FIFTEENTH CONGRESS OF THE REPUBLIC} 
OF THE PHILIPPINES 
First Regular Session 
SEN ATE 
s. No. 119 
} 
} 
Introduced by Senator S. R. Osmei'ia III 
EXPLANATORY NOTE 
l' II 
,-_,t~ 
v .. 
~ 
. 
, 
Telecommunications is a key public service that affects the efficiency 
of business enterprises and the quality of life of private individuals. For several 
decades until quite recently, 
the stranglehold of a giant monopoly managed 
to delay the development of the industry. 
The deregulation measures initiated under the Ramos administration was 
a big stride for the industry, as it opened heretofore unserved or underserved 
areas for franchise by new companies that would hopefully introduce new 
blood and competitive vigor to the industry. Still, 
a lot of work remains to be 
done to upgrade the quality of service and performance delivered by the 
existing players in the telecommunications service market. 
This bill seeks to address the needs of the industry by establishing 
minimum standards of service and performance in certain areas such as the 
following: 
(a) mechanical and electrical condition of meters or recording devices 
used to record data and prepare accurate customers' bills 
(b) efficient and courteous customer service in response to customers' 
requests for information regarding alternative kinds of service plans 
available, and the corresponding determination of, and prevailing 
rates and charges on such plans; and; 
(c) ceiling on the amounts 
of and refund procedures 
for customers' 
deposits; 
(d) user-friendly public telephones; 
(e) grounds for denial or discontinuance of service; 
(f) minimizing 
waiting time 
or "on-hold" 
acknowledgment 
and 
improvement of operator -handled calls. 
The quality of telecommunications services that will be available to our 
citizenry and business enterprises will indeed determine the competitiveness of 
our products and services in the world market during the oncoming millennium. 
In view of the foregoing, the immediate approval of this bill is earnestly 
requested. 
Il~~ 
'E~GlO OSMENA III 
Senator 


FIFTEENTH CONGRESS OF THE REPUBLIC} 
OF THE PHILIPPINES 
First Regular Session 
} 
} 
10 
,.iiil. 
P' "2 
' 
,is 
SENATE 
.~-.... , 
S. No. 119 
1 
Introduced by Senator S. R. Osmeiia "I 
AN ACT 
ESTABLISHING TELECOMMUNICATIONS SERVICE STANDARDS AND FOR 
OTHER PURPOSES 
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled: 
GENERAL PROVISIONS 
2 
SECTION 1. 
Short Title. 
-
This Act shall be known as the 
3 
"Telecommunications Service Standards Act". 
4 
SECTION 2. Declaration of Policy. -- It shall be the policy of the State to 
5 
ensure that the public shall have the right to acquire access to basic telephone 
6 
service of reasonable quality and cost. 
7 
SECTION 3. 
Scope and Application. 
- This Act shall apply to all 
8 
telecommunication utilities operating in the Philippines and which are under the 
9 
jurisdiction of the National Telecommunications Commission, hereinafter referred 
10 
to as the "Commission". 
11 
SECTION 4. Definitions, - For the purposes of this Act, the following 
12 
definitions shall be used: 
13 
a) 
"Application" - a request made in writing, for telecommunications 
14 
service, including requests for changes in existing service. 
15 
b) 
"Sase Rate Area" - a specific area within any exchange service 
16 
area as set forth in the telecommunication utilities' tariffs, maps or descriptions, 
1 


1 
where local exchange service between two terminals within this area is furnished 
2 
at uniform rates without extra mileage charge. 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
25 
26 
27 
28 
29 
c) 
"Business Service" -
Telecommunications service 
provided a 
customer where the use is primarily or substantially of a business, professional, 
institutional or otherwise occupational in nature, as distinguished from personal 
or residential. 
d) 
"Busy Hour" - any hour in a day during which the greatest volume 
of traffic is handled by a local exchange. 
e) 
"Calls" -
the attempts of a customer to dial another legitimate 
telephone number. 
f) 
"Central Office" 
- An independent switching unit which may 
provide up to ten thousand (10,000) access lines in a telecommunications 
system providing service to the general public, having the necessary equipment 
and operating arrangements for terminating and interconnecting customer lines 
and trunks only. There may be more than one central office in a building. 
g) 
"Channel" - An electrical circuit for telecommunications between 
two or more stations or central offices or path for telecommunications between 
two or more customers or central offices, furnished in such a manner as the 
telecommunications utility may elect, whether by wire, radio or a combination 
thereof, and whether or not by a single physical facility or route. 
h) 
"Class of Service" - a description of telecommunications service 
furnished a customer which denotes such characteristics as nature of use 
(business or residential) or type of rate (flat rate, measured rate, or message 
rate). Classes of service are usually subdivided in "grades", such as individual 
line, two-party or four-party. 
i) 
"Commission" - National Telecommunications Commission. 
j) 
"Customer" 
-
any person, 
firm, 
partnership, 
corporation, 
municipality, cooperative, organization, governmental agency, etc., provided with 
telecommunications services by a regulated telecommunications utility. 
2 


1 
k) 
"Customer Trouble Report" - any oral or written report or inquiry 
2 
services relating to a physical defect or 
difficulty or dissatisfaction with the 
3 
operation of the utility's facilities. For recording purposes, each report shall be 
4 
considered as separate and distinct even though it may duplicate a previous 
5 
report or merely follows up a previous report or inquiry. 
6 
I) 
"Direct Distance Dial Service" - long distance service in which the 
7 
customer dials his or her intended called party outside his local service area 
8 
without the assistance of an operator. 
9 
m) 
"Exchange" - a unit established by a telecommunications utility for 
10 
the administration of telecommunication services in a specified area for which a 
11 
separate local rate schedule is provided. It may consist of one or more central 
12 
offices together with associated plant facilities. 
13 
n) 
"Exchange Service Area" - the geographical territory served by an 
14 
exchange, usually embracing a city, town, or barangay and its environs. 
15 
0) 
"Flat Rate Service" - local telecommunications service furnished at 
16 
a fixed recurring charge. 
17 
p) 
"Grade of Service" 
- the classification of a telecommunications 
18 
channel in accordance with the number of customers served on the line, such as 
19 
one-party, two-party, four-party, etc. 
20 
q) 
"Held Service Order" - an application for establishment or re-grade 
21 
of service not filled within thirty (30) days after the customer has filed his 
22 
application, except where the customer requests a later dale. 
23 
r) 
"Individual Line Service" - a classification of exchange service 
24 
which provides that only one customer shall be served by the channel connecting 
25 
the customer's service location with the serving central office. 
26 
s) 
"Intercept Service" -
a service arrangement provided by the 
27 
telecommunications 
utility whereby calls 
placed to 
a disconnected 
or 
28 
discontinued telephone number are intercepted and the calling party is informed 
29 
that the called telephone number has been disconnected, or discontinued, or 
3 


changed to another number, or that calls are being received by another 
2 
telephone number, etc. 
"Inter-office" - between central offices. 
"Intra-office" - within one central office. 
3 
4 
5 
t) 
u) 
v) 
"Local Access Line" - a facility, totally within a exchange, providing 
6 
a telecommunications channel between a customer's service location and the 
7 
serving central office or remote switch. 
8 
w) 
"Local Calling Area" - the area within which telecommunications 
9 
service is furnished customers under a specific schedule or exchange rate. A 
10 
local calling area may include one or more exchange service areas or portions of 
11 
exchange areas. 
12 
x) 
"Local Measured Service" -
a type of local exchange facility to 
13 
enable a customer to send or receive telecommunications within the local service 
14 
calling area. This local service calling area may include one or more exchange 
15 
service areas. 
16 
y) 
"Local Service Charge" -
the charge for furnishing facilities to 
17 
enable a customer to send or receive telecommunications within the local service 
18 
calling area. This local service calling area may include one or more exchange 
19 
service areas. 
20 
z) 
"Long Distance Telecommunications Service or Toll Service" -
21 
telecommunications service rendered by telecommunications utilities which is 
22 
furnished between customers in different local service areas at measured rates. 
23 
aa) 
"Measured Rate" - usage sensitive charges for telecommunication 
24 
service which may be based on the number, duration, distance, and time of 
25 
day/day of week of messages, or any combination thereof. 
26 
bb) 
"Message" - a completed customer telephone call. 
27 
cc) 
"Message Rate Service" - a form of local measured service under 
28 
which all originated local messages are measured and charged for, based solely 
29 
on the number of messages used during the billing period. 
4 


dd) 
"Out of Service" - when there exists a total lack of either incoming 
2 
or outgoing telecommunications capability. 
3 
eel 
"Outside Plant" - the telecommunications equipment and facilities 
4 
installed on, along, over or under streets, alleys, highways or on private rights-of-
5 
way between the central office and customer's locations or between central 
6 
offices. 
7 
ff) 
"Party Line Service" -
a grade of local exchange service which 
8 
provides for a number of customers to be served by the same central office 
9 
channel. 
10 
gg) 
"Primary Service Order" -
an application for voice grade 
11 
telecommunications service to be provided at a customer location which does not 
12 
have telecommunications service. 
13 
hh) 
"Private Line" - a channel provided to furnish telecommunications 
14 
service between two or more customer locations and not having connection with 
15 
central office switching apparatus. 
16 
ii) 
"Public Telephone Service" - an individual line service equipped 
17 
with a coin collecting telephone instrument installed by a telecommunications 
18 
utility for the usage of the general public in locations where the general public 
19 
has access to the telephones. 
20 
jj) 
"Regrade" -
an application for a different class and/or grade of 
21 
service. 
22 
kk) 
"Remote Switch" - a switching unit in a telecommunications system 
23 
which is completely dependent upon a central office for certain operational 
24 
functions and for calling outside of its own serving area. 
25 
II) 
"Tariff' -
the entire body or schedule of rates, tolls, rentals, 
26 
charges, classifications and rules approved by the Commission for any 
27 
authorized telecommunications utility. 
5 


1 
mm) 
"Toll Connecting Trunks" -
a general classification of channels 
2 
carrying toll traffic and ordinarily extending between a local central office and a 
3 
toll office. 
4 
nn) 
"Traffic" - telecommunications volume, based on number of calls 
5 
and duration of messages. 
6 
RECORDS AND REPORTS 
7 
SECTION 5. Location of Records. - All records required under Section 
8 
7 and 8 hereof shall be kept within the premises of the utility and made available 
9 
to the Commission or its duly authorized representatives at any reasonable time 
10 
upon request. 
II 
SECTION 6. Retention Period for Records. - All records required by 
12 
these rules shall be preserved for a period of five (5) years or any other period as 
13 
may be specified by the Commission, except where otherwise permitted by the 
14 
Commission to dispose of certain specific records. 
15 
SECTION 7. Reports. - Each telecommunications utility shall maintain 
16 
records of its operations in sufficient details to permit review of its service 
17 
performance, and such records shall be made available to the Commission upon 
18 
request. Each incident which adversely affects telecommunications service to a 
19 
substantial number of subscribers (the smaller of 25% or 1,000 of the subscribers 
20 
in the local exchange) shall be promptly reported by the utility to the Commission 
21 
and to the local news media. 
22 
SECTION 8. Data to be filed with the Commission. - Each utility shall 
23 
file with the Commission the following data: 
24 
a. Tariffs 
25 
b. Exchange maps 
26 
c. Accident reports 
27 
d. Service report expansion plans. 
28 
METERING, INSPECTION AND TEST EQUIPMENT 
6 


1 
SECTION 9. Provision for Testing. - The utility shall ensure timely 
2 
availability and have access to test facilities which will enable it to determine the 
3 
operating and transmission capabilities of channels and switching equipment, 
4 
both for routine maintenance and for fault location. 
5 
SECTION. 10. Meter Reading Interval. - Billing meters shall be read at 
6 
intervals closely corresponding with the customer's billing periods. 
7 
SECTION 11. Meter and Recording Equipment Testing Facilities. -
8 
Where local measured service is provided, the utility shall provide the necessary 
9 
facilities, instruments, and equipment for testing its metering or recording 
10 
equipment. The overall accuracy of the test equipment and test procedures shall 
11 
be sufficient to enable tests of meters and recording equipment within the 
12 
requirements of this Act. 
13 
SECTION 12. Meter and Recording Equipment Requirements. - All 
14 
meters and/or recording devices used to record data and prepare customer's bills 
15 
shall be in good mechanical and electrical condition, shall be accurately read and 
16 
shall not involve approximations. 
All meters and recording devices shall 
17 
accurately perform the following: 
18 
a) Message rate service, where timing the length of the message is not 
19 
involved, the meter and/or recording device shall register the number of 
20 
completed messages sent by the local access line which it is measuring; 
21 
b) For local measured and/or toll service where in addition to recording 
22 
the message it is necessary to time and distance-rate the messages, the 
23 
recording device shall register the number of messages and the chargeable time 
24 
involved in each message, applicable distance information, and the local access 
25 
line originating the message; and 
26 
c) Where the recording equipment provides coded information that is 
27 
used to automatically prepare customer bills, accurate interpretation of such 
28 
coded information is required and should be guaranteed. 
Deliberate mis-
29 
recording of meter readings to defraud customers shall merit expUlsion from 
7 


utility employment for life, without prejudice to possible suits and claims that 
2 
aggrieved parties may also file against the telecommunications utility. 
3 
SECTION 
13. 
Initial Tests. 
-
Every billing meter and/or recording 
4 
device shall be tested for accuracy when it is released for service. 
5 
SECTION 14. As-found Tests. - All meters and/or recording devices 
6 
tested in accordance with this Act for routine maintenance or pursuant to 
7 
complaints shall be tested in their normal operating locations and wiring modes 
8 
prior to removal or adjustment. 
9 
SECTION 15. Routine Tests. 
- The telecommunications utility shall 
10 
perform periodic testing and maintenance of its controlling channel equipment 
11 
associated with the meters and/or recording devices to assure the integrity of 
12 
their operation. 
Periodic testing and maintenance shall also be performed on 
13 
meters and recording devices to show accuracy in their operation. 
14 
SECTION 16. Request Tests. - Upon request of any customer, the 
15 
telecommunication utility shall make a test of any meter and/or recording device 
16 
related to the billing in question. Such request should not be honored more often 
17 
than once every three (3) months unless unusual circumstances exist. 
18 
SECTION 
17. 
Referee Tests. 
- Any customer, by request to the 
19 
Commission, may have a test of any meter or recording device related to the 
20 
billing in question, conducted by the telecommunications utility in the presence of 
21 
a representative of the Commission. 
22 
SECTION 18. Test Records. - A record of all meter and/or recording 
23 
equipment tests and adjustments and data sufficient to allow checking of the 
24 
results shall be recorded. Such record shall include the identifying number of the 
25 
meter and/or recording device, its type, the date and kind of test and the result of 
26 
each test. 
27 
CUSTOMER RELATIONS 
28 
SECTION 19. Rate and Special Charges Information. - Upon the 
29 
request of any customer or applicant, the telecommunications utility shall provide 
8 


an explanation of the rates, charges, and provisions applicable to the service 
2 
furnished or available to such customer or applicant, and shall provide any 
3 
information and assistance necessary to enable them to obtain the most 
4 
economical telecommunications service conforming to their stated needs. 
5 
Applicants for residential telephbne service shall be advised as to alternate 
6 
service available to meet their stated communications requirements. 
This 
7 
information may include printed explanations of the alternate services and rates. 
8 
Correspondingly, the utility shall notify residential customers of any service 
9 
connection charge to be applied to their bills prior to undertaking any action and 
10 
shall provide an estimate of the initial billing for basic monthly service (including 
11 
fractional monthly amounts) plus any other applicable charges. 
12 
SECTION. 20. Estimate of Special Charges. - The customer shall be 
13 
provided with an estimate of the charges where special charges not specifically 
14 
set forth in a telecommunications utility's tariff are levied on the basis of actual 
15 
cost for such items as extraordinary construction, maintenance, or replacement 
16 
costs or expenses, overtime work at the customer's request and special 
17 
installations, equipment and assemblies. 
18 
SECTION 21. Business Offices. - Business offices shall be staffed to 
19 
provide customers and others with convenient access to qualified personnel, 
20 
including supervisory personnel where warranted, to provide information relating 
21 
to services and rates, accept and process applications for service, explain 
22 
charges on customer's bills, adjust charges made in error and to generally act as 
23 
representatives of the telecommunications utility. Qualified personnel shall be 
24 
instructed to be courteous, considerate, efficient and be available to promptly 
25 
serve whose who contact the business office. 
26 
SECTION 22. Customer Billing. - Bills to customers shall be typed or 
27 
machine printed, rendered regularly, and shall contain a listing of all charges and 
28 
the period of time covered by the billing. 
The local service charges may be 
29 
shown as a single item even though they include service options for which a 
9 


1 
monthly flat charge is made. Toll charges, if applicable, shall be itemized and 
2 
included with the local service bills. 
3 
In 
the 
event 
of 
a 
dispute 
between 
the 
customer 
and 
the 
4 
telecommunications utility respecting any bill, the utility may require the customer 
5 
to pay the uncontested portion of the bill to avoid discontinuance of service for 
6 
nonpayment. The telecommunications utility shall make such investigation as 
7 
may be appropriate to the particular case, and report the result thereof to the 
8 
customer. In the event the dispute is not reconciled, the utility shall advise the 
9 
customer that the customer may make an application to the Commission for 
10 
review and disposition of the matter. 
11 
In the event the customer's service is interrupted otherwise than by the 
12 
negligence or willful act of the customer and it remains out of order for more than 
13 
twenty-four (24) hours after being reported or found to be out of order, 
14 
appropriate adjustments shall be automatically made to the customer. For the 
15 
purpose of administering this requirement, every month is considered to have 
16 
thirty (30) days. 
17 
SECTION 23. Public Information. - Access to the following information 
18 
shall be made available at every business office open to the public upon request: 
19 
a) Copies of the latest schedule of approved tariffs by the Commission for 
20 
the utility. 
21 
b) Maps showing exchange, base rate area and zone (if applicable) 
22 
boundaries in sufficient size and detail from which all customer locations can be 
23 
determined and mileage and/or zone charges quoted. 
24 
c) Publicly announced information as to the present and intended future 
25 
availability of specific classes of service at an applicant's location. 
26 
d) Publicly announced information concerning plan for major service 
27 
changes in the areas served by the business office. 
28 
e) Information pertaining to services and rates as proposed in pending 
29 
tariff or rate change filings. 
10 


1 
SECTION 24. Customer Deposits for Telecommunications Services. 
2 
-
The deposit rules described herein shall apply to service to residential 
3 
customers. 
Deposits on service to business telecommunications customer 
4 
should be in accordance with tariffs on file. Deposit rules shall be subject to prior 
5 
approval by the Commission. 
6 
a) Under this Act, it is recognized that it is in the public interest for the 
7 
National Telecommunications Commission to issue and administer fairly and 
8 
without discrimination, deposit or credit policies and regulations, in accord with 
9 
the provisions of this Act, which will permit an applicant for telecommunications 
10 
subscriber 
service, hereinafter referred to as "applicant," to commence a 
11 
commercial relationship with the relevant telecommunications utility or allow a 
12 
previous subscriber to reestablish such relationship. 
The Act further declares 
13 
that an essential ingredient in each utility's administration of deposit policy in 
14 
accordance with the provisions of the Act is the equitable and indiscriminate 
15 
application of pertinent rules and laws to all applicants for service and customer 
16 
throughout its service area without regard to the economic character of the 
17 
applicant's neighborhood, and such deposit policy shall not be predicted upon 
18 
the collective credit reputation of the neighborhood in which the customer or 
19 
applicant lives or in which his business is conducted. 
Only if an applicant or 
20 
subscriber has established a consistent and notorious history of bad credit may 
21 
the telephone utility apply to treat the subject differently with respect to deposit or 
22 
connection requirements. 
23 
b) Each telecommunications utility shall direct its personnel normally 
24 
engaged in contact with applicants for service or customers seeking to establish 
25 
or reestablish credit under the provisions of this Act, to inform customers 
26 
expressing non-acceptance of the decision of such personnel, of their right to 
27 
have the problem considered and acted upon by supervisory personnel of the 
28 
company. Each telecommunications utility shall further direct such supervisory 
29 
personnel to inform applicants or customers expressing non-acceptance of the 
11 


1 
supervisor's decision, of their right to have the problem reviewed by the 
2 
Commission, and shall furnish them with the address and telephone number of 
3 
the appropriate section of the Commission. 
4 
SECTION 25. Past Due Bill. - A telecommunications utility shall not 
5 
consider a customers' bill past due unless it remains unpaid for a period of 
6 
twenty-five (25) calendar days after the billing date printed on the bill. 
7 
SECTION 26. Amount of Deposit. - The amount of the deposit which 
8 
may be required of a customer or applicant shall not exceed two and one-half 
9 
times the estimated monthly bill. The determination of the customer's estimated 
10 
bill, as distinguished from an applicant's, shall be based upon the use of the 
II 
class of service involved. In those cases where an applicant has no previous 
12 
service record, the utility may require a deposit based upon the monthly bill for 
13 
residential customers in that area. 
14 
The amount of the deposit may be adjusted on the basis set forth in 
15 
Section 24 above, at the request of the customer or by the telecommunications 
16 
utility at any time when the character or degree of the customer's use of the 
17 
service has materially changed or when it is indicated that the character or 
18 
degree of such use will materially change. 
19 
SECTION 27. Refund of Deposits. - Deposits, net of liabilities to the 
20 
utility, are to be refunded immediately under the following conditions: 
21 
a) Upon discontinuance of service, the utility shall promptly refund 
22 
deposits, plus accrued simple interest at the rate of twelve percent (12%) per 
23 
annum or the balance, if in excess of the unpaid bills for the service furnished by 
24 
the utility. A transfer of service from one location to another in the same service 
25 
area served by the utility shall not be deemed a discontinuance of service if the 
26 
character of the service remains unchanged. 
27 
When a deposit, with interest on the deposit, is applied to the liquidation of 
28 
unpaid bills, the utility shall mail, or otherwise deliver, to the customer, a 
29 
statement showing the amount of the original deposit, plus any accrued interest, 
12 


1 
the amount of the unpaid bills liquidated by the deposit, plus interest and the 
2 
balance remaining due either to the customer or the utility; and 
3 
b) Unless the utility has sufficient factual information to determine that a 
4 
customer is an unsatisfactory credit risk, the utility shall promptly refund half of 
5 
the customer's outstanding deposit, plus interest, when the customer has paid 
6 
bills for service for twelve (12) consecutive billing periods without having had 
7 
service discontinued for nonpayment of bills, and the customer has paid ten or 
8 
more of the bills by the date on 'which the bills became past due over the 12-
9 
month period. 
The amount to be refunded may also be credited to the 
10 
immediately succeeding subscription bills. 
11 
The utility shall annually review accounts of customers with deposits and 
12 
shall refund deposits in accordance with Section 32(b). 
13 
SECTION 28. Deposit Records. 
- The utility shall keep a record of 
14 
each cash deposit until the deposit is returned. The record shall show the name 
15 
and current billing address of the depositor, the amount and date of the deposit, 
16 
and each transaction concerning the deposit. At the time that a cash deposit is 
17 
received, the utility shall provide the applicant for service or customer with a 
18 
receipt showing the receipt date, the name and billing address of the applicant or 
19 
customer to be served or being served, and the amount of the deposit. 
20 
SECTION 29. Interest on Deposits. - Simple interest at the annual rate 
21 
of twelve percent (12%) shall accrue on all outstanding deposit and shall be paid 
22 
at the time the deposit is returned or applied to the customer's final bill for 
23 
service. 
24 
SECTION 30. Public Notice of Commission Deposit Rules. - The 
25 
telecommunications utility shall post a notice in all its business offices open to the 
26 
public advising the public of the availability of Commission deposit rules and shall 
27 
make said rules available at each of those business offices to customers upon 
28 
request. 
13 


1 
SECTION 
31. 
Denial or Discontinuance of Service. 
-
Unless 
2 
otherwise stated, the customer shall be notified and allowed a reasonable time in 
3 
which to comply with the rules before service is discontinued. However, service 
4 
may be refused or discontinued for any of the following reasons: 
5 
a} Without notice, in the event of customer use of telecommunications 
6 
equipment 
in 
such 
a 
manner 
as 
to 
adversely 
affect 
the 
7 
telecommunications utility's equipment, the utility's service to others, or 
8 
the safety of the utility's employees or customers; 
9 
b} Without notice, in the event of unauthorized tampering with any 
10 
facilities or equipment furnished and owned by the utility; 
11 
c} For violation of, or noncompliance with, the Commission's regulations 
12 
governing use of services supplied by telecommunication utilities, or 
13 
for violation of or noncompliance with the utility's rules or tariffs on file 
14 
with the Commission; 
15 
d) For failure to comply with municipal ordinance or other laws pertaining 
16 
to use of telecommunications service; 
17 
e) For failure of the customer to permit the utility reasonable access to its 
18 
facilities or equipment; 
19 
f) For nonpayment of any amount past due for service and not in bona 
20 
fide dispute; and 
21 
g) For failure to satisfy deposit or credit requirements for initial or 
22 
additional service. 
23 
SECTION 
32. 
Insufficient Reasons for Denying or Discontinuing 
24 
Service. 
- The following shall not constitute sufficient cause for denying or 
25 
discontinuing service to a present or prospective customer: 
26 
a) Delinquency in payment by previous occupant at the premises to be 
27 
served other than a member of the same household; 
28 
b) Failure to pay for business service at a different location and a different 
29 
telephone number; 
14 


1 
c) Failure to pay for any amount in bona fide dispute before the 
2 
Commission. 
3 
SECTION 33. 
Complaints and Appeals. - The telecommunications 
4 
utility shall fully and promptly investigate and respond to all complaints made by 
5 
its applicants or customers either directly to it or through the Commission. When 
6 
requested by the Commission or a Commission representative, the utility shall 
7 
report the results of its complaint-related investigation. 
8 
The telecommunications utility shall direct its personnel engaged in initial 
9 
contact with an applicant or customer in which dissatisfaction with the decision or 
10 
explanation of such personnel is expressed, to inform the customer of their right 
11 
to have the problem considered and acted upon by supervisory personnel of the 
12 
telephone utility. The utility shall further direct such supervisory personnel to 
13 
provide the name, address, and telephone number of the appropriate office of the 
14 
Commission to be contacted for further review of an unresolved problem. 
15 
DIRECTORIES 
16 
SECTION 34. Publication of Directories. - Telephone directories shall 
17 
be published at regular intervals, listing the names, addresses and telephone 
18 
numbers of all customers, except public telephones and telephone service 
19 
unlisted at the customer's request. 
20 
The telecommunications utility shall list its customers (except those 
21 
requesting otherwise) with the directory assistance operator within 72 hours of 
22 
service connection. 
23 
Upon issuance, a copy of each directory shall be distributed free of charge 
24 
to all customers in the local service area served by that directory and a copy of 
25 
each directory shall be furnished to the Commission. 
26 
SECTION 
35. 
Features of the Directory. 
-
The name of the 
27 
telecommunications utility, an indication of the area included in the directory and 
28 
the month and year of issue shall appear on the front cover. 
Information 
15 


1 
pertaining to the emergency calls such as for police and fire departments shall 
2 
appear conspicuously in the front part of the directory. 
3 
The directory shall contain instructions concerning placing local and long 
4 
distance calls, calls to repair and directory assistance services, and locations and 
5 
telephone numbers of telecommunications utility business offices as may be 
6 
appropriate to the area served by the directory. 
Likewise, the directory shall 
7 
contain in a prominent manner in the instructional section, notice of the 
8 
Commission's address and telephone number and the customer's right to bring 
9 
complaints 
and 
inquiries 
regarding 
telecommunications 
service 
to 
the 
10 
Commission. 
11 
SECTION 36. Changes in Listing. - Whenever a telephone number is 
12 
changed after a directory is published, the utility shall intercept all calls to the 
13 
former number for a reasonable period of time, and give the calling party the new 
14 
number, provided existing central office equipment will permit, unless the 
15 
customer directs otherwise. When additions or changes in plant or changes to 
16 
any other telecommunications utility operations necessitate changing telephone 
17 
numbers to a group of customers, reasonable notice shall be given to all 
18 
customers so affected even though the addition or changes may be coincident 
19 
with a directory issue. 
20 
QUALITY OF SERVICE 
21 
SECTION 37. General. - Each telecommunications utility shall provide 
22 
telecommunications service to the public in its service area in accordance with its 
23 
tariffs on file with the Commission. The telecommunications utility shall employ 
24 
prudent management and engineering practices, including but not limited to, the 
25 
employment of reliable procedures for forecasting future demand for service, 
26 
conducting studies, and maintaining records to the end that reasonable margins 
27 
of facilities and adequate personnel are available with the objective that service 
28 
will meet the quality standards described herein. 
16 


SECTION 38. Traffic Studies. - Each telecommunications utility shall 
2 
make traffic studies and maintain records as required to determine that sufficient 
3 
equipment and adequate operating force are provided at all times including the 
4 
average busy hour, busy season. 
5 
SECTION 
39. 
Public Telephones. 
-
In each exchange area the 
6 
telecommunications utility shall provide at least one coin operated telephone 
7 
available 10 lhe public al all hours, prominently localed and lighled at night. All 
8 
public telephones shall be properly maintained and equipped with dialing 
9 
instructions, a directory, local call price information and appropriate emergency 
10 
telephone numbers. 
11 
SECTION 40. Service Objectives and Surveillance Levels. - Under 
12 
this Act, telecommunications utilities are required to meet the following service 
13 
objectives. It also requires the Commission to set certain surveillance levels that 
14 
need to be met by the telecommunications utility, such that these will direct the 
15 
utility to investigate, take appropriate corrective action, and provide a report of 
16 
such activities to the Commission. 
17 
Each 
telecommunications 
utility 
shall 
make 
regular, 
periodic 
18 
measurements to determine the level of service for each item included in this 
19 
law. 
Each utility shall provide the Commission or its representatives with the 
20 
measurements and summaries thereof for any of lhe items included herein on 
21 
the request of the Commission or its representatives. 
22 
a) Installalion of Service 
23 
1) Primary Service - All applications shall be served not later than 
24 
sixty (60) calendar days after date of application. 
In accordance 
25 
with the utility's approved construction schedule but not later than 
26 
two (2) years after the approval of this Act, ninety percent (90%) of 
27 
the utility's primary service order installations shall be completed 
28 
within the first thirty (30) calendar days after date of application. 
17 


2 
3 
4 
5 
6 
7 
8 
9 
10 
The intervals commence with the receipt of application unless a 
later date is requested by the applicant. 
2) Non-primary service. - After application against deposit, all non-
primary service orders shall be filled within six (6) months, with 
ninety percent (90%) these service orders filled not later than sixty 
(60) calendar days, after date of application except where the 
customer formally requests a later date. 
In the event that the utility is unable to fill such an order, the 
customer will be advised and furnished the date when it will be 
available. 
11 
b) Operator-Handled Calls. 
-
All operator-handled calls shall be 
12 
supervised. 
Calls requiring timing shall be carefully and accurately 
13 
timed. Each telecommunications utility shall have adequately trained 
14 
personnel in sufficient numbers to provide an average "operator-
15 
answering" performance on a monthly basis, as follows: 
16 
1) Ninety percent (90%) of toll and assistance operator calls answered 
17 
within ten (10) seconds of completed attempt. 
18 
2) Ninety percent (90%) of repair service calls, calls to business office 
19 
and other calls shall be answered within twenty (20) seconds of 
20 
completed attempt. 
21 
An "answer" shall mean that the operator or telecommunications 
22 
utility representative is ready to render assistance and/or ready to accept 
23 
information necessary to process the call, mere acknowledgement that 
24 
puts the customer on hold or has been waiting on the line shall not 
25 
constitute an "answer", until the message of the call is actually and 
26 
properly received, processed or serviced. 
27 
c) Local Dial Service. - Sufficient central office and interoffice channel 
28 
capacity and equipment shall be provided to meet the following 
29 
requirements during the average busy season, busy hour: 
18 


1 
2 
3 
4 
5 
6 
7 
1) Dial tone within three (30) seconds on ninety-five percent (95%) of 
attempted calls and within five (5) seconds on all attempted calls. 
2) Proper connection of ninety-five percent (95%) of correctly dialed 
interoffice calls. 
3) Proper completion of ninety-five percent (95%) of correctly dialed 
interoffice local calls. 
4) Direct Distance Dial 
(DOD) 
Service. 
-
Engineering and 
8 
maintenance of the trunk and related switching components in the 
9 
intertoll network shall be such as to at least achieve the following 
10 
objectives on properly-dialed calls, during the average busy 
11 
season, without encountering blockages or equipment irregularities. 
12 
i) successful connection of ninety-seven percent (97%) of 
13 
outgoing DOD calls made by customers (outgoing trunks.) 
14 
ii) successful connection of ninety-seven percent (97%) of 
15 
incoming DOD calls received by customers (incoming trunks). 
16 
d) Customer Trouble Report. - Service shall be maintained in such a 
17 
manner that the monthly frequency of all customer trouble reports, 
18 
excluding reports concerning non-regulated customer premises 
19 
equipment, does not exceed then per 100 local access lines per month 
20 
per exchange. For the purpose of administering this requirement, each 
21 
party line shall be considered to have one local access line. 
22 
e) Transmission Requirements. 
- All channel facilities shall meet the 
23 
generally accepted international design standards and shall conform to 
24 
the transmission design factors required for meeting service objectives 
25 
to be set by the Commission and the objectives of direct distance 
26 
dialing. 
27 
SECTION 41. Penalties and Fines. - The Commission shall impose the 
28 
following penalties and fines, after due hearing, on each utility company which 
29 
fails to comply with service standards as required in this Act: 
19 


1 
a) For every application 
in which the utility company fails to provide 
2 
service as called for in Section 42(a), a penalty of Five thousand pesos 
3 
(P5,000.00) or twice the amount of the subscriber's deposit, whichever 
4 
is higher, shall be imposed and the utility shall render free basic charge 
5 
for every full month of delay in provision of the service applied for; 
6 
b) For every case in which the utility fails to meet the service objectives 
7 
as called for in Section 41 (b), to (f) above, a penalty of One thousand 
8 
pesos (P1 ,000.00) shall be levied. 
9 
The Commission shall establish other penalties and/or fines that it deems 
10 
appropriate and necessary for the effective provision of quality service. 
II 
SECTION 42. Implementing Authority. - The Commission shall issue 
12 
such rules and regulations as may be necessary for the economical, efficient and 
13 
effective implementation of this Act. For the purposes of monitoring compliance 
14 
with the requirements of the Act, the Commission shall require a monthly 
15 
reporting of service performance. 
16 
SECTION 43. 
Separability Clause. 
-
If any provision of this Act is 
17 
declared unconstitutional or invalid, such parts or portions not affected thereby 
18 
shall remain in full force and effect. 
19 
SECTION 44. Repealing Clause. - All laws, decrees, executive orders, 
20 
rules and regulations, or parts hereof inconsistent with the provision of this Act 
21 
are hereby repealed, amended or modified accordingly. 
22 
SECTION 45. Effectivity. - This Act shall take effect fifteen (15) days 
23 
after its publication in the Official Gazette or in at least two (2) newspapers of 
24 
general circulation, whichever comes earlier. 
Approved, 
20