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Pursuant to RA 7325, EO 109 series of 1993 and EO 546 series of 1979 and considering that:

- The international accounting rates are rapidly declining threatening the subsidy to the local exchange service as mandated in EO 109 and RA 7925;

- The public telecommunications entities which were obligated to install, operate and maintain local exchange network have performed their obligations in varying degrees;

- after more than three (3) years from the performance of the obligations only 52% of the total number of cities and municipalities are provided with local telephone service;

- there are mergers and consolidations among the existing cellular mobile telephone service (CMTS) providers threatening the efficacy of competition;

- there is a need to hasten the installation of local exchange lines in unserved areas;

- there are existing CMTS operators which are experiencing congestion in the network resulting to low grade of service;

- the consumers/customers shall be given the freedom to choose the CMTS operators from which they could get the service;

-the Commission hereby reallocates the following radio frequency bands, namely:

1745	-1750MHz/1840	- 1845MHz
1750	-1755MHz/1845	-1850MHz
1765	-1770MHz/1860	-1865MHz
1770	-1775MHz/1865	-1870MHz

For assignment to existing CMTs operators and to PTEs which shall be authorized to install, operate and maintain CMTS networks.  Only PTEs that have satisfactorily complied with their obligation to install local exchange lines pursuant to EO 109 and RA 7925 and with no existing valid authorizations for CMTS, to ensure the delivery of the needed local exchange lines in the unserved areas, shall be considered in the grant of the authorization to install, operate and maintain CMTS networks.  Existing CMTS operators which could show sufficient proof that they are experiencing congestion in their networks, provided that such congestion is solely attributable to insuffient frequencies shall be eligible for the assignment of additional frequencies.

The transfer of previously authorized persons or entities operating radio stations within the above listed radio frequency bands shall be governed by Rule 603 of MC 3-3-96

This new allocation shall take effect fifteen (15) days after publication in a newspaper of general circulation and three (3) certified copies furnished the IP Law Center.

Adopted: 9 March 2000

(SGD.) JOSEPH A. SANTIAGO Commissioner
(SGD.) NESTOR C. DACANAY  Deputy Commissioner	(SGD.) AURELIO M. UMALI  Deputy Commissioner