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2011 Communications 20 Communications Introduction . E fficient communication systems bridge all sectors making the transfer of communication fast and smooth. It makes communication between individuals and among entities easy and the transfer of information and data speedy and secure. Reliable and efficient communication systems, in effect, can help spur and generate expanded markets for industries and for the country’s economic growth and development. Recognizing this, the Philippine government, through the Department of Transportation and Communications (DOTC), has continued to create and implement programs that will support the demands of the public for a more efficient communications system. Today, the Information and Communication Technology (ICT) has advanced quite well marking the government to find needed strategies to promote its sustainable development. Presented in this chapter are data on the telecommunications industry as well as statistics on ICT. Postal services, print media, film industry and advertising services are likewise discussed. 20.1 Telecommunications Development of Telecommunications Telecommunication industry had its beginning in 1867 when the telegraph service was first introduced. The sole telecommunications infrastructure by that time included submarine cables installed by a foreign company, the Royal Telegraph Corporation. These lines connected Manila and Corregidor when the country was then a colony of Spain. Thereafter, submarine cables were extended to other parts of the country. Later in the same year, two other companies forged a 20-year development contract with the Spanish government, linking Manila with Cebu, Bacolod, Capiz, and Iloilo. Shortly after, the country developed overseas connections via submarine cables connecting Bolinao in Pangasinan to Hong Kong. The coming of the Americans in the 1900s improved communication facilities. The American military forces installed overland wires and more submarine cables, which were later turned over to the Philippine government under the auspices of the Bureau of Posts. A telephone system followed after a new firm, the Philippine Islands Telephone and Telegraph Company, registered under the laws of Nevada in Communications the United States. This company, which now assumes the name Philippine Telegraph and Telephone Corporation (PT&T), began with only 400 clients. To service the demand for more telephones, the Philippine legislature approved in November 1928 the franchise of another private telecommunications company, the Philippine Long Distance Telephone Company (PLDT). PLDT acquired the assets and property of its competitor, PT&T, and took over telephone operations in the south. All telecommunications systems in the country consolidated as a result. From then on, PLDT rose to become the country’s biggest telephone company. As the industry progressed, legislation was passed for a recognized body that would oversee the operations and maintenance of government telecommunications services and facilities. The Reorganization Law of 1947 created the Bureau of Telecommunications (BUTEL), now known as the Telecommunications Office (TELOF). Upon creation, the BUTEL established the Government Telephone System and took over 169 telegraph landlines. The invention of communication satellites in the 1960s brought in sweeping transformation for the industry. Two entities, the Philippine Communications Satellite (PHILCOMSAT) and the Domestic Communications Satellite (DOMSAT), were established to handle the application of satellite technology in the country. With the industry becoming more and more complex, the government sought order by creating the National Telecommunications Commission (NTC), and the Ministry of Transportation and Communications, now the Department of Transportation and Communications (DOTC), through Executive Order (EO) 546 in 1979. At present, all privately owned telecommunications carriers handling a major percentage of the country’s communication traffic for both telephone (voice) and data (record) are franchised by the government. They operate facilities, provide services, and charge rates under specific authorities granted by the NTC. The DOTC, through the TELOF, also operates telecommunications facilities and offers services. The TELOF principally provides telephone and telegraph services mainly in areas not served by private carriers. Republic Act (RA) 7925 classified telecommunications entities as local exchange operators, inter-exchange carriers, international carriers, value added service providers, mobile radio service operators, and radio paging service operators. One of the more important laws governing the telecommunications industry is the Municipal Telephone Act of 1989. Enacted into law in February 1990, RA 6849 provides for the installation, operation, and maintenance of public telephones in each municipality in the Philippines. Its enforcement gave rise to several public-calling offices (PCOs) in remote but populated municipalities of Luzon. Subsequently, the National Telecommunications Development Committee (NTDC), created in 1989, facilitated the resolution of immediate developmental, regulatory, and other issues on telecommunications. Members of the NTDC came from both the government and private sectors. In addition, the DOTC, with assistance from various sectors, formulated the National Telecommunications Development Plan (NTDP), nationalizing the telecommunications industry by providing high-level guidance regarding the government’s development targets and the general means of achieving them. Because of these laws and related changes, Philippine telecommunications was set into full swing in 1994. Competition and liberalization were recognized and set NSO 2010 Philippine Yearbook the trend in industry operations. The DOTC continued to reformulate policies that mostly pursued democratization and deregulation or liberalization thrusts. Testament to the accelerating development of the Philippine telecommunications industry was the issuance of the International Satellite Communications Policy (Department Circular 94-277). The policy permitted direct access to international satellite systems, gaining more benefits for the public as a result of tighter competition among service providers and their competing technologies. In 1995, a law known as Public Telecommunications Act of the Philippines (RA 7925) was enacted. This law was the key in demonopolizing the industry by lifting legal and procedural impediments for investment. Moreover, the DOTC had also taken significant steps in planning and activation of the country’s own satellite, Aguila 1. The first satellite ever acquired by the country, Aguila 1 met domestic and international requirements and was acquired to cover the Asia-Pacific Economic Cooperation (APEC) Summit held in the country in November 1996. While this satellite was still in operation until March 1997, a consortium of investors had managed its launching and subsequent operations. The successor satellite, Aguila 2, was launched in Xichang, China, in August 1997. The US$243-million satellite was said to have a life span of 12-15 years and was built by the Space System-Lloral in the United States. Shouldering the hefty cost of maintenance was a consortium of telecommunications and broadcasting companies, known collectively as the Mabuhay Philippine Satellite Corporation. In its roster were broadcasting giants such as the PLDT, Pilipino Telephone Corporation, Republic Broadcasting System, and other industry stalwarts, such as Philippine Satellite Corporation, Cable International Corporation, Indonesia's PT Pasific Satelit Nusantara, and China's Everbright Group. With its own communications satellite in space, the country has become a potential base for multinational corporations in information technology, knowledge- based and broadcast industries. Among other advantages brought by satellite communications were the speedy transfer of data within the Asian region; accessibility of television programs and data to ordinary citizens at any given point within the satellite’s coverage area using a small satellite disc; advanced economic and social growth; and strengthened national security. To further reinforce the wireless communications network in the country, wireless multimedia messaging service was launched in 2001. The number of subscribed landlines or fixed line service suffered a slump in the recent years. The cellular phone service to some extent was put in place of local telephone service. Availing of internet services has also become rampant and has been preferred by most people as it offers cheaper messaging with global coverage. Eventually as many companies started providing internet services, the rates of local internet connections decreased. The year 2006 saw the start of a significant surge in the number of broadband subscribers. This continued through 2007 and 2008. In the early 2009, there were two broadband services for every 100 people in the country. Communications Challenges and Policy Directions of Philippine Telecommunications Leading the government in expanding and deregulating the country’s telecommunications sector is the DOTC and its attached agencies, namely, the Office of the Undersecretary for Communications, Telecommunications Office, NTC, and the Philippine Postal Corporation. These communication groups function to give Filipinos full and affordable course to basic and other telecommunications services through a competent and coordinated telecommunications network in the country. The NTC endeavors
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