Mc-08-09-1995 Irr for R.A. 7925

MEMORANDUM CIRCULAR

NO. 08-09-95

SUBJECT: IMPLEMENTING RULES AND REGULATIOS FOR REPUBLIC ACT NO. 7925 RE: AN ACT TO PROMOTE AND GOVERN THE DEVELOPMENT OF PHILIPPINE TELECOMMUNICATIONS AND THE DELIVERY OF PUBLIC TELECOMMUNICATIONS SERVICES.

For the purpose of an effective and smooth implementation of RA 7925, the National Telecommunications Commission, an attached agency of the Department of Transportation and Communications (DOTC) and the principal administrator of RA 7925 (Public Telecommunications Policy Act of 1995), hereby promulgates the hereunder Implementing Rules and Regulations.

Nothing in this Circular, however, shall be constructed as delimiting the power of DOTC to monitor the implementation of this Act in accordance with its mandate to achieve its responsibility for the development and maintenance of a long term strategic national development plan for telecommunications.

01. DEFINITION OF TERMS

1. Access Charge – refers to a remuneration paid to a carrier by the interconnecting carriers for accessing the facilities of such carrier which is needed by the interconnecting carriers for the origination and/or termination of all types of traffic derived from the interconnection.

2. Actual Cost Approach – refers to an approach in traffic settlement whereby the cost is allocated using a methodology, which most appropriately reflects actual cost of the service.

3. Cross Subsidy Approach – refers to an approach whereby a LE operator is entitled to some subsidy in the revenue settlement to earn a rate of return on its local exchange network investments that shall be at parity with those earned by other segments of the telecommunication industry.

4. Interconnection Charge – refers to the sum of the access charge plus cross-subsidy.

5. Basic Telephone Service – refers to the local exchange telephone service for residence and business establishments.

6. Universal Access – refers to the...