'
A
 
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TICORTEENTH CONGRESS OF THE REPUBLIC 
First Regular Session 
OF THE PHILIPPINES 
u 
Introduced by Senator Magsaysay, Jr. 
EXPLANATORY NOT 
There is a revolution going on in the communication industry, as a global 
telecommunications equipment firm advertised. 
People want to do more 
communications. People want mobility, they want immediate access to data. And people 
want all their networking to be easy and immediate. 
Telecommunications. 
Information technology. 
Electronics. 
These are the 
weapon man adopted as they access themselves in the on-going revolution. And these 
will the same vehicle that will propel the Philippines in its vision of becoming the hub of 
information technology in this part of the world. 
The enactment of Republic Act No. 7925 on the national telecommunications 
policy is a milestone. The law is intended as a viable legal and regulatory framework to 
support the dynamic changes in the telecommunications industry. 
But the necessary details that will complement the statute particularly the 
fiaudalent practices and illicit scheming ways vis-a-vis telecommunications and 
information technology are not made a major part of the law. Likewise, these are areas 
not covered within the realm of the implementing rules and regulations that are set in 
place: This is, the objective ensconced in this legislative proposal. 
The bill provides for the definition of the different telecommunication fraud, their 
gravity as special offenses with the penal sanctions, the implementing body to achieve its 
desired ends, among others. 
The bill is highlighted by the following important 
provisions: 
1. The explicit enumeration of the different species of telecommunication fraud: 
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Cloning 
Operation of Illegal Telecommunications Unit 
Illegal Use of Radio Spectrum or Frequency 
Illegal Connection to a Landline Telephone 
Payphone Fraud 
Third Number Fraud 
Telecommunications Card Fraud 
Subscription Fraud 
Solicitation Fraud 
Illegal Installation of a Telecommunications Unit 
2. It provides the penal sanction for each category of special crimes. 
3. It provides an assurance to citizens who are telecommunications subscribers 
the assurance to citizens who are telecommunications 
service or their 
telephones disconnected simply because of erroneous billings and similar 
telecommunications defects. 


Both the telecommunications company and the subscribers are set in the 
crossroads where each one at one time suffers the stigma of violation. The existence of 
criminal syndicates and unscrupulous individuals victimizing both the telecommunication 
entities and subscribers are anathema to information technology development. But for 
the subscribers, their greatest dilemma is the prevailing practice of telecommunications 
companies to bill their subscribers with services that has not been utilized by them. 
Premises stated, this legislation is submitted for early enactment. 


13* CONGRESS OF THE REPUBLIC ) 
OF THE PHILIPPTNES 
1 
First Regular Session 
) 
s 
s 
Introduced by Senator ~ ~ g ~ a y ~ a y ,  
AN ACT 
PROHIBITING TELECOMMUNICATIO 
TIPUGTION OF 
TELECOMMUNICATIONS 
FACILITIE 
PENALTIES 
THEREFORE AND FOR OTHER PURPOS 
Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled: 
SECTION 1. 
Title 
. 
This Act shall be known as “The Anti- 
Telecommunicatioii Fraud Act of 2004.” 
SEC. 2. Declaration of Policy - It is hereby declared the policy of the State of 
protect the general public from phone cloning, illegal use of radio spectrum or frequency, 
and other forms of telecommunications fraud; the use of telecommunications unit, device 
and equipment not authorized by the National Telecommunication Commission and the 
wanton and malicious destruction of telecommunication facilities. 
SEC. 3. Definition of Terms - The following terms, as used herein, shall mean: 
a) Telecommunication Unit 
- 
Any fixed wire, wireless radio, cellular 
telephone, pager, fax machine, computer or other device capable of providing 
telecommunications through transmission, emission or reception of any sign, 
signal, writing, image, picture, video, sound, data, voice, music or intelligence 
of any picture; 
b) Electronic Serial Number (ESN)/Capcode/Mobile Identification Number 
(MIN)/Electronic/International Mobile Equipment Identity (E 
Subcriber Identify Module (SIM). - Identification numbers, electronically 
programmed into or attached to a telecommunications unit; 
c) Electronic Serial Number Reader - Any device or instrument capable of 
recognizing 
the 
E§N/Capcode/MIN/EMEI/MMEVSTM 
of 
a 
telecommunications unit; 
d) Cloning Device - Any type of instrument, device, machine or equipment 
capable of being used and employed for cloning. 
An ESN reader not 
registered with the Commission shall also be considered an iIIegal cloning 
device; 
e) Illegal Telecommunications Unit - A telecommunications unit, with a part 
or accessory altered, modified, reprogrammed through or any other similar 
process. 
The terms wireless radio units or other similar cellular phones, 
wireless radio units and other telecommunication units capable of gaining 
unauthorized or illegal access to a communications system operated by a PTE; 
0 Telecommunications Card - 
An instrument to access and/or use a 
telecommunications system, network or service, such as pre-paid cards, credit 
cards, calling cards or such other similar cards; 
g) Subscriber - A person, natural or juridical, who has legitimately acquired 
telecommunications service with the authorization and permission of a PTE; 


h) Commission - Refers to the National Telecommunications Commission or 
its successor agency; 
i) Type of approval - Refers to a process wherein a telecommunications unit, 
device or equipment is tested by the Commission or by the PTE pursuant to a 
prior authorization form the Commission, for conformance to applicable 
standards, as its or an authorized agency's Equipment; 
j) Type Acceptance - Refers to a process wherein a telecommunications unit 
device or equipment is evaluated on the basis of technical tests and 
certification agencies; and 
TE) - Any public or private person, 
firm, partnership or corporation, lawfully engaged in the business of providing 
telecommunications services to the public for compensation. 
k) Public Telecommunications Entity 
SEC. 4. Prohibited Entity (PTE) - The following acts are hereby declared 
prohibited and unlawful: 
Cloning - The act or technical process of tampering or manipulating any part 
or device of any telecommunications unit, a card accessory thereof, using 
utilizing or employing any electronic device, computer, its combination or any 
other equipment of similar nature in order to access and program and/or 
duplicate the Electronic Serial Number (ESN)/Capcode, Mobile Identification 
number (MI"), Electronic /International Mobile Equipment Identify 
(EMEYMEI) or subscriber Identify Module (SIM) or otherwise duplicate 
subscriber data of a duly registered telecommunications unit without 
authorization or approval of a PTE; 
Operation of Illegal Telecommunications 
nit - The act of knowingly or 
e 
willfully; 
1 . Manufacturing, selling and/or distributing illegal telecommunications 
units; or 
2. Operating, utilizing or employing illegal telecommunications unit. 
0 
Illegal Use of Radio Spectrum or Frequency - The act of using a radio 
spectrum or fiequency without the written authority of the Commission, the 
PTE or any other authorized entity; 
e Illegal Connection to a Landline Telephone - The act by a person of 
connecting to or linking with a landline telephone without the written consent 
of the subscriber and having the calls charged therein; 
Payphone Fraud - The act of tampering or manipulating a public pay 
telephone to gain access to the PTEs network or for services which are not 
normally available through the payphone without authority from the PTE; 
e 
Third Number Fraud - The act by a person of placing a call to a specific 
number but having the call charged to neither the caller nor the called number 
without the consent of the subscriber of the third number or by securing the 
consent of the subscriber of the third number through deceitkl means; 
0 
Telecommunication Card Frau 
1. manufacturing, distributing or selling 
e 
Subscription Frau 
1. any person who shall obtain telecommunications service in one's own 
favor on any of the following circumstances; 


a. under false identifjr and/or false statements; 
b. under pretenses of employment, occupation, income, financial 
capacity, residential or billing address; or 
c. using false, forged, altered or intercalated service agreements and 
supporting subscription requirements; 
2. any person who shall deceive the PTE to grant service to another person, 
under any of the circumstances enumerated in the preceding number or 
when such another person does not exist, is no longer living, does not 
reside within the Philippines or never applied for telecommunications 
service with the PTE to whom such submission was ,made, or having 
applied, did not apply under the terms and conditions stated in false, 
forged, altered or intercalated submission, or who otherwise would not 
have been qualified to obtain such service under the standards and 
requirements of the PTE; 
3. any 
person who 
shall deceive the PTE to activate service 
telecommunications units by submitting or procuring the submission of 
authentic documents when such submissions, and where the subject of 
such submission shall not have received and accepted the service applied 
for despite its activation by the PTE; or 
4. any dealer, sub-dealer or agent of a PTE who maliciously or intentionally 
falls or deliver to the subscriber-on-record service units, devices and/or 
accessories, or shall deliver it to a person other than the subscriber-on- 
record; 
0 
Solicitation Fraud - The act of any person or entity, telecommunications 
equipmenthervice dealer or agent of telecommunications services who to the 
prejudice of the subscriber: and/or the PTE, misrepresent the rates, fees, 
subscription plans, equipment cost, and/or other terms and conditions of 
subscription to a telecommunication service; 
e Illegal Installation of a Telecommunications Unit - The act of installing or 
causing to be installed a telecommunications unit, device or equipment which 
is without a type approval or type acceptance, into a telecommunications 
network without the permission of the Commission or the PTE who owns the 
network; 
e Other Fraudulent Schemes - 
The act of any person, not otherwise 
authorized by a PTE, of: 
1. Abandoning a telecommunications service or transferring the possession 
or ownership of telecommunications unit with the intent of evading 
payment of charges; or 
2. Employing any means, scheme, process or device to defiaud the 
government the public, or the PTE of fees or charges for services rendered 
or equipment owned by the PTE. 
e 
Illegal Operation of a Public Teleco~muni~atio~~ 
Service - The act of 
operating or providing a public telecommunications facilities and accessories 
of authorized a PTE’s resulting to system disruption or network degradation. 
SEC. 5. Penalties - The following penalties are hereby imposed against any 
person found guilty or violation of the prohibited acts enumerated in the preceding 
section: 
a. Cloning - Imprisonment of not less than four (4) years and one (1) day to six 
(6) years and a fine of Five Hundred Thousand Pesos (P500,OOO) or three (3) 
times the amount of damages suffered by the PTE, as determined by the 
Court, whichever is higher; 


b. 
C. 
d. 
e. 
f 
i. 
Operation of Illegal Telecommunications Unit - For subsection; 
1. Imprisonment of not less than two (2) years and one (1) .day to four (4) 
years and a fine of three hundred thousand pesos (P300,OOO) or three (3) 
times the amount of damages suffered by the PTE, as determined by the 
Court, whichever is higher; 
2. Imprisonment of not less than one (1) years and one (1) day to four (4) 
years and a fine of One hundred thousand pesos (P100,OOO) or three (3) 
times the amount of damages suffered by the PTE, as determined by the 
Court, whichever is higher; 
Illegal Use of Radio Spectrum or Frequency - Imprisonment of not less than 
four (4) years and one (1) day to six (6) years and a fine of Three Thousand 
Pesos (P300,OOO); 
Illegal Connection to a Landline Telephone - Imprisonment of not less than 
two (2) years and one (1) day to six (6) years and a fine of Three Thousand 
Pesos (P300,OOO) or three (3) times the amount of damages suffered by the 
PTE, as determined by the Court, whichever is higher; 
Payphone Fraud - Imprisonment of not less than six (6) months and one (1) 
day to one (1) year and a fine of One hundred thousand pesos (P100,OOO) or 
three (3) times the amount of damages suffered by the PTE, as determined by 
the Court, whichever higher; 
Third Number Fraud - Imprisonment of not less than six (6) months and one 
(1) day to one (1) year and a fine of One hundred thousand pesos (P100,OOO) 
or three (3) times the amount of damages suffered by the PTE, as determined 
by the Court, whichever is higher; 
Telecommunication Card Fraud - Fraud subsection: 
Subscription Fraud -For subsection: 
1. 
2. 
3. 
4. 
Imprisonment of not less than four (4) years and one (1) day to six (6) 
years and a fine of One hundred thousand pesos (P100,OOO) or three (3) 
times the amount of damages suffered by the PTE, as determine by the 
Court, whichever is higher; 
Imprisonment of not less than two (2) years and one (1) day to four (4) 
years and a fine of Three hundred thousand pesos (P300,OOO) or three (3) 
times the amount of damages suffered by the PTE, as detennined by the 
Court, whichever is higher; 
Imprisonment of not less than two (2) years and one (1) to four (4) years 
and a fine of Three hundred thousand pesos (P300,000),or three (3) times 
the amount of damages suffered by the PTE, as determined by the Court, 
whichever is higher; and 
Imprisonment of not less than two (2) years and one (1) day to four (4) 
years and a fine of Five hundred thousand pesos (P500,OOO) or three (3) 
times the amount damages suffered by the PTE, as determined by the 
Court, whichever is higher. 
Solicitation Fraud - Imprisonment of not less than one (1) year and one (1) 
day to two (2) years and a fine of One hundred thousand pesos (P100,OOO) or 
three (3) times the amount of damages suffered by the PTE, as determined by 
the Court, whichever is higher; 


j. Illegal Installation of a Telecommunications Unit - Imprisonment of not less 
than one (1) year and one (1) day to two (2) years and a fine of One hundred 
thousand pesos (P100,OOO) or three (3) times the amount of damages suffered 
by the PTE, as determined by the Court, whichever is higher; 
k. Other Fraudulent Schemes - Imprisonment of not less than one (1) year and 
one (1) day to two (2) years and a fine of One hundred thousand pesos 
(P 100,000) or three (3) times the amount of damages suffered by the PTE, as 
determined by the Court, whichever is higher; 
1. Illegal Operation of a Public Telecommunications Service - Imprisonment of 
not less than four (4) years and one (1) day to six (6) years and a fine of Five 
hundred thousand pesos (P500,OOO) or three (3) times the amount damages 
suffered by the PTE, as determined by the Court, whichever is higher. 
SEC. 6. Qualified Offenses - When any of the acts prohibited under Section 4 
of this Act is committed by or conspiracy with an employee of the PTE or by a syndicate 
of two or more persons in conspiracy with one another, an additional penalty of two (2) 
years imprisonment and a fine of double the amount originally imposed shall be suffered 
by each offender. 
SEC. 7. Confiscation and Forfeiture of the Proceeds or Instruments of the 
Crime . Every penalty imposed for the commission of any of the acts punishable in this 
act shall carry with it the forfeiture of the proceeds of the crime and the instruments or 
tools with which it was committed. Those items which are not the subject of lawful 
commerce shall be destroyed by the Government. 
SEC. 8. Evidence of Cloning and Other Frauds - For purposes of criminal 
prosecution, the following shall be sufficient to establish prima facie evidence of: 
1. 
2. 
3. 
4. 
5. 
Cloning - Mere possession of a cloning device or an illegal telecommunications 
unit; 
Illegal Use of Frequency - Mere possession of a radio transmitter or transceiver 
without authority from the Commission; 
Telecommunications Card Fraud 
- 
Mere possession of an unauthorized, 
tampered, stolen or manipulated telecommunication card; 
Illegal Operation of a Public Telecommunications Service - The absence of a 
Certificate of Public Convenience and Necessity, provisional or permanent license 
and/or authorization from the Commission prior to operation; and 
Subscription Fraud - The mere submission of forged or fraudulent, intercalated 
and/or altered subscription documents by the applicant for service and/or any 
person, dealer or agent whether or not the PTE shall have in fact granted or 
activated the service. 
SEC. 9. Complaining Parties and Prosecution Under Other Laws - Any 
complaint for violation of this Act may be initiated by an affected person, subscriber, a 
PTE, or the Commission. Moreover, prosecution under this Act shall not bar any 
’ prosecution under other administrative or penal laws, and vice verse. 
SEC. 10. Registration of Electronic Serial Number Reader - Upon the 
effectivity of this Act, no person or entity who is not an authorized PTE shall import into 
the Philippines any electronic serial number reader. For this Purpose, the Bureau of 
Customs shall require the presentation of the certificate of authorization to import issued 
by the Commission and in the absence thereof, to confiscate and cause the forfeiture of 
such equipment in favor of the Government. 


Electronic serial number readers already in the Philippines shall be registered with 
the Commission within six (6) months from the date of effectivity of this Act. Otherwise, 
mere possession thereof shall be illegal and shall subject the possessor to penalties 
provided in Section 5-A hereof. 
SEC. 11. Non-Disconnection of Telecommunications Service - A PTE shall 
not disconnect the telecommunications service of a subscriber who has verified written 
complaint for erroneous billings, pending resolution of said complaint by the PTE andor 
I the Commission. The subscriber shall, however pay the uncontested items of the bill and 
agree to the PTE’s implementation of measures to immediately prevent any possible 
further erroneous billing. 
If the subscriber refuses to pay the contested bill despite a resolution of the 
Commission adverse to the subscriber then the PTE shall disconnect the service unless 
directed otherwise. 
SEC. 12. Promulgated of Implementing Rules - Within ninety (90) days from 
the effectivity of this Act, the Commission shall promulgate the rules, measures, 
guidelines and other standards with the appropriate sanctions thereof, to: 
a. promote efficiency and adequancy of service; 
b. prescribe solutions to drop calls, billings, any of the above frauds 
and the disruption of telecommunication service; and 
c. protect subscriber’s right and interest. 
SEC. 13. Repealing Clause - Any provision of law, decree, executive order or 
issuance inconsistent herewith is hereby repealed and/or modified accordingly. 
SEC. 14. Separability Clause - If for any reason, any section or provision of 
this Act is declared to be unconstitutional or invalid, the other sections or provisions 
hereof which are not affected shall continue to be in full force and effect. 
I 
SEC. 15. Effectivity - This Act shall take effect thirty (30) days after approval 
and publication in the Official Gazette. 
Approved,