THIRTEENTH CONGRESS OF THE REPUBLIC 
1 s  REGULAR SESSION 
OF THE PHILIPPINES 
The law has to adapt with technological changes in order to 
maintain the dynamism in society. It is often observed, however, that 
the law lags behind sweeping social and technological development of the 
time which significantly redefine our ways of living. 
This gospel of change is much more pronounced in the case of 
recent scientific breakthrough in micro-electronics, digital technology, 
optical fiber and satellite communications, computer hardware and 
software, and the advent of facsimile cable television technology, 
electronic mail, and internet telephony and the convergence of 
telecommunications and mass media technology and services, resulting 
in interactive multi-media services. 
Republic 
Act 
No. 
7925, 
otherwise 
known 
as 
the 
“Telecommunication Law“, does not however, cover cable television and 
internet service industries. The inadequacy of another law, E.O. No. 430, 
in addressing the concerns of the industry likewise necessitate remedial 
legislation. 
As the converging industries are impressed with public interest, 
this bill aims to provide the sectors covered by convergence the i petus 
it needs to develop by laying down the legal basis for the entry of eeded 
capital, albeit foreign-owned. To ensure the dominance of local quity, 
the bill provides incentives and support mechanisms that will p mote 
the levelling of the playing field and allow a better comparative adv 
tage 
of the different and dominant market players. 
\ 
The proposed legislation also seeks to rationalize government 
regulation of the industry by clearly delineating the powers of the 
government agency mandated by law under E.O. No. 430 and R.A. No. 
7925 and through the formulation of provision specific and categorical to 
the industry. 
Finally, 
the 
legislation 
aims 
to 
bring 
the 
Philippine 
telecommunications, 
broadcast, 
communication 
Cable 
Tv 
and 
broadband industry at par with global trends and standards through 
technology transfer. 
It is hoped that the innovations in law will ultimately redound to 
the benefit of the industry’s subscribers, of which a growing majority are 
the common Filipino masses. 


In light of the above premises, the early passage of this bill is 
earnestly urged. 


THIRTEENTH CONGRESS OF THE REPUBLIC 
1ST REGULAR SESSION 
OF THE PHILIPPINES 
’04 SEP 21 P4 54 
I 
INTRODUCED BY SENATOR MAGSAYSAY, JR. 
1 
I 
, 
AN ACT 
e it enacted by the 
ines in Congre 
TIGLEP. GEN 
 SI^ 
SECTION 1. S t Title - This A 
be known as ‘‘The 
T e l e c o ~ ~ u n ~ c a t ~ o n 5  
ergence Act of t 
ine5.” 
SEG. 2. scope ana 
ication - This Act shall apply to the 
provisioning 
of 
telecom 
ations 
related 
converging 
services 
(technologies). 
efinition an ~nterpretat~on§ 
- For purposes of this 
Act -- 
a. “ ~ Q n ~ e r ~ e n c e ~ ’  
refers to technologies movement together 
towards a common point and elimination of differences 
between the provisioning of video, voice and data, using digital 
and other emerging technologies; the coming together of two or 
more disparate discipline or technologies; the ability of 
different network platforms to carry essentially similar kinds 
of services; and the coming together of consumer devices such 
as the telephone, television and personal computer. 
nologies’q - refers to new technologies such 
local loop, telco-cable and wireless cable that 
permit the transmission and delivery of video, voice and date 
platforms; technologies that are now only becoming manifest 
or known, and are giving rise from obscurity to he p break 
down artificial monopolies and furnish economic a vantage 
via competitive provisioning of services; and new or e hanced 
telecommunications technologies, predominantly dig tal, that 
are becoming available through complementary adv L 
ces in 
other disciplines and technologies including programming, 
material sciences, 
ellite technology, optics, etc. 
u ~ t ~ ~ e d ~ a  
tran ission” is the simultaneous transmission 
of voice, video and data in a digital format; the simultaneous 
-- 


transmission of text, sound, fixed and moving images and data 
through a common media from which users may interact. 
ia service” is the furnishing of simultaneous 
transmission 
of 
voice, video and data over common 
communication facilities including copper, coaxial cable, fiber 
and or other means including wireless delivery systems in a 
digital format. 
e. 
“ ~ u t ~ o ~ i z e ~  
fac~~ities” are the physical and intangible 
facilities used in the transmission of telecommunications by 
all 
companies 
authorized 
or 
enabled 
to 
furnish 
Telecommunications, Broadcast and Value Added Services as 
defined by Republic Act 7925. 
f. 
services” are the communication services 
sing bandwidth larger than voice grad , either 
wireline or wireless which typically carry far more inf rmation 
in a short amount of time than narrowband voice te hnology 
but have historically been much more expensive. 
g. “Asynchronous Transfer 
)’9 
- 
is a mu tiplexed 
information transfer technique in which information is 
organized into fixed length cells and transmitted according to 
each end user’s instantaneous needs. 
h. 
“Intermet” refers to a large international “network of 
interconnected networks.”; a world-wide interconnection of 
national and regional networks that offer E-mail, file transfer, 
and other network services. 
- 
I 
eclaration of a National ~ o ~ i c y  
- The State recognizes 
the vital role of communications and information in nation building and 
that telecommunications is essential to the economic development, 
integrity and security of the country. The State shall provide the policy 
environment for the full development of Filipino capability and the 
emergence of communication structures suitable to the needs and 
aspirations of the nation and the balanced flow of information into, out 
of, and across the country, in accordance with a policy that respects the 
freedom of speech and of the press. 
The State recognizes the reality of rapid and explosive change that 
has never previously occurred in human history, the way and manner in 
which humans communicate, as well the need to understand and take 
stock of the56 changes and their technologies and the technological 
reasons, essential to the economic development, integrity and security of 
the Philippines. 
To promote the growth and development of telecommunication 
services, the development, future changes and growth of the Philippine 
economy and the telecom sector shall be pursued in accordance with the 
following policies; 
a. Recognizing and understanding that convergent m 
applications for the simultaneous transmission of 
and data requires new approaches to furnish these 
a widespread basis to the advantage of the Filipino 


b. Promoting the competitive provisioning of multimedia services 
by 
all 
companies 
authorized 
or 
enabled 
to 
furnish 
telecommunications, broadcast and Value Added Services as 
defined by RA 7925 and other existing laws. 
c. Authorizing and conferring upon all companies currently 
authorized 
or 
enabled 
to 
furnish Telecommunications, 
Broadcast Value Added Services, as defined by R.A. No.7925, 
and related business activities to provide (for) Multimedia 
services, such as the furnishing of simultaneous transmission 
of text, voice, and data over existing or new communication 
facilities, including cable plant whether copper, coax fiber 
and/ or by any other means including wireless delivery 
systems, and as further provided for hereunder. 
- 
SECTIQ 
5. 
es~~nsi~i~it~es 
of 
the 
Te~ecca~~~nications ssican- The National Telecommu 
Commission (NTC) shal 
principal administrator of this 
such, shall take the necessary measures and remove any imp 
implement the policies and objectives as set forth in this 
such, shall take measures to implement the policies and o 
forth in this Act, and shall adopt the necessary rules and regulations 
based on market freedoms, business realities and the general interest 
objectives of this Act to remove impediments and facilitate the rapid 
introduction of convergent multimedia services. 
Additionally, the NTC shall ensure fair and equitable access to 
critical radio frequency spectrum, and efficiency in the use of available 
spectrum by current and new users. 
6. ~ ~ t ~ o r i ~ a t ~ o n  
of Teleco ~ ~ m ~ c a t i o n  
P ~ o ~ ~ a e ~ s -  
All 
companies authorized to furnish Telecommunications, Broadcast and 
Value Added Services, as defined by R.A. no. 7925 and those in related 
business activities brought together into convergence under this Act 
shall henceforth be authorized under this Act to competitively provision, 
through their authorized facilities, multimedia services as defined by this 
Act. This includes telephone companies furnishing entertainment 
services, and broadcast, cable television and internet companies 
furnishing switched voice and data services, as well as entertainment 
services and as further provided for hereunder. 
~ .. 
~ 
Section 7. ~ ~ a ~ c ~ i s e ,  
~ ~ t ~ o ~ ~ t ~ e s  
to frarnis 
Services.. All 
persons whose Franchises authorize the " conduct of business of being a 
public telecommunications entity", and all Value Added Service Providers 


engaged in furnishing Internet service, who have received all required 
approval(s) from the NTC, necessary to operate and furnish services shall 
be henceforth authorized to furnish multimedia services as enumerated 
in this Act. 
s 
~ ~ a r ~ b i ~ ~ ~ y  
Clause- Any provision or provisions of 
this Act that may be declared unconstitutional or invalid shall not have 
the effect of nullifying other portions or provision hereof as long as such 
remaining portions can still subsist and be given effect in their entirety. 
ealing Clause- All laws, ordinances, rules 
regulations, and other issuance or parts thereof which are inconsistent 
with +this Act a12 hereby repealed or modified accordingly. 
~
E
~
T
~
~
~
 
10. E
~
~
~
~
~
~
v
~
l
y
 
Clause- This Act shall take effect fifteen 
(15) days from the date of its publication in least two (2) newspapers of 
general circulation. 
APPROVED,