existing CPCN and to charge monthly rates at par with the approved rates of the LEC operators in the area.

The PA will initially be valid for 18 months unless otherwise revoked or cancelled by the NTC.

‘One number, one phone’ to rule them all, possible with broadband technology

By melvin g. calimag mb

If telephone operators here have refused to implement number portability — the ability to retain one’s landline or mobile phone number even if he or she changes his or her service provider — in their networks because of cost issues, a full-blown deployment of broadband technology would soon make their arguments obsolete.

The number portability issue — whether landline or mobile — has long hounded the US telecom market, pushing the federal government to even create the Number Portability Administration Center, operated by Lockheed Martin under the appointment of the Federal Communications Commission.

In the Philippines, two proposed laws have been filed in Congress last year to compel cellular carriers to implement number portability among the country’s mobile phone subscribers. The bills, authored by Albay Rep. Joey Salceda and Catanduanes Rep. Joseph Santiago, have not gone beyond first reading and are pending with the Committee on Information and Communications Technology.

But for technology vendor Alcatel, the expensive cost associated in carrying out number portability is a minor problem that can be readily addressed by a broadband technology it is currently testing with some of the world’s largest phone operators.

Under Alcatel’s "usercentric broadband" vision, carriers and consumers alike will benefit from fixed-mobile-convergence (FMC), which will allow not only number portability but for a "single number, single phone" service.

Dominique Buyse, director for strategic marketing of Alcatel, explained during a recent broadband forum in Yokohama, Japan that FMC would enable a phone subscriber to use a single number for home, office, and mobile.

"This technology works in such a way that you can make any outgoing call or answer any incoming call on any phone. So when your phone rings, you don’t reach for your cellphone located in the kitchen but lift the handset nearest you," he said.

To build his case, the executive cited a survey done by the Yankee Group in 2004 which revealed that 30 percent of mobile phone calls were actually made inside the house and that 65 percent of users would prefer to have a single phone number for mobile, home, and office.

A converged network, Buyse said, will not only benefit the end-users but will also deliver revenues to the enterprise environment because of increased productivity (with a single number, an employee is always reachable) and lower tariffs and total cost of ownership (there would no longer be a need for cordless phones).

"With the ability to answer any call on any phone, you’re essentially creating a PABX network in your home," the official said, adding that the FMC technology is deployable five years from now.

NTC issues revised 3G draft guidelines despite opposition

By Erwin Lemuel Oliva INQ7.net

DESPITE opposition from top players in the local telecommunications industry, the National Telecommunications Commission (NTC) has proceeded with issuance of the revised draft rules on the assignment and allocation of third-generation (3G) mobile telecommunications licenses and frequency bands on Friday.
A public hearing has also been scheduled on July 1, 2 p.m. at the NTC.

According to the new draft rules on 3G, five Philippine public telecommunications entities will be granted 3G licenses.

It also disclosed its adoption of International Telecommunications Union (ITU) standard frequencies for use in 3G. These frequencies are classified as international mobile telecommunications (IMT2000).

These frequencies allocated for 3G in the revised NTC draft rules are 825 – 845 Megahertz (MHz); 870 – 890 MHz; 1880 – 1900MHz; 1920 – 1980MHz; 2110 – 2170 MHz; and 2010 – 2025MHz.

The 825- 845 and 870 -890 Mhz frequency bands are currently assigned to existing mobile phone operators in the country.

In an accompanying memorandum, NTC explained that the proposed rules would provide a rational framework for awarding and assigning 3G licenses and their corresponding frequencies.

But both the landline giant Philippine Long Distance Telephone Co. and the mobile phone giant Globe Telecommunications have criticized NTC for pushing 3G, arguing that the local industry is not ready due to a low demand for it and the present high cost of handsets.

NTC however cited 134 the 3G licenses that have already been awarded in 48 countries and the 67 networks that have launched commercial services.

The total number of 3G subscribers has reached 22 million worldwide, a five hundred percent market growth in 2004 alone, with the Asia-Pacific region showing the strongest growth.

On the cost of handsets, NTC pointed out that there are more than 150 3G handsets launched in the market. It cited the US analyst Forward Concepts, which indicated that the number of mobile handsets for newer high-bandwidth technologies would grow sharply in 2005.

NTC also addressed the contentious issue of requiring existing mobile operators to bid for a 3G license.

Local operators had previously argued that since 3G is just an enhancement of 2G or 2.5G mobile services, they do not have to bid for 3G licenses but should be allowed to simply apply for the assignment of frequencies since they have a prior legal right as incumbent operators to the award of 3G licenses and frequencies.

NTC agreed that 3G is indeed a technical enhancement of 2 or 2.5G mobile services, but incumbent operators do not necessarily have the exclusive right, or are in the best position to be awarded a 3G license.

"The Commission believes that the status of the said firms as incumbents does not give these companies the prior legal right of establishing and providing 3G services, for obvious reasons," the NTC stated, citing Section 11, Article XII of the 1987 Constitution declaring that the operation of a public utility shall not be exclusive.

NTC also addressed a concern of local operators about the need to impose similar obligations on prospective 3G operators as the regulatory body does on existing mobile phone operators, particularly because of the national goal of installing at least 400,000 landlines.

NTC also indicated in its memo that rollout obligations will be more flexible this time, to allow 3G licenses faster expansion.

"The obligation imposed on the prospective awardee of a 3G license need not be as onerous or costly as to effectively detract service providers from engaging in this field," the regulatory body said.

NTC indicated that it would encourage a level-playing field for 3G-license bidding to allow healthy local competition.