REPUBLIC OF THE PHILIPPINES
HOUSE OF REPRESENTATIVES
QUEZON CITY
NINETEEp`rrli CoNG RESS
First Regular Session
HOusEBiLiino.    5854
Introduced by
REPRESENTATIVE ATTY. GERVILLE "TINKY BITRICS" R. LUISTRO
EXPLANATORY NOTE
There  are  many  factors  affecting  internet  service  in  the  country:  (i)  a  few
number of providers resulting to himited competition, (ii) limited regulatory powers
of  the  National  Telecommunications  Commission  (NTC)  to  iusti]l  performance
standards to internet providers, and (iii)  the absence of regulations on the State's
radio frequency spectrum allocation and management,  among others.  Hence, it is
imperative for the State to adopt sound policies intended to improve the delivery of
internet  services  to  the  people.  In  addition,  it  is  also  necessary  for  the  State  to
strengthen its regulatory powers to nurture fair and open competition in the data
transmission industry.
This bill aims to provide an open access approach in the regulation of data
transmission services sector through a speedy and efficient registration process that
promotes  fair  and  open competition.    It shall  make  interconnection  among  data
transmission participants mandatory to avoid dominance by a single player or by a
group of data providers.
Moreso, this measure seeks to improve the regulatory powers of the National
Telecommunication Commission (NTC) relative to spectrum management and the
performance standards of data transmission providers.  As stated in Section 7 of this
bill,  the  NTC  is  required  to  allocate  spectrum  resources  in  a  more  transparent
manner,  to  ensure  that  resources  are  properly  allocated  to  the  players,  as  also
pi.ovided  for in R.A.  No.  10667,  otherwise  known as  the  "Philippine Competition
Act".    It  also  authorizes  the  NTC  to  set performance  standards  to  data industry
players and impose penalties for any violation thereto.
Lastly,   this   bill   provides   the   prohibition   of   specific   acts   among   data
transmission industry participants that are  detrimental to the delivery of internet


service to the public, particularly: (i) refusal to plug and play, (ii) paid prioritization,
(iii) throttling, and (iv) anti-competitive cross-subsidization.
It is  likewise noteworthy  to  acknowledge  similar measures that were  filed
during the 18th Congress. Those were primarily authored by Representatives Victor
A. Yap, Francis Gerald A. Abaya, Johnny T. Pimentel, and Joy Myra S. Tambunting.
The    said    measures    were    thoroughly    deliberated,    consolidated,    and    have
subsequently passed the 3rd Reading.
In view of the foregoing, the passage of this bin is earnestly sought.
i.-,.'`..,.:-.,--..-`
0


REPUBLIC OF THE PHILIPPINES
HOUSE OF REPRESENTATIVES
QUEZON CITY
NINETEEp`rlli coNGREss
First Regular Session
HOusEB[Liiro.    5854
Introduced by
REPRESENTATIVE ATTY. GERVILLE ``}INKY BITRICS" R. LUISTRO
AN ACT PROMOTING OPEN ACCESS IN DATATRANSMISSION AND
PROVIDING ADDITIONAL Pol^7ERS TO THE NATIONAL
TELECOMMUNICATIONS COMMISSION
Be  it  enacted  by  the  Senate  and  House  Of Representatives  Of the  Philippines  in  Congress
assembled..
CHAPTER I
INTRODUCTORY PROVISION S
SECTION  1.  Short  Title.  This  Act shall be  known  as  the  "Open  Access  in  Data
Transmission Act".
SECTION 2. Declaration of Policy.  It is the policy of the State to narrow the digital
divide  in  the  country  by  encouraging  the  development  of  data  transmission
infrastructure and removing any barrier to competition in data transmission services.
Moreover, the State shall implement measures to require data transmission service
providers  to  adhere  to  telecommunications  standards  suitable  to  the  needs  and
aspirations of the nation and ensure that internet users enjoy the best quality of data
transmission service. The State sham:
(a) Promote the construction and development of reliable, affordable, open and
accessible  data  networks  that  transmit  information  at  speed  and  quality
comparable to the best in the world;
fl]) Create an entrepreneurial ecosystem where persons who wish to engage in
the data transmission industry can compete openly and freely in the spirit of
fair competition and permission-less innovation;
(c) Encourage  investments  in  the  digital  infrastructure  development  in  the


country;
(d) Adopt  and  ensure  open  access  in the  regulation  of the  data  transmission
industry;
(e) Protect  the  public  interest  as  it  is  affected  by  its  ability  to  access  data
networks;
(f)  Establish a strong and independent regulatory body and system to ensure
and enhance fair competition in the data transmission industry;
(g) Protect  and  promote  the  internet  as  an  open  platform  enabling  consumer
choice, freedom of expression, end-user control, competition and the freedom
to innovate without permission, and thereby encouraging the development of
advanced  telecommunications  capabhities  and  the  removal  of  barriers  to
infrastructure investment;
(h) Encourage   infrastructure   sharing   and   co-location   in   order   to   promote
network investment, eliminate the uneconomic duphication of infrastructure
facilities, and strengthen competition; and
(i)  Ensure   efficient   and   transparent   management   of   the   radio   frequency
spectrum,  especially  those  utilized  in  the  delivery  of  data  transmission
services.
SECTION 3. Definition of Terms.  As used in this Act:
(a) B¢s!.c  fezepJ!o#c  serz7..ce  refers  to  the  local  exchange  telephone  service  for
residence  and  business  establishments  provided  via  the  circuit  switched
telephone network;
qu) Cellular  Mobile  Telephone  Service  (CMTS)  refers  to  +ha  wide  aLTeaL  "obhe
radio telephone system with its own switch, base stations and transmission
facilities capable of providing high-capacity mobile  telecommunications by
utilizing radio frequencies;
(c)  Co#fe#f refers to, among others, texts, images, audios, videos, and amimatious
that are carried over the broadband/internet network;
(d) Core  or B¢ckbo„c  Neftt7ork  refers  to  the  main  line  including  international
connection,  that  ties  networks,   delivers  routes  to  exchange  information
among various subnetworks, connects regional distribution networks and, in
some instances, provides connectivity to other peer networks;
(e) D¢ffl fro#s#...sst.o# refers to the process of sending digital or digitized analog
signals over a communication medium to one or more computing networks,
communication    or    electronic    devices.    It    enables    the    transfer    and
communication   of   devices   in   a   point-to-point,   point-to-multipoint   and
multipoint-to-multipoint environments. The term data transmission includes
the  provision  of Voice  over  Internet Protocol  (Volp)  services but  does  not
include the provision of basic telephone services;


(D  Data   transmission   industry   participant   refers   to   a;ny   person,   firm,
partnership or corporation, government or private, engaged in the provision
of    data    transmission    services    to    the    public.    This    includes    public
telecommunications  entities  (PTEs)  that offer  data  transmission services  as
defined  under  Republic   Act  No.7925,   otherwise   known  as  the   "Public
Telecommunications Policy Act of the Philippines";
(g) I#fer7c¢ffo"¢J grfeco¢gr or  Z¢"dz.7€g refers  to  a segment of data transmission
that consists of any facility that provides an interface to send and receive data
traffic between one country's domestic network facilities and those in another
Country;
(h) L¢sf f"f.Jc refers to the segment of data transmission network that cormects
end users;
(i)  M!.chzJe lf„.J€ refers to the segment of data transmission network that links the
last mile network to the core or backbone network;
¢)  Ope# ¢ccess refers to the system of allowing the use of data transmission or
distribution systems and associated facihities subject to fair, reasonable, and
nondiscriminatory terms in a transparent market;
(k) P¢!.d pr..art.ft.z¢tr.o# refers to the management of a data transmission network
to directly or indirectly favor some traffic over other traffic, through the use
of  techniques  such  as  traffic  shaping,  prioritization,  resource  reservation,
zero-rating,  or  other  forms  of  preferential  traffic  management,  either  in
exchange for consideration (monetary or otherwise) from a third party, or to
benefit an affhiated entity;
a)  Vo!.ce ozJcr J#temcf ProfocoJ (VoJP) service refers  to the provision of voice
communication using Internet Protocol (IP) technology; and
(in) Pflrsst.zJe !.H4#str#ctrre collectively refers to telecommunication towers, poles,
cable   entrances,   ducts,   uthity   corridors,   and   any  other  non-electronic
infrastructure and fachities, either existing or to be deployed in the future,
that may be used to support data transmission.
CHAPTER 11
ORGANIZATION AND OPERATION OF THE
DATA TRANSMISSION INDUSTRY
SECTION  4.  Scope.  This  Act  applies  to  all  persons  who  participate  in  the  data
transmission industry. Any person or entity whose business deals substantially with
the   transmission   of   data,   including   Volp   service   providers,   internet   service
providers  (ISPs),  and  data  center  service  providers  shall  be  governed  by  the


provisions of this Act. PTEs that are principany engaged in the provision of basic
telephone  services,  such  as  an  international  carrier,  interexchange  carrier,  local
exchange operator, and mobile radio services provider, as defined in Republic Act
No. 7925, and which also provide data transmission services, shall likewise subject
to  the  provisions  of  this  Act with respect to the  data  transmission services  they
provide  and  the  interconnection  to  their  networks  that  they  extend  to  data
transmission industry participants.
SECTION  5.  Registration  and Certification.  All  segments  of  the  data  transmission
network shall be competitive and open. Notwithstanding the provisions of this Act
or  any  other  law,  the  following  registration and certification shall apply  to  data
transmission:
(a) An data transmission industry participants shall be required to register with
the   National   Telecommunications   Commission   (NTC).   The   NTC   shall
promulgate a speedy and expeditious administrative process for registration
and   shall,   in   coordination   with   the   Department   of   Information   and
Communication Technology  (DICT)  for policy  and  standard-setting  in  the
Information and  Communications Technology  (ICT)  sector,  and Philippine
Competition Commission  (PCC)  for the  promotion of market competition,
develop   a   set   of   criteria   for   qualifying   data   transmission   industry
participants that will encourage the widest possible participation of as many
industry players as possible who will offer data transmission services in all
segments of the network and to end users in different parts of the country. The
qualification requirements for  data transmission industry participants shall
also   take   national  security  concerns   into   consideration  particularly  for
fachities that interface directly with another country's domestic network.
(b) Those who will operate an international cable landing station shall secure a
legislative franchise. Those who will operate a nationwide backbone network
shall secure a permit from the NTC and submit its proposed route or rollout
plan, as well as the manner of construction of the backbone network, subject
to the approval of the NTC.
An  other  industry  participants  shall  not  be  required  to  secure  a
legislative  franchise  or  a  certificate  of  public  convenience  and  necessity
(CPCN) but must meet the criteria set by the NTC and the DICT in registering
as industry participants in order to corrstruct, operate, lease or own networks
or  fachities  except  if  it  owns  and  operates  an  international  cable  landing
station:  Proz».decz,  That an owner or operator of a cable landing station,  not
considered a public utility, shall no longer be required to secure a CPCN. AIl
industry participants intending to be spectrum holders shall need to secure a
permit from the NTC and  shall be  allocated such spectrum in accordance
with the provisions under Section 7 of this Act.
(c) Data transmission industry participants shall likewise be required to comply


with national and global best practices aLnd standards on cybersecurity and
sham be subject to a network audit by the Cybersecurity Bureau of the DICT.
Data transmission industry participants shall, after three (3) years of operation,
be   required   to   secure   a   cybersecurity   certification   from   a   third-party
organization   based   on   the   prevailing   International   Organization   for
Standardization (ISO) standards on information security management.
CHARTER Ill
REGULATION OF THE DATA TRANSMISSION INDUSTRY
SECTION  6.  Open  Access  Approach  to  Regulation  of  the  Data  Transmission
Industry. - The NTC shall ensure that the data transmission sector remains open and
accessible to all qualified participants. Specificany, it shah:
(a) Implement    an    efficient    and    speedy    administrative    process    in    the
authorization and registration of data transmission sector participants;
@) Adopt   a   technology-neutral   framework   that   auows   data   transmission
industry participants to use any available technology to provide service;
(c) Promote  fair  and  open competition in accordance  with the  principles  and
policies under the Philippine Competition Act and its implementing rules in
all segments of the  data transmission network,  allowing  a wide variety of
physical networks and apphcatious to interact in an open architecture;
(d) Mandate transpareney in pricing and the publication of pricing information to
ensure fair trading within and between each data transmission segment so as
to allow clear, comparative information on market prices and services;
(e) Mandate interconnection so that data transmission industry participants can
connect to each other at the various segments and interfaces, such that entities
of any  size  may  freely  enter  and  exit the  market,  and  dominance  by  any
single player or group of players is avoided;
(f)  Promulgate  pohicies  that  will  encourage  distributed  local  solutious  rather
than centralized ones, encouraging services that are closer to the user;
(g) Publish the list of registered data transmission industry participants at least
once a year;
(h) Promulgate,  together  with  the  PCC,  rules  defining  and  regulating  entities
with substantial market power;
(i)  Publish a Spectrum Management Framework to be developed together with
the DICT and the PCC; and
0)  Collect the  necessary  Supervision  and  Regulation Fee  (SRF)  and  Spectrum
User Fee (SUF), and other relevant fees as provided by law.
SECTION  7.   Spectrum  Allocation,   Recall,  and  Reallocation.  The  NTC  shall
maximize the allocation and assignment of finite radio spectrum resources used in
the transmission of data by ensuring that the spectrum is made available for the use
of all registered data transmission industry participants. To this end:


(a) The procedure for radio spectrum assignment, joint use and recall shall be
made  transparent to the  public.  All applications,  including  letter requests,
spectrum assignment, joint use, recan, and reallocation shall be posted in the
NTC website and in a conspicuous place in the offices of the NTC for at least
three (3) consecutive months. The notice shall specificany indicate the names of
the applicants for spectrum assignment, joint use and recall, including where
the NTC itself is the proponent of any such action, the affected spectrum, and
the applicant's or NTC's reasons for the proposed spectrum assignment, joint
use and recall. The NTC shall not assign, recall or allow co-use or joint use of
any radio frequency band or bands without conducting at least one (1) public
hearing and allowing public comment for a period of fifteen (15) days from
the date of the public hearing, prior to approval and/or disapproval of the
same. This shall apply to all spectrum, whether used for data transmission or
not;
ap) All  radio  spectrums,  radio  frequency  assignlnents,  recalls,  and  joint  use
decisions  of  the  NTC  shall  be  published  in  the  NTC  website  and  in  a
conspicuous place in the offices of the NTC for at least three (3) consecutive
months. The recall of frequeney for purposes of free pubhic use shall be given
priority.
The  immediately  preceding  paragraphs  (a)  and  (b)  herein  shall  not
apply to applications for frequency assignments for fixed point-to-point radio
links, wifi, and satellite networks;
(c) The NTC shall avoid the concentration of spectrum resources in the hands of
a few players and shall not assign, or allow joint use of radio spectrum in a
manner  that  estabhishes,  promotes  or  perpetuates  the  dominance  of  PTEs.
Any entity who believes that any one or more of the NTC's decisions for the
assignment of radio spectrum, whether past or present, which will promote
the  dominance of any entity and hinder competition, may file a complaint
before the PCC to determine the dominance of a data transmission industry
participant  and  deal  with  anti{ompetitive  conduct in  accordance  with  its
mandate under Republic Act No.10667, otherwise known as the "Philippine
Competition Act";
(d) The NTC shall promptly act on applications of data transmission industry
participants for permits to import equipment. Any application for a permit to
import equipment that is not acted on by the NTC within seven (7) days shall
be deemed approved;
(e) If the  NTC finds,  on its  own initiative  or  upon complaint,  that any right,
license  or  radio  spectrum  assignment  to  any  data  transmission  industry
participant or PIE is not being used, or is not being maximized by the user
thereof, or that the grantee has violated the provisions of this Act, it may, r77ofzt
praprz.o or upon petition by any person, subject to due process, recall the radio


spectrum assignment of the data transmission industry participant or PTE. The
NTC shall, where required and appropriate, work with the data transmission
industry  participant  or  PTE  concerned  to  take  appropriate  measures  to
minimize the impact of such recall on active users  of services utilizing the
recaned  spectrum.  The  foregoing  notwithstanding,  no  frequency  shall  be
recalled  within  eighteen  (18)  months  of  the  awarding  of  a  provisional
authority or license or registration; and
(f)  The   NTC   shall   ensure   that   the   allocation,   reallocation,   assigrment,
reassignment, reclassification, joint use or co-use, and recall of spectrum does
notresultintheconcentrationofspectrumresourceswhichpromote,establish,
or  perpetuate  the  significant  market  power  of  FTEs  or  of  only  a  limited
number  of  participants.  In  instances  where  the  resulting  assignment  of
spectrum for mobile and point-to-multipoint networks will give an assignee
or entities it controls, jointly or singly, or under common control, either by
virtue of that request or in combination with other previous requests by that
party or its affiliates, fifteen percent (150/o) or above of assignable spectrum in
the same band, the party requesting for an assignment of spectrum or a joint
use of spectrum shall be required to serve notice to the PCC and secure a no-
objection notice  from  the  PCC.  The  PCC  shall  issue  a  no-objection  notice
within  thirty  (30)  working  days  upon  its  receipt  of pertinent information
necessary for the review and issuance of the notice:  P7'oz;z.did,  That the PCC
may  once  extend  such period  for  an  additional  fifteen  (15)  working  days
upon their notification of the NTC and the concerned party or parties to a
spectrum anocation, reanocation, assignment, reassignment." reclassification,
joint use or co-use, and recall.
SECTION 8. Setting Performance Standards. The NTC shall:
(a) Mandate that, within one (1) year from the effectivity of this Act, all last mile
providers  sham  provide  a  minimum  download  speed  of  2  megabits  per
second or as mandated by the National Broadband, whichever is higher, for
mobile broadband and for fixed wireless/broadband access;
ap) Prescribe  performance  standards  after  pubhic  consultation  and  hearings
within six (6) months from the effectivity of this Act;
(c) Regularly upgrade performance standards imposed on the data transmission
industry  to  ensure  that  performance  standards  shall,  at  a minimum, be at
par  with  service  levels  established  in  regional  data  network  performance
indices  and  aligned  with international best practices.  Such standards  shall
take into account speed, packet loss, jitter, and latency;
(d) Regularly review performance standards at least once a year and pubhih new
performance standards at least thirty (30)  days before they take effect.  The
publication of the results of the performance measurements shall be done in


an open data format and made accessible to the general public;
(e)  Any person, or the NTC itself,  may,  7„ofro prapr!.o, file a petition to penalize
any  data  transmission  industry  participant  for  failure  to  deliver  service
according  to  the  NIC's  published  performance  standard  and  to  require
rectification of such noncompliance; and
(f)  Measure  the  performance  of the  data  industry  participants  quarterly  and
publish the results of its assessment on its website.
SECTION 9. Arms-length Transactions and Transparency. The NTC shall:
(a) Publish  and  make  available  in  print  and  online  formats  all  aspects  of
spectrum   use   information,   including   the   National   Radio   Frequency
Allocation Table  (NRFAT),  indicating therein the purpose or use to which
each frequency band is allocated, and, for frequency bands anocated for public
use,  the  persons  and/or  entities  to  whom  each  particular  frequency  is
assigned. The NRFAT and updated radio spectrum use information shall be
made available on the NTC's website and to any person who requests the
same, upon written request; and
ap) Promulgate rules requiring all data transmission industry participants to ffle
an armual report and include therein a fair and accurate statement regarding
their market prices and their services. The annual report shall include an costs
and charges relevant to the  data transmission network segment where the
participants operate. The rates shall be made available online, in print, and in
any  other  viable  venue  to  the  public.  Any  person  can  file  a  complaint
pertaining  to  these rates within thirty  (30)  days of posting.  Each player  at
each segment shall submit a copy of their rates to the r\ITC and the PCC. The
rates  shall  be  published,  including  a  historical  record,  in  a  consolidated
manner.  The  data  transmission industry  participants  shall keep  a publicly
accessible archive of their rates.
SECTION  10.  Fair  Competition.  The  PCC  and  the  NTC  shall  ensure  that  the
principles and policies enshrined under the Philippine Competition Act are strictly
adhered to in the data transmission industry. The PC and the NTC shall ensure that
all industry players observe fair, reasonable, and nondiscriminatory treatment in all
their dealings, and that barriers to entry are eliminated to make the industry highly
competitive. To this end, within thirty (30) days from the effectivity of this Act, the
PC and the NTC shall enter into an agreement to foster and develop interagency
cooperation mechanism, including information-sharing tools, that win provide them
in  the  performance  of  their  respective  mandates,  and  in  the  promotion  of  fair
competition in the data transmission industry.
SECTION 11. Technological Neutrality. The NTC shall ensure that the provisions of
this Act apply, 7"# £#fz.s 777z4 £a7zdz.s, to future technologies in data transmission.
SECTION 12. Infrastructure Sharing and Co-location. The DICT and the NTC shall


promulgate  policies,  rules,  and  regulations  to  ensure  that  passive  infrastructure,
whether  existing  or  built  in  the  future,  necessary  or  capable  of supporting  data
transmission networks or services are:
(a) made mandatory for open access and made available for co-location and co-
use by the owner of network facilities, equipment, and infrastructure on an
open,  fair,  and  nondiscriminatory  basis  to  any  access  seeker's  network
facilities,  in  any  segment,  subject  to  the  technical  feasibility  of  the  access
seeker's request and the network facility and infrastructure owner's standard
published offer terms,  conditions,  and rates:  Proui.czecz, That the provision of
access     to     government-owned     and-operated    facilities     and    support
ilrfuastructure to access seekers for the purpose of offering data transmission
services shall be mandatory,  unless  special circumstances,  such as but not
limited to national security concerns, exist;
ap) built not only in the city centers, but most especially in the remote, uuserved,
and underserved areas in order to extend data transmission services by both
the existing and new players throughout the country;
(c) as far as possible, deployed together with roadworks, pipe-laying, and other
infrastructure development by both government and private entities; and
(d) proliferated  in the  most cost-efficient  and  timely  manner  through  various
means,  including,  encouraging  the  operation  of  independent  entities  that
build  and  operate  towers,  dark  fiber,  and  utility  coITidors,  among  other
passive   infrastructure   that   help   facilitate   data   transmission   network
deployment.
The   DICT  shall  cool.dinate   and  issue   a  policy  with  other  relevant
government  agencies  upon  consultation  with  stakeholders  to  implement  this
provision. For purposes of data transmission, the NIC shall, in case of a dispute
arising from  an infrastructure  sharing  agreement:  (1)  mediate between a data
transmission industry participant and an infrastructure owner, and (2) serve as
the primary enforcer of this provision.
The DICT and the NTC sham promulgate policies, rules, and regulations to
ensure that buildings, condominiums, viuages, towns, and subdivisions are all
built  with  facilities,  such  as  cable  entrances,  ducts,   and  risers,  that  allow
nondiscriminatory access to multiple data transmission industry players in order
for  them  to  provide  service.  They  shall  also  promulgate  poricies,  rules,  and
guidelines  that  will  ensure  a  level-playing  field  and  price  nondiscrimination
among   data   transmission   industry   participants   and   network   facility   and
infrastructure owners.
The  DICT  and  the  NTC,  in  coordination  with  relevant  government
agencies,   shall   also   ensure   disaster   resiliency   and   ease   of   recovery   and


restoration of passive infrastructure, such as towers, poles, and utility corridors,
from the effects of disasters by strictly enforcing compliance with intemationany-
accepted  engineering  standards  and  best  practices,  and  relevant  engineering
codes and codes of practice.
The  DICT  and  the  NTC  shall  maintain  an  updated  database  of  data
transmission  infrastructure,  including  passive  infrastructure  used  to  support
data transmission. The database, to be updated annually, shall include the exact
location,  ownership,  technical  specifications,  and  other  relevant  information
about the facility.
CHAPTER IV
PROHIBITED ACTS
SECTION13.ProhibitedActs.Thefollowingactsareprohibited:
(a) Rcrfus"I fo Pzng ##d PJ¢gr. Any data transmission industry participant, iusofar
as such person is so engaged, shall not refuse access to infrastructure to any
other  data  emission  industry  participant,  except  for  failure  to  pay  open
market fees for the access to the service.
Data  transmission  industry  participants  shall  not  impede  the  end-
user's right to access and distribute information and content, use and provide
applications  and  services  and  use  terminal  equipment  of  their  choice,
regardless of the end  user's or provider's location or the location,  origin or
destination of the information, content, application or service via their data
transmission service.
Agreements between data transmission providers of data services and
end users on commercial and technical conditions and the characteristics of
data access services such as ice, data volume or speed, and any commercial
practices conducted by providers of internet access services shall not limit the
exercise of the rights of end users laid down in the preceding paragraph;
ap) P¢!.d  Pr!.or£.fz.z¢tr.o#.   A   data   transmission  industry  participant  shall  not
engage  in  paid  prioritization  for  monetary  or  other  consideration  except
when  allowed  by  the  N'TC  after  such  participant  demonstrates  that  the
practice   will   provide   significant   public   interest   benefit   and   will   not
disadvantage  content  aLnd applications that are not prioritized or harm the
opennatureoftheinternet;
(c) Thro#J.."g.  A  data  transmission  industry  participant  shall  treat  all  traffic
equally   when   providing   data   access   services   without   discrimination,
restriction or interference, regardless of the sender and receiver, the content
accessed or distributed, the applications or services used or provided, or the


terminal  equipment  used.  It  shall  be  prohibited  for  a  data  transmission
industry participant to hinder or slow down services or applications or access
to specific sites in the internet except where: (1) access to such sites, services or
applications are prohibited by law; (2) it is necessary to preserve the integrity
and security of the network and service of the provider or the equipment of
the end user: Proz;I.dcd, That if the breach of integrity or security is caused by
the equipment of the end user, the provider has to notify the end user first
and  give  the  former  sufficient  time  to  rectify  the  situation;  and  (3)  it  is
necessary  to  block the  transmission  of unwanted communications  such as
spain and child pornographic materials upon the complaint of the end user or
the data transmission industry participant;
(d) Rgivs¢J fo Gt.tJc I#/omlflfz.o#. It shall be prohibited for any data transmission
industry participant, including PTEs with regard to its network and facilities,
to refuse or fail to make available to suppliers of data transmission services,
on a  timely basis,  the  technical information about its essential facilities  or
network facilities and commercially relevant information that are necessary
for the efficient provision of their services; and
(e) A#fi.-corltpef!.f£.zJe Cross-S#ZJst.d®.z"fi.o#. The NTC shall require separate books
of accounts between different data transmission segments in order to allow
identification of costs and revenues for each segment.  Any violation of this
provision   shall   give   rise   to   a   presumption   of   anti-competitive   cross-
subsidization,  which  shall  then  be  referred  to  the  Philippine  Competition
Commission  for  proper  determination  and  action,  in  accordance  with  the
provisions   of   Republic   Act   No.   10667.   Nothing   herein   shall   prevent
interconnecting    networks    from    charging    the    appropriate    cost-based
compensation for the use of interconnection facilities.
SECTION 14. Administrative Penalties.   The NTC shall require data transmission
industry participants and PTEs providing data transmission services to comply with
prescribed performance standards and shall impose penalties for failure to comply
with such performance standards.
(a) Any  data  transmission  industry  participant  who  fails  to  comply  with  the
minimum service standards  set by the NIC shall be  imposed  a minimum
penaltyofafineofnotlessthanonehundredthousandpesos(P100,000.00)but
not more than Five million pesos (P5,000,000.00) per day for every day during
which such default or violation continues, unth the participant fully complies:
Prot".cZccZ, That if the data transmission industry participant has a gross annual
income not exceeding Ten million pesos (P10,000,000.00), the penalty that may
be imposed shall be equivalent to one percent (1%) to two percent (2°/o) of its
gross  annual  income.  The  NTC  is  hereby  authorized  and  empowered  to
impose such a fine, after due notice and hearing.
ap) An  entity  who  fails  to  substantially  comply  with  the  NTC's  performance


standards  for  three  (3)  consecutive  years  shall,  subject  to  due  process,  be
removed   from   the   registry   of   registered   data   transmission   industry
participants  and  shall  be  prohibited  from  rendering   data  transmission
services.
(c) Any data transmission industry participant who engages in the prohibited
acts  under Section 12 of this  Act or fails  to comply with the performance
standards set by the NTC shall suffer a minimum penalty of a fine of not less
than Three hundred  thousand peace  (P300,000.00)  but not more  than Five
millionpesos(P5,000,000.00)foreverydaythattheviolationcontinuesuntilthe
participant fully complies:  Prouz.decz,  That if the  data transmission industry
participant  has  a  gross  annual  income  not  exceeding  Ten  million  pesos
(P10,000,000.00), the penalty that may be imposed shall be equivalent to  one
percent (1°/o) to two percent (2%) of its gross armual income. In cases of anti-
competitive cross subsidization, the imposable penalties are those provided
under Repubhic Act No. 10667.
(d) A data transmission industry participant violating any provision of this Act
shall forfeit all certificates, hceuses, authorizations, rights, and awards issued
to it in relation to its participation in the data transmission industry.
(e) Any other violations not specifically penalized under the relevant provisions
of this Act shall be penalized by a fine of not less than Fifty thousand pesos
(P50,000.00)andnotmorethanTwomillionpesos(P2,000,000.00).
SECTION 15. Adjustment for Inflation. The fines imposed under this Act shall be
adjusted by the NTC, year-on-year, considering the prevailing cost of money based
on the current consumer price index, and subject to publication of such adjustments.
CHAPTER V
RIGHTS OF DATA TRANSMISSION SERVICE USERS AND
RESPONSIBILITIES OF DATA TRANSMISSION SERVICE PROVIDERS
SECTION 16.  Rights  of End  Users.  The  user  of data transmission services  shall
have the following basic rights:
(a) To  be  entitled  to  data  transmission  services  which  are  nondiscriniinatory,
reliable, and conforming with minimum standards set by the NTC;
a) To  be  rendered  data  transmission  services  within  two  (2)  months  from
application for service;
(c) Regular,   timely  and  accurate  billing,  courteous  and  efficient  service  at
business offices and by company personnel;
(d) Timely correction of errors in billing and the immediate provision of rebates or
refunds  by  the  data  transmission  service  provider  without  the  need  for
demand by the user; and


(e) Thorough and prompt investigation of, and action upon complaints. The data
transmission  service  provider  shall  endeavor  to  allow  complaints  to  be
received by any means convenient to the end user, including voice calls, post,
short  messaging  service  (SMS),  multimedia  messages  (MMS)  and  online
communication, and shall keep a record of all complaints received and the
action taken to address the complaints.
Subject to the filing of a formal request to the data service provider, a
user   may   request   the   immediate   termination   of   service   without   the
imposition  of fees  or penalties,  and  with  the  refund  of any  fee  or charge
already  paid  by  the  user,  should  a  data  service  provider  not consistently
comply with paragraphs (a), (d), and (e) of this section or any other minimum
performance standards set by the NTC.
CHAPTERVI
FINAL PROVISIONS
SECTION 17. Expedited Processing. In all instances where a participant in the data
transmission  industry   shall  require   a   form,   certificate,   or   request  from   any
government agency or local government unit (LGU), there should be no more than
two (2) public officers involved in processing the form, certificate, or request.
Processing fees and certifications required for the deployment of any segment
of data transmission networks shall be limited to those identified by the DICT. The
DICT shall conduct the necessary consultations with civil society organizations and
other  stakeholder  groups,  for  the  development  of  the  implementing  rules  and
poficies  to  minimize  the  administrative  burden  of  permitting  and  certification
processes.
SECTION 18. Implementing Rules and Regulations. Within sixty (60) days from the
effective of this Act, the NTC shall promulgate the necessary rules and regulations
for its effective implementation.
SECTION 19. Joint Congressional Oversight Committee on Open Access in Data
Transmission. There shall be created a Join. Congressional Oversight Committee on
Open Access in Data Transmission (JCOCOADT) which shall monitor and ensure
the   effective   implementation  of  this   Act.   It  shall   determine   weaknesses   and
loopholes    in    the    law,    recommend    the    necessary   remedial   legislation    or
administrative measures and  perform such other duties and functions as may be
necessary to attain the objectives of this Act.
The |COCOADT shall be composed of five (5) members from the Senate and
five (5) members from the House of Representatives, in addition to the Chairperson
of the  Senate Committee  on Science  and Technology and  the  Chairperson of the
House   of   Representatives   Committee   on   Information   and   Communications


Technology: P7'ouz.czecz, That two (2) members of each chamber's nominees sham come
from the ranks of the minority party/bloc.
The Chairperson of the Senate Committee on Science and Technology and the
Chairperson  of  the  House  of  Representatives  Committee  on  Information  and
Communications Technology shall act as Co-Chairpersons of the |COCOADT. The
ranking  minority  members  nominated  by  both  the  Senate  and  the  House  of
Representatives   shall   act   as   Co-Vice   Chairpersons.   The   Secretariat   of   the
Tcex=OADT shall come from the existing Secretariat personnel of the Committee on
Science  and  Technology  of  the  Senate  and  the  Committee  on  Information  and
Communications  Technology  of  the  House  of  Representatives.  The  ]COCOADT
shall have its oVIm independent counsel.
The TCOCOADT shall exist for a period not exceeding five (5) years from the
effectivity of this  Act.  Thereafter, its oversight functions shall be exercised by the
Senate Committee  on Science  and Technology  and  the House of Representatives
Committee on Information and Communications Technology, acting separately.
SECTION 20.  Separability Clause. If any portion or provision of this Act is declared
invalid or unconstitutional, other provisions hereof shall remain in full force and
effect.
SECTION 21. Repealing Clause. All laws, decrees, executive orders, rules and
regulations, issuances or part thereof inconsistent with the provision of this Act
are hereby repealed, amended, or modified accordingly.
SECTION  22.  Effectivity.  Ths  Act  shall  take  effect  fifteen  (15)  days  after  the
completion of its publication in the Official Gazette or at least two (2) newspapers of
general circulation.
Approved.