FOURTEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES 
) 
First Regular Session 
S. B. No. 
2 
Introduced by Senator Manny Villar 
EXPLANATORY NOTE 
Use of 
e Over Internet Protocol (VOIP) as an alternative __ public switched 
telephone network (PSTN) lessens communication costs. Its new applications and 
adoption of computer technology provide wide unregulated usage which makes it 
vulnerable to misuse and abuse. Thus, its classification will properly regulate VOlP 
operation among network and Value Added Service (VAS) providers as well as the 
subscribers. 
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FOURTEENTH CONGRESS OF THE) 
REPUBLIC OF THE PHILIPPINES 
) 
First Regular Session 
Introduced by Senator Manny Villar 
AN ACT TO PROMOTE AND GOVERN THE DEVELOPMENT OF VOICE OVER 
INTERNET PROTOCOL IN THE PHILIPPINES 
Be if enacfed by the Senate and the House of Represenfatives in Congress 
assembled: 
ARTICLE I. GENERAL PROVISIONS 
SEC.1, Short Title - This Act shall be known as the "Philippine VOIP Act." 
SEC. 2. Scope and Application - This Act shall apply to any person or entity 
seeking to provide Voice Over Internet Protocol (VOIP) services to the public for 
compensation. 
SEC. 3 Definitions - For Purposes of this Act, the following terms shall have the 
following meanings: 
(a) Public telecommunications entity (PTE) - any person, firm, partnership or 
corporation, government or private, engaged in the provision of telecommunications 
services to the public for compensation; 
(b) Value Added Service (VAS) - enhanced services beyond those ordinarily 
provided for by local exchange and inter-exchange operators, and overseas carriers, 
where "ordinarily provided" services shall mean voice services offered through circuit 
switched networks; 
(c) Voice Order Internet Protocol (VOIP) - a value added service that provides 
voice communication using Internet Protocol (IP) technology, instead of traditional 
circuit switched technology; 
(d) Customer Premises Equipment (CPE) -equipment located in the premises of 
a customer which is not part of but connected to the system or network of the PTE. 
ARTICLE II: POLICY AND OBJECTIVES 
SEC.4. Declaration of National Policy - It is the policy of the State to recognize 
the role and contribution of communications in nation building. It is likewise the policy to 
recognize the need to (I) provide for the emergence of communications structures 


suitable to the needs and aspirations of the nation, and (2) encourage the development 
of new applications and services that can enhance Philippine competitiveness in the 
global information and communications technology (ICT) market. 
The growth and development of voice over internet protocol, a value added 
service, shall be pursued in accordance with the following objectives: 
(a) To protect, promote and develop any and all modes, means and forms of 
communications and make the same available and accessible to the general public, 
and: 
(b) To encourage the growth, development and sustenance of VOlP as an 
alternative mode of communications and shall not be restricted by the laws, rules and 
regulations of telecommunications; 
(c) To foster a healthy competitive environment in which telecommunications 
companies and internet service providers are free to make business decision and to 
interact with one another in providing VOlP while maintaining globally competitive 
consumer rates and ensuring their financial viability; 
ARTICLE 111: ADMINISTRATION 
SEC. 5. Responsibilities of the National Telecommunications Commission (NTC) 
- The National Telecommunications Commission (NTC) shall be the principal initiator of 
this Act and as such shall take the necessary measures to implement the policies and 
objectives set forth in this Act. 
SEC. 6. Registration - Any person or entity seeking to provide VOlP for use by 
the public for compensation shall register themselves as such with the NTC prior to 
operation as VOlP provider; 
SEC. 7 Interconnection - The NTC shall determine the interconnection rates to 
be charged by the network access provider that the VOlP service provider shall pay for 
access. In order to insure that the VOlP service provider shall have a fair and 
reasonable margin to make the operations technically and financially viable, the 
National Communications Commission shall not allow prohibitive interconnection rates. 
SEC. 8 Equal Access - Network providers shall ensure equal access in terms of 
quantity and quality, at the same prices for substantially similar service to VAS providers 
and shall not discriminate between VAS providers. For this purpose, the parties shall 
submit a copy of their agreements on these matters for purposes of the monitoring and 
supervision by the NTC. 
No public telecommunications entity, network provider or other entity providing 
internet access to subscribers and VAS providers shall impede or degrade the access 
of such subscribers and VAS providers to the internet content of another application or 
service provider, except where such access demonstrably threatens the integrity of their 
network or facilities. 
SEC. 9. Customer Premises Equipment. The sale, lease, importation, distribution 
and or provision of customer premises equipment (CPE) designed to enable or ease the 
use of VOlP shall be governed by the existing rules and regulations on CPEs. 
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CPE and/or accessories designed to enable or ease the use of VOlP not directly 
connected to the networks of PTEs shall not require type approvaVacceptance except 
when the VOlP equipment andlor accessories use radio spectrum 
SEC. 10. Subscribers Rights - Network andlor internet service providers shall not 
require subscribers to purchaseluse or to refrain from purchasinglusing any IP-enabled 
service as a pre-condition to obtaining their broadband service. 
SEC. T I ,  Separability Clause - Any portion or provision of this Act that may be 
declared unconstitutional or invalid shall not have the effect of nullifying other portions 
or provisions hereof, as long as such remaining portions or provisions can still subsist 
and be given effect in their entirety. 
SEC. 12. Repealing Clause - All laws, ordinances, rules and regulations and 
other issuances or parts thereof which are inconsistent with this Act are hereby 
repealed or modified accordingly. 
SEC. 13. Effectivity Clause - This Act shall take effect thirty (30) days after its 
publication in two newspapers of general circulation. 
Approved, 
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