, . 
FIFTEENTH CONGRESS OF THE REPUBLIC 
) 
,_~, 
I 
' t I' H" 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
10 
JIlL It) "3 :34 
n 
' 
r""ft"'''''''~ '''!' r i/ 
,.,~t,~F~"->',~i' '0 
_,+~~~''''''' 
Iv 
Introduced by Senator Miriam Defensor Santiago 
EXPLANATORY NOTE 
This bill was originally drafted by the interns of the Summer sa Senado 2005 internship 
program, namely: Bernice V. Francisco; Andrew L Ruanto; Eugen Aison T, Soriano; and 
Reynard Kayne R. Y casiano, 
that: 
The Constitution, Article 2, Section 24 provides that: 
"The State recognizes the vital role of communication and information in 
nation-building' , 
Furthennore, the Constitution, Article 16, Section 9 provides that: 
"The State shall protect the consumers from trade malpractices and from 
substandard or hazardous products," 
Republic Act No, 7394, also known as the "Consumer Act of the Philippines," provides 
The State shall promote and encourage fair, honest and equitable relations 
among parties in consumer transactions and protect the consumer against 
deceptive, unfair and unconscionable sales acts or practices, 
(Article 48) (Italics supplied,) 


The use of cellular mobile phones has influenced the Filipino lifestyle and has become a 
necessity even among the youth. For better or worse, keeping in touch with family, friends, and 
business colleagues has become more convenient as cellular mobile phone technology improves 
and becomes cheaper. 
Along with the rapid increase in cellular mobile phone subscribers, however, there are 
increasing complaints about certain unwanted services which include ringing tones, polyphonic 
tones, video and picture messages, etc. Specifically, prepaid credit has been deducted 
involuntarily due to these unsought services that the cellular mobile phone providers extend to 
their subscribers. Evidently, these networks force subscribers to enter into an excessively one-
sided transactions or contracts of adhesion. 
The right of subscribers to decide how they may want to spend their credits should be 
affirmed; only they can decide how to get value out of their hard-earned money. 
This bill seeks to prohibit cellular mobile phone service providers from conveying or 
transmitting unsought services that are automatically and involuntarily charged against the 
account of subscribers by imposing penalties on unlawful acts of the said providers. I 
\ This bill was originally filed during dle 14'h Congress, 1 ,\ Regular Session 
1 


FIFTEENTH CONGRESS OF THE REPUBLIC 
) 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
SENATE 
S.No. 1558 
Introduced by Senator Miriam Defensor Santiago 
1 
AN ACT 
! q 
'1'1" " ,',"), '3 A 
IV 
d_l_ 
'1 
__ " £:f. 
2 
PROHIBITING CELLULAR MOBILE PHONE PROVIDERS FROM CONVEYING 
3 
UNSOUGHT SERVICES THAT ARE AUTOMATICALLY AND INVOLUNTARILY 
4 
CHARGED AGAINST THE ACCOUNT OF SUBSCRIBERS, IMPOSING PENALTIES ON 
5 
UNLAWFUL ACTS OF THE PROVIDERS 
Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled: 
6 
SECTION I. Short Title. - This Act shall be known as the "Unsought Cellular Mobile 
7 
Phone Services Act." 
8 
SECTION 2. Declaration of Policy. - The State recognizes the vital role of 
9 
telecommunications in economic growth and development. Towards this end, the State shall 
10 
implement measures to achieve the following objectives: 
11 
a) safeguarding against deceptive, unfair and unconscionable trade acts and 
12 
practices; 
13 
b) provision for information ,and education to facilitate sound choice and the 
14 
proper exercise of rights by the consumer; 
15 
c) provision for adequate rights and means of redress; and 
1 


1 
d) provision for sanctions and penalties for the offenders. 
2 
SECTION 3. Definition of Terms. -
3 
a) "Account" - refers to the financial credit of a subscriber; 
4 
b) "Cellular mobile phone" - refers to any wireless telephone that communicates with a 
5 
local transmitter using a short-wave analog or digital transmission. This definition includes units 
6 
that are capable of relaying and receiving visible and/or audible electronic messages; 
7 
c) "NTC" - refers to the National Telecommunications Commission; 
8 
d) "Postpaid Credit" - refers to a conventional method of payment for wireless service 
9 
where a subscriber pays for a significant portion of services and usage in arrears, subsequent to 
10 
consuming the services; 
11 
e) "Prepaid Credit" - refers to a method of payment for wireless service that allows a 
12 
subscriber to prepay for a set amount of airtime in advance of actual usage; 
13 
f) "Provider" - refers to every cellular mobile phone service provider or any profit-
14 
oriented entity or company that provides wireless telecommunications to its subscribers; 
15 
g) "Subscriber" - refers to a user of wireless service bought from a provider or a person 
16 
who avails the cellular mobile phone services offered by a provider; and 
17 
h) "Unsought services" - refers to the services which include ringing tones, polyphonic 
18 
tones, video and picture messages, etc., that a subscriber did not purchase under his postpaid or 
19 
prepaid account but is nonetheless sent or transmitted to him without permission. 
20 
SECTION 4. Unlawful Acts. - It shall be unlawful for any provider to automatically and 
21 
involuntarily charge its subscribers for unsought services that in effect: 
22 
a) reduce the prepaid credit of a subscriber; or 
2 


1 
b) increase the postpaid credit of a subscriber. 
2 
The prohibition of this section shall not apply to unsought yet free-of-charge services 
3 
used by any provider to induce its subscribers for purposes of advertisement, campaign, and 
4 
promotion. 
5 
SECTION 5. Information Campaign. - The NTC shall undertake to implement an 
6 
education and awareness campaign to infonn the public of the provisions of this Act. It shall 
7 
regularly publish a list of the offenders found to have violated any provision a/this Act. 
8 
SECTION 6. Penalties for Unlawful Acts. -
9 
(a) In General. - Not later than three (3) months after the date of enactment of this Act, 
10 
the NTC, in coordination with the Department of Trade and Industry (DTI), shall issue rules and 
11 
regulations that -
12 
i) prohibit any automatic and involuntary charge for unsought services; 
13 
ii) impose appropriate sanctions such as suspension of the operation andlor 
14 
revocation of the permit to operate of the guilty provider; 
15 
iii) impose a penalty of not less than Five Hundred Thousand Pesos (P500,OOO.OO) 
16 
but not more than One Million Pesos (PI,OOO,OOO.OO); and 
17 
iv) carry out the provisions ofthis Act. 
18 
(b) Determination of Unlawful Acts. - The NTC, in coordination with the DTI, shall 
19 
develop a system that will detennine whether any cellular mobile phone service provider 
20 
commits any unlawful acts provided in Section 4. 
3 


• 
" 
1 
SECTION 7. Disposition of Penalties. - All penalties under this Act shall be earmarked 
2 
solely and used exclusively for the following: 
3 
a) the development and maintenance of a long-term strategic national development plan 
4 
for telecommunications; and 
5 
b) the provision of adequate and efficient telecommunications facilities in unserved and 
6 
underserved areas. 
7 
SECTION 8. Separability Clause. - If any provision, Or part hereof, is held invalid or 
8 
unconstitutional, the remainder of the law or the provision not otherwise affected shall remain 
9 
valid and SUbsisting. 
10 
SECTION 9. Repealing Clause. - Any law, presidential decree or issuance, executive 
11 
order, letter of instruction, administrative order, rule or regulation contrary to or inconsistent 
12 
with the provisions of this Act is hereby repealed, modified, or amended accordingly. 
13 
SECTION 10. Effectivity Clause. - This Act shall take effect fifteen (15) days after its 
14 
publication in at least two (2) newspapers of general circulation. 
15 
Approved, 
4