Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

TWENTIETH CONGRESS
First Regular Session

HOUSE BILL No. 993

Introduced by Representative Crispin Diego “Ping” D. Remulla

AN ACT
ESTABLISHING INFORMATION AND COMMUNICATIONS TECHNOLOGY
HUBS NATIONWIDE

EXPLANATORY NOTE

Information and Communications Technology (ICT) continues to transform the way
Filipinos access education, healthcare, employment, and government services. With digital
tools becoming more essential in daily life, it is crucial to ensure that all communities,
especially those in remote and underserved areas, have equitable access to these technologies.

In 2023, the digital economy contributed approximately 8.4% to the country’s Gross
Domestic Product (GDP), according to the Philippine Statistics Authority (PSA), highlighting
the growing role of ICT in national development. However, digital access and skills remain
uneven across the country, limiting opportunities for many.

This proposed measure aims to establish ICT hubs across the country. These centers
will give communities access to computers, internet services, and digital training.

Moreover, the Philippine Statistics Authority (PSA) has initiated the 2023 National
Information and Communications Technology Household Survey (NICTHS) to gather
comprehensive data on ICT access and usage among households. This data will help inform


future policy directions and ensure that efforts, such as the proposed ICT hubs, address actual

gaps and needs in digital inclusion.

In view of the foregoing, the approval of this measure is earnestly sought.

CRISPIN DIEGO “PI

D. REMULLA


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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

TWENTIETH CONGRESS
First Regular Session

HOUSE BILL No. _993

Introduced by Representative Crispin Diego “Ping” D. Remulla

AN ACT
ESTABLISHING INFORMATION AND COMMUNICATIONS TECHNOLOGY
HUBS NATIONWIDE

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

SECTION. 1. Short Title. — This Act shall be known as the “ICT Hubs Act.”
SEC. 2. Declaration of Policy. — The State recognizes the vital role of information and

communication in the development and promotion of 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 ICT Plan.

SEC. 3. Definition of Terms. — As used in this Act;
(a) Bandwidth refers to the amount of data that can be transmitted over a network
connection over a period of time;
(b) Broadband 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 the access that is continuing and unhindered and faster
than the traditional dial-up mode;
(c) Broadband 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);


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(d) Committed information rate refers to the information rate guaranteed by public
telecommunications entity (PTE). The bandwidth cannot fall below the committed rate of
ninety-eight point five percent (98.5%) of the time;

(e) Cyber skills learning hub or Digital transformation center refers to a facility specifically
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;

(fp Data farm refers to a physical facility that houses servers, network equipment,
personnel like information technology specialists, and network technicians for business-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;

(g) Digital innovation hub refers to 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 totality of electronic
means to access, create, collect, store, process, receive, transmit, present. and disseminate
information;

(i) Information and communications technology hub (ICT hub) refers to a location where
a PTE may provide ICT services 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;

()__ Information technology and business processing management hub refers to a location
that caters to and offers support mechanisms for companies and enterprises engaged in IT

services and business process management and operations;


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(k) Public telecommunications entity (PTE) refers to any person, natural or juridical,
government or privately engaged in providing telecommunications services to the public for
compensation.

SEC. 4. Establishment of Information and Communications Technology Hubs. —
‘There shall be established ICT hubs all over the country in accordance with a National ICT
Plan to be prepared by the Department of 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 ICT hubs based on the type of activity

that it hosts:

(a) Data Farms:
(b) Information Technology (IT) and Business Processing Management (BPM) Hub;

(c) Cyber Skills Leaming Hub and Digital Transformation Center (DTC);

(4) Digital Innovation Hub; and,

(c) Any other ICT hub that may arise in the future.

Pursuant to the ICT 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 ICT hubs shall be established based on geographical area and population: Provided,
That ICT hubs shall be developed in geographically equitable and accessible locations
throughout the province: Provided, further, That the area or site of an ICT hub shall be on a
property owned by an LGU.

The private sector shall be encouraged to establish ICT hubs in accordance with the

standards set forth by the DICT. The DICT shall employ the latest and emerging technologies

available to serve commercially unviable areas.

SEC. 5. Role of the Department of Information and Communications Technology
(DICT). — The DICT shall formulate a National ICT Plan based on the National ICT Roadmap,
which shall include the development of a national broadband network, provision of incentives
to encourage private sector participation, and promotion of competition. The Cybercrime
Investigation and Coordinating Center of the DICT shall formulate, oversee, and validate the
ICT cyber plan of the ICT hubs.

The DICT shall update the National ICT Plan and shall submit the same on or before
the 15th of April of every year to the Office of the President of the Republic of the Philippines,


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the National Economic and Development Authority (NEDA), and the ICT Joint Congressional
Oversight Committee established under this Act.

SEC. 6. Advisory Committee. — There is hereby created an Advisory Committee that
shall solicit inputs towards the shaping of policy directions of the National ICT 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. 7. 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 ICT hub telecommunications projects through an administrative
process prescribed for the purpose and shall ensure the compliance of 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. 8. Incentives. — Any registered business enterprise in the ICT hub may be granted
incentives provided under Title XIII 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 ICT hubs 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 ICT investments and shall be subject to compliance monitoring by the
Fiscal Incentives and Review Board and the respective LGU where such ICT hubs are located.

SEC. 9. Digital Skills Development. — 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 ICT hubs.

SEC. 10. Digital Network Infrastructure. — A digital network infrastructure shall be
established to connect the local ICT hubs to the National Broadband Program through a core
backbone network of the DICT, to be funded from the spectrum users’ fees.

The DICT is hereby authorized to classify the funds for capital outlay, and such shall
be furnished to and duly reflected by the Department of Budget and Management in its records.


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The release of funds shall be subject to applicable laws and existing budgeting, accounting,
and auditing rules and regulations.

SEC. 11. Local Government Responsibility. — 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 ICT integration as a criterion of governance under the Seal of Good Local
Governance program.

SEC. 12. Support for Connectivity in Geographically Isolated and Disadvantaged
Areas. — The DICT shall coordinate with LGUs and barangays to extend services from
provincial ICT hubs to barangay digital access points or satellite centers to maximize reach in
geographically isolated and disadvantaged areas.

SEC. 13. Private Sector Support and Public-Private Partnership. — The LGUs may
engage the private sector through PPP agreements targeted toward financing, designing,

implementing, and operating infrastructure facilities and services for the ICT hub to maximize
costs and allow for the 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. Prohibition Against Exclusivity. — All ICT hubs established under this Act
fare 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 ICT 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 approval. If the parties fail to reach an agreement within ninety (90) days from the
start of the negotiation, the NTC shall intervene and prescribe the terms and conditions of the
interconnection.

SEC. 15. Penaltic
a fine of Five Hundred Thousand Pesos (Php 500,000.00) for (a) non-disclosure, (b) non-

. — In the exercise of its quasi-judicial power, the NTC shall impose

interconnection, or (c) non-compliance with the committed information rate and quality of

service.


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The NTC shall increase the amount of fine every five (5) years subject to a certification from
the NEDA on the computation of the cost of money based on the current consumer price index.

SEC. 16. Implementing Rules and Regulations. — Within sixty (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 ICT Joint
Congressional Oversight Committee (ICTJCOC) 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 by the Senate President and the Speaker of the House of
Representatives, respectively: Provided, That one (1) member from each House shall be
nominated by their respective Minority Leaders.

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 ICTJCOC shall be the existing secretariat personnel of the concerned
Committees of the House of Representatives and the Senate.

SEC. 18. Separability Clause. — If any provision of this Act shall be declared
unconstitutional or invalid, the other provisions not affected shall remain in full force and
effect.

SEC. 19. Repealing Clause. — All laws, decrees, executive orders, rules and
regulations, issuances, or parts thereof inconsistent with the provisions of this Act are hereby
repealed, amended, or modified accordingly.

SEC. 20. Effectivity Clause. — This Act shall take effect fifteen (15) days afier its

complete publication either in the Official Gazette or in at least two (2) newspapers of general

circulation.

Approved,