Republic of the Philippines
HOUSE OF  REPRESENTATIVES
Quezon City
NINETEENTH CONGRESS
First Regular Session
HousE`BILLNo.   4955
Introduced by:  Hon.  Keith  Micah  ``Atty.  Mike"  D.L. Tan
AN ACT
ESTABLISHING INFORMATION AND COMMUNICATIONS TECHNOLOGY
HUBS NATloNWIDE
EXPLANATORY NOTE
Telecommunications and  Information  and  Communications Technology (ICT)  play a vital
role   in   nation   building   and   development.   By   leveraging   digital   technologies,   government,
businesses,  and  citizens can  realize its widespread  benefits and  positive socioeconomic effects.
The  importance  of  lcT  has  become  more  apparent  during  the  COVID-19  pandemic  especially
when  social  distancing  and  lockdowns  have  been  enforced  throughout the  country.  Over the
past years,  lcT has  been widely used  which  profoundly altered the way the world  has worked,
learned, carried on with basic daily tasks and connected with  people.
The Akamai State of the  Internet  Report for the  2nd  Quarter 2016  ranks the  Philippines
at 6th out of 15 Asia-Pacific countries with an average mobile internet speed of 8.5  Mbps and  a
peak connection  reaching as high  105.1  Mbps.1  Due to the  Philippines'  archipelagic geography,
development of a  robust lcT infrastructure poses a  huge challenge. Connectivity remains higher
in  urban  centers,  weak  digital  infrastructures  persist  in  more  rural  areas  and   lcT  materials
remain to  be costly. The  digital  landscape  has  made  productivity a  privilege  and those without
sufficient  access  and  means  are  left  behind,  losing  out  on  opportunities  from  basic  amenities
and quality education, to decent work and reskilling.
To close the widening digital divide, this bill seeks to establish  lcT hubs in geographical
and accessible locations in the provinces, to provide for a facility offering physical workspace,
venue for ICT skills development, and lcT materials for use in order to help students, start-up
companies, and or any individual needing such services by providing access to the latest
knowledge, expertise and technology to support them.
This bill shall further increase access to internet, strengthen the information literacy of
Filipinos, and drive nation-building in the digital age, expand information and communications
technology (lcT) and infrastructure throughout the country to facilitate the access of the
citizenry to goods and services.
In view of the foregoing, the immediate passage of this measure is earnestly sought.
Kei h Micah ``Atty. Mike" D.L. Tan
4th  District, Quezon


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City
NINETEENTH CONGRESS
First Regular Session
HousE`BIL`L No.   4955
Introduced  by:  Hon.  Keith  Micah  ``Atty.  Mike"  D.L. Tan
AN ACT
ESTABLISHING INFORMATION AND COMMUNICATIONS TECHNOLOGY
HUBS NATIONWIDE
Be in enacted by the Senate and House of Representatives of the Philippines in Congress
assembled:
SECTION  1. Short tit/e. -This Act shall  be known  as the ``Online  Network Philippines Act
or OnNetph''.
SEC.  2.  Dec/orcrtt.on  o/ Po/i.cy.  - The  State  recognizes  the  vital  role  of  information  and
communication  in  the  development  and  in  promoting growth  in  the  countryside.  To  this  end,
the  State  shall  encourage the  expansion  of information  and  communications  technology  (ICT)
and  infrastructure throughout the country to facilitate the access of the citizenry to goods and
services.
Pursuant   thereto,   the   State   shall   establish    ICT   hubs   throughout   the   country   in
accordance with the National  ICT Roadmap and  National  lcT Plan.
SEC. 3. Definition of Terms. -As used .in th.is A`ct..
a.    Bcrndwt.dth   refers  to  the  amount  of  data  that  can   be  transmitted   over  a   network
connection over a period of time;
b.    Brocrdbcrnd  refers  to  a   high   capacity  transmission  technique   using  a  wide   range  of
frequencies   which    enables    a    large    number   of   messages   to    be    communicated
simultaneously.  In  the  context  of internet  access,  it  refers  to  access  that  is  continuing
and unhindered, and faster than the traditional dial-up mode;
c.    Broodbond network refers to a network able to transmit signals with a  high  bit rate and
a  transmission  channel  being  equal  to  or  greater  than  two  megabits  per  second   (2
mbps);
d.    Comm/.tfed  /.r}/ormcit/.on  rcJte  refers  to  the   information   rate  guaranteed   by  a   public
telecommunications  entity  (PTE).  The  bandwidth  cannot fall  below the  committed  rate
of ninety-eight point five percent (98.5°/o) of the time;
e.    Cyber skills  learning  hub  or  Digital  transformation  center rofers to a fadiity  spedif.icallv
designed  for  cyber-education  and  digital  literacy,  and  that  provides  knowledge,  skills,
theoretical  and   practical  experiences,  and   access  to  technologies  for  all   learners  to
become information and technology proficient;


critical  support  such  as  online  data  storage,  data  processing,  core  computing  services,
data   and   application   backup  services,   and   distributing  large   amounts  of  data  from
remote  data  facilities.  The  operation   and   management  thereof  shall   be  subject  to
pertinent   laws   and    policies   on    data    security   to    prevent,    detect   and    intercept
unauthorized access of data, especially on matters of national security;
9.    D/.g/.ro/  /.nnovoti.on   hub   refers  to   a   specialized   business   incubation   and   acceleration
facility offering  physical  workspace,  mentoring  and  coaching,  and  devices  for technical
application testing or experimenting,  and training.  It is a  one-stop-shop,  usually but not
always  affiliated  with  educational  institutions,  that  helps companies  including start-ups
to   become   more   competitive   with   regard   to  their   business   production   processes,
products   or   services   using   digital   technologies   by   providing   access   to   the   latest
knowledge, expertise and technology to support them;
h.    Information  and  communications  technology  (ICT)  refers  to  the  total.ity  of  electron.ic
means   to   access,   create,   collect,   store,   process,   receive,   transmit,   present,   and
disseminate information;
•i.     Information  and  communications  technology  hub  (ICT  hub)  refers to  a locatiion where
lcT  services  may  be   provided   by  a   PTE  with   at  least  the   minimum   internet  speed
required   by  the  National  Telecommunications  Commission   (NTC).   Such  services  may
include  telecommunications  services,   broadband  and  convergence  services,   business
processing and data management;
•i.     Information  technology  and  business  processing  management  hub  refers to  a locatiion
that caters to and offers support mechanisms for companies and enterprises engaged in
lT services and business process management and operations;
k.    Pub/i.c   fe/ecommunt.colt.ons   enttty   /PIE/   refers   to   any   person,   natural   or  juridical,
government or private  engaged  in the  provision  of telecommunications services to the
public for compensation.
SEC.  4.  Establishment  of  Information  and  Communications  Technology  Hubs.  - There
shall  be  established  lcT hubs  all  over the country  in  accordance with  a  National  lcT  plan to  be
prepared  by the Department Information and Communications Technology (DICT). The ICT Plan
shall  assess the needs of every province in the country and  identify the appropriate types and
the  number of ICT hubs to  be  developed  therein.  Every  province  shall  have  at  least one  (1)  of
the following classifications of lcT hubs based on the type of activity that it hosts:
a.     DataFarms;
b.    Information Technology (IT) and  Business Processing Managemen.t (BPM)  Hub;
c.     Cyber Skills Learning Hub and  Digital Transformation  Center (DTC);
d.    Digital  Innovation  Hub; and
e.    Any other lcT hub that may arise in the future.
Pursuant   to   the   lcT   plan   and   the   national,   provincial,  .city,   or   municipal   spatial
development  plans,  the  DICT  and  the  local  government  units  (LGU)  shall  identify  the  areas
where the  lcT hubs shall  be  established  based  on  geographical  area  and  population:  Provided,
That    lcT   hubs   shall    be    developed    in    geographically   equitable   and    accessible    locations
throughout  the  province:  Provided,  further,  That  the  area  or  site  of an  lcT  hub  shall  be  on  a
property owned by an  LGU.
SEC. S.  Role  of the  DeDartment of Information  and  Communications Technoloav  (DICT).


encourage    private   sector   participation    and    promotion    of   competition.   The   Cybercrime
Investigation  and  Coordinating Center of the  DICT shall formulate, oversee and validate the  lcT
cyber plan of the ICT hubs.
The  DICT shall  update the  National  lcT plan  and  shall submit the same on  or before the
15th  of April  of  every  year  to  the  Office  of  President  of the  Republic  of the  Philippines,  the
National   Economic   and   Development   Authority   (NEDA),   and   the   lcT   Joint   Congressional
Oversight Committee established under this Act.
SEC. 6. Role of the National Telecommunications Commission (NTC). -The NTC, through
the exercise of its quasi-legislative and quasi-judicial powers, shall be the primary infrastructure
regulator  to  ensure  the  monitoring  and  implementation  of  this  Act.  The  NTC  shall  approve
proposed  lcT  hub  telecommunications  projects  through  an  administrative  process  prescribed
for the  purpose  and  shall  ensure the  compliance  of Public Telecommunications  Entities  (PTEs)
with the required and committed information rate and quality of service. All  PTEs shall regularly
submit the necessary data and reports as required by the NTC.
SEC.  7.  Pri.vote Sector Pcrrf/.c/.pcJt/.on -The private sector shall  be encouraged to  establish
ICT  hubs  in  accordance  with  the  standards  set  forth  by  the  DICT.  The  DICT  shall  promulgate
rules   on   the   accreditation   of  fully-operational   lcT   hubs   operated   by   registered   business
enterprise  or  service  provider  participating  in  the  lcT  hub  prior to  availment  of tax  incentives
provided under Section 8 of this Act.
The   DICT   shall   employ   the   latest   and   emerging   technologies   available   to   serve
commercially  unviable  areas  and  assist the  accredited  enterprises  in  the  improvement  of the
lcT hubs.
SEC. 8. /ncent/.ves.  -Any registered business enterprise operating or participating in the
ICT  hub  may  be  granted  incentives  provided  under Title  Xlll  of the  National  Internal  Revenue
Code of 1997,  as amended:  Provided, That, these incentives shall  be granted  in  addition to the
incentives given by the LGU where such  ICT hubs are located.
The  eligibility of the  lcT  hubs  or  registered  business for the  incentives  provided  herein
should  be within the boundaries of a  performance-based, time-bound, and transparent system
of incentives  tailor-fit  for  highly  desirable  lcT  investments  and  shall  be  subject to  compliance
monitoring  by  the  Fiscal  Incentives  and  Review  Board  and  the  LGU  where  such  lcT  hubs  are
located.
SEC.  9.  Advt.sory  Commt.tree.  -  There  is  hereby  created  an  Advisory  Committee  that
shall  solicit  inputs  towards  the  shaping  of  policy  directions  of the  National  lcT  plan,  including
the supervision  of ICT hubs and the coordination to  be undertaken  with the  private sector and
other   agencies   and   instrumentalities   of  the   government.   The   DICT   shall   determine   the
composition   of  the   Advisory   Committee   and   ensure   the   equal   representation   of  the   (a)
government, (b) the service providers, (c) the end users, and (d) other industry stakeholders.
SEC.   10.   D/.g/.to/  Sk/.//s  Deve/opmenf.   -  The   DICT,  together  with  the   Department  of
Education,    Commission    on    Higher    Education,    and    the    Technical    Education    and    Skills
Development  Authority,  shall  establish  a  program  on  digital  skills  development for  all  learners
to   enhance   their   competitiveness,   adaptability   and   employability   in   the   emerging   digital
economy, which shall be integrated into the pertinent programs of the lcT hubs.
SFC.   11.   Dt.oi.to/  Iverwork  /nfrosfrL/cture.   -  A  digital   network  infrastructure  shall   be


The   DICT   is   hereby   authorized   to   classify  the   said   funds   for   capital   outlay,   which
classification   shall   be   furnished   to   and   duly   reflected   by  the   Department   of  Budget   and
Management in  its records. The release of funds shall  be subject to applicable laws and existing
budgeting, accounting and auditing rules and regulations.
SEC.  12.  loco/ Government ffespons/.b/.//.ty.  -  The  issuance  of licenses  and  permits  for
ICT-related    activities   and    infrastructure   construction    projects   shall    not   be   delayed    and
hampered,  and shall further be  prioritized, subject to the provisions of Republic Act  No.  11032,
otherwise  known  as the  Ease of Doing  Business  and  Efficient Government Service  Delivery Act
of 2018.
The    Department   of   the    Interior   and    Local   Government   (DILG)   shall    include    ICT
competitiveness  and  lcT integration  as  a  criterion  of governance  under the Seal  of Good  Local
Governance program.
SEC.  13.  Private  Sector  Support  and  Public-Private  Partnership  (PPP)-The  LGUs  may
engage  the   private  sector  through   PPP  agreements  targeted  towards  financing,  designing,
implementing  and  operating  infrastructure  facilities  and  services  for the  lcT  hub  to  maximize
costs  and  allow  for  sharing  of  revenue,  subject  to  the  provisions  of  Republic  Act  No.  6957,
otherwise    known    as    ``An    Act    Authorizing   the    Financing,    Construction,    Operation    and
Maintenance  of  Infrastructure   Projects   by  the   Private  Sector  and  for  Other  Purposes",   as
amended.
SEC.  14.  Proh/.b/I/.on  AgcJ/.ns£  Exc/us/.v/.ty.  -  All  lcT  hubs  established  under  this  Act  are
hereby declared free zones within which any PTE may operate. Any agreement or arrangement
designating  a  PTE,  or  any  of its  subsidiaries  or  affiliates  as  an  exclusive  PTE  within  an  lcT  hub
shall  be void and  unenforceable. The domestic internet exchanges shall be interconnected. The
interconnection  agreement between the  PTEs shall  be submitted to the  NTC for its approval.  If
the parties fail to reach an agreement within  ninety (90) days from the start of negotiation, the
NTC shall intervene and prescribe the terms and conditions of the interconnection.
SEC.15. Non-compliance with Committed Information Rate. -  PTEs shall comply w.ith the
committed  information  rate  as  required  by  the  DICT  according  to  its  promulgated  lcT  cyber
plan for lcT hubs.  Non-compliance therewith  shall cause the termination of existing agreement
and  shall  be  without  prejudice  to  the  filing  of  appropriate  civil  action  for  breach  of  contract
under the New Civil Code of the Philippines.
SEC.   16.   Implementing   Rules   and   Regulations.   -  W.ith.in  s.ixty   |60)   days  from  the
effectivity  of this  Act,  the  DICT  as  the  lead  agency,  together  with  NEDA,  DILG,  the  League  of
Provinces  and  the  Leagues  of  LGUs,  the  Board  of  Investments,  the  Philippine  Economic  Zone
Authority,  and  the Advisory Committee,  shall  issue the  necessary  rules  and  regulations for the
effective implementation of this Act.
SEC.  17.  ICT Joint  Congressional  Oversight  Committee.  -  An  lcT  Jo.lnt  Congress.ional
Oversight  Committee  (lcTJCOC)  is  hereby created  to  monitor the  effective  implementation  of
this   Act,   recommend   the   necessary   remedial   legislative   or   administrative   measures   and
perform  such  other  duties  and  functions  as  may  be  necessary to  attain  the  objectives  of this
Act.  It  shall  be  composed  of the  Chairpersons  of  the  House  Committee  on  Information  and
Communications  Technology  and  Senate  Committee  on  Science  and  Technology  and  two  (2)
members from  each  of the Senate  and the  House of Representatives who shall  be  designated
h\t   the   Cfinatf]   Prpcir]pnt   anf]   the   Snpakpr   nf  the   Hr)iJce   nf   Renrecentativec.   recnectivf]Iv:


The   Chairpersons   of   the   House   Committee   on   Information   and   Communications
Technology  and  the  Senate  Committee  on  Science  and  Technology  shall  serve  as  Chairperson
and  Vice  Chairperson  or vice  versa  of the  ICTJCOC  on  a  rotational  basis  every  six  (6)  months.
The  Secretariat  of  the  lcTJCOC  shall  be  the  existing  secretariat  personnel  of  the  concerned
Committees of the House of Representatives and the Senate.
SEC.    18.   Sepcrrob/./tty   C/ouse.    -   If   any   provision    or   part   of   this   Act   is   declared
unconstitutional,  the  remaining  parts  or  provisions  not  affected  shall  remain  in  full  force  and
effect.
SEC.  19.  flepecJ//.ng  C/cJuse.  - All  other  laws,  decrees,  executive  orders,  proclamations,
and  other  executive  issuances  which  are  not  consistent  with  or  contrary to the  provisions  of
this Act are hereby repealed or amended accordingly.
SEC.  20.  E#ect/.v/.ty.  -   This Act  shall  take  effect fifteen  (15)  days  after  its  publication  in
the Official Gazette or in a newspaper of general circulation.
Approved,