[Update] Here’s an update on the NTC Memorandum Issue. Check it out for clarification about the issue.

A draft of a memorandum by the National Telecommunications Commision (NTC) has caught the attention of Pinoy bloggers as it states that the NTC is currently making plans of charging content providers for releasing “content” on the internet.

The memorandum states that all parties who develop content, information, applications, and electronic games over the internet are required to register and pay Php6000, plus Php300 for filing fee.

NOW, THEREFORE, pursuant to RA7925, Executive Order (EO) No. 546 series of 1979, and in order to encourage and facilitate the development of contents and the provision thereof to the consumers, the National Telecommunications Commission (Commission) hereby promulgates the following guidelines:

A DEFINITIONS

1. The following terms as used in this Circular shall have the following definitions:

a. Content – refers to all types of contents delivered to/accessed by the users/subscribers such as music, ring tones, logos, video clips, etc.

b. Information – refers to all types of information delivered to/accessed by the users/subscribers, e.g. road traffic information, financial information, visa application information, etc.

c. Application – refers to all types of applications delivered to/accessed by the users/subscribers, e.g. mobile banking, electronic payments, point of sale service, etc.

d. Electronic Game – refers to games played online except gambling.

e. Contents Providers – are persons or entities offering and providing contents to the public for compensation through the networks, systems and/or facilities of authorized networks, systems and/or facilities providers.

f. Information Providers – are persons or entities offering and providing information to the public for compensation through the networks, systems and/or facilities of authorized networks, systems and/or facilities providers.

g. Applications Providers – are persons or entities offering and providing applications to the public for compensation through the networks, systems and/or facilities of authorized networks, systems and/or facilities providers.

h. Electronic Games Providers – are persons or entities offering and providing electronic games to the public for compensation through the networks, systems and/or facilities of authorized networks, systems and/or facilities providers.

i. Contents Developers – are persons or entities creating contents.

j. Information Sources – are persons or entities providing information to Information Providers.

k. Applications Developer – are persons or entities creating applications.

l. Electronic Games Developer – are persons or entities creating electronic games.

B REGISTRATION

1. Contents, Information, Applications and/or Electronic Games Providers, Contents Developers, Information Sources, Applications Developers, and Electronic Games Developers are required to have commercial presence in the country and shall secure Certificate of Registration (COR) from the Commission.

2. There shall be no nationality requirement for contents, information, applications and/or electronic games providers, contents, applications and/or electronic games developers and information sources.

3. The application for registration shall be filed and acted upon by the Commission not later than seven (7) working days from date of application.

4. The application shall include the following documents:

a. Valid registration from the Securities and Exchange Commission or from the Department of Trade and Industry and Articles of Incorporation;

b. Facilities lease agreement with duly enfranchised and certificated public telecommunications entity; and

5. The Certificate of Registration shall be valid for a maximum period of five (5) years. Applicants for registration may opt to apply for shorter period not shorter than one (1) year. Certificates of Registration shall be renewable.

D FEES AND CHARGES

1. The following fees and charges shall be imposed:

a. Filing Fee : PhP 300.00

b. Annual Registration Fee: 6,000.00

c. Surcharge for late : 50% of the annual registration fee if application

filing of application is filed within six (6) months from date of expiry

for renewal 100% if filed after six (6) months from date of expiry

Though it still isn’t clear whether bloggers are included under the “content developers” stated on the memorandum, concerned bloggers are now worrying what will happen to them if the said memorandum is finished and approved. This would probably result to non-professional bloggers, who don’t earn money on their blogs, to quit blogging.  It might also prevent the growth of the Philippine blogosphere as making a blog would require one to register and pay a huge amount of money.

As to why the NTC is planning to do this, apparently it’s because they want “…to encourage and facilitate the development of contents and the provision thereof to the consumers”.

Some are speculating that this is just a ploy for the government to earn easy money off the internet industry, more particularly, the rapidly growing blogging industry. With a population of 2.3 million bloggers times Php6,300 each, it’s easy to see why.

There are still a lot of unclear points regarding this issue seeing that the memorandum is still in draft. Before reacting and going berserk about this, I think it’s best to wait for any official statements from the NTC for further clarification.

I’ll keep you guys posted for any updates on the matter.

You can review more of the memorandum which can be found here.

[Thanks to Aileen of An Apple a Day for sharing the news]

Share your thoughts on the issue below!