Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

Seventeenth Congress
Session

Hp.No, 8736

Introduced by Congressman Dakila Carlo E. Cua

AN ACT SYSTEMIZING SPECTRUM USER FEES
IMPOSED AGAINST ALL ALLOCATED AND ASSIGNED
RADIO FREQUENCY BANDS, AMENDING FOR THE
PURPOSE REPUBLIC ACT NO. 7925 OTHERWISE
KNOWN AS THE “PUBLIC TELECOMMUNICATIONS
POLICY ACT OF THE PHILIPPINES”

EXPLANATORY NOTE

This bill seeks to systematize spectrum user fees imposed against all allocated and
assigned radio frequency bands.

Spectrum user fees have long been imposed and collected by the National
Telecommunications Communication [NTC] against all allocated and assigned National Radio
Frequency Bands. However, to date, there is still no definite system on its imposition. Thus, in
the last twenty years, the NTC issued numerous Memoranda classifying, reclassifying,
clarifying, correcting, and amending its rules on spectrum user fees.

Notwithstanding this effort, the NTC still failed to maintain a levelled playing field for
all telecommunication companies. As borne by the records, bigger telecommunication companies
are hoarding most of the available frequency bands without even utilizing them. As a result, new
companies were prevented from entering the industry, or competing with the larger and more
established telecommunication companies.

In order to correct this injustice, this representation sincerely proposes to systemize the
spectrum user fees imposed against all allocated and assigned national radio frequency bands.

D. ‘ARLO ENRIQUEZ CUA


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

Seventeenth Congress
Session

H.B. No. 6736

Introduced by Congressman Dakila Carlo E. Cua

AN ACT SYSTEMIZING SPECTRUM USER FEES
IMPOSED AGAINST ALL ALLOCATED AND ASSIGNED
RADIO FREQUENCY BANDS, AMENDING FOR THE
PURPOSE REPUBLIC ACT NO. 7925 OTHERWISE
KNOWN AS THE “PUBLIC TELECOMMUNICATIONS
POLICY ACT OF THE PHILIPPINES”

Be it enacted by the Senate and the House of Representatives of the Philippines in
Congress Assembled:

Section 1. The provisions of Article IX of Republic Act No. 7925 otherwise known as the
“Public Telecommunications Policy Act of the Philippines” [“RA7925"] are hereby amended to
include the following provisions imposing spectrum user fees against all allocated and assigned
national radio frequency bands:

ARTICLE IX. SPECTRUM USER FEES

Section 24. Spectrum User Fees. — Spectrum user fees
[“SUF”] shall be collected annually against all frequency band
allocated, regardless of the type of service being offered and the
economic classification of the areas covered.

Section 25. Amount of SUF. — The SUF shall be based on
the amount of bandwidth assigned:

a. For the first 1OMHz, the SUF shall be Php6,500,000.00 per
MHz;

b. For each additional 1MHz or fraction thereof in excess of
the first 10MHz but not exceeding 20MHz, the SUF shall
be P8,500,000.00 per MHz;


. For each additional IMHZ or fraction thereof in excess of
the first 20MHz but not exceeding 30MHz, the SUF shall
be Php12,000,000.00 per MHz;

d. For each additional 1MHz or fraction thereof in excess of
the first 30MHz, the SUF shall be Php16,000,000.00 per
MHz.

SUF rates indicated above shall cover both transmit and
receive, i.e., Php6,500,000.00/MHz shall mean one (1) MHz of
both transmit and receive.

An additional SUF of Php2,000,000.00 shall be imposed
for every 100,000 additional subscribers/users in excess of the first
4 million subscribers/users. The number of subscribers/users to be
used in the computation of the SUF for the current year shall be
based on the number of subscribers/users reported at the end of the
immediately preceding year or one/half (1/2) of the maximum
capacity of the access codes assigned as of the immediately
preceding year, whichever is higher.

Section 26. Due Date, Surcharges, and Penalties. — The
SUF shall be paid not later than 31 January of each year. A
surcharge of 25% of the amount of the SUF due plus 1% of the
principal per month of delay shall be imposed for late payments. If
the SUF due is not paid in full, the 25% surcharge shall be imposed
on the balance, in addition to the 1% per month penalty imposed
on the outstanding unpaid SUF.

Section 2. The present Article IX of RA7925 and the following sections thereunder are
amended and renumbered as follows:

“ARTICLE X. FINAL PROVISIONS”

Present Number New Number

Section 24 Section 27
Section 25 Section 28
Section 26 Section 29
Section 27 Section 30

Section 3. Separability Clause. ~ If any of the sections or provisions of this Act is held
invalid, all other provisions not affected thereby shall remain valid.


Section 4. Implementing Rules and Regulations. The NTC shall promulgate the rules and
regulations to effectively implement this Act.

Section 5. Repealing Clause. ~ All laws, decrees, executive orders, rules and regulations
or parts or provisions thereof which are not consistent with this Act are hereby repealed,
amended, or modified accordingly.

Section 6. Effectivity. ~ This Act shall take effect fifteen (15) days after its publication in
the Official Gazette or in a newspaper of general circulation.

Approved,