Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

NINETEENTH CONGRESS

First Regular Session

4299

HOUSE BILL NO.

Introduced by REPRESENTATIVE CHEENO MIGUEL D. ALMARIO

EXPLANATORY NOTE

The mobile communication system has been instrumental in providing
people convenience with a constant connection to family and friends, reaching a
wider audience for businesses, saving time and effort, and generally making life
better. It enables easier access to news, information, and entertainment.

At the onset of the pandemic due to the COVID-19 virus, wireless
communication systems have become pivotal in combating the rapid spread of the
disease through the dissemination of critical information, enabling quick response
to emergency cases, and even helping in the delivery of essential goods such as
food and life-saving medical supplies, among others. Technology aided in the
continuity of socio-economic activities as the world shifted to virtual education,
while governments and businesses maintain their operations with audio and
video conferencing. It is expected to remain crucial in the post-pandemic era as.
we continue to recover from the impacts of the global health and socioeconomic
crises.

Conversely, the increasing reliance of people on wireless communication
poses several security issues that put them at risk. Individuals and groups have
taken advantage of the technology to further their crimes including illegal drugs,
extortion, kidnapping, smuggling, and other various nefarious activities. With
widely available unregistered prepaid SIM or Subscriber Identity Module cards,
users’ identities are practically protected from being discovered in connection to
their crimes.

The prevalence of fraud in prepaid cards is also on the rise as hackers have
found ways to access devices. SIM cards contain unique numbers that can be used
to access important information such as bank accounts, email addresses, digital
wallets, social media accounts, and details of online purchases, which hackers use
to cause financial detriment.


An estimated 82.3 million Filipinos used mobile phones in 2021 according
to Statista, the German company specializing in market and consumer data. Globe
reported that in the same year about 7,000 mobile numbers were linked to
scammers. While in June 2022, a monthly average of 15,000 SIM cards were
involved in fraudulent activity according to the PLDT Group.

This proposed measure seeks to eliminate the anonymity of perpetrators by
providing for the registry of validated information of authorized SIM card users.
This will assist law enforcement agencies track down criminals and criminal
syndicates to hold them accountable. Additionally, it will discourage would-be
fraudsters, scammers, and felons since mobile SIM numbers will now be
associated with their names.

Meanwhile, the SIM registry system can help boost the fast-growing digital
economy. With validated information linked to each mobile number, legitimate
users will gain confidence using various e-commerce platforms and ICT-enabled
banking and financial services. It will provide consumers with easy and more
efficient means to do business and digital transactions.

While the vital role of information and communication in nation-building is
articulated in Article II, Section 24 of the Constitution, it is also the prime duty of
the Government to serve and protect the people under Section 4. In pursuit of
these, the bill aims to foster a safe environment for people by discouraging
unlawful activities perpetrated through unregistered SIM cards.

‘The 18th Congress approved and passed a similar bill but the same was
vetoed by the sitting President then.

In view of the foregoing, the swift passage of this bill is earnestly sought.

Re tative
24 District, Davao Oriental

CHEENO a . ALMARIO
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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

NINETEENTH CONGRESS

First Regular Session

4299

HOUSE BILL NO.

Introduced by REPRESENTATIVE CHEENO MIGUEL D. ALMARIO

AN ACT
REQUIRING THE REGISTRATION OF ALL USERS OF
PREPAID SUBSCRIBER IDENTITY MODULE (SIM) CARDS

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

SECTION 1. Short Title. - This Act shall be known as the “Subscriber Identity Module
(SIM) Card Registration Act’.

SEC. 2. Declaration of Policy. - The State recognizes the vital role of information and
communications technology in nation-building and encourages its growth and
development.

It is equally cognizant that as beneficial as modern technology is, its illegal or
malicious use endangers people's lives, damages property, poses hazards to public
order, and even threatens the security of nations.

Thus, there is a need to promote accountability in the use of the Subscriber Identity
Module (SIM) card and other similar technology to provide law enforcement agencies
the tools to resolve crimes that involve its utilization and the platform to deter the
commission of wrongdoings.

Towards this end, the State shall require the registration of subscriber identity
module (SIM) cards and embedded SIMs by all users.

SEC. 3. Definition of Terms. - As used in this Act:

(a) Direct seller refers to a person, natural or juridical, who directly
dispenses or sells a SIM card or a mobile device with eSIM to an end user;

(b) End user refers to any individual/subscriber who directly purchases a
SIM card or a mobile device with eSIM from a direct seller;

(c) Embedded SIM or eSIM refers to a programmable chip that is integrated
directly into the structure of the cellular or mobile device. It consists of
an embedded universal integrated circuit card (eUICC), a software
component that allows the remote SIM provisioning of multiple network
operators;


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(a) Postpaid subscription refers to the subscription wherein service is
provided by virtue of a prior arrangement with a public
telecommunications entity, and the end user thereof is billed at the end
of the monthly billing cycle according to the use of mobile service;

(©) Prepaid subscription refers to the subscription wherein credit is
purchased in advance of service use. The purchase is used to pay for
mobile phone services at the point the service is accessed or consumed.
If there is no available credit, then access to the requested service is
denied;

(0) Public Telecommunications Entity or PTE refers to any person, natural or
juridical, government or private, who engages in the provision of
telecommunications services to the public for compensation;

(g) SIM refers to the Subscriber Identity Module which is an embedded
circuit that securely stores international mobile subscriber identity and
related keys used to identify and authenticate subscribers on mobile
devices, such as mobile phones and computers;

(h) SIM card refers to a removable card into which an electronic integrated
circuit is embedded and is transferrable between different mobile
devices; and

(i) SIM card or eSIM registration refers to the process of recording and
verifying the mobile phone number and personal information of a
subscriber, by a PTE or other direct seller, including the subscriber's full
name, date of birth, gender, and address.

SEC. 4. Sale and Registration of SIM Cards and Mobile Devices with eSIM. - Every PTE
or direct seller shall require the end user of a SIM card or a mobile device with eSIM
to present valid identification with a photo to ascertain the latter's identity. The PTE
or direct seller shall further require the end user to accomplish and sign a control-
numbered registration form issued by the respective PTE of the SIM card or mobile
device with eSIM purchase. The registration form shall include an attestation by the
end user that the person appearing before the direct seller is the same person who
accomplished and signed the registration form and that the identification documents
presented are valid and correct. Failure of an end user to comply with the
requirements under this section shall be a ground for the PTE or direct seller to refuse
the sale and issuance of a SIM card or a mobile device with eSIM.

Except in cases where the PTE is the direct seller, the accomplished registration form
must be submitted by the direct seller to the concerned PTE within fifteen (15) days
from the date of sale. Failure on the part of the direct seller to comply under this
section shall constitute a violation of this Act.

SEC. 5. Coverage of Registration. ~ All direct sellers are hereby mandated to register
the following information in the SIM card or mobile device with eSIM registration
form:

(a) Full name, date of birth, gender, and address of the end user appearing in a
valid government-issued identification document with a photo. SIM card or mobile
device with eSIM end users shall be required to present the original copy of any of the
following valid government identification documents (ID) with a photo:

(1) Passport;

(2) National 1D;

(3) Digitized Social Security Service (SSS) ID;
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(4) Government Service Insurance System (GSIS) e-Card;
(5) Driver's license;

(6) Firearms’ License to Own and Possess (LTOP) ID;

(7) Professional Regulation Commission (PRC) ID;

(8) Integrated Bar of the Philippines (IBP) ID;

(9) Overseas Workers Welfare Administration (OWWA) ID;
(10) Digitized Bureau of Internal Revenue (BIR) ID;

(11) Voter’s ID;

(12) Senior Citizen's card;

(13) Person with Disabilities (PWDs) card; or

(14) Other government-issued ID.

In the absence of any of the above IDs, a National Bureau of Investigation (NBI)
clearance, police clearance, or a Philippine Statistics Authority (PSA) certified birth
certificate with an ID picture taken within the last six (6) months prior to the purchase
of a SIM card or a mobile device with eSIM shall suffice. The direct seller may make
further inquiries or require the submission of additional identification, if necessary.

The purchase of a SIM card or a mobile device with eSIM may be withheld pending
submission of the additional requirements;

(b) Assigned cell phone number of SIM card(s) or mobile device(s) with eSIM
and its serial number.

In the case of end users who are foreign nationals, they shall register their full
name, passport number, and address in the SIM card or mobile device with eSIM
registration form upon presentation of the following;

(1) For foreign nationals visiting as tourists for not more than thirty
(30) days:

(i) Passport;
(ii) Proof of address in the Philippines;

(iii) A return ticket to the country of origin or ticket to any other
country showing the date and time of departure of the tourist
from the Philippines.

(2) For foreign nationals staying for more than thirty (30) days either
as workers or students;

(i) Passport;
(ii) Full name as indicated in the passport;
(iii) _ Proof of address in the Philippines;

(iv) Alien Employment Permit issued by the Department of Labor
and Employment (DOLE);

(v) Alien Certificate of Registration Identification Card or ACRI-
Card issued by the Bureau of Immigration (BD); or

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(vi) School registration and ID for students.

SEC. 6. Submission of Registration Form. - The registration form shall be
accomplished in triplicate, and forwarded by the direct seller to the concerned PTE.
The required registration form and copies thereof shall be certified by the direct
seller or any other duly appointed officer of the PTE.

SEC. 7. Submission of Verified List of Dealers or Agents. - The PTE shall submit
to the National Telecommunications Commission (NTC), within thirty (30) days from
the date of effectivity of this Act, a verified list of their current authorized
dealers/agents nationwide. The PTE shall submit to the NTC every quarter of each
year an updated list of the same.

SEC. 8. Confidentiality Clause. - Any information in the SIM card or mobile
device with eSIM registration shall be treated as absolutely confidential unless access
to information has been granted upon written consent of the subscriber: Provided,
That the waiver of absolute confidentiality shall not be made a condition for the
approval of subscription agreements. The confidentiality clause in the SIM card
registration shall take effect at the point of sale.

SEC. 9. Disclosure of Information. - Notwithstanding the provisions of Section
8 hereof and in accordance with Section 12(e) of Republic Act No. 10173, otherwise
known as the “Data Privacy Act of 2012”, the PTE shall be required to disclose the full
name and address contained in the SIM card or mobile device with eSIM registration,
upon a duly issued subpoena or order of a court upon finding of probable cause, or
upon written request from a law enforcement agency in relation to an ongoing
investigation, that a particular number is used in the commission of a crime or that it
was used as a means to commit an unlawful act.

SEC. 10. SIM Card and eSIM Register. - All PTEs are required to maintain a SIM
Card and eSIM Register of their subscribers containing the information required
under Section 5 of this Act.

In case of loss of a SIM card or mobile device with eSIM, or any change in the
information contained in the registration form after purchase of the SIM card or
mobile device with eSIM, the subscriber shall notify the PTE within forty-eight (48)
hours from such loss or change in information, All PTEs are required to keep the data
of their subscribers and shall ensure that this data is kept with the utmost
confidentiality.

SEC. 11. Registration of Subscribers Using Existing Prepaid SIM Cards and
Mobile Device with eSIM. - All existing subscribers using prepaid SIM cards or mobile
devices with eSIM are required to register with their respective PTE within one
hundred eighty (180) days from the effectivity of this Act. An extension period of no
longer than one hundred twenty (120) days shall be allowed upon a valid written
request to the DICT.

Failure to register within the prescribed period shall authorize the PTE to
automatically deactivate its services to the concerned subscribers using prepaid SIM
cards or mobile devices with eSIM.

SEC. 12. Penalties. - The following penalties shall be imposed for failure to
comply with any of the provisions of this Act:

{a) If the offense is committed by a PTE, the President and other responsible
officers of the PTE shall be held liable, and the following penalties shall be imposed:

(1) First offense: a fine not exceeding Three hundred thousand pesos
(P300,000.00);


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(2) Second offense: a fine not exceeding Five hundred thousand pesos
(P500,000.00); and

(3) Third and subsequent offenses: a fine not exceeding One million
pesos (P1,000,000.00) for every offense;

(b) If the offense is committed by a direct seller, a penalty of suspension of its
operation and a fine of Five thousand pesos (P5,000.00) to Fifty thousand pesos
(P50,000.00) shall be imposed; and

(If the offense is committed by an officer or employee of an implementing
agency under this Act, a penalty of suspension or dismissal from service and a fine to
be determined by the court shall be imposed without prejudice to the filing of an
appropriate criminal, civil and administrative case.

SEC. 13. Implementing Rules and Regulations (IRR). ~ Within ninety (90) days
from the effectivity of this Act, the NTC, in coordination with the Department of
Information and Communications Technology (DICT) and other concerned agencies,
promulgate the rules and regulations and other issuances as may be necessary to
ensure the effective implementation of this Act.

SEC. 14. Transitory Provision. - Only direct sellers who have been duly
authorized by the PTEs and the NTC shall be allowed to sell prepaid SIM cards. Upon
the effectivity of this Act, all PTEs are mandated to recall all prepaid SIM cards for sale
to the public by those establishments not authorized by it. Otherwise, they shall be
liable for the penalties prescribed in this Act.

SEC. 15. Separability Clause. - Should any part of this Act be declared
unconstitutional or invalid, the other provisions hereof that are not affected thereby
shall continue to be in full force and effect.

SEC. 16. Repealing Clause. - All laws, decrees, executive orders, proclamations,
rules and regulations, and issuances, or parts thereof which are inconsistent with the
provisions of this Act are hereby repealed, amended, or modified accordingly.

SEC. 17. Effectivity. - This Act shall take effect fifteen (15) days after its
publication in the Official Gazette or a newspaper of general circulation.

Approved,