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Republic of the Philippines
HOUSE OF REPRESENTATIVES.
Quezon City

SEVENTEENTH CONGRES
First Regular Session

BILL NO. 4265

HO!

Introduced by REP. EVELINA G, ES

SUDERO.

EXPLANATORY NOTE

The use of cellular telephones has indeed increased in the country since its introduction in
the late 90°s, when they were first considered as status symbols. These days, they are so common
place that almost every other person you bump into is either talking on the cell; is busy texting; or
even listening to music, watching videos, surfing the internet or even playing games in their
“smart” cellular phones or “smart-phones.”

The expansion of the cellular service allowed millions of Filipinos from all social classes to
own a cellular unit. However, with the growth of the wireless telephone network, it is inevitable
that problems come along with it, It is not uncommon that we hear complaints like dropped calls:
network congestion resulting to delayed receipt of text messages; interconnection problems with
competing cellular companies; and even top-up loads that simply “vanish” for unknown reasons
{aifecting the pre-paid customers).

Since a large portion of the population rely on this telecommunication service, it is indeed
imperative that a law be set in place to protect the rights of the subscribers who, at times, suffer
from the inefficient service provided by the different telecommunication companies.

For these reasons, as introduced by Senator Miriam Defensor-Santiago in the 16"" Congress,
this bill is respectfully submitted.

ELINA G. ESCUDERO.


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
First Regular Session

HOUSE BILL NO. 4265

Introduced by REP. EVELINA G, ESCUDERO

AN ACT
PROTECTING CONSUMERS OF WIRELESS TELEPHONE SERVICES

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 “Wireless Telephone Consumer
Protection Act.”

SEC. 2. Definitions. For purposes of this Act, the term:

a) “Commission” — means the National Telecommunications Commission (NTC):

b) “Internet” —means the shared global computing network, A network based on standards
including Internet Protocol (IP), Simple Mail Transfer Protocol (SMTP) and the Domain
Name System (DNS), which enables global communications between all connected
computing devices. It provides the platform for web services and the World Wide Web;

Wireless telephone services” -means commereial mobile radio service;

‘Wireless telephone service provider” or “provider” — means any entity that provides
wireless telephone service in the country; and

e) “Wireless telephone number information” —means the telephone number, electronic
address and any other identifying information by which a calling party may reach a

seriber to commercial mobile services, and which is assigned by a wireless telephone

provider to such subscriber

SEC. 3. Information Requirement. Within 180 days following the effective date of this Act.
the Commission shall adopt rules and regulations requiring that any publication, including
publication on the internet, of a wireless telephone service provider concerning the terms of its
plans or contracts for wireless telephone service shall set forth, in a plain and conspicuous manner,
ihe following information:

(J) Information on charges, including the originating location of the call, monthly base
charge, per-minute charges for minutes not included in the plan, and the method of
calculating minutes charged;


(2) Information on the minutes included in the plan, including allowable minutes during
daytime and weekdays, allowable minutes during nights and weekends, or any other
differing charges for long distance, roaming, incoming and directory assistance;

(3) Information on plan or contract terms, including length of contract, early or other
termination fees, trial periods, and start-up fees;

(4) Information on taxes collected by the provider for, and paid to the national, local, or
other governmental agency:

(5) Information on surcharges imposed by the provider for the costs of compliance with
regulations or for other purposes; and

(6) Any other information that the Commission considers appropriate to ensure that
consumers of wireless telephone service are fully informed of the terms of the plan or
contract.

The wireless telephone service providers shall provide the information required by this
section to a consumer prior to entering into any contract with a consumer for wireless telephone
service.

SEC. 4. Information on Service Coverage. Each wireless telephone service provider shall
make available maps showing the wireless telephone service area of such provider and the wireless
telephone service area of such provider within the country. Such maps shall contain practicable
level of granularity and shall be updated quarterly.

Each map of service required under subsection a, of this section shall be provided to a
consumer:

(1) upon the request of the Consumer; and

(2) whenever a plan or contract for the service is entered into.

Each map of service required under subsection a, of this section shall be available:
(1) on the Internet website of the provider concerned; and
(2) on the Internet website of the Commission.

SEC. 5, Monitoring. The Commission shall monitor the quality of wireless telephone
service providers based on the following standards:

(1) dropped eal

(2) blocked call:

(3) known coverage gaps (including average signal strength) or dead zones:

(4) predicted stress level signal strength; and

(5) any other matters the Commission considers appropriate.

In monitoring the quality of wireless telephone service, the Commission shall
establish a website which allows the public to submit their comments and views to the
Commission on the quality of such service. The Commission shall also accept written
complaints by mail.

SEC. 6. Availability of Information. The Commission shall make information available to
wireless telephone service providers and the public on a semiannual basis concerning the quality of
wireless telephone service of the provider.

SEC. 7. Extension of Contract. An extension of a contact for wireless telephone service
shall not be valid unless the extension of the contract is in writing and is signed by the subscriber,
or confirmed in writing and signed by the subscriber within seven days of the receipt of the
subscriber



SEC. 8. Notice on Change of Terms. A wireless telephone service provider shall provide
subseribers with written notice of any change in rates, terms, or conditions of service at least days
before the change is to take effect. If any such change will result to higher rates or more
restrictions on service or otherwise will result in a material, adverse change for such subscriber, the
subscriber may, within such 30-day period, terminate the service without penalty and receive a pro
rata refund of the charges, if any, paid for the handset used for the service, The notice of change
shall inform the subscriber of the right to terminate the contract, the right to a handset refund, and
the steps to take to implement such termination.

SEC. 9, Cancellation of Contract. A contract for wireless
the request of the subscriber for any reason during the first days. ‘There shall be no penalty or other
costs to the subscriber for any cancellation during these 30 days, except that the subscriber shi
responsible for the cost of the service used during the time period that the contract was in effect.

ervice may be, canceled upon

SEC. 10, Billing. A wireless telephone service provider shall provide bills for wireless
telephone services that are clearly organized and clearly described in plain language the products
and services for which charges are imposed, and that conform to format standards established by
the Commission.

SEC. 11. Taxes, Taxes and fees which are required by the law, or local ordinance or
regulation to be collected from the subscriber shall set forth ina separate section of the bill and
shall be itemized separately. ‘This section of the bill shall only contain charges that the provider is
required to be recovered from subscribers pursuant to law.

SEC. 12, Roaming charges. Roaming or off-network charges shall be itemized on the
subscriber's bill within 60 days of call being placed, and such roaming or off-network charges shall
identify the date and originating location of the call

13. Request for Billing Statement, Upon the request of a subscriber. a wireless
telephone service provider shall provide an itemized bill to the subscriber at no cost to the
subscriber

iC. 14. Charges on Unauthorized Use. Charges associated with the use of wireless
telephone equipment or services shall not be the liability of the subscriber if such use was
unauthorized by the subscriber due to lost or theft, provided that such loss or theft is promptly
reported the wireless telephone service provider.

SEC. 15, Rules and Regulations on Complaint. The Commission shall adopt rules and
pulations as may be necessary to allow subscribers to file complaints with the Commission with
yard to billing disputes between wireless telephone service providers and subscribers.

SEC. 16, Non-termination of Service. A wireless telephone service provider shall refrain
from terminating a subscriber's service for nonpayment so long as the subscriber's billing
complaint is pending before the Commission and for 15 days thereafter, or for such period as the
Conimission for good cause shall establish, provided that as a condition of continued service during
the pendency of such dispute, the subscriber shall pay the undisputed portions of any bill for
service and any amounts the Commission determines are necessary to fairly compensates the
wireless telephone provider for services rendered while the complaint is pending and 15 days
thereafter



SEC. 17, Publication of Information, A wireless telephone service provider, or any direct
or indirect affiliate or agent of a provider, providing the name and wireless telephone number
information of a subscriber for inclusion in any directory of any form, or selling, leasing, licensing
or sharing the contents of any directory database, or any portion or segment thereof, shall not
include the wireless telephone number information of any subscriber without first obtaining the
express consent of that subscriber. The provider's form for obtaining the subscriber's express
consent shall meet all the following requirement

(1) it shall be a separate document that is not attached to any other document;

(2) it shall be signed and dated by the subscriber;

(3) it shall be unambiguous and legible, and shall conspicuously disclose that, by signing
the form, the subscriber consents to having the subscriber's wireless telephone number
information sold or licensed as part of a list of subscribers and having the subscriber's
Wireless telephone number information in a publicly available directory; and

(4) if under the subscriber's calling plan the subscriber may be billed for receiving
unsolicited calls or text messaging from a telemarketer, the provider’s form shall be
unambiguous and legible, and shall conspicuously disclose that, by consenting to have
the subscriber's wireless telephone number information sold or licensed as part of a list
of subscribers or to be included in a publicly available directory, the subscriber may
incur additional charges for receiving unsolicited calls or text messages.

SEC, 18, Revocation of Consent. A subscriber who provides express prior consent pursuant
to the preceding section may revoke that consent any time. A wireless telephone service provider
shall comply with the subscriber's request to opt out within a reasonable period of time, not to
exceed 60 days.

SEC. 19. Exceptions. The provisions of Section 17 shall not apply to the following parties

for the purposes indicated:

(1) To a collection agency, to the extent disclosures made by the provider are exclusively
for the collection of subscriber's unpaid debt to the provider;

(2) To any law enforcement agency:

(3) Toa lawful process issued by the court under the law;

(4) To a telephone company providing service between service areas for the provision to the
subscriber of telephone service between service areas, or to third parties for the limited
purpose of providing billing services;

(5) To a telephone company to effectuate a subscriber's request to transfer the custome!
assigned telephone number from the _customer’s existing provider of,
telecommunications services to a new provider of telecommunications services; and

(6) To the Commission pursuant to its jurisdiction and control over wireless telephone
providers.

SEC. 20, Penalties. Any director, officer or agent of a corporation who shall authorize,
order ot perform any of the acts or practices constituting in whole or in part a violation of Section
3. and who had knowledge or notice of noncompliance received by the corporation from the
Commission, shall upon conviction, be subject to a fine of not less than One Hundred Thousand
Pesos (P 100,000.00) but not more than One Million Pesos (P1,000,000.00) or imprisonment of not
less than six (6) years but not more than twelve (12) years, or both upon the discretion of the court.

In case the violation committed by, ot in the interest of a judicial person duly licensed to
engage in business in the Philippines, such license to engage in business shall also be immediately
revoked



EC. 21. Authority of the Commission. The Commission shall enforce this Act in the same
manner and by the same means as though all applicable terms and provisions of the Public
Telecommunications Policy Act of the Philippines were incorporated into and made part hereof.
The Commission may prescribe regulations to carry out this Act.

SEC, 22. Separability Clause. If any provision or part thereof, is held invalid or
unconstitutional, the remainder of the law or the provision not otherwise affected shall remain valid
and subsisting.

SEC. 23. Repealing Clause, Any law, presidential decree or issuance, executive order,
letter of instruction, administrative order, rule or regulation contrary to, or inconsistent with the
provisions of this Act is hereby repealed, modified or amended accordingly.

SEC. 24, Effeetivity Clause, This Act shall take effect fifteen (15) d
on the Official Gazette or in two (2) newspapers of general circulation,

after its publication

Approved,

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