Dict Releases Irr On The National Policy For Expanding The Provision Of Internet Services In The Philippines

On 28 September 2021, the Department of Information and Communications Technology (“DICT”) released Department Circular No. 02 (“D.O. No. 2”) series of 2021, which provides the implementing rules and regulations on the national policy for expanding the provision of internet services through inclusive access of satellite services.

To ensure universal access to quality, affordable, reliable, and secure information and communications technology (“ICT”) services, the government shall foster and encourage the propagation, deployment, and use of modem satellite and other emerging technologies in the Philippines with due regard for the relevant laws on consumer protection, competition, data protection, data sovereignty, data ownership, and data localization.

Requirement for satellite systems providers or operators (“SSPOs”)

Under D.O. No. 2, all SSPOs who desire to provide satellite services in the Philippines shall comply with the following requirements:

1. Digital presence – this will include, but not be limited to, having an official website, with sufficient content and information, that is readily accessible online in the Philippines.
2. Local presence – for foreign or international SSPOs, they must have a branch office, representative office, institutional agent, official distributor, or a combination thereof, in the Philippines.
   
   Additionally, no foreign or international SSPO shall be allowed to provide satellite services in the Philippines, unless its country of domicile likewise does not prohibit Philippine satellites to operate within its territories and does not prohibit its citizens or subjects to access Philippine satellite systems.
3. Coverage or satellite footprint – the SSPO must have the capacity, coverage, and satellite footprint in the Philippines for purposes of providing adequate satellite services to the areas covered therein.
4. Accreditation by the DICT – the accreditation shall be evidenced by the SSPO Accreditation Certificate, which shall be valid for five (5) years, subject to renewal upon complete and proper application for renewal filed within the third (3^rd) month preceding the prior certificate’s expiration. The validity period for the succeeding renewal certificates shall not exceed five (5) years at any single instance.

Entities Allowed to Directly Access Satellite Systems for the Provision of Internet Services

The following entities are allowed to directly access all satellite systems duly accredited in the Philippines:

1. All internet service providers and all Value-Added Service Providers (“VAS”) duly registered with the National Telecommunications Commission (“NTC”), for purposes of offering or providing internet services.
2. All enfranchised telecommunications entities/public telecommunications entities (“ETEs/PTEs”) duly authorized by the NTC, for purposes of providing the services in the telecommunications categories for which they are enfranchised, and for offering or providing internet services as VAS.
   
   When providing internet services as VAS, the ETE/PTE shall be subject to the following additional requirements:
   1. Prior approval of the NTC is secured to ensure that their VAS offerings are not cross subsidized from the proceeds of their telecommunications service operations;
   2. Other VAS providers are not discriminated against in rates nor denied equitable access to their facilities; and
   3. Separate books of accounts are maintained for their VAS offerings.
3. Broadcast service providers duly authorized and registered to provide VAS, for purposes of providing the broadcast services for which they are enfranchised, and for offering or providing internet services as VAS.
   
   Prior NTC authorization shall not be required when the broadcast service provider’s utilization of the space segment is limited to the supply or expansion of their station signals within their network or to other broadcast stations.

The foregoing entities shall be allowed to pursue any or all of the following activities for purposes of expanding their provision of internet services in accordance with Executive Order No. 467, as amended by Executive Order No. 127, series of 2021 and D.O. No. 2:

1. To have direct access to all satellite systems, whether fixed or mobile, international, or domestic;
2. To build and operate broadband facilities to offer internet services, inclusive of the ability to directly access, utilize, own, and operate facilities for internet access service, for all segments of the broadband network;
3. To use satellite technologies such as, but not limited to VSATs, BGAN, and other similar technologies, in conjunction with the aforementioned activities; and 
4. To perform any and all acts as may be necessary or incidental to any or all of the foregoing activities.

The full text of DICT D.O. No. 2 can be accessed here.