Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
TWENTIETH CONGRESS 
First Regular Session 
HOUSE BILL NO. _________ 
Introduced by:  REP. SALVADOR A. PLEYTO, SR. 
EXPLANATORY NOTE 
In an increasingly digital world, reliable access to telecommunications and internet 
services has become a fundamental necessity for work, education, commerce, and social 
interaction. Despite their critical importance, consumers frequently experience service outages 
and disruptions, ranging from intermittent internet connectivity to complete loss of signal for 
extended periods. Under current regulations, there is often no clear and consistent mechanism 
for subscribers to seek and obtain appropriate compensation or refunds for these service 
interruptions. 
This lack of a standardized refund system is a big disadvantage to consumers who pay 
for services they do not fully receive.  Further, without direct financial repercussions for 
outages, PTEs and ISPs may have less incentive to invest in robust infrastructure, proactive 
maintenance, and rapid service restoration. 
While some providers may offer partial refunds or rebates on a particular basis, and 
others offer none, this leads to inequitable treatment among subscribers.  Repeated 
uncompensated service disruptions can lead to consumer frustration and a decline in trust 
towards service providers. 
This bill seeks to address these deficiencies by establishing a clear, mandatory, and 
transparent refund mechanism. PTEs and ISPs will be legally required to institute a mechanism 
for providing refunds or rebates to subscribers for periods of service outage or disruption. The 
definition of service outages and disruptions will also be outlined, which could vary from 
significant degradation of internet speed, or the connectivity is below the advertised and 
subscribed plan. 
Mandating public telecommunications entities and internet service providers to institute 
a refund mechanism for service outages and disruptions represents a crucial step towards 
strengthening consumer rights and fostering greater accountability in the telecommunications 
sector. By ensuring fair compensation for service interruptions, the bill aims to incentivize 
improved service quality and build greater trust between providers and their subscribers, 
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10:25 am
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ultimately benefiting the entire digital ecosystem in the Philippines. Its successful 
implementation will require clear guidelines, robust oversight, and cooperation from all 
stakeholders. 
In view of the foregoing, the immediate consideration and passage of this bill is hereby 
earnestly sought. 
SALVADOR A. PLEYTO, SR.      


Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
TWENTIETH CONGRESS 
First Regular Session 
HOUSE BILL NO. _________ 
Introduced by:  REP. SALVADOR A. PLEYTO, SR. 
___________________________________________________________________________ 
AN ACT MANDATING PUBLIC TELECOMMUNICATIONS ENTITIES AND 
INTERNET SERVICE PROVIDERS TO INSTITUTE A REFUND MECHANISM FOR 
SERVICE OUTAGES AND DISRUPTIONS, PROVIDING PENALTIES FOR 
VIOLATIONS THEREOF 
Be it enacted by the Senate and the House of Representatives of the Philippines in Congress 
assembled: 
SECTION 1. Short Title. – This Act shall be known as “Refund for Internet and 
Telecommunications Services Outages and Disruptions Act.” 
SEC. 2. Declaration of Policy. – The State recognizes the vital role of information and 
communications technology in nation building. The State shall implement measures to 
provide for regulations on internet and telecommunications services offered by public 
telecommunications entities (PTEs) and internet service providers (ISPs), and ensure that 
the interest and welfare of its people and the consuming public are protected and upheld. 
SEC. 3. Definition of Terms. – As used in this Act: 
(a) Fortuitous event refers to either an “act of God” or natural occurrences, such as floods,
typhoons, storms, earthquakes, and the like; or an “act of man”, such as riots, strikes, wars,
governmental prohibitions, robbery, theft, sabotage, cyberattacks, deliberate destruction, or
accidental damage to telecommunications facilities by third parties and the likes;
(b) Internet refers to the biggest global computer network providing a wide variety of
information and communication facilities, consisting of interconnected networks
using standardized communication protocols;
(c) Internet Access refers to the process of connecting to the internet using personal
computers, laptops, or mobile devices by users;
(d) Internet Service Provider (ISP) refers to a public telecommunications entity (PTE)
or value-added service (VAS) provider duly authorized by or registered with the National
Telecommunications Commission (NTC) that provides users or other entities with data
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connection allowing internet access through physical transport infrastructure, and such access 
is necessary for internet users to access content and service on the internet, and for content 
providers to publish or distribute materials online; 
 
(e) Network maintenance refers to any process, whether minor or major, that is deemed 
necessary to sustain or update the services. This is further categorized as “scheduled” and 
“emergency”. The services provided may not be available during periods of maintenance, thus: 
 
(i) Scheduled network maintenance refers to planned repairs and improvements 
carried out from time to time by PTEs and ISPs and shall not be deemed as service 
outage or disruption; and 
 
(ii) Emergency network maintenance refers to unscheduled maintenance where a 
repair is needed to an internet equipment or facility that suffered from unexpected 
breakdown or change in condition. 
 
(f) Public Telecommunications Entity or PTE refers to any person, firm, partnership, or 
corporation, government or private, engaged in the provision of telecommunications services 
to the public for a fee; and 
 
(g) Scheduled network maintenance refers to planned repairs and improvements, carried out 
from time to time by PTEs and ISPs, which are notified at least 48 hours in advance and 
which shall not exceed a cumulative duration of 48 hours per month, shall not be deemed as 
service outage. 
 
SEC. 4. Coverage. – All Public Telecommunication Entities (PTEs), including internet 
service providers (ISPs) in the Philippines shall be covered by this Act. 
 
SEC. 5. Refunds for Internet and Telecommunications Service Outages and Interruptions. – 
PTEs, including ISPs, shall, on a pro-rated basis, provide a refund credit to a customer, or adjust 
a customer’s bill, who was adversely affected by an internet service outage or interruption for 
an aggregate period of twenty-four (24) hours or more, within a month, except when the reason 
for such outage is due to scheduled maintenance which should be notified 48 hours prior to the 
scheduled maintenance and should not exceed 48 hours in a month, a fortuitous event, or acts 
of third party or subscriber. The PTEs and ISPs concerned shall apply a bill adjustment, 
automatically, without need of demand from the subscriber, after a standard process but shall 
not preclude the consumer from filing a complaint to the appropriate administrative or quasi-
judicial agency for disputes regarding refund or bill adjustment amount. 
 
The refund credit granted under the circumstances mentioned supra, shall likewise be 
granted to customers subscribing to a service on a pre-paid basis. 
 
SEC. 6. Penalties. – The NTC may, motu proprio or upon complaint of any interested 
party, in the appropriate administrative or quasi-judicial process, and in accordance with 
due process: 
 
(a) Impose a fine of not less than Fifty thousand pesos (₱50,000.00) but not more than 
Two hundred thousand pesos (₱200,000.00) for each count of violation; and 
 
(b) For repeated violations, aside from fine, revocation or cancellation of the license, 
registration or franchise of the PTEs or ISPs, whichever applies, including the waving 


of any pre-termination fees of affected subscribers and timely disbursement of any 
remaining credits from excessive downtime. 
 
SEC. 7. Implementing Rules and Regulations. – Within sixty (60) days from the effectivity of 
this Act, the NTC shall, in coordination with the Department of Information and 
Communications Technology, and other concerned agencies, promulgate the rules and 
regulations 
necessary 
to 
ensure 
the 
effective 
implementation 
of 
this 
Act. 
 
SEC. 8. Repealing Clause. – All laws, presidential decrees, executive orders, proclamations, 
rules and regulations, or any part thereof, which are inconsistent with the provisions of this 
Act are hereby repealed or modified accordingly. 
 
SEC. 9. Separability Clause. – If any provisions or part of this Act, or the 
application thereof to any person or circumstance, is held unconstitutional or invalid, the 
remainder 
of 
this 
Act 
shall 
not 
be 
affected 
thereby. 
 
SEC. 10. Effectivity Clause. – This Act shall take effect fifteen (15) days from its 
publications in the Official Gazette or in a newspaper of general circulation. 
 
Approved,