What is the Prior Operator Rule? | 26 February 2024

The Prior Operator Rule means that before permitting a new operator to invade the territory of another operator, the prior operator must first be given the opportunity to extend its service in order to meet public needs.

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Alburo Law
February 26, 2024

What is the Prior Operator Rule?

The Prior Operator Rule means that before permitting a new operator to invade the territory of another operator, the prior operator must first be given the opportunity to extend its service in order to meet public needs.

However, where public interest would be better served by admitting a new operator, as when the prior operator has failed to render adequate, sufficient, and satisfactory service, the “prior operator rule” shall not apply.

(LTFRB Memorandum Circular No. 2014-010 (1)(f))

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