(NAR) VOL. 29 NO. 3/ JULY - SEPTEMBER 18
1.1 “Capital and Operational Expenditure” means the cumulative sum of Capital and Operational Expenditures in the Philippines of the Participant directly related to the installation, operation and maintenance of fixed (wired and wireless) networks, mobile networks, and offer all types of national and international telecommunications services including broadband, calculated in accordance with applicable standards associated with the provision of Nationwide Population Coverage and Minimum Average Broadband Speed by the Participant.1.2 “Certificate of Public Convenience and Necessity” (CPCN) refers to the authority granted by the NTC to a qualified applicant to own, install, operate and maintain fixed (wired and wireless) networks, mobile networks, and offer all types of national and international telecommunications services including broadband. This is equivalent to a telecommunications license in foreign jurisdictions.
In accordance with Philippine Financial Reporting Standards (PFRS) and Philippine Accounting Standards (PAS), as applicable, Capital and Operational Expenditures are further defined as follows:
a. Capital Expenditures shall refer to the initial cost of property and equipment which includes its purchase price and any cost attributable to bringing the property and equipment to its intended location and working condition. The term also includes:1. Expenditures which result in an increase in the future economic benefits expected to be obtained from the use of an item of property and equipment beyond its originally assessed standards of performance;b. Operational Expenditures refers to expenditures directly related to the installation, operation and maintenance of fixed (wired and wireless) networks, mobile networks associated with the provisioning of Nationwide Population Coverage and Minimum Average Broadband Speed by the Participant. Interest expense directly related to capital expenditures, as defined above and which are not capitalized, may be accounted for as operational expenditures. Operational Expenditures for purposes of this MC shall exclude depreciation and amortization on Capital Expenditures.
2. Interest and other financing charges on borrowed funds specifically used to finance the acquisition of property and equipment to the extent incurred during the period of installation and construction;
3. Assets under construction and transferred to the related property and equipment account when the construction or installation and the related activities necessary to prepare the property and equipment for their intended use are complete, and the property and equipment are ready for service; and
4. Net present value of asset retirement obligations specifically on property and equipment installed/constructed on leased properties which arise from contracts to restore leased property to its original condition and dismantling and de-installation at the end of the contract period of the related property and equipment accounts.
For purposes of the Selection Process, Participants who have existing operations in the Philippines may include as part of their Capital Expenditures the net book value, as of its latest Annual Audited Financial Statements, of properties and equipment directly related to the installation, operation and maintenance of fixed (wired and wireless) networks, mobile networks associated with the provisioning of Nationwide Population Coverage and Minimum Average Broadband Speed by the Participant.
a. A domestic corporation with a Congressional Franchise; or1.11 “Participant’s Outstanding Liabilities” refers to a Participant’s uncontested obligations to the NTC as of 01 October 2018, i.e., Supervision and Regulation Fees (SRF), Spectrum User Fees (SUF), including penalties, surcharges and interests.
b. A Congressional Franchise holder covered by a binding Bidding Agreement entered into by committed investors seeking to become part of the NMP. The Bidding Agreement shall contain the following minimum required provisions:
1. The Congressional Franchise holder shall increase its authorized capital stock to the levels required to comply with the terms, conditions, and obligations imposed on the NMP, in the event that it is selected as the NMP;
2. The details of the number, amount and schedule of payments of parties to the Bidding Agreement in the event that the Congressional Franchise holder is selected as the NMP; and
3. The parties to the Bidding Agreement acknowledgement and recognize that the Congressional Franchise holder shall be the sole entity to be declared as the NMP and the recipient of the CPCN and related permits and licenses and bear the obligations arising thereto.
a. Company’s parent entity;SEC 2. QUALIFICATIONS OF THE PARTICIPANTS FOR THE SELECTION OF THE NMP
b. Company’s subsidiaries;
c. Company’s affiliates; or
d. Any part (including their subsidiaries, affiliates, and special purpose entities) that:1. The company exerts direct or indirect control over;e. The company’s directors, officers, shareholders and related interests (DOSRI), and their family members within the fourth degree of consanguinity or affinity, as well as corresponding persons in affiliated companies. This shall also include such other person or juridical entity whose interest may pose a potential conflict with the interest of the company.
2. Exerts direct or indirect control over the company; or
3. Together with the company, or the latter’s subsidiaries or affiliates, is under common control by another person.
Finally, this also includes entities which have common economic interests and are not otherwise able to decide or act independently of each other.
a. In case of a Participant under Sec. 1.10(a), has a paid capital of at least P10B as indicated in its latest audited financial statements; or2.3 Technical Capability
b. In case of a Participant under Sec. 1.10(b), the aggregate paid capital of its members should at least be ?10 B as indicated in their respective latest audited financial statements.
The primary radio frequencies covered by this MC, which NTC shall assign to the NMP, are the following:3.2 Contingent Radio Frequencies:
FREQUENC Y BAND
FREQUENC Y RANGE
70 0 MHz
738 .0 – 748.0 MHz
793 .0 – 803.0 MHz
210 0 MHz
1955 .0 – 1970.0 MHz
2154 .0 – 2160.0 MHz
200 0 MHz
2010 .0 – 2025.0 MHz
2 .5 GHz
2535 .0 – 2555.0 MHz
3 .3 GHz
3300 .0 – 3400.0 MHz
3 .5 GHz
3480 .0 – 3520.0 MHz
In preparing and submitting the Selection Documents under the terms of this MC, a Participant shall make its commitments and provide for the terms and conditions of its bid based on being assigned the above-listed Covered Radio Frequencies in the event it is selected as the NMP.
In the event that there is a final and executory decision or resolution by the Courts in favor of the government in the consolidated cases of “Bayan Telecommunications, Inc. vs. NTC G.R. No. 191656, Multi-Media Telephony, Inc. vs. NTC G.R. No. 205603 and Next Mobile Inc. vs. NTC G.R. No. 189221,” the NTC shall, within a reasonable period of time, also assign the following radio frequencies to the NMP:3.3 Special Conditions on the Granted Radio Frequencies:
FREQUENC Y BAND
FREQUENC Y RANGE
210 0 MHz
1970 .0 – 1980.0 MHz
2160 .0 – 2170.0 MHz
Nothing in this MC shall be construed as granting to a Participant the right to expect that the terms of its commitments shall anticipate the eventual assignment of the Contingent Radio Frequencies or for the NMP to expect that the terms of its commitments and obligations to be bound by an assignment by NTC of such Contingent Radio Frequencies fee and clean of all claims that have been interposed by various parties in several pending cases involving the Contingent Radio Frequencies.
The assignment of the Radio Frequencies to the NMP shall be made subject to compliance with its commitments during the “Commitment Period” as defined in Sec. 4.1.SEC. 4. NMP SELECTION CRITERIA
Criteria | Weightage |
Na ti onal Popul ati on Coverage | 40 |
M i ni mum Average Broadband Speed | 25 |
Cap it al and Operati onal Expendit ure | 35 |
Total | 100 |
a. The minimum and maximum population coverage for each year shall be:SEC. 5. ORGANIZATIONS FOR THE IMPLEMENTATION OF THE NMP SELECTION PROCESS
Year
Minimum
Maximum
1
10%
50%
2
20%
60%
3
30%
70%
4
40%
80%
5
50
90%
For every whole one percent (1%) of National Population Coverage (NPC) over the minimum NPC up to a maximum NPC for each year, a Participant will receive one (1) point per annum.
Bids lower than the minimum population coverage for each year of the Commitment Period shall be rated as “non-compliant”, shall no longer be processed further, and shall immediately be set aside.
b. For every whole 2 Mbps of Minimum Average Broadband Speed over 5 Mbps up to a maximum Minimum Average Speed of 55 Mbps, a Participant will receive one (1) point per annum.
Bids of less than 5 Mbps minimum average broadband speed shall be rated as “non-compliant”, shall to longer be processed further, and shall immediately be set aside.
c. The minimum and maximum cumulative Capital and Operational Expenditure for each year shall be:
Yea r
M i ni mum
Ma x i mum
1
P4 0 B
P14 0 B
2
P6 5 B
P16 5 B
3
P9 0 B
P19 0 B
4
P11 5 B
P21 5 B
5
P14 0 B
P24 0 B
For every P10 B of cumulative Capital and Operational Expenditure over the minimum Capital and Operational Expenditure for each year, a Participant will receive three and one-half (3.5) points per annum.
Bids lower than the minimum cumulative Capital and Operational Expenditure for each year of the Commitment Period shall be rated as “non-compliant”, shall no longer be processed further, and shall immediately be set aside.
Likewise, any blank, zero “0”, or valid entry shall be rated as “non- compliant”, shall no longer be processed further, and shall immediately be set aside.
d. Nothing shall limit or restrict a Participant from submitting entries beyond the maximum values provided in paragraphs (a), (b) and (c) above, but no additional point shall accrue to the Participant in these cases, except in deciding cases of ties as provided for in Sec. 7.4(c)(6).
e. A Participant’s annual point score shall be multiplied by the corresponding weightages in the table below reflecting the Government’s policy on encouraging rapid network roll-out and the difficulty of deploying the NMP’s networks and facilities in the shortest possible time:
Yea r
We i ght ages
1 st
100%
2 nd
140%
3 rd
130%
4 th
70%
5 th
60%
This Package (one envelope or box) shall contain the Selection Process Qualification Documents enumerated in Section 6.2 below, and shall be properly sealed, and clearly/legibly marked as:6.2 CONTENTS OF THE FIRST SUBMISSION PACKAGE
“SELECTION PROCESS FOR NEW MAJOR PLAYER:
FIRST SUBMISSION PACKAGE OF (NAME OF PARTICIPANT)(ORIGINAL SET)”
The required three (3) copies shall similarly packed, sealed and serially clearly/legibly marked as follows:
“SELECTION PROCESS FOR NEW MAJOR PLAYER:
FIRST SUBMISSION PACKAGE OF (NAME OF PARTICIPANT)(COPY SET NO. 1)”
“SELECTION PROCESS FOR NEW MAJOR PLAYER:
FIRST SUBMISSION PACKAGE OF (NAME OF PARTICIPANT)(COPY SET NO. 2)”
“SELECTION PROCESS FOR NEW MAJOR PLAYER:
FIRST SUBMISSION PACKAGE OF (NAME OF PARTICIPANT)(COPY SET NO. 3)”
The Participant shall also submit scanned or digitized copies of its Selection Process Qualification Documents in searchable and non-editable PDF files stored in two (2) flash drives contained in a duly marked sealed envelope as:
“SELECTION PROCESS FOR NEW MAJOR PLAYER:
FIRST SUBMISSION PACKAGE OF (NAME OF PARTICIPANT)(FLASH DRIVES)
Notwithstanding the submission of such scanned or digitalized copies of Selection Documents, each Participant shall be bound by the terms and entries contained in the hard copies submitted to the Selection Committee.
Without prejudice to such other additional documents as may be specified in the Instructions of Participants, the First Submission Package shall contain the following documents:
a. Company Profile of the Participant under Section 1.10 (A) or all of the members of the Participant under Section 1.10 (b);
b. Original and clear and legible copies of the Bidding Agreement of Participants as defined under Section 1.10 (b);
c. Certification of technical capability from the respective official telecommunications regulatory agency of any of the countries where the Participant’s committed investors are operating as required in Sec. 2.3;
d. For the Participant Congressional Franchise Holder, clear and legible copy of the Congressional Franchise;
e. For the Participant Congressional Franchise Holder, original and clear and legible copies of a Certificate of No Outstanding Liabilities as issued, and copies duly certified as true copies, by the NTC Regulation Branch;
f. Clear and legible copies of the Securities and Exchange Commission (SEC) Certificate of Incorporation or Registration, Articles of Incorporation and By-Laws, and the latest General Information Sheet (GIS), duly certified as true copies by the SEC. For foreign investors who are parties to the Bidding Agreement under Sec. 1.10 (b), they shall submit equivalent documents, duly certified as true copies by the appropriate governmental equivalent of the Philippine SEC.
g. Clear and legible copies of the Annual Audited Financial Statements (AAFS) for the last three (3) years, ex. 2015, 2016, and 2017, duly certified as true copies by the SEC.
1. For foreign investors who are parties to the Bidding Agreement under Sec. 1.10 (b), they shall submit equivalent documents, duly certified as true copies by the appropriate governmental regulator equivalent to the SEC;
2. The AAFS must show that the Participant under Sec. 1.10(a), has a paid capital of at least P10 B; and
3. For Participants as defined under Sec. 1.10(b), the AAFS of the parties to the Bidding Agreement must show an aggregate paid capital of at least be P10 B. The Participants shall provide a summary sheet together with its submission of AAFS and which summary sheet shall be validated during the detailed evaluation phase of the selection process.
h. Omnibus Sworn Statements (OSS), duly executed by Participant under Sec. 1.10(a) and of the parties to the Bidding Agreement participating under Sec. 1.10 (b), which shall contain the following acknowledgements:
1. That the representative signing on behalf of the Participants is duly authorized to do, execute and perform any and all acts necessary to participate, submit the Selection Documents, and to sign and execute the ensuring documents, and accompanied by the notarized Special Power of Attorney, Board Resolution, or Secretary’s Certificate, whichever is applicable;
2. That the Participant has a valid and subsisting Congressional Franchise;
3. That the Participant is not a Related Party to any Dominant Telecommunications Player;
4. That each of the documents submitted are true and correct copies of the original documents of the Participant;
5. That the Participant did not give or pay, directly or indirectly, any commission, amount, fee, or any form of consideration, pecuniary or otherwise, to any person or official, personnel or representative of the government in relation to this selection process;
6. That the Participant, directly or through its committed investors under Section 1.10 (b), has experience in the provisioning, delivery and operations of telecommunications services for the last ten (10) years; and
7. That the Participant has done its due diligence on the laws, rules and regulations, prevailing market environments, regulatory process and timelines of the relevant government agencies relating to the telecommunications industry.
i. Sworn Undertaking, duly executed by Participant under Sec. 1.10 (a) and of the parties to the Bidding Agreement participating under Sec. 1.10 (b), declaring that the Participant shall undertake the following in the event it is selected as the NMP:
1. During the Commitment Period, or any extension thereof, the Participant will not merge or combine with, or become a Related Party to, any dominant telecommunications player. After said period, any merger, acquisition, or business combination, shall be subject to and shall comply with the Philippine Competition Act and other applicable laws;
2. That the Participant or any of its committed investors (i) have accepted the qualification and selection criteria prescribed in this MC, and (ii) waives any right it may have to seek and obtain a writ of injunction or prohibition or restraining order against the NTC to prevent or restrain the qualification and selection process or any proceedings related thereto, and the confirmation of the NMP including issuance of the CPCN. Such waiver shall, however, be without prejudice to the right of a disqualified or losing Participant to question the lawfulness of its disqualification or the rejection of its submission by appropriate administrative or judicial processes not involving the issuance of a writ of injunction or prohibition or restraining order;
3. That the Participant shall mandatorily return to the NTC the assigned Radio Frequencies without condition should it become a Related Party to any Dominant Telecommunications Player within the Commitment Period or any extension thereof;
4. That the Participant shall strictly comply with all its obligations and undertaking in the event it is selected as NMP; and
5. That the Commitments and undertakings contained in its submitted Selection Documents shall be valid and binding for one hundred eighty (180) days from the date of submission or extended if necessary until an NMP is selected.
6. That the Participant commits to renew its Congressional Franchise upon its expiration within the reglementary period.
j. Participation Security
1. Amount and Validity Period of Participation Security
The Participant shall post a Participation Security in favor of the “National Telecommunications Commission” with a face value of P700 M equivalent to one-half percent (0.5%) of the minimum Capital and Operational Expenditure at the end of the Commitment Period. The Participation Security shall be valid for one hundred eighty (180) calendar days from the date for the submission and opening of the Selection Documents. The Selection Committee shall issue a written request if it needs the Participants to extend the validity of their Participation Security.
2. Form of Participation Security
The Participation Security shall be in the form of Cash or cashier’s/manager’s check, draft, or irrevocable letter of credit issued by a universal or commercial bank in the Philippines: Provided, however, that, if issued by a foreign bank, it shall be confirmed or authenticated by a universal or commercial bank in the Philippines. The Participants have the option to select the form of the Participation Security.
3. Effect of Non-Submission of Participation Security
Failure to enclose the required Participation Security in the form and amount prescribed herein shall automatically disqualify the concerned Participant.
4. Recourse on the Participation Security
The Participation Security shall be forfeited by the Participant in favor of the government under any of the following grounds:
a. Submission of Selection Documents by the Participant containing false information or falsified documents;
b. Refusal by the Participant to accept its confirmation as a provisional or selected NMP, or refuses to do any or all acts necessary under the submitted Selection Documents;
c. Unjustified withdrawal from the NMP Selection Process by the Participant during the 180-day binding period; and
d. The Participant attempts to unduly influence the outcome of the selection process.
5. Release of Participation Security
The Participation Security of the Participants will be released immediately upon issuance of the CPCN.
k. Language, Translation, and Consular Authentication: If any of the qualification documents enumerated above are not written in Filipino or English, they must be accompanied by an accurate English translation. The Participant shall be solely responsible for the accuracy of the English translation and for the consequences of wrong translations.
The foreign investors who are parties to the Bidding Agreement under Section 1.10(b) that was declared and confirmed as the NMP shall submit clear and legible copies of the qualification documents enumerated above, duly authenticated by the Philippine Consular office in the country of origin, as among the pre-requisite documents to the issuance of the CPCN.
The Second Submission Package (one envelope or box) shall be submitted simultaneously with the First Submission Package, and shall contain the Participant’s duly accomplished NMP Selection Documents Form A and Form B enumerated in Section 6.4 below, and shall be properly sealed, and clearly/legibly marked as:6.4 CONTENTS OF THE SECOND SUBMISSION PACKAGE:
“SELECTION PROCESS FOR NEW MAJOR PLAYER:
SECOND SUBMISSION PACKAGE OF (NAME OF PARTICIPANT)(ORIGINAL SET)
The required three (3) copies shall be similarly packed, sealed and serially clearly/legibly marked as follows:
“SELECTION PROCESS FOR NEW MAJOR PLAYER:
SECOND SUBMISSION PACKAGE OF (NAME OF PARTICIPANT)(COPY SET NO. 1)”
“SELECTION PROCESS FOR NEW MAJOR PLAYER:
SECOND SUBMISSION PACKAGE OF (NAME OF PARTICIPANT)(COPY SET NO. 2)”
“SELECTION PROCESS FOR NEW MAJOR PLAYER:
SECOND SUBMISSION PACKAGE OF (NAME OF PARTICIPANT)(COPY SET NO. 3)
Notwithstanding the submission of such scanned or digitalized copies of Selection Documents, each Participant shall be bound by the terms and entries contained in the hard copies submitted to the Selection Committee.
a. The “Invitation to Participate in the Selection Process for the New Major Player in the Philippine Telecommunications Market” (Invitation, for short) shall be published once in a newspaper of general nationwide circulation which has been regularly published for at least two (2) years before the date of issue of the Invitation. The Invitation shall also be posted, for a period of at least seven (7) calendar days in the NTC website (www.ntc.gov.ph) and at accessible and conspicuous places in the premises of the NTC Central office.7.2 NMP Selection Process Amendatory, Clarificatory, or Supplementary Bulletins
b. The Invitation shall contain the following information:
1. The Rationale and Objectives for the NMP Selection Process;
2. A general statement on who may participate in the Selection Process;
3. A general statement on the criteria to be used to determine the qualifications of the Participants, the examination and evaluation of Selection Documents, Documents Verification Process, and Confirmation of the award;
4. The place, time and website where the Selection Documents may be secured or downloaded;
5. The cost of the Selection Documents, where at NTC it should be paid, and the proof of payment that should be issued by NTC;
6. The date, time and place for the Pre-Selection Information Session;
7. The date, time and place of the “Deadline for the Submission, Receipt, and Opening of the Selection Documents”;
8. The name, office address, telephone number, facsimile number, e- mail and website of the NTC, as well as its designated contact person;
9. Reservation Clause; and
10. Such other necessary information deemed relevant by the NTC.
c. The publication and Posting of the Invitation shall signal the start of the NMP Selection Process and, as such, the Selection Committee shall ensure that the NMP Selection Documents are ready for sale to, or download by, interested Participants or parties.
d. The Selection Documents Fee is P1,000,000.00, with the Official Receipt issued by the NTC Cashier as the only acceptable proof or evidence of payment. The Selection Documents of Participants who have not paid the Selection Document Fee will not be accepted by the Secretariat and such fact shall be recorded in the abstract/record of selection documents received/rejected and reported to the Selection Committee at the start of the opening of selection documents phase of the selection process. The Selection Documents Fee shall be non-refundable.
1. A Participant shall submit its Selection Documents to the Selection Committee Secretariat on or before the deadline set by the Selection Committee. Selection Documents submitted after said deadline shall be marked “LATE”, recorded in the abstract of submissions, and returned to the Participant unopened.b. Opening of the Submitted Selection Documents
2. A Participant may modify submitted Selection Documents, provided that this is done before the deadline set. Where a Participant modifies any of its Selection Documents, it shall not be allowed to retrieve the original submissions, and may only submit the modified versions of the relevant Selection Documents, marked as “MODIFICATIONS”, complying with Secs. 6.1 to 6.4. Modifications received after the deadline shall not be accepted, shall be recorded in the abstract of submissions, and shall be returned to the Participant unopened.
3. A Participant may withdraw its Selection Documents or express its intention not to participate in the NMP Selection Process before the deadline set for the submission of Selection Documents.
4. The Selection Committee shall forfeit the Participation Security of Participant that withdraws its Selection Documents after the deadline for the submission and receipt of Selection Documents and the start of the Opening of the Submitted Selection Documents.
a. The highest value for each selection criteria in each year among the tied Participants shall serve as the denominator against which all commitments shall be divided for that year. The resulting value shall be multiplied with the weight of the respective criteria and the weight of the applicable year. The Participant with the highest aggregate points for the entire Commitment Period shall be declared the provisional NMP.7. The provisional NMP as announced by the Selection Committee shall then undergo the Document Verification Phase.
b. In the event of another tie, after the application of the preceding paragraph, the Participant with the highest score in the first two (2) years, utilizing the preceding formula, shall be declared the provisional NMP. In case there is still a tie, the Participant with the highest score in the first three (3) years of the Commitment Period shall be the provisional NMP; and successively until only one (1) Participant remains as being the provisional NMP.
In case there is still a tie, the Selection Committee may adopt a measure that shall be non-discretionary and non-discriminatory such that the same is based on sheer luck or chance. The Selection Committee may use “draw lots” or similar methods of chance.
a. The Selection Committee shall verify, validate and ascertain all the submitted Selection Documents of the provisional NMP within a period of three (3) days from the announcement of the provisional NMP.7.6 Final Confirmation of the NMP
b. If after the completion of the verification phase it is confirmed that the provisional NMP’s submitted Selection Documents are valid, the Selection Committee shall then declare the provisional NMP as the NMP.
c. If the provisional NMP fails Document Verification Phase, the Selection Committee shall immediately announce the provisional NMP in writing of its disqualification and the grounds therefore.
Upon the disqualification of the provisional NMP, the Selection Committee shall announce the Participant with the second highest points as the new provisional NMP, who shall then undergo the Document Verification process, and so on as the case may be, until the NMP is determined and declared.
a. The Selection Committee shall submit its Resolution with the Abstract of Documents Verification recommending the declaration of the NMP to the NTC En Banc for its final confirmation.SEC. 8. MOTIONS FOR RECONSIDERATION AND PETITION
b. The NTC En Banc shall review the Selection Committee’s Resolution and finds the same in order, it shall issue the Confirmation Order in favor of the selected NMP.
a. Any Participant may move, in writing, for reconsideration of the Selection Committee’s decisions at any stage of the process within three (3) calendar days of such decision. The Selection Committee shall decide the issue within three (3) calendar days from receipt of the motion.SEC. 9. RESERVATION CLAUSE
b. A denial of the motion for reconsideration may be appealed by filing a verified petition with the NTC En Banc within three (3) calendar days upon receipt of the denial of the motion for reconsideration, accompanied by a non-refundable filing fee paid in cash or Cashier’s check payable to the National Telecommunications Commission in the sum of P10,000,000.00.
c. The verified petition shall be resolved shall be resolved by the NTC En Banc within three (3) calendar days strictly based on records of the Selection Committee.
a. PCC approval of the Bidding Agreement implementation, if applicable;10.2 The NTC shall have fifteen (15) calendar days within which to evaluate the NMP submissions enumerated in Sec. 10.1 in relation to the committed levels of service and Capital and Operational Expenditure commitments throughout the Commitment Period.
b. Compliance by NMP of Paid Capital of at least P10 B and implementation of the relevant provisions of the Bidding Agreement, if applicable to a Participant which has been selected as NMP, accompanied by an SEC clearance that the terms of the Bidding Agreement comply with the relevant rules on the limitation of foreign equity ownership;
c. Congressional approval of sale or transfer of capital stock vesting controlling equity interests in another person or entity as may be provided for in the Congressional Franchise;
d. Business Plan for the entire Commitment Period containing the following items;1. Capital and Operational Expenditures as defined in Sec. 1.1;e. Documents required to be authenticated by the Philippine embassy or consulate under Sec. 6.2(k); and
2. Sources of funding and financing to support the Commitments;
3. Projected cash flow;
4. Planned technology deployment;
5. Marketing plans and programs;
6. Indicative tariff rates;
7. Identification of the key risks and mitigation strategies; and
8. Identification of existing agreements with existing ICT player, if any.
f. Roll-Out Plan for the entire Commitment Period, containing, among others, the following:
1. Indication of the start of commercial operations;
2. Detailed schedules that are consistent with its Commitments within the Commitment Period;
3. Specific areas to be covered, technology and equipment to be used, target subscribers, projected financial results of operations and service rates; and
4. Detailed description that shows that NMP’s networks and facilities will not compromise national security and shall abide with the National Cybersecurity Plan.
a. Failure to comply with its Commitments in any year within the Commitment Period;SEC. 12. REPORTORIAL REQUIREMENTS OF THE NMP
b. Failure to comply with its undertakings as provided in Sec. 6.2 (i) 1, 3, and 4);
c. Refusal or failure to comply with the obligations under Sec. 12; and
d. Failure to meet the Committed Level of Service per audit report submitted by the Independent Auditor.
The NMP shall submit a quarterly report to the NTC on the delivery of its Commitments and its progress in pursuing its Roll-Out Plan. In such report, the NMP shall include its total number of fixed and mobile subscribers, whether pre-paid of post-paid, and other items as may be required by the NTC such as, but not limited to:12.2 Annual Audited Financial Statements
a. Number of subscribers (by region, by type of service);
b. Roll-out of the service and/or spectrum;
c. Actual usage of the spectrum;
d. Geographic information of infrastructure (with maps and coordinates);
e. List of cell towers, base stations, and gateway facilities (including status of operations and co-location agreement);
f. Annual reports;
g. Agreements with third parties which are material to any telecommunication services; and
h. Co-use agreements.
a. Commencement and Period to Conduct Tests
The IA shall conduct tests and measurements starting on the annual anniversary date of the issuance of the CPCN. All tests and measurement samples must be completed within thirty (30) days thereof.
b. On National Population Coverage
1. For fixed networks (fiber to the home [FTTH], twisted pair and coaxial cable), population coverage shall be determined based on the areas where FTTH, twisted pair and coaxial cable are installed.
2. For fixed networks using wireless access and mobile networks, the coverage area shall be determined based on the areas where the signal strength is at least – 105dBm unless otherwise determined by the IA.
3. The total population of a barangay is considered covered if at least 80% of the population have access to be fixed, fixed wireless and mobile networks.
c. On Minimum Average Broadband Speed
1. The minimum average broadband speed shall be measured using the lowest comparable or equivalent offered service plan, the IA shall subscribe to said Plan and perform the tests and measurements using the Broadband Speed Test Agent/Software/Application and test procedures prescribed by the Commission.
2. There shall be an appropriate number of tests and measurement samples as determined by the IA completed within thirty (30) days from the annual anniversary date of the issuance of the CPCN.
3. The tests and measurements shall be conducted anytime from 0000HRS to 2400HRS, any day and anywhere within the areas covered by the commitment.
a. In the event of a disagreement or dispute with respect to the final audit findings by the IA, such disagreement or dispute shall immediately be referred to the Dispute Resolution Board.
b. The Dispute Resolution Board shall promptly resolve such disagreement or dispute not later than ten (10) calendar days from the date of submission, unless mutually extended by the parties.
c. The Dispute Resolution Board shall be composed of:
1. A representative to be chosen by the NTC;
2. A representative to be chosen by the NMP; and
3. A third representative chosen by the first two representatives.
d. The decision of the Dispute Resolution Board on any disagreement or dispute submitted to it for resolution shall be final. No disagreement or dispute may be referred for resolution beyond thirty (30) days from receipt of the final audit by the IA.
(SGD) GAMALIEL ASIS CORDOBA Commissioner | |
(SGD) EDGARDO V. CABARIOS Deputy Commissioner | (SGD) DELILAH F. DELES Deputy Commissioner |
Noted: For the Oversight Committee: | |
(SGD) DICT Acting Secretary ELISEO M. RIO, JR. Chairman, Oversight Committee |