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SECRETA RV 
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THIRTEENTH CONGRESS OF THE REPUBLIC 
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OF THE PHILIPPINES 
1 
First Regular Session 
1 
S E N A T E  
s. No. 
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Introduced by Senator S. R. Osmefia 111 
EXPLANATORY NOTE 
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; 
for customers’ 
deposits; 
(c) ceiling on the amounts 
(d) user-friendly public telephones; 
(e) grounds for denial or discontinuance of service; 
(9 minimizing 
waiting time 
or “on-hold” 
acknowledgment 
and 
of and refund procedures 
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 
kt 
requested. 
SERGIO OSMENA 111 
Senator 


THIRTEENTH CONGRESS OF THE REPUBLI 
First Regular Session 
OF THE PHILIPPINES 
Introduced by Senator S. R. OsmeAa 111 
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: 
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SECTION 1. 
Short Title. - This Act shall be known as the 
GENERAL PROVlS IO N S 
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“ Te I e c o m m u n i c a t i o ns S e rv i c e S ta n d a r d s Act ” . 
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SECTION 2. Qeclarafion of Policy. -- It shall be the policy of the State to 
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ensure that the public shall have the right to acquire access to basic telephone 
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SECTION 3. 
Scope and Applicafion. - This Act shall apply to all 
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telecommunication utilities operating in the Philippines and which are under the 
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jurisdiction of the National Telecommunications Commission, hereinafter referred 
service of reasonable quality and cost. 
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to as the “Commission”. 
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SECTION 4. Definifions. - For the purposes of this Act, the following 
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definitions shall be used: 
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a) 
“Application” - a request made in writing, for telecommunications 
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service, including requests for changes in existing service. 
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b) 
“Base Rate Area” - a specific area within any exchange service 
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area as set forth in the telecommunication utilities’ tariffs, maps or descriptions, 
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where local exchange service between two terminals within this area is furnished 
at uniform rates without extra mileage charge. 
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) 
“Centra I Off ice” 
- 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. 
9) 
“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-patty. 
‘IC om m is s io n ” - N at i o n a I Te I e co m m u n i cat i o n s C o m m i s s io n . 
i) 
j> 
“Customer” 
- any person, firm, partnership, corporation, 
municipality, cooperative, organization, governmental agency, etc., provided with 
telecommunications services by a regulated telecommunications utility. 
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k) 
“Customer Trouble Report” - any oral or written report or inquiry 
services relating to a physical defect or difficulty or dissatisfaction with the 
operation of the utility’s facilities. For recording purposes, each report shall be 
considered as separate and distinct even though it may duplicate a previous 
report or merely follows up a previous report or inquiry. 
1) 
“Direct Distance Dial Service” - long distance service in which the 
customer dials his or her intended called party outside his local service area 
without the assistance of an operator. 
m) 
“Exchange” - a unit established by a telecommunications utility for 
the administration of telecommunication services in a specified area for which a 
separate local rate schedule is provided. It may consist of one or more central 
offices together with associated plant facilities. 
n> 
“Exchange Service Area” - the geographical territory served by an 
exchange, usually embracing a city, town, or barangay and its environs. 
0 )  
“Flat Rate Service” - local telecommunications service furnished at 
a fixed recurring charge. 
P) 
“Grade of Service” - the classification of a telecommunications 
channel in accordance with the number of customers served on the line, such as 
one-party, two-party, four-party, etc. 
s> 
“Held Service Order” - an application for establishment or re-grade 
of service not filled within thirty (30) days after the customer has filed his 
application, except where the customer requests a later date. 
r) 
“Individual Line Service” - a classification of exchange service 
which provides that only one customer shall be served by the channel connecting 
the customer’s service location with the serving central office. 
s> 
“Intercept Service” - a service arrangement provided by the 
telecommunications 
utility whereby calls placed to a disconnected or 
discontinued telephone number are intercepted and the calling party is informed 
that the called telephone number has been disconnected, or discontinued, or 
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changed to another number, or that calls are being received by another 
telephone number, etc. 
t> 
u) 
v) 
“Inter-office” - between central offices. 
“Intra-office” - within one central office. 
“Local Access Line” - a facility, totally within a exchange] providing 
a telecommunications channel between a customer‘s service location and the 
serving central office or remote switch. 
w) 
“Local Calling Area” - the area within which telecommunications 
service is furnished customers under a specific schedule or exchange rate. A 
local calling area may include one or more exchange service areas or portions of 
exchange areas. 
)o 
“Local Measured Service” - a type of local exchange facility to 
enable a customer to send or receive telecommunications within the local service 
calling area. This local service calling area may include one or more exchange 
service areas. 
Y) 
“Local Service Charge” - the charge for furnishing facilities to 
enable a customer to send or receive telecommunications within the local service 
calling area. This local service calling area may include one or more exchange 
service areas. 
z> 
“Long Distance Telecommunications Service or Toll Service” - 
telecommunications service rendered by telecommunications utilities which is 
furnished between customers in different local service areas at measured rates. 
aa) 
“Measured Rate” - usage sensitive charges for telecommunication 
service which may be based. on the number, duration, distance, and time of 
day/day of week of messages, or any combination thereof. 
bb) 
cc) 
“Message” - a completed customer telephone call. 
“Message Rate Service” - a form of local measured service under 
which all originated local messages are measured and charged for, based solely 
on the number of messages used during the billing period. 
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dd) 
“Out of Service” - when there exists a total lack of either incoming 
or outgoing telecommunications capability. 
ee) 
“Outside Plant” - the telecommunications equipment and facilities 
installed on, along, over or under streets, alleys, highways or on private rights-of- 
way between the central office and customer’s locations or between central 
offices. 
ff) 
“Party Line Service” - a grade of local exchange service which 
provides for a number of customers to be served by the same central office 
channel. 
gg) 
“Primary Service Order” - an application for voice grade 
telecommunications service to be provided at a customer location which does not 
have telecommunications service. 
hh) 
“Private Line’’ - a channel provided to furnish telecommunications 
service between two or more customer locations and not having connection with 
central office’ switching apparatus. 
i i )  
“Public Telephone Service” - an individual line service equipped 
with a coin collecting telephone instrument installed by a telecommunications 
utility for the usage of the general public in locations where the general public 
has access to the telephones. 
j j ) 
service. 
“Regrade” - an application for a different class and/or grade of 
kk) 
“Remote Switch” - a switching unit in a telecommunications system 
which is completely dependent upon a central office for certain operational 
functions and for calling outside of its own serving area. 
II) 
“Tariff” - the entire body or schedule of rates, tolls, rentals, 
charges, classifications and rules approved by the Commission for any 
authorized telecommunications utility. 
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mm) “Toll Connecting Trunks” - a general classification of channels 
carrying toll traffic and ordinarily extending between a local central office and a 
toll office. 
nn) 
“Traffic” - telecommunications volume, based on number of calls 
and duration of messages. 
RECORDS AND REPORT 
SECTION 5. Location of Records. - All records required under Section 
7 and 8 hereof shall be kept within the premises of the utility and made available 
to the Commission or its duly authorized representatives at any reasonable time 
upon request. 
SECTION 6. Refenfion Period for Records. - All records required by 
these rules shall be preserved for a period of five (5) years or any other period as 
may be specified by the Commission, except where otherwise permitted by the 
Commission to dispose of certain specific records. 
SECTION 7. Reports. - Each telecommunications utility shall maintain 
records of its operations in sufficient details to permit review of its service 
performance, and such records shall be made available to the Commission upon 
request. Each incident which adversely affects telecommunications service to a 
substantial number of subscribers (the smaller of 25% or 1,000 of the subscribers 
in the local exchange) shall be promptly reported by the utility to the Commission 
and to the local news media. 
SECTION 8. Data to be filed with the Commission. - Each utility shall 
file with the Commission the following data: 
a. Tariffs 
b. Exchange maps 
c. Accident reports 
d. Service report expansion plans. 
METERING, INSPECTION AND TEST EQUIPMENT 
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SECTION 9. Provision for Testing. - The utility shall ensure timely 
availability and have access to test facilities which will enable it to determine the 
operating and transmission capabilities of channels and switching equipment, 
both for routine maintenance and for fault location. 
SECTION. I O .  Meter Reading Interval. - Billing meters shall be read at 
intervals closely corresponding with the customer’s billing periods. 
I I. 
Meter and Recording Equipment Testing Facilities. - 
sured service is provided, the utility shall provide the necessary 
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equipment. The 
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be sufficient to 
overall accuracy of the test equipment and test procedures shall 
enable tests of meters and recording equipment within the 


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utility employment for life, without prejudice to possible suits and claims that 
aggrieved parties may also file against the telecommunications utility. 
SECTION 13. Initial Tests. - Every billing meter and/or recording 
device shall be tested for accuracy when it is released for service. 
SECTION 14. As-found Tests. - All meters and/or recording devices 
tested in accordance with this Act for routine maintenance or pursuant to 
complaints shall be tested in their normal operating locations and wiring modes 
prior to removal or adjustment. 
SECTION 15. Routine Tests. - The telecommunications utility shall 
perform periodic testing and maintenance of its controlling channel equipment 
associated with the meters and/or recording devices to assure the integrity of 
their operation. Periodic testing and maintenance shall also be performed on 
meters and recording devices to show accuracy in their operation. 
SECTION 16. Request Tests. - Upon request of any customer, the 
telecommunication utility shall make a test of any meter and/or recording device 
related to the billing in question. Such request should not be honored more often 
than once every three (3) months unless unusual circumstances exist. 
SECTION 17. Referee Tests. - Any customer, by request to the 
Commission, may have a test of any meter or recording device related to the 
billing in question, conducted by the telecommunications utility in the presence of 
a representative of the Commission. 
SECTION 18. Test Records. - A record of all meter and/or recording 
equipment tests and adjustments and data sufficient to allow checking of the 
results shall be recorded. Such record shall include the identifying number of the 
meter and/or recording device, its type, the date and kind of test and the result of 
each test. 
CUSTOMER RELATIONS 
SECTION 19. Rate and Special Charges lnformafion. - Upon the 
request of any customer or applicant, the telecommunications utility shall provide 
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an explanation of the rates, charges, and provisions applicable to the service 
furnished or available to such customer or applicant, and shall provide any 
information and assistance necessary to enable them to obtain the most 
economical telecommunications service conforming to their stated needs. 
Applicants for residential telephone service shall be advised as to alternate 
service available to meet their stated communications requirements. 
This 
information may include printed explanations of the alternate services and rates. 
Correspondingly, the utility shall notify residential customers of any service 
connection charge to be applied to their bills prior to undertaking any action and 
shall provide an estimate of the initial billing for basic rnonthJy service (including 
fractional monthly amounts) plus any other applicable charges. 
SECTION. 20, Esfimafe of Special Charges. - The customer shall be 
provided with an estimate of the charges where special charges not specifically 
set forth in a telecommunications utility’s tariff are levied on the basis of actual 
cost for such items as extraordinary construction, maintenance, or replacement 
costs or expenses, overtime work at the customer’s request and special 
installations, equipment and assemblies. 
SECTION 21. Business Offices. - Business offices shall be staffed to 
provide customers and others with convenient access to qualified personnel, 
including supervisory personnel where warranted, to provide information relating 
to services and rates, accept and process applications for service, explain 
charges on customer’s bills, adjust charges made in error and to generally act as 
representatives of the telecommunications utility. Qualified personnel shall be 
instructed to be courteous, considerate, efficient and be available to promptly 
serve whose who contact the business office. 
SECTION 22. Customer Bi//ing. - Bills to customers shall be typed or 
machine printed, rendered regularly, and shall contain a listing of all charges and 
the period of time covered by the billing. The local service charges may be 
shown as a single item even though they include service options for which a 
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monthly flat charge is made. Toll charges, if applicable, shall be itemized and 
included with the local service bills. 
In the 
event 
of 
a 
dispute 
between 
the 
customer 
and 
the 
telecommunications utility respecting any bill, the utility may require the customer 
to pay the uncontested portion of the bill to avoid discontinuance of service for 
nonpayment. The telecommunications utility shall make such investigation as 
may be appropriate to the particular case, and report the result thereof to the 
customer. In the event the dispute is not reconciled, the utility shall advise the 
customer that the customer may make an application to the Commission for 
review and disposition of the matter. 
In the event the customer’s service is interrupted otherwise than by the 
negligence or willful act of the customer and it remains out of order for more than 
twenty-four (24) hours after being reported or found to be out of order, 
appropriate adjustments shall be automatically made to the customer. For the 
purpose of administering this requirement, every month is considered to have 
thirty (30) days. 
SECTION 23. Public lnformation. - Access to the following information 
shall be made available at every business office open to the public upon request: 
a) Copies of the latest schedule of approved tariffs by the Commission for 
the utility. 
b) Maps showing exchange, base rate area and zone (if applicable) 
boundaries in sufficient size and detail from which all customer locations can be 
determined and mileage and/or zone charges quoted. 
c) Publicly announced information as to the present and intended future 
availability of specific classes of service at an applicant’s location. 
d) Publicly announced information concerning plan for major service 
changes in the areas served by the business office. 
e) lnformation pertaining to services and rates as proposed in pending 
tariff or rate change filings. 
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SECTION 24. Customer Deposits for Telecommunications Services. 
- The deposit rules described herein shall apply to service to residential 
customers. 
Deposits on service to business telecommunications customer 
should be in accordance with tariffs on file. Deposit rules shall be subject to prior 
approval by the Commission. 
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a) Under this Act, it is recognized that it is in the public interest for the 
National Telecommunications Commission to issue and administer fairly and 
without discrimination, deposit or credit policies and regulations, in accord with 
the provisions of this Act, which will permit an applicant for telecommunications 
subscriber 
service, hereinafter referred to as “applicant,” to commence a 
commercial relationship with the relevant telecommunications utility or allow a 
previous subscriber to reestablish such relationship. The Act further declares 
that an essential ingredient in each utility’s administration of deposit policy in 
accordance with the provisions of the Act is the equitable and indiscriminate 
application of pertinent rules and laws to all applicants for service and customer 
throughout its service area without regard to the economic character of the 
applicant’s neighborhood, and such deposit policy shall not be predicted upon 
the collective credit reputation of the neighborhood in which the customer or 
applicant lives or in which his business is conducted. Only if an applicant or 
subscriber has established a consistent and notorious history of bad credit may 
the telephone utility apply to treat the subject differently with respect to deposit or 
connection requirements. 
b) Each telecommunications utility shall direct its personnel normally 
engaged in contact with applicants for service or customers seeking to establish 
or reestablish credit under the provisions of this Act, to inform customers 
expressing non-acceptance of the decision of such personnel, of their right to 
have the problem considered and acted upon by supervisory personnel of the 
company. Each telecommunications utility shall further direct such supervisory 
personnel to inform applicants or customers expressing non-acceptance of the 


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supervisor’s decision, of their right to have the problem reviewed by the 
Commission, and shall furnish them with the address and telephone number of 
the appropriate section of the Commission. 
SECTION 25. Past Due Bill. - A telecommunications utility shall not 
consider a customers’ bill past due unless it remains unpaid for a period of 
twenty-five (25) calendar days after the billing date printed on the bill. 
SECTION 26. Amount of Deposit. - The amount of the deposit which 
may be required of a customer or applicant shall not exceed two and one-half 
times the estimated monthly bill. The determination of the customer’s estimated 
bill, as distinguished from an applicant’s, shall be based upon the use of the 
class of service involved. In those cases where an applicant has no previous 
service record, the utility may require a deposit based upon the monthly bill for 
residential customers in that area. 
The amount of the deposit may be adjusted on the basis set forth in 
Section 24 above, at the request of the customer or by the telecommunications 
utility at any time when the character or degree of the customer’s use of the 
service bas materially changed or when it is indicated that the character or 
degree of such use will materially change. 
SECTION 27. Refund of Deposifs. - Deposits, net of liabilities to the 
utility, are to be refunded immediately under the following conditions: 
a) Upon discontinuance of service, the utility shall promptly refund 
deposits, plus accrued simple interest at the rate of twelve percent (12%) per 
annum or the balance, if in excess of the unpaid bills for the service furnished by 
the utility. A transfer of service from one location to another in the same service 
area served by the utility shall not be deemed a discontinuance of service if the 
character of the service remains unchanged. 
When a deposit, with interest on the deposit, is applied to the liquidation of 
unpaid bills, the utility shall mail, or otherwise deliver, to the customer, a 
statement showing the amount of the original deposit, plus any accrued interest, 
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the amount of the unpaid bills liquidated by the deposit, plus interest and the 
balance remaining due either to the customer or the utility; and 
b) Unless the utility has sufficient factual information to determine that a 
customer is an unsatisfactory credit risk, the utility shall promptly refund half of 
the customer’s outstanding deposit, plus interest, when the customer has paid 
bills for service for twelve (12) consecutive billing periods without having had 
service discontinued for nonpayment of bills, and the customer has paid ten or 
more of the bills by the date on which the bills became past due over the 12- 
month period. 
The amount to be refunded may also be credited to the 
immediately succeeding subscription bills. 
The utility shall annually review accounts of customers with deposits and 
shall refund deposits in accordance with Section 32(b). 
SECTION 28. Deposit Records. - The utility shall keep a record of 
each cash deposit until the deposit is returned. The record shall show the name 
and current billing address of the depositor, the amount and date of the deposit, 
and each transaction concerning the deposit, At the time that a cash deposit is 
received, the utility shall provide the applicant for service or customer with a 
receipt showing the receipt date, the name and billing address of the applicant or 
customer to be served or being served, and the amount of the deposit. 
SECTION 29. Merest on Deposits. - Simple interest at the annual rate 
of twelve percent (12%) shall accrue on all outstanding deposit and shalJ be paid 
at the time ‘the deposit is returned or applied to the customer’s final bill for 
service. 
SECTION 30. Public Notice of Commission Deposif Rules. - The 
telecommunications utility shall post a notice in all its business offices open to the 
public advising the public of the availability of Commission deposit rules and shall 
make said rules available at each of those business offices to customers upon 
request. 
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SECTION 
31. 
Denial or Discontinuance of Service. 
- Unless 
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otherwise stated, the customer shall be notified and allowed a reasonable time in 
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which to comply with the rules before service is discontinued. However, service 
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may be refused or discontinued for any of the following reasons: 
a) Without notice, in the event of customer use of telecommunications 
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equipment 
in such 
a 
manner as to 
adversely 
affect 
the 
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telecommunications utility’s equipment, the utility’s service to others, or 
the safety of the utility’s employees or customers; 
b) Without notice, in the event of unauthorized tampering with any 
facilities or equipment furnished and owned by the utility; 
c) For violation of, or noncompliance with, the Commission’s regulations 
governing use of services supplied by telecommunication utilities, or 
for violation of or noncompliance with the utility’s rules or tariffs on file 
with the Commission; 
d) For failure to comply with municipal ordinance or other laws pertaining 
to use of telecommunications service; 
e) For failure of the customer to permit the utility reasonable access to its 
facilities or equipment; 
9 For nonpayment of any amount past due for service and not in bona 
fide dispute; and 
g) For failure to satisfy deposit or credit requirements for initial or 
additional service. 
SECTION 32. lnsufficient Reasons for Denying or Discontinuing 
Service. - The following shall not constitute sufficient cause for denying or 
discontinuing service to a present or prospective customer: 
a) Delinquency in payment by previous occupant at the premises to be 
served other than a member of the same household; 
6) Failure to pay for business service at a different location and a different 
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telephone number; 
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c) Failure to pay for any amount in bona fide dispute before the 
Commission. 
SECTION 33. Complaints and Appeals. - The telecommunications 
utility shall fully and promptly investigate and respond to all complaints made by 
its applicants or customers either directly to it or through the Commission. When 
requested by the Commission or a Commission representative, the utility shall 
report the results of its complaint-related investigation. 
The telecommunications utility shall direct its personnel engaged in initial 
contact with an applicant or customer in which dissatisfaction with the decision or 
explanation of such personnel is expressed, to inform the customer of their right 
to have the problem considered and acted upon by supervisory personnel of the 
telephone utility. The utility shall further direct such supervisory personnel to 
provide the name, address, and telephone number of the appropriate office of the 
Commission to be contacted for further review of an unresolved problem. 
DI RECTOR1 ES 
SECTION 34. Publicatjon of Directories. - Telephone directories shall 
be published at regular intervals, listing the names, addresses and telephone 
numbers of all customers, except public telephones and telephone service 
unlisted at the customer’s request. 
The telecommunications utility shall list its customers (except those 
requesting otherwise) with the directory assistance operator within 72 hours of 
service connection. 
Upon issuance, a copy of each directory shall be distributed free of charge 
to all customers in the local service area served by that directory and a copy of 
each directory shall be furnished to the Commission. 
SECTION 
35. 
Features of the Directory. - The name of the 
telecommunications utility, an indication of the area included in the directory and 
the month and year of issue shall appear on the front cover. 
Information 
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pertaining to the emergency calls such as for police and fire departments shall 
appear conspicuously in the front part of the directory. 
The directory shall contain instructions concerning placing local and long 
distance calls, calls to repair and directory assistance services, and locations and 
telephone numbers of telecommunications utility business offices as may be 
appropriate to the area served by the directory. Likewise, the directory shall 
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contain in a prominent manner in the instructional section, notice of the 
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Commission’s address and telephone number and the customer’s right to bring 
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comptaints and 
inquiries regarding telecommunications 
service to the 
Commission. 
SECTION 36. Changes in Lisfing. -Whenever a telephone number is 
changed after a directory is published, the utility shall intercept all calls to the 
former number for a reasonable period of time, and give the calling party the new 
number, provided existing central office equipment will permit, unless the 
customer directs otherwise. When additions or changes in plant or changes to 
any other telecommunications utility operations necessitate changing telephone 
numbers to a group of customers, reasonable notice shall be given to all 
customers so affected even though the addition or changes may be coincident 
with a directory issue. 
QUALITY OF SERVICE 
SECTION 37. General. - Each telecommunications utility shall provide 
telecommunications service to the public in its service area in accordance with its 
tariffs on file with the Commission. The telecommunications utility shall employ 
prudent management and engineering practices, including but not limited to, the 
employment of reliable procedures for forecasting future demand for service, 
conducting studies, and maintaining records to the end that reasonable margins 
of facilities and adequate personnel are available with the objective that service 
will meet the quality standards described herein. 
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SECTION 38. Traffic Studies. - Each telecommunications utility shall 
make traffic studies and maintain records as required to determine that sufficient 
equipment and adequate operating force are provided at all times including the 
average busy hour, busy season. 
SECTION 
39. 
Public Telephones. - In each exchange area the 
telecommunications utility shall provide at least one coin operated telephone 
available to the public at all hours, prominently located and lighted at night. All 
public telephones shall be properly maintained and equipped with dialing 
instructions, a directory, local call price information and appropriate emergency 
telephone numbers. 
SECTION 40. Service Objeciives and Surveillance Levels. - Under 
this Act, telecommunications utilities are required to meet the following service 
objectives. It also requires the Commission to set certain surveillance levels that 
need to be met by the telecommunications utility, such that these will direct the 
utility to investigate, take appropriate corrective action, and provide a report of 
such activities to the Commission. 
Each 
telecommunications 
utility 
shall 
make 
regular, 
periodic 
measurements to determine the level of service for each item included in this 
law. Each utility shall provide the Commission or its representatives with the 
measurements and summaries thereof for any of the items included herein on 
the request of the Commission or its representatives. 
a) Installation of Service 
1) Primary Service - All applications shall be served not later than 
sixty (60) calendar days after date of application. In accordance 
with the utility’s approved construction schedule but not later than 
two (2) years after the approval of this Act, ninety percent (90%) of 
the utility’s primary service order installations shall be completed 
within the first thirty (30) calendar days after date of application. 
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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. 
b) Operator-Handled Calls. 
- All operator-handled calls shall be 
supervised. Calls requiring timing shall be carefully and accurately 
timed. Each telecommunications utility shall have adequately trained 
personnel in sufficient numbers to provide an average “operator- 
answering” performance on a monthly basis, as follows: 
I )  Ninety percent (90%) of toll and assistance operator calls answered 
within ten (I 
0) seconds of completed attempt. 
2) Ninety percent (90Y0) 
of repair service calls, calls to business office 
and other calls shall be answered within twenty (20) seconds of 
completed attempt. 
An “answer” shall mean that the operator or telecommunications 
utility representative is ready to render assistance and/or ready to accept 
information necessary to process the call, mere acknowledgement that 
puts the customer on hold or has been waiting on the line shall not 
constitute an “answer”, until the message of the call is actually and 
properly received, processed or serviced. 
c) Local Dial Service. - Sufficient central office and interoffice channel 
capacity and equipment shall be provided to meet the following 
requirements during the average busy season, busy hour: 
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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 
interoff ice calls. 
3) Proper completion of ninety-five percent (95%) of correctly dialed 
interoffice local calls. 
4) Direct Distance Dial (DDD) Service. 
- Engineering and 
maintenance of the trunk and related switching components in the 
intertoll network shall be such as to at least achieve the following 
objectives on properly-dialed calls, during the average busy 
season, without encountering blockages or equipment irregularities. 
i) successful connection of ninety-seven percent (97%) of 
outgoing DDD calls made by customers (outgoing trunks.) 
ii) successful connection of ninety-seven percent (97%) of 
incoming DDD calls received by customers (incoming trunks). 
d) Customer Trouble Report. - Service shall be maintained in such a 
manner that the monthly frequency of all customer trouble reports, 
excl ud ing rep0 rts concerning non-reg u la ted customer premises 
equipment, does not exceed then per 100 local access lines per month 
per exchange. For the purpose of administering this requirement, each 
party line shall be considered to have one local access line. 
e) Transmission Requirements. - All channel facilities shall meet the 
generally accepted international design standards and shall conform to 
the transmission design factors required for meeting service objectives 
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dialing. 
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to be set by the Commission and the objectives of direct distance 
SECTION 41. Penalties and Fines. - The Commission shall impose the 
following penalties and fines, after due hearing, on each utility company which 
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fails to comply with service standards as required in this Act: 
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a) For every application in which the utility company fails to provide 
service as called for in Section 42(a), a penalty of Five thousand pesos 
(P5,OOO.OO) or twice the amount of the subscriber’s deposit, whichever 
is higher, shall be imposed and the utility shall render free basic charge 
for every full month of delay in provision of the service applied for; 
b) For every case in which the utility fails to meet the service objectives 
as called for in Section 41(b), to (9 above, a penalty of One thousand 
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pesos (PI ,000.00) shall be levied. 
The Commission shall establish other penalties and/or fines that it deems 
appropriate and necessary for the effective provision of quality service. 
SECTION 42. implementing Authority. - The Commission shall issue 
such rules and regulations as may be necessary for the economical, efficient and 
effective implementation of this Act. For the purposes of monitoring compliance 
with the requirements of the Act, the Commission shall require a monthly 
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reporting of service performance. 
SECTION 43. Separability Clause. - If any provision of this Act is 
declared unconstitutional or invalid, such parts or portions not affected thereby 
shall remain in full force and effect. 
SECTION 44. Repealing Clause. - All laws, decrees, executive orders, 
rules and regulations, or parts hereof inconsistent with the provision of this Act 
are hereby repealed, amended or modified accordingly. 
SECTION 45. €fYecfivity. - This Act shall take effect fifteen (15) days 
after its publication in the Official Gazette or in at least two (2) newspapers of 
general circulation, whichever comes earlier. 
Approved, 
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