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Revisiting The NTC Memorandum Circular

Nearly 3 weeks after I made the post about the NTC Memorandum Circular requiring Filipinos a license before they can post a content, I got a phone call yesterday asking me a question on why am I opposing it so to explain it briefly, I’ve decided to do this follow-up post.

The NTC Memorandum brought huge discussions from various blogs. Many Filipino blog owners want NTC to clarify the issue, there are some who even ask that NTC should input that a blog is not a part of it. Guys, if you’ll just read the memorandum deeper, it might not affect bloggers alone, but the whole internet marketing industry in the Philippines.

A known pinoy blogger, who’s also a friend of mine, Abe of yugatech.com noted that this NTC memorandum obviously refers to the mobile telecoms industry. Abe supported it thru the 2 definitions mentioned in the circular. The first he mentioned was:

Contents Developers – are persons or entities creating contents.

Many bloggers reacted in this definition because it clearly says that a content developer is anyone who creates anything. However, Abe mentioned the NTC’s definition of content which says:

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

Yuga seems to be right as this line seems to refer to mobile content only, but there are still some definitions that gives more confusion,

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.

The definition of information, application and electronic game is not clearly stated which might result to an abuse of the registration requirement:

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.

Content, information, applications and electronic game providers, content developers, information sources  can include bloggers or even ordinary internet users with how they state it in the memorandum. A simple page like my blog post about LET Registration and Examination can be considered as an information source or Marhgil Macuha’s page about Pinoy Hangaroo can be considered as an electronic game provider, it can be played online as per electronic game definition. If the NTC will say that it’s only for accessing the internet via a mobile phone, then I can say that both sites I have mentioned above can be accessed via mobile phone within a few minutes of fixing some codes.

Someone named Romeo Rabajante Jr. was said to email the NTC to get some clarifications. Here’s the said response coming from Mr. Edgardo V. Cabarios director of Common Carriers Authorization Department of NTC:

Sir,

The proposed rules apply to those who offer contents, information, applications and/or electronic games to the public for compensation. If the contents, information, application and/or electronic games are free, then the providers are not covered by the proposed rules.

Edgardo Cabarios

This email made a bit of clarification but still, there’s the word compensation that could lead to another issue. There are Filipino bloggers or individuals that don’t directly charge fees whenever they create a website or blog that provides or is a source of information, application or electronic games but gets compensation thru a 3rd party advertising firm like Google Adsense. Are the guys within this situation included in the licensing? What if they are not earning that much from what they are doing to cover the licensing fees? The internet is a very big market, and not everyone is lucky enough to have a shot on the fortune that it can give. It took me around 6-8 months first before earning my first $100 via Google Adsense several years ago. What’s more to expect today wherein there are several hundreds or thousands abroad that are trying their luck to build an online business everyday. Plus the fact that they don’t have to pay for a license. Instead of helping small Filipino players, this might result into preventing them to be big internet gurus someday.

The filing and annual registration fee for this is said to be set at Php6,300.00 in total, which doesn’t include the  surcharges for late filing which could amount up to another Php6,300.00. The said amount is almost the same cost for a 6-month internet subscription in the country, which is big for many Filipino freelancers in the provinces.

I remember someone from Dagupan  told me thru chat, “Sir, pwede ba libre mo na lang yung license ko kapag natuloy yung memorandum na andun sa blog post mo, mahal eh.” I just replied with a smiley.

If you don’t know yet, I have clients from countries like UK, US, Canada, Denmark and a few more that outsource their seo projects to me. What I do to be able to come up with the necessary services I need to optimize the client’s website is I hire various talents from different provinces in our country, like Dagupan, Bicol, Cebu and Cagayan de Oro. I get cheaper rates hiring them than going for someone who’s in Manila. Usually their job is to create content that will support my client’s website. If the NTC will ask them to pay for a license, they will ask me to pay higher as they now have licenses or I have to find a new person because the previous person I’m hiring can’t afford a license yet.

I have been in this industry for several years now, and I know hundreds to thousands of Filipinos in the same industry as me. There’s a lot more out there for sure. All will be affected by any memorandum that may appear. These guys are contributing not only in our economy, but to the whole of what internet offers, and that is information. Don’t let a simple NTC memorandum kill them.

There will be no final words from me, but I’d like to leave a quoted message from Mike Abundo which came from his comment on his own article titled “Philippines to Require License to Post Content.”

Regulations should never be vague. That leaves them open to abuse.

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8 Responses to "Revisiting The NTC Memorandum Circular"

  1. Mike from Chicago Real Estate says:

    Just the fact that image video and blogs are part of the bigger universal internet. Any governmental organization trying to monetize access to it is doing nothing but harm to both the country and citizens with this unproductive and unenforcable taxation law.

  2. ken from Uk web hosting says:

    The part about video could apply to almost any site. I know they are trying to do this for a reason but you could wind up having problem with almost any blog or site because of some of the terms.

  3. Miles Jacinto says:

    Pls send us list of requiremnts for NTC Permit for wireless cctv

  4. No matter how they say it, its a clear milking machine of the crooks in the government so they can have that lavish, extravagant dinner in the US again.

  5. brian from comment says:

    I remember someone from Dagupan told me thru chat, “Sir, pwede ba libre mo na lang yung license ko kapag natuloy yung memorandum na andun sa blog post mo, mahal eh.” I just replied with a smiley.

  6. techbudoy says:

    Sir i just wanna ask what’s the progress of this memorandum? This is just the first time i’ve read this article, it’s already june 2010. Just hope they already made some changes from the memo because this will greatly affect all filipino bloggers, small time web entrepreneurs alike, and most likely those who are just starting out from almost nothing just like me. my blog isn’t earning yet, and that license fee, you can’t just pull that amount on thin air, especially nowadays the economy has gone bad. pambile nga lang ng galunggong, mahal na, yung ganung amount pa kaya.

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