Republic of the Philippines
HOUSE OF REPRESENTATIVES
Constitution Hills, Quezon City

EIGHTEENTH CONGRESS
First Regular Session

House Bill No. Dee

Introduced by REPRESENTATIVE ERIC L. OLIVAREZ

EXPLANATORY NOTE

Given the need for the improvement of the telecommunication
services in the country, this Bill is intended to expand and strengthen
the powers of the National Telecommunication Commission.

The key provisions in this Act include but is not limited to:
defining significant market power as the ability of a public
telecommunications entity to affect price, supply or innovation in the
telecommunications industry or any part thereof, as a result of either
its control over essential facilities or the use of its position in any
market in the telecommunications industry or any market related
thereto; the mandate of the adoption of standardized definitions of
the International Telecommunications Union, the Internet
Engineering Task Force, the World Wide Web Consortium, and other
international and transnational agencies governing the development,
use, and standardization of the internet and information and
communications technology.

As a measure for the continuous need for the development and
improvement of our telecommunication services, this passage of this

Bill is earnestly sought.
Que OW,
ERIC OLIVAREZ


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Constitution Hills, Quezon City

EIGHTEENTH CONGRESS
First Regular Session

5973
House Bill No.

Introduced by REPRESENTATIVE ERIC L. OLIVAREZ

AN ACT EXPANDING THE COVERAGE AND STRENGTHENING
THE POWERS OF THE NATIONAL TELECOMMUNICATIONS
COMMISSION (NTC) AMENDING FOR THE PURPOSE REPUBLIC
ACT NO. 7925 OTHERWISE KNOWN AS THE PUBLIC
TELECOMMUNICATIONS POLICY ACT OF THE PHILIPPINES

Be it enacted in the Senate and the House of Representatives of the
Republic of the Philippines in Congress assembled:

SECTION 1. Section 3 of Republic Act 7925, otherwise known.
as the “Public Communications Policy Act of the Philippines”. is
hereby amended to read as follows:

“Sec. 3. Definitions and Interpretations. - For purposes of
this Act, the following terms shall be used:

XXX

(L) SIGNIFANCT MARKET POWER ~ THE ABILITY OF A

PUBLIC _TELECOMMUNICATIONS ENTITY TO AFFECT

PRICE, __ SUPPLY OR INNOVATION: IN THE

TELECOMMUNICAITONS _INDUSTRY OR ANY PART

THEREOF, AS A RESULT OF EITHER ITS CONTROL OVER

ESSENTIAL FACILITIES OR THE USE OF ITS POSITION IN



ANY MARKET IN THE TELECOMMUNICATIONS INDUSTRY
OR ANY MARKET RELATED THERETO.

FURTHER, _ THE COMMUSSION IS MANDATED TO
ADOPT STANDARDIZED DEFINITIONS OF THE
INTERNATIONAL TELECOMMUNICATIONS UNION (ITU),
THE INTERNET ENGINEERING TASK FORCE (IETF), THE
WORLD WIDE WEB CONSORTIUM (WWWC), AND THE
INTERNET CORPORATION FOR ASSIGNED NUMBERS AND
NAMES (ICANN), AND OTHER INTERNATIONAL AND
TRANSNATIONAL AGENCIES GOVERNING THE
DEVELOPMENT, USE, AND STANDARDIZATION OF THE
INTERNET AND INFORMATION AND COMMUNICATIONS
TECHNOLOGY, SUBJECT TO REFINEMENTS OF THESE
INTERNATIONAL STANDARDS AS MAY BE PRESCRIBED BY
REGIONAL TELECOMMUNICATION BODIES TAKING INTO
CONSIDERATION THE SPECIAL _ CIRCUMSTANCES
APPLICABLE ONLY TO THE REGION.”

SECTION 2. Section 5 of the same Act is hereby amended to
read as follows:

“Sec.5. Responsibilities of the National
Telecommunications Commission. Le, National
Telecommunications Commission (Commission) shall be the
principal administrator of this Act and as such shall take the
necessary measures to implement the policies and objectives
set forth in this Act. Accordingly, in addition to its existing
functions, the Commission shall be responsible for the
following:

XXX

(c) Mandate a fair and reasonable interconnection of
facilities of authorized public network operators and other
providers of telecommunications services through appropriate
modalities of interconnection and at a reasonable and fair level


of charges, [which make provision for the cross subsidy to
unprofitable local exchange service areas so as to promote
telephone density and provide the most extensive access to
basic telecommunications services available at affordable rates
to the public];

XXX

() Protect consumers against misuse of a
telecommunications entity’s monopoly or quasi-monopolistic
powers by, but not limited to, the investigation of complaints
and exacting compliance with service standards from such
entity; [and]

(g) In the exercise of its regulatory powers, continue to
impose such fees and charges as may be necessary to cover
reasonable costs and expenses for the regulation and
supervision of the operations of telecommunications entities.;
AND

(H) IN THE EXERCISE OF ITS REGULATORY POWERS,
IMPOSE FINES AGAINST PUBLIC TELECOMMUNCATION
ENTITIES WITHIN THE SCOPE OF ITS REGULATION,
WHICH ARE FOUND TO HAVE VIOLATED, VIOLATING, OR
THOSE WHICH ARE FOUND TO HAVE VIOLATED,
VIOLATING, OR THOSE WHICH HAVE FAILED OR ARE
FAILING TO COMPLY WITH THE TERMS AND CONDITIONS
OF THIS ACT, ANY CERTIFICATE, OR ANY ORDER,
DECISION OR REGULATION OF THE COMMISSION.

THE ERRING PUBLIC _TELECOMMUNICATION ENTITY
SHALL BE SUBJECT TO A FINE AMOUNTING TO THE
TOTAL ACTUAL LOSS OR __OVERCHARGING AS
DETERMINED BY THE COMMISSION FOR EVERY DAY
DURING WHICH _SUCH DEFAULT OR VIOLATION
CONTINUES, OR IF IT IS NOT FEASIBLE TO QUANTIFY THE
OFFENSE, TO A FINE AMOUNTING TO ONE MILLION PESOS
(PHP 1,000,000.00) FOR EVERY DAY DURING WHICH SUCH
DEFAULT OR VIOLATION CONTINUES UNITL THE AMOUNT



Is FULLY PAID: PROVIDED, THAT, IF THE
TELECOMMUNCATION ENTITY HAS A GROSS ANNUAL
INCOME NOT EXCEEDING TEN MILLION PESOS
(PHP10,000,000.00), THE PENALTY THAT MAY BE
IMPOSED SHALL BE EQUIVALENT TO ONE PERCENT (1%)
TO TWO PERCENT (2%) OF ITS GROSS ANNUAL INCOME.
THE COMMISSION IS HEREBY AUTHORIZED AND
EMPOWERED TO IMPOSE SUCH FINE, AFTER DUE NOTICE
AND HEARING. THE ERRING TELECOMMUNICATION
ENTITY IS ALSO MANDATED TO REFUND TO CONSUMERS
THE CHARGES IT ERRONEOUSLY IMPOSED TO ITS
SUBSCRIBERS.

THE COMMISSION IS_ FURTHER AUTHORIZED TO
IMPOSE A FINE OF ONE MILLION PESOS (PHP
1,000,000.00) FOR EVERY DAY THAT A VIOLATION OF
SECTIONS 18 AND 19 HEREOF IS COMMITTED, AND UNTIL
SUCH TIME THAT THE ERRING TELECOMMUNICATION
ENTITY FULLY COMPLIES WITH THE TERMS AND
CONDITIONS OF THE ACT, ANY CERTIFICATE, OR ANY
ORDER, DECISION, OR REGULATION OF THE COMMISSION:
PROVIDED, THAT IF THE TELECOMMUNICATION ENTITY
HAS A GROSS ANNUAL INCOME NOT EXCEEDING TEN
MILLION PESOS (PHP1 0,000,000.00), THE PENALTY THAT
MAYU BE IMPOSED SHALL BE EQUIVALENT TO ONE
PERCENT (1%) TO TWO PERCENT (2%) OF ITS GROSS
ANNUAL INCOME.

(FE) THE COMMUNISSION SHALL REQUIRE PUBLIC
TELECOMMUNICATIONN ENTITIES WITH SIGNIFICANT
MARKET POWER AS DETERMINED BY THE PHILIPPINE
COMPETITION COMMISSION (PCC) TO PROVIDE TIMELY
ACCESS TO ITS NETWORK, FACILITIES OR EQUIPMENT TO
ACCESS SEEKERS ON A FAIR, REASONABLE AND NON-
DISCRIMINATORY TERMS AND CONDITIONS.”



SECTION 3. Section 10 of the same Act is hereby amended to
read as follows:
“Sec. 10. International Carrier. — Only entities which [will
Provide local exchange services and ] can demonstrably show
technical and financial capability to install and operate an
international gateway facility shall be allowed to operate as an
international carrier.
[The entity so allowed shall XXX grant of authority. ]
[The international carrier shall XXX complies therewith.]
[Failure to comply with XXX international carrier.|”

SECTION 4. Section 12 of the same Act is hereby amended to
read as follows:

“Sec. 12. Mobile Radio Services. - [in a local telephone
exchange area, ,] More than one duly enfranchised provider of
mobile radio services, distinct and separate from the local
exchange carrier, may be allowed to operate. However, such
entities shall secure prior authority from the Commission and,
in addition, comply with the [conditions imposed on VAS and
with the] norms on radio frequency spectrum utilization.

[The operator of XXX a mobile radio telephone system.]”

SECTION 5. Section 15 of Republic Act 7925 is hereby amended
to read as follows:
“Sec. 14. [Radio Frequency Spectrum.] USE OF AVAILABLE
OR UNASSIGNED SPECTRUM. - The radio frequency
spectrum allocation and assignment shall be subject to AN
ANNUAL REVIEW, THE USE THEREOF SHALL BE SUBJECT
TO reasonable spectrum user fees. Where demand for specific
frequencies exceed availability, the Commission shall hold
open tenders for the same and ensure wider access to this
limited resource.
WITHIN ONE (1) YEAR FROM THE EFFECTIVITY OF
THIS ACT, THE DEPARTMENT OF INFORMATION AND



COMMUNICATIONS TECHNOLOGY (DICT), IN
CONSULATATION WITH THE COMMISSION AND THE PCC
SHALL ISSUE THE GUIDING PRINCIPLES AND POLICY
DIRECTION FOR THE USE OF SPECTRUM.”

SECTION 6. Section 18 of the same Act is hereby amended to
read as follows:

“Sec. 18. Access Charge/Revenue Sharing. - The access
charge/revenue sharing arrangements between alll
interconnecting carriers shall be negotiated between the
parties and the agreement between the parties shall be
submitted to the Commission FOR REVIEW AND APPROVAL.
In the event the parties fail to agree thereon within a
reasonable period of time, the dispute shall be submitted to
the Commission for resolution.

In adopting or approving an access charge formula or
revenue sharing agreement between two or more carriers,
Particularly, but not limited to a local exchange,
interconnecting with a mobile radio, interexchange long
distance carrier, or international carrier, the commission shall
ensure equity, reciprocity and fairness among the parties
concerned. [In so approving the rate XXX interconnecting with
them.]”

SECTION 7. A new Section shall be inserted after Section 18 of
the same Act to read as follows:

“SEC. 18-A TRANSPARENCY. - ALL INTERCONNECTING
CARRIERS SHALL PROVIDE TO THE COMMISSION ALL
TERMS AND CONDITIONS, INCLUDING RATES, OF ACCESS
CHARGE/REVENUE _ SHARING _ARRANGEMENTS SUCH
CARRIERS HAVE ENTERED INTO.

ALL __TELECOMMUNICATIONS SERVICE PROVIDERS
SHALL OPEN THEIR BOOKS OF ACCOUNT TO THE



COMMISSION, WHO IS EMPOWERED TO DEMAND COPIES
THEREOF.”

SECTION 8. Separability Clause. ~ Should any provision
herein be declared unconstitutional, the other provisions not
affected shall remain in full force and effect.

SECTION 9. Repealing Clause. - Section 23 of Republic Act
7925 Equality of Treatment in the Telecommunications Industry is
hereby repealed. All laws, orders, issuances, rules and regulations or
part thereof inconsistent with the provisions of this Act are hereby
repealed, amended or modified accordingly.

SECTION 10. Effectivity - This Act shall take effect fifteen (15)

days after its publication in at least two (2) national newspapers of
general circulation.

Approved,