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(NAR) VOL. 12 NO. 1 / JANUARY - MARCH 2001

[ NTC MEMORANDUM CIRCULAR NO. 02-01-2001, January 31, 2001 ]



Pursuant to the powers vested upon this Commission and in line with Memorandum Circular No. 1-04-88, otherwise known as the Rules and Regulations Governing Equipment Provided by Customers/Subscribers of Public Networks, the following revised Customer Premises Equipment (CPE) interface standards and type approval/acceptance procedures are hereby approved for implementation:

SECTION 1. General Provisions

a. Type approval is a process by which a CPE is evaluated for conformance to national CPE interface standards, as recommended by ITU-T and/or ITU-R. A CPE is tested and evaluated by undergoing laboratory tests to determine its operational compatibility with the public telecommunications network and to guarantee that when connected will not cause harm and will assure adequate safety for:
1. the end-users, regarding their lives, health and properties;

2. the public telecommunication networks and employees, from malfunction and damage; and

3. the users of the frequency spectrum, from interference and spurious emissions.
In cases where a CPE has already been certified by a foreign approval authority, the NTC and/or its accredited test laboratory may, at its discretion, accept manufacturer’s self-declaration, foreign test reports and approval certificates in lieu of local type approval tests, provided, they must show compliance or conformity with the CPE interface standards herein prescribed.

b.         Type acceptance is a process by which a CPE may be accepted for use in the country in the absence of established interface standards that correspond to the specifications of such CPE.  The CPE is evaluated on the basis of submitted foreign test reports and type approval certifications.

Generally, equipment meeting the CPE interface standards will be granted a certificate of type approval. Equipment with interface specifications that are not included in the established CPE standards may be granted a certificate of type acceptance, on a case-by-case basis.

c.         A CPE without having been issued a Certificate of Type Approval or Certificate of Type Acceptance  shall not be connected to the public telecommunications network except those CPEs brought in from overseas by individual subscribers as provided in Section IIc of this Circular.

d.         Type approval shall be required in the following cases:

—      new types/classes, models of CPE intended for connection to a public telecommunications network;

—      modification or alteration of a previously type approved CPE or grandfathered CPE circuit and/or associated network interface; and

When there will be a change in trade name and/or model number  of a previously type approved CPE, type approval testing may no longer be necessary but issuance of another type approval certificate shall be required under the new trade or model number.

e. Type approval shall not be required for a terminal equipment intended for connection to leased line circuits.

f. Customer Premises Equipment that may be allowed for connection to a public telecommunications network, subject to type approval and the application of authorized rates and tariff charges, are as follows:
1. Private Branch Exchange (PBXs)

2. Key Telephone Systems  (KTS)

3. Corded Telephone Sets

4. Cordless Telephone Sets.

5. Special purpose terminal equipments designed to operate in conjunction with central office facilities to receive and transmit data from a subscriber’s location or to operate in a manner that serves public interest.  They include but are not limited to:

—      Alarm dialing and signaling equipment for industrial, security, fire, instruction and equipment failure applications.

—      Traffic Recorder or device for measuring the amount of traffic carried by a group or several groups of switches, lines or trunks and may have the capability of periodically printing a record of that traffic.

—      Variation Monitors or devices for sensing deviations in electrical characteristics of a line and capable of providing an alarm or initiating other actions when program of the electrical characteristics are exceeded.

—      Multiplexer or device that allows transmission of a number of different signals simultaneously over a single telecommunications channel. Concentrators are included in this heading.

6.      Automatic dialer or a separate device that dials a call automatically over the public network.  The device may include the capability to include dial attempts after encountering a busy signal.

7.      Automatic Answering Machine or device connected to a telephone line which operates in such a manner that when the user is absent, the device answers calls and gives a recorded message and may or may not provide for recording of a short message from the caller.

8.      Call distributor or a device that distributes incoming calls to different operating positions to spread traffic load and increase efficiency.

9.      Data communications equipment (DCE) provides the functions required to establish, maintain, and terminate a connection, the signal conversion, and coding required for communication between data terminal equipment and the public telecommunications network.  DCE may or may not be an integral part of a computer (e.g. dial-up modem).

10.    Data terminal equipment (DTE) consists of digital end instruments that convert user information into data signals for transmission, or reconvert the received signals into user information.  The DTE may consist of a single piece of equipment that provides all required functions necessary or it may be an interconnected subsystem of multiple pieces of equipment which together perform all the required functions.

11.    Facsimile machine or device employed at the transmit end to convert a hard copy to electrical signals suitable for delivery to the public telecommunications network and at the receive end to convert picture signals to a hard copy.

12.    Teleprinter or device having a signal actuated mechanism for automatically printing received message.  The device may also include a keyboard for manually sending line signals, a paper tape transmitter and paper tape punch/reader or the electronic equivalent of these (Intended for connection to a telex network).

13.    Wireless Paging Receiver using selective radio signal to summon a person, exact whereabouts unknown, to the nearest telephone or to deliver message to the person carrying the paging unit.

14.    Cellular Mobile Telephone Subscriber Terminal is a terminal unit connected to the cellular mobile telephone system which is a wide area mobile radio telephone system composed of clusters of cells capable of providing high-capacity mobile as well as fixed telecommunication services by utilizing frequency re-use techniques.

15.    Global Mobile Personal Communications by Satellite (GMPCS) terminal equipment connected to a satellite system providing telecommunications services directly to end-users anywhere in the globe from a constellation of satellite.

16.    Fixed Wireless Access Subscriber Unit is a fixed terminal equipment located at the end-user or subscriber’s premises wherein it is connected to the public telecommunications network via the fixed wireless access system.  Fixed wireless access is an access application using radio technology rather than copper wire or optical fiber to reach subscriber’s premises in which the locations of the subscriber and the network access point are fixed.

17.    Very Small Aperture Terminal (VSAT) equipment is a technological innovation in the field of satellite communications that allows reliable transmission of information (voice, data and facsimile) via satellite using small satellite antennas.

18.    Credit Card Verification, Debit Payment and other similar Point of Sale (POS) transaction devices that utilize the public telecommunications network.

19.    Caller Line Identification Device (CLID) is a device connected or built-in to the telephone set that shows the identity i.e. the telephone number and/or registered name of the calling party.

20.    Advanced CPEs
g.         Type approval of CPEs for connection to the public telecommunication network shall be universal in nature and applicable to all concerned network operators.

SECTION II. Scope/Limitation

a. The type-approval of CPEs shall be confined to the interface parameters (physical and electrical characteristics) defined in Section III.

b. Type-approval of CPEs, however, does not guarantee full operational compatibility when connected with a particular public telecommunications network in terms of signalling, transmission quality, and activation of various system features.

Public Telecommunications Operators may conduct further evaluation of type-approved CPEs based on their own specific requirements to ensure full operational compatibility of the CPE when connected to their network and may issue, for internal control purposes, an interface approval certificate. CPE terminals must have a demarcation point, and the means of connection at that point must be specified for each telecommunications networks.

Interface approval is a process by which CPEs are evaluated, at the option of a public telecommunications operator, not only to guarantee safety, as required by this Circular, but also to ensure operational compatibility when connected to the network of said public telecommunications operators.

c.         A non-type approved CPE brought from overseas by an individual subscriber for personal use and intended for connection to a public telecommunications network may not be required to undergo type approval process, provided that the same CPE is subjected to interface approval testing by the intended serving network operator.  The subscriber may apply for connection directly to the concerned network operator subject to the safety requirements of this Circular and the operator’s authorized rates, charges and technical requirements.  The importation of CPE by an individual subscriber is subject, however, to the rules and regulations of the Bureau of Customs and permits/clearances from this Commission.

SECTION III.      Interface Parameters for CPEs — Customer premises equipment intended for connection to a public telecommunications network shall, in general, conform to Sections A, B and C as defined in Annex “1” of this Circular.

SECTION IV. Test Procedures for CPEs — Type approval testing for CPEs shall be done in accordance with the test procedures specified in Annex “II”.

SECTION V.      Means of Connection of CPE Terminals to Public Networks — All single connections to the public switched telephone network (PSTN) shall be made through the standard USOC RJ11C jacks and plugs, described under Annex 3. Standard jacks shall be so arranged that, if the plug connected thereto is withdrawn, no interference caused to the operation of any equipment at the customer’s premises which remains connected to the public telecommunications network, shall occur by reason of such withdrawal.

SECTION VI.     Administrative Procedures for Type Approval or Type Acceptance

1. Applicant shall file a type approval request (NTC prescribed application form) with the NTC or its accredited test laboratory and submit the following:
a.      Certified copy of re-export bond if equipment is brought in on “no dollar import” CB clearances

b.      Evidence of payment of import tax and other duties

c.       Equipment manual, brochure, technical specifications and circuit diagram.

d.      Foreign test reports and type approval certifications

e.      Manufacturer’s declaration of conformity with the CPE interface standards.

f.        Appropriate permits/clearances from NTC.
2. Applicant shall pay the necessary type approval/acceptance fees to NTC or its accredited test laboratory. Applicant shall install the demo unit at the agency’s laboratory. Should it be impractical to install a demo unit the agency’s laboratory, as in the case of large-sized equipment (such as PABX), the test may be done at the location of the equipment.  Any test for PABXs and other large-sized equipment shall not be for a longer period to exceed thirty (30) working days, while for other equipment, the test shall have a maximum of fifteen (15) working days.

3. Applicant who intends to apply for type approval of another model in the same series of a previously type-approved equipment need not present the equipment for testing but should submit a complete technical manual of such equipment to determine whether the interface circuits are actually the same as the previously type- approved model of the same series.  The type approval fee for such an equipment shall be one-half of the fee charged for the previously type approved model of the same series.  However, if it is verified at the course of the evaluation of submitted technical manuals that it is still necessary to conduct tests on the equipment, the original type-approval fee shall be charged and type-approval tests shall be conducted accordingly.

4. The NTC or its accredited test laboratory shall then proceed to undertake the actual tests as per attached type approval test procedures mandated under Memo Circular 01-04-88 Section 2.d. Test results and all other submitted documents together with the filing fee shall be forwarded by the testing laboratory to the NTC within five working days upon completion of tests for the issuance of the Type Approval Certificate.  The agency shall also advice the applicant, within 5 working days after completion of tests, to retrieve that demo unit.

5. Equipment that has been type approved/accepted must be marked by a tamper proof label as described below. Suppliers/Distributors are responsible for the production of their own labels subject for clearance from this Commission.

[See Image in (NAR) VOL. 12 NO. 1 / JANUARY - MARCH 2001 page 497]

6.         The Commission shall prepare a cumulative masterlist of all type approved/accepted CPEs including grandfathered equipment on a quarterly basis to include information such as the equipment type approval/acceptance number corresponding to the type approved/accepted equipment, date of approval and other information such as name of the grantee.

SECTION VII.    Provisions of Grandfathered CPEs — 

1. All CPEs and accessories type approved by a network operator prior to the effectivity of this memorandum order shall be considered type-approved unless equipment interface parameters are subsequently modified.  These CPEs shall be considered as “grandfathered” and may be allowed continued connection to the same public network.

2.         Any CPE legally connected to a public telecommunications network prior to this Circular may remain connected to the public telecommunications network without further type approval unless equipment interface parameters are subsequently modified.

3.         A previously type approved CPE, brought into the country by a subscriber, shall need no further type approval and shall be deemed type approved and may be authorized for connection into the public telecommunications network provided that all required import duties and/or taxes due the government shall have been paid by the subscriber at the point of entry.

SECTION VIII.   Repealing Clause — Any circular or memorandum, rules and regulations which are in conflict with this Circular shall be deemed superseded, amended or repealed.

SECTION IX. Amendatory Clause — These type approval procedures and interface standards may be revised, amended or revoked, as may be necessary, taking into account advancements in telecommunications technology or when public safety and interest so requires.

SECTION X. Effectivity Clause — This memorandum circular shall be published once in a newspaper of general circulation in the Philippines, shall take effect fifteen (15) days after its publication, three certified copies furnished to the UP Law Center and shall remain valid unless otherwise amended, revised or revoked.

Adopted: 31 Jan. 2001

Deputy Commissioner

Deputy Commissioner

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