BILLING OF TELECOMMUNICATIONS SERVICES

Pursuant to RA 7925, EO 546 series of 1979 and Act No. 146, Public
Service Act, as amended and in order to promote the welfare of the
consuming public, the following rules and regulations on the billing of
telecommunications services are hereby promulgated.

A.        Billing Statements

1.         Monthly billing statements (MBS) shall be received by
the subscribers/customers not later than thirty (30) days from the end
of each monthly billing cycle.

2.         If the MBS is received beyond the period specified in
Section A.1 but not beyond 180 days from the end of the monthly billing
cycle, the subscriber/customer shall be allowed to pay the monthly bill
within the following period:

a.      Within ten (10) days from receipt of the MBS if the delay is one (1) month or less;

b.      Within twenty (20) days from receipt of the MBS if the delay is more than one month but less than two (2) months;

c.       Within two (2) months from receipt of the MBS if the delay is more than two (2) months but less than four (4) months;

d.      Within four (4) months from receipt of the MBS if the delay is more than four (4) months but less than six (6) months

The public telecommunications entity (PTE) shall not disconnect
the service within said period. PTE includes the duly registered value
added service providers.

3.         If the MBS is received 180 days or beyond from the end
of the monthly billing cycle as determined by the Commission, the
Commission shall impose sanction against the PTE pursuant to law that
may include the consideration of the bill having been paid.

4.         Sections A.1 to A.3 shall refer to all local and
national long distance calls, outgoing international paid calls, and
home country direct calls.

5.         For incoming international collect calls, the
subscribers/customers shall be allowed to pay the bills within the
period equivalent to one half the number of days when the call was
received up to the time the billing statement was received. The PTE
shall not disconnect the service within this period.

6.         For subscribers/customers of PTEs whose bill is
computed every quarter, the subscribers/customers are entitled to
receive the quarterly billing statement (QBS) not later than one (1)
month from the end of the quarterly billing cycle. If the QBS is
received beyond thirty (30) days from the end of the quarterly billing
cycle, the subscriber/customer can pay the bill within the period
specified in Section A.2(a to d). The PTE shall not disconnect the
service within the period specified. For failure of the PTE to deliver
the QBS within 180 days from the end of the quarterly billing cycle as
determined by the Commission, the Commission shall impose sanction
against the PTE pursuant to existing laws which may include the
consideration of the bill having been paid.

7.         In billing subscribers/customers the measurement of the
pulse shall commence after the B-party (called party) sends the answer
back signal, e.g. the B-party lifts the phone from the cradle. This
provision shall apply to all calls including calls between
interconnected networks.

8.         There shall be no charge for calls that are diverted to
voice mailbox, voice prompts, recorded messages and other similar
facility that are within the network of the PTE excluding the customer
premises equipment except customers who sign up for the service.

9.         All charges shall be itemized in the billing statements.

B
Sale and Use Of Prepaid Cards

1.         PTEs shall ensure that the customers of their prepaid
SIM cards are properly identified and their addresses verified through
the presentation of valid identification cards such as drivers licenses,
passports, Professional Regulations Commission certificates of
registration IDs. If the sale of the prepaid SIM cards is done through
agents, PTEs should see to it that their agents submit to them the
verified names and addresses of the prepaid SIM cards customers within
twenty four (24) hours from date and time of purchase.

2.         Ninety (90) days after the effectivity of this
circular, prepaid cards including SIM cards used to access any
authorized telecommunications services of the duly authorized PTE shall
be valid for at least two (2) years from date of first use. Holders of
prepaid SIM cards shall be given forty five (45) days from the date the
prepaid SIM card is fully consumed but not beyond two (2) years and
forty five (45) days from date of first use to replenish the SIM card
otherwise, the SIM card shall be rendered invalid. The validity of an
invalid SIM card, however, shall be installed upon request by the
customer at no additional charge except the presentation of a valid
prepaid card.

3.         PTEs shall submit to the Commission, within thirty (30)
days from the effectivity of this circular, a list of all of their
authorized dealers/outlets nationwide. Thereafter, the PTEs shall submit
updated list not later than fifteen (15) days after each quarter.

4.         The PTEs shall ensure that there is sufficient supply
of the cards in the market and that the price of the prepaid cards are
printed on the face of the cards. The prepaid cards shall be sold at the
price indicated on the face of the cards. The PTEs shall see to it that
the network capacity is sufficient to serve the number of cards in the
market. The security access number shall be printed in such a way that
numbers can be recognized easily.

5.         The PTEs shall see to it that the rates of the services
for which the cards are used are their authorized rates. The list of
these rates shall be provided to each of the prepaid card customers at
the time the prepaid card is purchased.

6.         The PTEs shall be held responsible and liable for any violation committed by their authorized dealers/outlets.

7.         Subscribers/customers shall be updated of the remaining
value of their cards before the start of every call using the cards.
This information shall be free of charge.

8.         PTEs shall not bar the use of the cards, except stolen
or fraudulent cards, until fully consumed or beyond the validity of the
cards for any authorized service of the PTEs for which the cards are
sold including short messaging service.

9.         The PTEs shall not charge any rate for any feature or
value added service without the Commission being informed or without the
value added service being registered with the Commission respectively.

10.       PTEs shall maintain call details of all pre-paid SIM card customers.

C
UNIT OF BILLING OF CELLULAR MOBILE TELEPHONE SERVICE

1.         The unit of billing for the cellular mobile telephone
service whether postpaid or prepaid shall be reduced from one (1) minute
per pulse to six (6) seconds per pulse.

2.         The authorized rates shall be reduced correspondingly, i.e. the rates per minute shall be divided by 10.

3.         The CMTS operators shall be given ninety (90) days from
the effectivity of this circular to comply with Section C hereof.

D
DEREGULATION OF RATES FOR LEASED LINE AND CELLULAR MOBILE TELEPHONE SERVICES

1.         The rates for national and international leased lines
and cellular mobile telephone services (CMTS) are hereby deregulated.
Leased lines shall include leased channel, capacity, circuit, speed, or
bandwidth.

2.         The maximum rates shall be the prevailing approved
rates as of the date of the effectivity of this circular. The CMTS and
leased line operators shall submit to the Commission list of the
prevailing rates not later than ten (10) days from the effectivity of
this circular.

3.         CMTS operators intending to implement additional price
plans other than the prevailing authorized price plans as of the date of
the effectivity of this circular shall seek the approval of the
Commission.

4.         The rates shall be effective after three (3) days from
date of publication in a newspaper of general circulation and a
certified true copy furnished the Commission.

5.         The Commission shall set the minimum rates should there
by indications of predatory pricing or cutthroat competition.

6.         The Commission shall review and set the rates ceiling annually.

E
INTERCONNECTION AGREEMENTS

1.         Existing interconnection agreements shall be modified
or revised to conform with the provisions of this memorandum circular
not late than thirty (30) days from the effectivity of this circular.

2.         All interconnection agreements entered into after the
effectivity of this circular shall comply to the provisions of this
circular.

F
SANCTIONS

PTEs found to have violated the provisions of this memorandum
circular shall be subject to penalties pursuant to existing laws.

G
EFFECTIVITY

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

Adopted: 16 June 2000

(SGD. JOSEPH A. SANTIAGO Commissioner

NESTOR C. DACANAY  Deputy Commissioner

AURELIO M. UMALI Deputy Commissioner