A better draft memorandum order on Minimum Speed of Broadband Connections (v2)

Editor’s note:

The Jester-in-Exile sent us this over email.  It is his version of what the NTC Memorandum order should contain.  And, quite frankly, I do agree with it.  It is brilliant! The original NTC draft memorandum order is here so you can compare. -Cocoy

Author’s update (27 January 2011):

We’re updating and revamping this post based on our collaborative position paper (read it here). We hope that the NTC finds our recommendations of value, and we hope you do too. – the jester-in-exile

(Draft begins here.)

MEMORANDUM ORDER

SUBJECT: MINIMUM SPEED OF BROADBAND CONNECTIONS

WHEREAS, the 1987 Constitution fully recognizes the vital role of communications in nation building and provides for the emergence of communications structures suitable to the needs and aspirations of the nation;

WHEREAS, the promotion of competition in the telecommunications market is a key objective of Republic Act No. 7925 (RA7925, for brevity), otherwise known as The Public Telecommunications Policy Act of the Philippines, which mandates that “a healthy competitive environment shall be fostered, one in which telecommunications carriers are free to make business decisions and interact with one another in providing telecommunications services, with the end in view of encouraging their financial viability while maintaining affordable rates”;

WHEREAS, RA7925 further defines the role of the government to “promote a fair, efficient and responsive market to stimulate growth and development of the telecommunications facilities and services”;

WHEREAS, RA7925 mandates the National Telecommunications Commission (the Commission/NTC, for brevity) to promote and protect the consumers of public telecommunications services;

WHEREAS, customers/ subscribers/ users have the right to be informed of the quality of the broadband/ internet connection service being provided;

NOW, THEREFORE, pursuant to RA7925, Executive Order (EO) No. 546 series of 1979, and in order to maintain and foster fair competition in the telecommunications industry, and promote and protect the rights of broadband service customers/ subscribers/ users, the National Telecommunications Commission hereby promulgates the following definitions and rules:

A. Definitions

A. 1. Wireless broadband: over-the-air (OTA) connectivity with theoretical downstream data rate at least 768 kbps and theoretical upstream data rate of at least 384 kbps.

A. 2. Wireless internet: OTA connectivity with theoretical downstream or upstream data rate less than wireless broadband.

A. 3. Wireline broadband: internet connectivity via terrestrial landline networks with theoretical downstream data rate at least 1 Mbps and theoretical upstream data rate of at least 768 kbps.

A. 4. Wireline internet: internet connectivity via terrestrial landline networks with theoretical downstream or theoretical upstream data rate less than wireless broadband but greater than dial-up internet.

A. 5. Dial-up internet: internet connectivity via terrestrial landline networks with theoretical downstream data rate of 56.6 kbps and theoretical upstream data rate of 48.8 kbps, as provided for by ITU-T Recommendation V.92 “Enhancements to Recommendation V.90″, or less.

A. 6. The Commission shall adopt the official technical definitions of technologies such as but not limited to GSM, HSPA, WiMax, LTE, and so forth, as provided for by the ITU and other international bodies and consortia.

B. Rules

B. 1. Service providers shall be allowed to specify the maximum (“up to”) theoretical broadband/ internet connection data rates and the service rates in their offers to consumers/ subscribers/ users in their advertisements, flyers, brochures and service agreements and service level agreements.

B. 2. Service providers shall specify the minimum actual broadband/ internet connection data rates (“minimum data rates”) and the service rates in their offers to consumers/ subscribers/ users in their advertisements, flyers, brochures and service agreements and service level agreements.

B. 3. Minimum actual downstream and upstream data rates shall not be less than 50% of advertised “up to” data rates.

B. 4. Upon the occurrence of periods where the actual downstream or upstream data rates are below the minimum data rate (“below service level data rate”), said periods (“below service level period”) shall not be subject to billing by the service provider.

B. 5. Service providers shall be allowed to specify the maximum data rate reliability (“best data rate reliability”) and the service rates in their offers to consumers/ subscribers/ users in their advertisements, flyers, brochures and service agreements and service level agreements.

B. 6. Service providers shall specify the minimum data rate reliability (“minimum data rate reliability”) and the service rates in their offers to consumers/ subscribers/ users in their advertisements, flyers, brochures and service agreements and service level agreements.

B. 7. Data rate reliability is measured over a period of one (1) day and calculated as:

Data rate reliability = {[(Average downstream data rate during actual usage during the day)/(“Up to” downstream data rate)] x [(Average upstream data rate during actual usage during the day)/(“Up to” upstream data rate)]} x 100%

B. 8. Data rate reliability shall not be below 80%.

B. 9. Service providers shall be allowed to specify the maximum service reliability (“best service reliability”) and the service rates in their offers to consumers/ subscribers/ users in their advertisements, flyers, brochures and service agreements and service level agreements.

B. 10. Service providers shall specify the minimum service reliability (“minimum service reliability”) and the service rates in their offers to consumers/ subscribers/ users in their advertisements, flyers, brochures and service agreements and service level agreements.

B. 11. Service reliability is measured over a period of one (1) day and calculated as:

Service reliability = {[(Number of seconds of actual subscriber use during the day) – (Number of seconds below service data rate during actual subscriber use during the day)] / (Number of seconds of actual subscriber use during the day)} x 100%

B. 12. Service reliability shall not be below 80%.

B. 9. Service providers shall be allowed to specify the maximum overall reliability (“best overall reliability”) and the service rates in their offers to consumers/ subscribers/ users in their advertisements, flyers, brochures and service agreements and service level agreements.

B. 10. Service providers shall specify the minimum overall reliability (“minimum overall reliability”) and the service rates in their offers to consumers/ subscribers/ users in their advertisements, flyers, brochures and service agreements and service level agreements.

B. 11. Overall reliability is measured over a period of one (1) day and calculated as:

Overall reliability = Data rate reliability in % x Service reliability in %

B. 12. Overall reliability shall not be below 80%.

B. 13. Service providers may set maximum limits on the data volume allowed per subscriber/user per day, provided:

B. 13. a. The limit shall not be less than 80% of the data volume that can be provided per day by the maximum (“up to”) theoretical broadband/ internet connection data rate; e.g, the data volume limit of a 768 kbps downstream connection shall not be less than 80% of 7.9 GB per day, or 6.3 GB per day;

B. 13. b. No limits shall be set for upstream data volumes.

B. 14. The service offers made through advertisements, flyers, and brochures shall contain the service rates for broadband/ internet connection data rates, data rate reliability, and service reliability using any of these methods, e.g.:

B. 14. a. PhP 900.00/ month for “up to” 768 kbps maximum downstream data rate, “up to” 384 kbps maximum downstream data rate, 95% best data rate reliability, and 95% best service reliability; or,

B. 14. b. PhP 900.00/ month for 384 kbps minimum downstream data rate, 192 kbps minimum upstream data rate, 80% best data rate reliability, 80% best service reliability, and 6.4 GB daily download cap.

B. 15. Service agreements and service level agreements shall contain the service rates for broadband/ internet connection data rates, data rate reliability, and service reliability using both methods B. 14. a. and B. 14. b.

B. 16. Service providers may offer broadband/ internet connection services on a “best efforts” basis, provided:

B. 16. a. Minimum actual downstream and upstream data rates shall not be less than 50% of advertised “best effort” data rates;

B. 16. b. “Best effort” data rate reliability shall not be below 50%;

B. 16. c. Service reliability shall not be below 50%;

B. 16. d. Overall reliability shall not be below 50%

B. 16. e. “Best efforts” services must not be the sole product of the service provider.

B. 16. f. Automated means of refund or rebate shall be provided by the service provider, should any of the rules B. 16. a., B. 16. b., B. 16. c., and B. 16. d. not be met by the service provider. The service provider shall provide the refund or rebate immediately to the subscriber upon resumption of “best effort” service, without need for demand on the part of the subscriber.

B. 16. g. Should the service provider be unable to show proof of compliance with B. 16. e., the Commission shall file the appropriate administrative charges.

B. 17. Actual downstream and upstream data rates shall be measured at the subscriber end.

B. 18. Actual downstream and upstream data rates shall be measured during periods of actual subscriber use.

B. 19. Actual download data volume shall be measured at the subscriber end.

B. 20. Actual data rate reliability shall be calculated at the subscriber end.

B. 21. Actual service reliability shall be calculated at the subscriber end.

B. 22. Actual overall reliability shall be calculated at the subscriber end.

B. 23. The NTC, upon recommendation of all stakeholders, will determine the official data rate and volume measurement and monitoring tool to be used to measure network traffic.

B. 24. Service providers shall provide the official data rate and volume measurement and monitoring tool free to all their subscribers.

B. 25. Service providers shall ensure that the official data rate and volume measurement and monitoring tool shall be compatible with the operating systems of their subscribers.

B. 26. The information generated by the official data rate measurement and monitoring tool shall be the primary basis to resolve disputes regarding data rates, service reliability, and data volumes between service providers and subscribers.

B. 27. Service providers shall provide automated means for the subscriber to be made aware that the use of his internet connection is nearing “fair use” thresholds, has reached “fair use” thresholds, and has exceeded “fair use” thresholds. Service providers shall not apply speed throttling or data volume capping without such automated means of informing the subscriber.

B. 28. Service providers shall provide automated means for the subscriber to be made aware that the subscriber is nearing the end of the “fair use” period, has reached the end of the “fair use” period, and that a new “fair use” period has begun. Service providers shall not apply speed throttling or data volume capping without such automated means of informing the subscriber.

B. 29. Automated means of refund or rebate shall be provided by the service provider, should minimum standards not be met by the service provider. The service provider shall provide the refund or rebate immediately to the subscriber upon resumption of the levels of service subscribed, without need for demand on the part of the subscriber.

B. 30. The subscribers/consumers shall be properly informed of the broadband/ internet connection service being offered to them.

B. 31. Service providers may request the Commission for adjustments of data rate reliability, service reliability, and overall reliability minimum thresholds stated above, provided:

B. 31. a. The service provider submits proof that their subscriber base is not greater than 80% of their capacity;

B. 31. b. The service provider submits proof that even if their subscriber base is not greater than 80% of their capacity, their ability to meet minimum reliability thresholds is limited;

B. 31. c. The reduction in reliability thresholds shall not result in reliability thresholds less than 25% below “best efforts” reliability thresholds.

B. 31. d. The service provider shall reduce the service rates equitably, and the reduction in service rates shall not be less than 25% of the current service rates.

B. 31. e. The reduction in reliability thresholds shall be effective for only one (1) year, after which the service provider is required to comply with the minimum reliability thresholds prior to the reduction allowed by the NTC;

B. 31. f. Should the service provider be unable to show proof of compliance with B. 31. a., B. 31. b., B. 31. c., and B. 31. d., the Commission shall reject the application without prejudice to the filing of applicable administrative charges.

B. 31. g. Should the service provider be unable to show proof of compliance with B. 31. e., the Commission shall file the appropriate administrative charges, without prejudice to requiring the service provider to pay penalties and fines deemed equitable by the NTC.

B. 31. h. The Commission shall hold public hearings upon receipt of a request of a service provider for the reduction of minimum reliability thresholds.

B. 31. i. No service provider shall be allowed to make a request for the reduction of minimum reliability thresholds within one (1) year of a disapproved request for the reduction of minimum reliability thresholds or two (2) years of an approved request for the reduction of minimum reliability thresholds, whichever is applicable.

B. 32. The Commission may allow service providers different service rates for prepaid services, provided:

B. 32. a. Data rate reliability, service reliability, and overall reliability shall comply with minimum thresholds as provided for above.

B. 32. b. Prepaid services shall not be subject to speed throttling.

B. 32. c. Prepaid services shall not be subject to data volume capping.

B. 33. Service providers offering committed information rate (CIR) shall comply with NTC MC No. 12-19-2004.

B. 34. Upon failure on the part of a service provider to comply with this Order, the Commission shall file the appropriate administrative case against the said service provider.

B. 35. Any circular, order, memoranda or parts thereof inconsistent herewith are deemed repealed or amended accordingly.

B. 36. This Order shall take effect fifteen (15) days after publication in a newspaper of general circulation and three (3) certified true copies are furnished the UP Law Center.

(Draft ends here.)


Pierre Tito Galla

  • how about the issue of locked-in period, whereas service providers sets minimum of 2 years contract?

    where does it fall?

    • i don’t know if that’s an issue appropriate to NTC’s jurisdiction, as it’s more of the business relationship between the subscriber and the service provider.

      i’m more convinced that is something the DTI can and should handle.

  • Manuelbuencamino

    Cocoy and jester,

    This is definitely a consumer vs. service provider issue so it is political. The problem is the issue is too technical for the common user. Thus, they will not protest until they feel the pain.

    I think a little dumbing down is called for so that idiots like me will know how we are being screwed by the NTC/service provider tandem.

    How does it screw gamers and people who download movies/videos etc? How does it screw everyone who uses the net heavily? Imagine you are talking to a gamer in an internet cafe who signs off when Willing Willie comes on. Or maybe they are too dumb to matter.

    But seriously, if the debate is above our heads, if we talk in policy terms instead of pointing to the practical consequences of the NTC draft memo, we are not going to get anywhere.

    • cocoy

      Point well taken, Manuel. 😀 We will have one article up tomorrow, and I will try to write one that’s for the everyman.

  • Manuelbuencamino

    Cocoy and jester,

    This is definitely a consumer vs. service provider issue so it is political. The problem is the issue is too technical for the common user. Thus, they will not protest until they feel the pain.

    I think a little dumbing down is called for so that idiots like me will know how we are being screwed by the NTC/service provider tandem.

    How does it screw gamers and people who download movies/videos etc? How does it screw everyone who uses the net heavily? Imagine you are talking to a gamer in an internet cafe who signs off when Willing Willie comes on. Or maybe they are too dumb to matter.

    But seriously, if the debate is above our heads, if we talk in policy terms instead of pointing to the practical consequences of the NTC draft memo, we are not going to get anywhere.

    • cocoy

      Point well taken, Manuel. 😀 We will have one article up tomorrow, and I will try to write one that’s for the everyman.

  • B. 3. Minimum actual downstream and upstream data rates shall not be less than 50% of advertised “up to” data rates. #

    80% na dapat yan.

  • B. 3. Minimum actual downstream and upstream data rates shall not be less than 50% of advertised “up to” data rates. #

    80% na dapat yan.