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

Eighteenth Congress
First Regular Session

House Bill No. _ 7682

Introduced by Representative PAUL R. DAZA.

EXPLANATORY NOTE

The ability to communicate and be an involved part of a society should always be
guaranteed by the State. Especially under the new normal, efficient, effective, affordable, and
inclusive communication—particularly through telecommunications systems—is necessary.

However, there are organizational, policy, systemic, and practical barriers to the
fulfillment of this need. For one, there are few players in the market—which prevent the
customers (consumers) to have better choices. Fortunately, policy and institutional
interventions are taking place and one of them is the opening up of the market to a third telco
player.

However, we should not rest easy on our laurels. Much still needs to be done.
Particularly in advancing the rights of the consumers, the Philippines is still way behind. For
example, in Australia, there is already an Ombudsman-type of agency that handles consumer
related complaints, The telecommunications industry in Australia also allows wider latitude for
consumer welfare, such as the relative ease in transferring to another network, strict rules on
advertising and marketing, and financial hardship policy.

This proposed legislation advances innovative pro-consumer responses and solutions
based on best practices and policies all over the world as well as consolidates relevant
provisions in consumer-related House Bills already filed this 18% Congress. Among the
features and protective mechanisms proposed in this legislation include:

= creation of the Telecommunications Industry Consumer Protection (TICP) Office,
to be jointly managed by the Department of Information and Communications
Technology, National Telecommunications Commission, and Department of Trade
and Industry;

emphasizing and ensuring the operability of an “open access” system;

prohibition of unfair and discriminatory practices by Providers;

ensuring truth in advertisement and marketing by Providers;

requiring minimum speed in internet services;


= enforcing of a financial hardship policy by Providers—where those experiencing
temporary hardships may temporarily or permanently opt-out from their subscribed
services;

= ensuring freedom to switch to other networks at any time; and

= other pro-consumer welfare provisions

‘The proposed TCIP, if the law is enacted, will require it to conduct a study that will
consider whether the establishment of a more long-term agency such as a Telecommunications
Industry Ombudsman—which already exists in Australia—will be viable and practical.'
Meanwhile, the proposed minimum internet speeds—17 Mbps for mobile broadband internet,
38 Mbps (or higher) for fixed broadband (including DSL and cable), and 76 Mbps for fiber
optic (or higher)—are based on the three-tiered categorization used by the UK government.”

The Philippines is currently ranked 97" in a global listing of internet speed, with an
average download speed of 6.05 Mbps. Thailand, one of our closest neighbors is ranked at 45",
with an average internet speed of 18.21 Mbps while Vietnam is ranked at 89", with an average
of 7.02 Mbps (Wright, 2020)?

I am hopeful that through this proposed legislation, the journey of the Philippines
toward the rebuilding of the economy will be more cohesive, effective, and inclusive. After all,
going digital is a necessity under the new normal and will facilitate the building of our
sustainable future.

The immediate enactment of this proposed legislation is then earnestly sought.

we
Representative, 1* District of Northern Samar

2 Website of Australia’s Telecommunications Industry Ombudsman. Available at https://www.tio.com.au/.
2 The UK government categorizes internet speeds based on three sets of activities allowed under internet
speeds of 17, 38, and 76 Mbps. Available at https://www.dorsetcouncil gov.uk/business-consumers-
licences/su -dorsel ibre-broadband/what-different
3 Wright, M. (2020, 21 Feb). Revealed: Countries with the fastest internet speeds, 2020. Available at
https://ceoworld. biz/2020/02/21/revealed-countries-with-the-fastest-internet-speeds-2020/



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

Eighteenth Congress
First Regular Session

House Bill No. 7681

Introduced by Representative PAUL R. DAZA

AN ACT PROTECTING THE RIGHTS AND WELFARE OF CONSUMERS IN
THE TELECOMMUNICATIONS INDUSTRY, AMENDING FOR THE PURPOSE
REPUBLIC ACT NO. 7925, OTHERWISE KNOWN AS THE PUBLIC
TELECOMMUNICATIONS POLICY ACT, AND REPUBLIC ACT 11202,
OTHERWISE KNOWN AS THE MOBILE NUMBER PORTABILITY ACT,
APPROPRIATING FUNDS THEREFOR AND FOR OTHER PURPOSES
Be it enacted by the Senate and House of Representatives of the Philippines in Congress
assembled:
Section 1. Short Title. — This Act shall be known as “An Act Protecting the Rights and
Welfare of Consumers in the Telecommunications Industry.”
Section 2. Scope and Application. This Act shall apply to all public
telecommunications entities in the Philippines.
Section 3. Definitions and interpretations. — For the purpose of this Act, the term:
(a) Action Plan - means a plan submitted to the National Telecommunications
Commission (NTC) by a Provider pursuant to this Act.
(b) Advertisement - means the prepared and through any form of mass medium,
subsequently applied, disseminated or circulated advertising matter.
(c) Advocate or citizen advocate — a citizen of the Philippines who person who
consistently and publicly supports or recommends a particular cause or policy.
(d) Authorized Representative - means the person who has authority from a Consumer
to deal with a Provider, including to discuss or make changes to a Customer’s account without
that Customer being present, on behalf of that Consumer.


(e) Bandwidth - refers to the data transfer rate or the amount of data that can be carried
from one point to another in a given time period and is usually expressed in bits per second
(bps) or multiples of it;

(£) Bill or Statement of Account (SOA) - means an invoice or charge sheet from a
Provider which includes monthly service fec (MSF), handset installment fee (if any), and debits
and credits applied during that Billing Period and advises a Customer of the total amount due,
or in credit, and where an amount is due, the payment method.

(g) Bill Media - means the method in which a Bill is communicated or delivered to the
Customer, or accessed by the Customer, and its format.

(h) Billed Charge - means a Charge that is due for payment by a Customer in respect of
Telecommunications Product or Service provided by a Provider.

(i) Broadband - refers to a transmission medium which enables high-speed Internet
access transmitted through various technologies such as the Digital Subscriber Line (DSL),
Cable Modem, Fiber Optics, Wireless, Satellite, Worldwide Interoperability for Microwave
Access (WiMax), and White Space;

(j) Charge - means the tariff or fee which a Provider levies or charges for the provision
of a Telecommunications Product, Service, or a related transaction.

(k) Compliance Report - means an statement by a Provider addressing the requirements
and framework as mandated by and attested and submitted in the manner stipulated in this Act.

(1) Consumer or Customer or Subscriber — the definition of “Subscriber” in the Mobile
Number Portability Act (RA 11202) is hereby amended and shall read as follows:

“Consumer or Customer or Subscriber - means an individual who avails of a
Telecommunications Product or Service for the primary purpose of personal or domestic use
and not for resale; or a business or non-profit organization, which acquires or may acquire
one or more Telecommunications Products which are not for resale and, at the time it enters
into the Customer Contract/Agreement, it does not have a genuine and reasonable opportunity
to negotiate the terms of the Customer Contract. A reference to a Consumer/Customer includes
a reference to the Customer's Authorized Representative.”

(m) Consumer and Competition Laws - means other relevant Competition and Consume-
related laws, including but not limited to the Consumer Act of the Philippines of 1991 (RA
7394) and the Philippine Competition Act (RA 10667).

(n) Content - refers to, among others, texts, images, audios, videos, and animations that
are carried over the broadband/internet network;


(0) Core/Backbone network - refers to the main line (or connection) including
international connection that ties networks, delivers routes to exchange information among
various subnetworks, connects regional distribution networks and, in some Instances, provides
connectivity to other peer networks;

(p) Counsel - means a person nominated by a Consumer to deal with a Provider on the
Consumer's behalf, who cannot make changes on a Consumer's behalf to a Consumer's
account without the Consumer being present and agreeing to such action.

(q) Credit Assessment - means the process by which a Provider determines the Postpaid
Telecommunications Product or Service to be provided by it (if any) to a Consumer, in
accordance with ethical business practices and the mandate of this Act.

() Credit Management - means the process by which a Provider:

(r-1) helps Customers to manage their expenditure on Telecommunications
Services;

(r-2) manages any credit’ risk += to. ~—sthe_~—Provider; and
collects outstanding debts from Customers and former Customers.

(8) Credit Reporting Body — refers to the Credit Information Corporation (CIC) and other
authorized bodies as provided for by prevailing laws including but not limited to the Credit
Information System Act (RA 9510)

() Customer Contract or Agreement - means an arrangement or agreement between a
Provider and a Consumer for the supply of a Telecommunications Product to that Consumer.
For the avoidance of doubt, unless stated otherwise, the Standard Form Customer Contract is
a Customer Contract.

(u) Customer Service - means services, other than Telecommunications Services,
provided by a Provider to a Customer, in connection with the Customer’s use of the Provider’s
Telecommunications Products and the Customer’s Customer Contract with the Provider.

(v) Data transmission - refers to the process of sending digital or digitized analog signal
over a communication medium to one or more computing network/s, communication or
electronic device/s. It enables the transfer and communication of devices in a point-to-point,
point-to-multipoint and multipoint-to-multipoint environments. The term data transmission
includes the provision of Voice over Internet Protocol (VOIP) services but does not include
the provision of basic telephone services;

(w) DICT — means the Department of Information and Communications Technology;

(x) Disconnection - means the termination by a Provider of a Customer Contract for a

Telecommunications Service.


(y) Donor Provider - refers to the mobile service provider to whose network the mobile
number belongs at the time the subscriber submits a porting application.

(2) Emergency Service Number - a national emergency telephone number or
the emergency services number that allows a caller to contact local emergency services for
assistance. The emergency number is typically a three-digit number that can be easily
remembered and dialed quickly.

(aa) Financial Hardship - means a situation where:

(x-1) a Customer is unable to discharge the financial obligations owed by him
under a Customer Contract/Agreement or otherwise discharge the financial
obligations owed by the Customer to a Provider, due to illness, unemployment,
being the victim of domestic or family violence, or other reasonable temporary
or ongoing cause; and

(x-2) the Customer believes that he is able to discharge those obligations if the
relevant payment arrangements or other arrangements relating to the supply of
Telecommunications Product or Service by the Provider to the Customer are
changed or temporarily suspended; or in the case of extreme circumstances (as
provided for in this Act), when the Customer believes that he is unable to
discharge the obligations any further or even after _ several
extensions/modifications of payment arrangements relating to the supply of
‘Telecommunications Product or Service by the Provider to the Customer and
such are suspended permanently.

(bb) Fair Usage Policy (FUP) - refers to a set of rules that are typically applied by a
Provider, which restricts the ways in which their network is used. In the ITC industry, FUP
limits are often used to describe capping of bandwidth after a user’s plan is exhausted. It is
done to prevent heavy users from using available bandwidth.

(cc) Fraud - means dishonestly accessing or using any Telecommunications Product/s
or Service/s of a Provider, or attempting to do so, with the intent of securing unlawful gain or
advantage by:

(cc-1) deceiving the Provider, any other Provider, or any other person; or
(cc-2) not paying for the relevant Telecommunications Products or Service/s.

(dd) Hard Cap - means a maximum amount applied to a Customer's use of
Telecommunications Product/s or Service/s, which cannot be exceeded.

(ce) Included Value Plan - means a mobile Postpaid Service plan under which the
Customer receives a larger amount of monthly included value than the minimum monthly

6


Charge they pay, to use on a combination of eligible services across Standard National Mobile
Calls, Standard National Mobile SMS and national Data usage, and the use of any of these
three eligible services is not unlimited.

(ff) International gatewayNanding - refers to a segment of data transmission that
consists of any facility that provides an interface to send and receive data traffic between one
country’s domestic network facilitics and those in another country;

(gg) Last mile - refers to the segment of data transmission network that connects end
users;

(gg-1) Middle mile - refers to the segment of data transmission network that
links the last mile network to the core/backbone network;

(hh) Material Change - means a significant change to any of the following:

(hh-1) a Provider’s operations arising from new or changed activities or
services, which change affects a Provider’s compliance with this Act;

(bh-2) Provider’s systems and processes relevant to the Provider's Compliance;
or

(hh-3) a Provider’s compliance obligations under this Act, which change results
in the need to review and update the Provider’s Compliance Report.

(ii) Lifetime value of Customer lifetime value (CLV) — means the total worth to a
business of a customer over the whole period of their relationship. It is an important metric as
it costs less to keep existing customers than it does to acquire new ones so increasing the value
of a company’s existing customers is a significant way to drive growth. CLV is typically
calculated by multiplying Customer revenue per year by the Duration of the relationship in
years and then subtracting the Total costs of acquiring and serving the customer. CLV is a
significant tool that motivates companies to form a lasting positive connection with their
customers; it naturally follows that the way to boost one’s CLV figures is to nurture customer
relationships, helping drive better and more professional customer service.

(jj) Metrics - means performance measures relating to certain obligations of Providers
under this Act, as required by relevant authorities from time to time.

(kk) Minimum Quantifiable Price - means, in respect of a Telecommunications Product
or Service, the “single price” for that Telecommunications Product or Service.

(1) NTC = refers to the National Telecommunications Commission

(mm) Mobile Number Portability (MNP) the definition under Mobile Number
Portability Act (RA 11202) is hereby amended and shall read as follows:


“Mobile Number Portability (MNP) or Portability refers to the ability of a mobile
postpaid or prepaid subscriber to retain an existing mobile number despite having moved from
a mobile service provider to another or to change the type of subscription from postpaid to
prepaid or vice versa.”

(nn) Mobile Postpaid Subscriber - refers to any person, natural or juridical, who avails
of the mobile telecommunications service under a prior arrangement with a mobile service
provider. The subscriber is billed after the fact, according to the use of mobile
telecommunications services at the end of the monthly billing cycle;

(00) Mobile Prepaid Subscriber - refers to any person, natural ot juridical, who avails of
the mobile telecommunications service from a mobile service provider by purchasing credit in
advance of service use. The purchased credit is used to pay for mobile telecommunications
services at the point the service is accessed or consumed;

(pp) Open access - refers to the system of allowing the use of data transmission and/or
distribution systems and associated facilities subject to fair, reasonable, and nondiscriminatory
terms in a transparent market;

(qq) Paid prioritization - refers to the management of a data transmission network to
directly or Indirectly favor some traffic over other traffic, through the use of techniques such
as traffic shaping, prioritization, resource reservation, zero-rating, or other forms of preferential
traffic management, either:

(qq-l) In exchange for consideration (monetary or otherwise) from a third party, or
(qq-2) To benefit an affiliated entity; and
(rt) Personal Information — refers to refers to any information whether recorded in a material
form or not, from which the identity of an individual is apparent or can be reasonably and
directly ascertained by the entity holding the information, or when put together with other
information would directly and certainly identify an individual.

(ss) PCC - means the Philippine Competition Commission.

(tt) Porting Process - refers to the process by which a donor provider moves a mobile

number to a recipient provider or changes the type of subscription from postpaid to

prepaid or vice versa. In no case shall the entire porting process take more than forty-
eight (48) hours;

(uu) Privacy Act/Law - means the Data Privacy Act of 2012 (RA 10173)

(vv) Prominently Displayed - means conspicuously presented in clear font and in a
prominent and visible position that is appropriate for the Advertising medium in the main body
of the Advertising, whether physical or digital formats.


(ww) Public Telecommunication Entity — the definition in the Public

Telecommunications Policy Act (RA 7925) is hereby modified and shall read as follows:

“Public Telecommunication Entity or Provider - refers to any duly authorized public
telecommunications entity that offers voice, short messaging system (SMS or text), mobile data,
yalue-added services (VAS), or any other mobile telecommunication services to the public for a
fee. Other related terms are described below:

Data Transmission Industry Participant - refers to any person, firm, partnership or

corporation, government or private, engaged in the provision of data transmission

services to the public. This includes PTE that offer data transmission services as defined
under Republic Act No.7925, otherwise known as the “Public Telecommunications

Policy Act of the Philippines”;

Internet Service Provider (ISP) refers to a commercial entity with a franchise that enable

users to access Internet content and services. It may also refer to a public

telecommunications entity offering a value-added service such as the internet.”

Donor Provider (DP) - refers to the mobile service provider to whose network the mobile
number belongs at the time the subscriber submits a porting application;

Recipient Provider (RP) - refers to the mobile service provider that shall provide mobile
telecommunications service to the subscriber after the porting process;

(xx) Regulator - means any government body responsible for the administration of all or
part of this Act, including but not limited to the Department of Information and
Communications Technology (DICT), National Telecommunications Commission (NTC), and
Department of Trade and Industry (DTI).

(yy) Relatives — family members and relatives up to the fourth degree of consanguinity
or affinity;

(zz) SEC - means the Securities and Exchange Commission.

(aa) Shaping or Capping - means where a Provider deliberately controls the maximum
Data transfer rate on a broadband service when the Customer has exceeded the specified Data
allowance.

(bb) Significant market power [The definition of this term, as originally used in RA
7925, is amended herein.] Section 3 of Republic Act 7925, otherwise known as the “Public
Communications Policy Act of the Philippines” is hereby amended to read as follows:

“Section 3. Definitions and Interpretations. — For purposes of this Act, the

following terms shall be used:


Significant market power — the ability of a public telecommunications entity to affect
the price, supply, or innovation in the telecommunications industry or any part thereof as
aresult 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. In order that standards
in the country’s telecommunications industry conforms with global standards, the
Commission 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 telecommunications bodies taking into consideration the
special circumstances applicable only to the region.

(cc) Special Promotion - means an Offer of limited duration, limited quantity or offered
to a limited sub- set of Consumers (for example, a one-time promotion for subscribers), such
as discounts or freebies that go along with Telecommunications Products or Services.

(dd) Spend Management Tools - means a tool available to a Customer or applied by a
Provider to assist the Customer to take timely action to limit and/or manage their expenditure
or usage allowance on a particular Telecommunications Product or Service.

(ce) Standard Form Customer Contract or Agreement - means the Provider's current
Standard Form of Agreement for contracting with Consumers.

(ff) Telecommunications - means any process as defined in the Public
Telecommunications Policy Act (RA 7925). The following services are hereby inserted under
Section 3 (a):

“(1) Landline telephone service or basic telephone service — refers to the local
exchange telephone service for residence and business establishments provided via
the circuit switched telephone network;

(2)Cellular Mobile Telephone Service (CMTS) - refers to the wide area mobile
radio telephone system with its own switch, base stations and transmission
facilities capable of providing high capacity mobile telecommunications by
utilizing radio frequencies;

(3)Direct Subscriber Line (DSL) - means a fixed /wired internet connection
delivered through a telephone line to a modem. It uses a copper wire technology

10


and can deliver download speeds of up to a range of 5 to 35 Megabits per second
(Mbps). It is ideal for those who use the Internet for more basic online activities
such as browsing the web, sending and receiving emails or pictures, or
downloading e-books.

(4) Fixed wireless broadband — means a broadband service that connects a
Customer to the internet via a wireless radio connection. This involves installing a
unit similar to a satellite dish on a Customer's property, which will communicate
with a similar unit placed on a tower or building that has direct line-of-sight. This
type of connection is often used to service areas that are sparsely populated or in
remote areas, which would make installing a cable infrastructure prohibitively
expensive. It’s also preferred over satellite connections due to better speeds and
reliability.

(5)Mobile broadband — means internet access, typically with wide bandwidth data
transmission with an ability to simultaneously transport multiple signals and traffic
types and transmitted through cellular network.

(6) Fiber optic service - means a service that uses fiber optic technology where the
internet connection comes from light signals running through thin glass wires. It
can deliver speed as high as up to 1 Gbps. Unlike DSL, it can provide equal upload
and download internet speeds allowing a Customer to send data from his device as
‘fast as he can receive it from others. A faster downloading /uploading is necessary
when video-calling a friend, backing up data to online or cloud storage services,
or for playing music, videos, or online gaming.

(1) Broadband over Power Lines (BPL) — means a service that uses the electricity
distribution network to deliver an internet connection. Speeds tend to be on par
with DSL and cable modem connections, though technology advances in this area

should see better speeds in the future.”

(gg) Third Party Charges - means Charges collected by a Provider on behalf of another

commercial entity, for any goods and services provided by that other commercial entity.

(hh) Throttling — means the intentional slowing or speeding of an internet service by an

Internet service provider. It is a reactive measure employed in communication networks to

regulate network traffic and minimize bandwidth congestion.

(ii) Timed Call - means a call for which a Charge is calculated according to the duration

1


(jj) Untimed Call - means a call where the applicable Charge is not calculated according
to the duration of the call.

(kk) Transfer - means the transfer of all or part of a Consumer’s Telecommunications
Service from one Provider to the Gaining Provider.

(ll) Unfair - has the meaning given to it in prevailing Competition and Consumer laws.

(mm) Value-added service provider (VAS) - an entity which, relying on the transmission,
switching and local distribution facilities of the local exchange and inter-exchange operators,
and overseas carriers, offers enhanced services beyond those ordinarily provided for by such
carriers.

(nn) Virtual Network Operator (VNO) — refers to an entity that offers
telecommunications service to the public under its own brand but utilizes the network of
another authorized PTE.

Section 4. Declaration of National Policy. - The State recognizes the vital role of
information and communications technology (ICT) in achieving inclusive growth. The State
shall implement measures to protect the interests and needs of Filipino consumers and
subscribers by mandating strict compliance to minimum standards in telecommunications
services. The State also recognizes that the attainment of these goals will require the expansion
and strengthening of the powers of the National Telecommunications Commission
(Commission). Toward these goals, the State shall:

(a) Ensure consumers” enjoyment of reliable, affordable, open, and accessible data
networks that transmit information at speed and quality comparable to the best in the world;

(b) Require the private sector and relevant government agencies to work together
and increase investments and for the private sector to operate in an entrepreneurial ecosystem
where entities that wish to engage in the data transmission industry can compete openly and
freely in the spirit of fair competition and permission-less innovation;

(c) Strengthen NTC as a regulatory body, leading to more transparency and
accountability, greater efficiency, and fairer competition in the sector; and

(@) Ensure the protection of the rights, welfare, and privacy of Consumers by
requiring professional, honest, and fair dealings from Providers.

Section 5. Responsibilities of the National Telecommunications Commission. — Section
5 of Republic Act No. 7925 is hereby amended to read as follows:

“Section 5. Responsibilities of the National Telecommunications Commission. The
National Telecommunications Commission (Commission) shall be the principal administrator
of this Act—to be supported by the Department of Information and Communications

2


Technology (DICT) and Department of Trade and Industry (DTI)—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

(e) Formulate and implement policies and measures on consumer protection in the
telecommunications industry guided by the Consumer Act of the Philippines (RA 7394) and
the following operative principles:

(e-1) Consumers will receive clear, accurate, and relevant information on products and

services from their Provider before, during and, where appropriate, after the point of

sale;

(e-2) Consumers will have disputes resolved quickly and fairly by their Service Provider

and/or the appropriate government agency/ies in the case of an escalation;

(e-3) Promotion of products and services by Providers will be clear, accurate, and not

misleading;

(e-4) Disadvantaged and vulnerable consumers will be assisted and protected by

appropriate Providers’ policies and practices;

(e-5) Consumers will receive an effective remedy from any Provider who breaches this

Act and other governing regulations; and

(e-6) Providers will use monitoring and reporting tools to ensure successful
implementation of this Act.
XXX

(@) In the exercise of its regulatory powers, impose fines against public
telecommunication 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; and

13


(h) Require Providers with significant market power as determined by the Philippine
Competition Commission to provide timely access to its network, facilities, or equipment to
access seekers on a fair reasonable and non-discriminatory terms and conditions.”

Section 6. Segments and Spectrum Allocation — The telecommunications industry
shall always uphold the rights and welfare of consumers—they being the subscribers and
ultimate source of revenues—and this necessitates an efficient and transparent permitting
and regulatory system. Section 16 (Franchise) of the Public Telecommunications Policy Act
(RA 7925) is hereby amended and shall read as follows:

“(a) Segments. The data transmission industry shall be divided into four (4) segments.
(1) International gateway/ landing; (2) Core/Backbone network; (3) Middle mile; and (4)
Last mile. All four (4) segments shall be competitive and open. Any law to the contrary
notwithstanding, data transmission industry participants in any of the four (4) segments shall
not be required to secure a franchise from Congress or a Certificate of Public Convenience
and Necessity (CPCN) or Provisional Authority (PA) from the National Telecommunications
Commission (NTC), to construct, install, and operate networks and facilities for the data
transmission services they provide. Neither shall they be required to secure a CPCN or a PA

for the data transmission services they provide to the general public. Participants in the data
transmission industry shall, however, be required to register with the NTC stating the
segment they are participating in and provide the NTC with their schedules of rates.”

(b) Spectrum Allocation, Recall, and Reallocation. The NTC shall maximize the
allocation and assignment of finite radio spectrum resources used in transmission of data by
ensuring that the spectrum is made available for the use of all registered data transmission
industry participants.

(J) Section 15 (Radio Frequency Spectrum) of the Public Telecommunications
Policy Act (RA 7925) is hereby amended to read as follows:

“Section 15. Use of Available or Unassigned Spectrum. — The radio frequency
allocation and assignment shall be subject to an annual review. The use thereof
shall be subject to reasonable 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 consultation with the Commission
and the Philippine Competition Commission (PCC), shall issue the guiding
principles and policy direction for the use of the spectrum."

14


(2) The procedure for radio spectrum assignment, joint use and recall shall be
made transparent to the public. All applications, including letter requests,
spectrum assignment, joint use, recall, and reallocation shall be posted in the
NIC's website and in a conspicuous place in the offices of the NTC for at least
three (3) consecutive months. The notice shall specifically indicate the names of
the applicants for spectrum assignment, joint use and recall, including where the
NTC itself is the proponent of any such action, the affected spectrum, and the
applicant's or NTC's reasons for the proposed spectrum assignment, joint use and
recall. The NTC shall not assign, recall or allow co-use or joint use of any radio
frequency band or bands without conducting at least one (1) public hearing and
allowing public comment for a period of fifteen (15) days from the date of the public
hearing, prior to approval and/or disapproval of the same. This applies to all
spectrum, whether used for data transmission or not;
(3) All radio spectrums, radio frequency assignments, recalls, and joint use
decisions of the NTC shall be published in the NTC's website and in a conspicuous
place in the offices of the NTC 33 for at least three (3) consecutive months. The
recall of frequency for purposes of free public use 34 shall be given priority.
The immediately preceding paragraphs (1) and (2) herein shall not apply to
applications for frequency assignments for fixed point-to-point radio links, Wi-Fi,
and satellite networks;
(4) The NTC shall avoid the concentration of spectrum resources in the hands of a
few players and shall not assign, or allow joint use of radio spectrum in a manner
that establishes, promotes or perpetuates the dominance of PTEs. Any entity who
believes that any one or more of the NTC's decisions for the assignment of radio
spectrum, whether past or present, will promote the dominance of any entity and
hinder competition may file a complaint before the Philippine Competition
Commission (PCC) to determine the dominance of a data transmission industry
participant and deal with anti-competitive conduct in accordance with its mandate
under Republic Act No. 10667, otherwise known as the “Philippine Competition
Act”;
(5) The NTC shall promptly act on applications of data transmission industry
participants for
permits to import equipment. Any application for permit to import equipment that
is not acted on by the NTC within seven (7) days shall be deemed approved;

15


(6) If the NTC finds, on its own initiative or upon complaint, that any right, license
or radio spectrum assignment to any data transmission industry participant or PTE
is not being used, or is not being maximized by the user thereof, or that the grantee
has violated the provisions of this Act, it may, motu propio or upon petition by any
person, subject to due process, recall the radio spectrum assignment of the data
transmission industry participant or PTE. The NTC shall, where required and
appropriate, make provisions for substitute frequency to address the needs of
active users of the spectrum recalled from the data transmission industry
participant or PTE; and

(7) For applications for frequency assignments for mobile and point-to-multipoint
networks that will involve the assignment of at least fifteen percent (15%) of the
total frequencies in a particular frequency band, e.g., 2100MHz (3G), 1800MHz,
800MHz, 700MHz etc., a technical working group (TWG) shall be created to be
composed of representatives from the Department of Information and
Communications Technology (DICT), NTC, PCC and consumer groups, to study
and recommend to the NTC whether to approve, approve with modification, or
deny the application. The TWG shall submit its recommendation not later than
thirty (30) days from the date of application.”

Section 7. Standards in Telecommunications Services. - Within one (1) year from the
effectivity of this Act, all Providers shall comply with the minimum set of standards stipulated
herein:

(a) Culture of compliance, arms-length transactions, and transparency. Providers
will promote a culture of compliance with key commitments and all requirements of this Act.
They will foster commitment to Customer Service transparency in their organizations, and

abide by their commitments to Consumers. All interconnecting Providers shall submit to NTC

all terms and conditions including rates of access charge/revenue sharing arrangements such
entities have entered into. They shall open their books of accounts to the NTC, who is
authorized to demand copies thereof. The NTC shall:
(1) Publish and make available in print and online formats all aspects of spectrum
use information, including the National Radio Frequency Allocation Table
(NRFAT), indicating therein the purpose or use to which each frequency band is
allocated, and, for frequency bands allocated for public use, the persons and/or

entities to whom each particular frequency is assigned. The NRFAT and updated

16


radio spectrum use information shall be made available on the NTC’s website and
to any person who requests the same, upon written request; and

(2) Promulgate rules requiring all data transmission industry participants to file an
annual report and include therein a fair and accurate statement regarding their
market prices and their services. The annual report shall include all costs and
charges relevant to the data transmission network segment where the participants
operate. The rates shall be made available online, in print, and in any other viable
venue to the public. Any person can file a complaint pertaining to these rates within
thirty (30) days of posting. Each player at each segment shall submit a copy of their
rates to the NTC and the PCC. The rates shall be published, including a historical
record, in a consolidated manner. The data transmission industry participants are
required to keep a publicly accessible archive of their rates.

(b) Open access approach. The State through the relevant government entities such as
the NTC shall ensure that the ICT sector remains open and accessible to all qualified
participants. Specifically, it shall:

(1) Implement an efficient and speedy administrative process in the authorization
and registration of data transmission sector participants;
(2) Promote fair and open competition at all the multiple layers of the data
transmission network, allowing a wide variety of physical networks and application
to interact in an open architecture;
(3) Mandate transparency in pricing and the publication of pricing information to
ensure fair trading within and between each data transmission segment so as to
allow clear, comparative information on market prices and services; mandate NTC
and other relevant government agencies such as DICT and DTI to establish rate-
setting mechanisms for the telecommunications industry and ensure strict
enforcement of standards rates and charging systems as well as their regular review
and monitoring;
(4) Mandate interconnection so that data transmission industry participants can
connect to each other at the various segments and interfaces, such that entities of
any size may freely enter and exit the market, and dominance by any single player
or group of players is avoided;
(5) Prohibit paid prioritization so that there is more openness and accountability.
Data transmission industry participants shall not engage in paid prioritization for
monetary or other consideration except when allowed by the NTC after such
7


participant demonstrates that the practice will provide significant public interest
benefit and will not disadvantage content and applications that are not prioritized
or harm the open nature of the internet; and

(6)Promulgate policies that will encourage distributed local solutions rather than
centralized ones, encouraging service that are closer to the user.

(c) Plug and Play System. Any data transmission industry participant, insofar as such
person is so engaged, shall not refuse access to infrastructure to any other data transmission
industry participant, except for failure to pay open market fees for the access to the service.

Data transmission providers shall not impede the end-user’s right to access and distribute
information and content, use and provide applications and services and use terminal equipment
of their choice, regardless of the end user’s or provider’s location or the location, origin or
destination of the information, content, application or service via their data transmission
service.

Agreements between data transmission providers of data services and end users on
commercial and technical conditions and the characteristics of data access services such as
price, data volume or speed, and any commercial practice conducted by providers of internet
access services shall not limit the exercise of the rights of end users laid down in this Act.

(d) Zero Throttling. Providers of data transmission services shall treat all traffic equally
when providing data access services without discrimination, restriction, or interference,
regardless of the sender and receiver, the content accessed or distributed, the applications or
services used or provided, or the terminal equipment used. It shall be prohibited for a data
transmission industry participant to hinder or slow down services or applications or access to
specific sites in the internet except where (1) access to such sites, services or applications are
prohibited by law; (2) it is necessary to preserve the integrity and security of the network and
service of the provider or the equipment of the end user: Provided, That if the breach of
integrity or security is caused by the equipment of the end user, the provider has to notify the
end user first and give the former sufficient time to rectify the Situation; (3) it is necessary to
block the transmission of unwanted communications (e.g., spam, child pornographic materials)
to an end user, on application or complaint of the end user or the data transmission industry
participant;

(c) Internet minimum speed. Providers including internet service providers (ISPs) shall
provide internet speeds of 17 Mbps (or higher) for mobile broadband internet access, 38 Mbps
(or higher) for fixed broadband (including DSL and cable), and 76 Mbps for fiber optic (or
higher) and shall work towards proving an average internet connection speed above global

18


average. Providers shall modify, expand and/or upgrade existing systems and infrastructures to
cater to higher capacity bandwidths. All other related standards and prohibitions shall be set
forth in the Implementing Rules and Regulations (IRR) of this Act.

(f) New technologies. Providers shall aggressively pursue better, faster, and more
affordable telecommunications technologies such as fiber optic internet systems, Broadband
‘over Power Lines (BPL) and in, new developments and emerging cities, work with the
Department of Energy and Department of Science and Technology in evaluating the viability
and sustainability of underground cabling systems. In areas where such advanced
technologies are feasible and viable, NTC and relevant LGUs are mandated to provide
technical, permitting, and administrative support toward the immediate development and roll-
out.

(g) Fair competition. The NTC and the PCC shall ensure that for those providing

services at any given segment, there are at least two (2) providers.

(h) Mobile radio services. Section 12 of Public Telecommunications Policy Act
(RA7925) is hereby amended to read as follows:

“Mobile Radio Services. — [In a local telephone exchange area, m] More than one duly
enfranchised provider of mobile radio services, distinct and separate from the local exchange
carrier, may he 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 a XXX a mobile radio telephone system.]”

(i) Access charge/revenue sharing. Section 18 of the Public Telecommunications
Policy Act (RA7925) is hereby amended to read as follows:

“Access Charge/Revenue Sharing. — The access charge/ revenue sharing
arrangements between all 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.]"

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(j) International carrier. Section 10 of the Public Telecommunications Policy Act
(RA 7925) is hereby amended to read as follows:

“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 the authority.]

[The international carrier shall XXX complies therewith.]

[Failure to comply with XXX international carrier.]

(k) Free access to emergency numbers. All providers are mandated to ensure that all
Consumers—whether prepaid, postpaid, or landline subscribers—should have free access to a
national emergency telephone number and/or local emergency services number/s, whether
or not there is still remaining load/credit in the Consumer’s prepaid account or even if the
postpaid or landline account is temporarily disconnected.

Section 8. Consumer Protection. -The State through the relevant government entities
such as the NTC shall require Providers to serve their Consumers in the most fair, transparent,
and professional manner.

(a) Language. A Provider must communicate with Consumers in plain language
(English/Tagalog) or in the local language. If a Provider advertises its Telecommunications
Products and Services in another language, it must provide reasonable information to assist
‘Consumers who do not speak English (or the local language) to find out where to obtain help
in that advertised language in dealing with the Provider, or allow the Consumer to appoint a
Representative to deal with the Provider on their behalf.

(b) Information. A Provider must ensure that any information provided or made
available to Consumers is clear, accurate, free of material omissions, relevant, current, readily
available, and, in cases where information is provided, timely. A Provider must communicate
with a Consumer in a way that is appropriate to the Consumer's communications needs,
including Consumers with special needs, circumstances, or abilities.

Online information /website. A Provider must ensure that Consumers can view and
download all relevant terms and conditions of its Telecommunications Products and Services
from a website and/or Social Media account. Websites and Social Media Accounts of Providers
should allow transparency, integrity, and accessibility. Inquiries by the Public should be
responded to within 48 hours. The use of scripted or auto- and “bot” replies is prohibited unless
the objective is to confirm receipt of the first contact/email.

20


(c) Training. A Provider must have systems and processes to support compliance to
obligations as set forth in this Act. A Provider must ensure that its staff and Sales
Representatives interact with Consumers courteously and in a fair, professional, and accurate
manner. A Provider must ensure staff are adequately trained in relation to this Act including
obligations related to their roles, and in the use of systems and processes that support
compliance to this Act. A Provider must ensure appropriate action is taken against its staff who
are rude or harassing to, or engage in misleading conduct with, Consumers. A Provider must
regularly review the training, systems and processes available to staff in relation to their roles
to ensure it meets its obligations under the Code.

If valid Complaints are raised and not acted upon by the Provider, a Customer has the
right to file a formal complaint with the TCIP Office, which is mandated to act and decide on
the Complaint within the time stipulated by Ease of Doing Business Law of 2018 (RA 11032).

(@) Disadvantaged and vulnerable consumers. A Provider must have regard to best
and ethical practices as set out in all governing laws of the Philippines such as those for senior
citizens, persons with special needs and circumstances, and pregnant women. A Provider must
not take advantage of the disadvantaged. In its collection activities, a Provider must adopt best
practices as set out in this Act. A Provider must ensure that its Sales Representatives and staff
who interact with Consumers are able to interact with disadvantaged or vulnerable Consumers
appropriately.

(c) Right to be represented. The Customers are sources of revenues and Providers have
the obligation to ensure that they are always heard and represented.

(1) Authorized Representatives. A Provider must ensure that a Consumer can
appoint an Authorized Representative to act on his/her behalf, if the Consumer
requires, and must:

(2) Authority - ensure it obtains the Customer’s authority or an appropriate other
authority such as a letter of authorization, copy of the relevant power of attorney
or other reasonable form of authorization as may be reasonably required by the
Provider, before accepting a person as the Authorized Representative for a
Customer;

(3) Advice regarding power to act - advise the Consumer that a person appointed
as an Authorized Representative has the power to act on the Consumer's behalf as
if shhe is the Consumer or, if the Authorized Representative has more limited rights,

the level of access that those rights confer;

a


(4) Record keeping - keep a record of the circumstances and when the Authorized
Representative was appointed;
(5) Assistance - provide Consumers with access to information about how to
appoint an Authorized Representative and access to any relevant forms required to
evidence the appropriate authority;
(6) Acknowledgement - kecp records of notification(s) to the Provider of a
relevant change in circumstance for a Customer, including the death of a Customer
or the making of a guardianship order for a Customer; and
(7) Balance risks - take reasonable steps to balance the risks of fraud, privacy, and
security of Customers with facilitating the appointment of Authorized
Representatives.
(8) Counsel - A Provider must ensure that a Consumer can easily use a Counsel to
communicate with the Provider, if the Consumer requires or in cases of the filing
of complaint.
(9a) A Provider must advise the Consumer that a person acting as their Counsel
has no power to act on the Consumer’s behalf and has no access to their
information without the Consumer being present and agreeing to such action.
(9b) A Provider may presume that a Counsel is not authorized to establish or
make changes to a Customer's account or Telecommunications Product or

Service, unless the Counsel is also the Customer's Authorized Representative.

(f) Personal information. Providers are required to comply with the Data Privacy

Principles contained in privacy-related regulations unless the request for information of

‘Customers are needed in order to align and provide services across all Consumers. A Provider

must ensure that a Customer’s or former Customer’s Personal Information is protected from

‘unauthorized use or disclosure. A Provider must take the following actions to enable this

outcome:

(1) Storage - have robust procedures for storing its Customers’ Personal
Information in its possession which are followed by its staff;
(2) Security - have robust procedures to keep its Customers’ Personal Information
in its possession secure and restrict access to personnel who are authorized by the
Provider; and
(3) Breach - ensure its staff understand that they may face disciplinary action if
they breach the Provider's privacy procedures and other privacy-related
regulations.

2


(4) Tools for preventing unauthorized account access. A Provider must make
available, at no cost, information about any tools the Provider offers for preventing
unauthorized access to, or use of, a Customer account or Telecommunications
Product or Service, including information about:

(4a) how to obtain assistance to use those tools; and

(4b) the cost of any tools offered directly by the Provider.”

Section 9. Advertising, Sales, Contracts, and Customer Service. - Providers are
mandated to follow the highest legal and ethical standards when it comes to retail sales and
service, including regarding advertising, the provision of information, selling practices,
contracting, customer service, and dealing with Consumers with different needs to allow
Consumers to make informed choices.

(a) Content of advertising. A Provider must include any important conditions,
limitations, qualifications or Restrictions about an Offer in its Advertising of the Offer, to allow
Consumers to make informed choices and to avoid Consumers being misled. A Provider must
not engage in the following practices:

(1) Headline representations - use headline representations as to a price or Offer
in circumstances where the overall impression of the price or Offer is subsequently
qualified by fine print terms and conditions that make it unlikely or impossible that
a Consumer, by the ordinary use of their service, could reasonably achieve the
benefits offered in the headline representation;

(2) Unlimited - use the term ‘unlimited’ or an equivalent term in an unqualified
manner when referring to usage, unless the ordinary use of the service in the
Philippines is genuinely unlimited and not subject to exclusions, including
exclusions for various types of calls or usage, or selected parts of the network;

(3) No exceptions, exclusions or catches - use the terms ‘no exceptions’, ‘no
exclusions’ or ‘no catches’ or equivalent terms without sufficient disclosure when.
referring to a price or service Offer, unless there are genuinely no exceptions to the
Offer;

(4) Free - use the term ‘free’ or an equivalent term to promote or advertise a
handset or other hardware product or service unless the cost of the handset or other
hardware product or service is not recovered from the Consumer over the life of
the contract by way of higher costs, including by way of higher call charges, higher
network access fees, or higher early termination fees, compared to the costs that

23


would be payable by the Consumer over the life of the contract were the handset
or other hardware product or service not provided free of charge;

(5) Price per minute - use headline representations as to a price per minute for
mobile phone calls, or calls made using phone cards, in circumstances where there
is insufficient disclosure of extra charges including call connection fees or for non-
standard calls;

(6)Bundled products or services - use headline representations as to price for a
particular product or service, unless that product or service is available for purchase
at the advertised price without being part of a bundled product or service or the
advertised price is clearly identified as the price for that product or service when
purchased as part of a bundled product or service;

(7) Offer - use headline representations as to prices for an Offer unless any
exclusions are Prominently Displayed;

(8) Prices for Data allowances - use unqualified headline representations as to
ongoing prices for specified Data allowances in circumstances where the price for
that Data is likely to increase within a reasonable use period;

(9) Phone cards - use headline representations as to the minutes of call time
available on phone cards unless those minutes can be achieved by Consumers with
ordinary use of the card;

(10) Network coverage - advertise or promote network coverage unless the
network coverage is generally available to Consumers in the claimed coverage
area;

ay Minimum Quantifiable Price - advertise or promote a periodic price
to be paid for a Telecommunications Product or Service without also Prominently
Displaying (but not necessarily as prominent as the periodic price) the Minimum
Quantifiable Price;

(12) Cap - use the term “‘cap” to advertise any new Offers launched upon the
effectivity of this Act unless the Offers contain a Hard Cap;

(13) Basis of claims - make claims in Advertising in relation to broadband
speeds, network coverage and other performance characteristics of a
Telecommunications Product or Service unless the Provider is able to Substantiate

such claims.

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(b) Advertising medium. A Provider must provide a level of detail in its
Advertising which is appropriate to the manner in which the Advertising is displayed to
Consumers. A Supplier must take the following actions to enable this outcome:

(1) Clarity - ensure the principal message and the main terms are captured in the
body of the Advertising;

(2) Detail - ensure that use of any disclaimers does not negate the principal
message and main terms of the Advertising; and

(3) Format - take into account the typical amount of time that Consumers are able
to view the particular Advertising in deciding how much information to include in
the Advertising. For Small Online Advertising where the Provider is unable to
contain all the required details of the Offer, including Special Promotion end dates,
the Provider should provide the required details at any linked destination from that
Small Online Advertising.

(c) Special Promotions. A Provider must communicate any important limitations which
apply to its Special Promotions so Consumers are informed of the limitations. A Provider must
take the following actions to enable this outcome, subject to provisions of this Act and its IRR:

(1)Principal terms - disclose the key terms of the Special Promotion and any key
limitations, such as whether stocks are limited and the period during which a
Customer will receive any associated promotional offering(s);

(2)Timeframes - if the Special Promotion has a set end date, the Provider must
disclose the end date for the Special Promotion; and

(3) Eligibility - if there are special eligibility requirements, such as provision of
coupons, qualified bundling with other products and services or restriction to a
specific class of Consumers, the Provider must disclose each requirement of the
Special Promotion.

(4) Advertising for post-paid internet plans with an included Data allowance: When
advertising the price or peso value of a Postpaid Service which is an internet-only plan with an
included Data allowance, a Provider must Prominently Display in its Advertising the cost (prior
to any Discounts being applied) of using one megabyte of Data within the Philippines, provided
that if the usage is unlimited or subject to Shaping, the Provider is not required to quote a cost
for the Data usage that is unlimited or subject to Shaping/Throttling in the Advertising.

(c) Display of cost in certain Advertising: For the purposes of this Act and
notwithstanding the definition of “Prominently Displayed”:

25


(1) Certain Advertising: The cost referred to herein will be deemed to be
Prominently Displayed in a single item of Advertising of 8 pages or more in length,
provided it appears in a clearly referenced section of that item of Advertising.

2) Small Online Advertising: The cost referred to herein will be deemed to be
Prominently Displayed in Small Online Advertising if it is displayed on the linked
webpage that details plan information.

(f) Disclaimers: A Provider must ensure disclaimers are clear and understandable,

having regard to the type of Advertising. A Provider must take the following actions to enable

this outcome:

(1) Effect of disclaimers: ensure a disclaimer does not negate the principal
messages of Advertising; and

(2) Content of disclaimers - ensure a disclaimer is clear and understandable,
having regard to the type of Advertising, including the medium or format used and
its intended audience. The design of Advertising should be clear and must eliminate

or at least minimize the need for disclaimers, which lead to possible confusion.

Section 10. Critical Information Summary. All Providers must provide a summary of

current Offers, called a Critical Information Summary (CIS), free of charge to allow Consumers

to compare Offers and ascertain which best suit their needs.

(a)

Key Information. A Provider must ensure the CIS includes the following

information at the beginning of the CIS, a separate, clearly identified section in which the

following information is included where applicable:

(1) a description of the Telecommunications Service to be provided under the
Offer, including inclusions;

(2) the minimum monthly Charge payable under the Offer (where calculable);
(3) the maximum monthly Charge payable under the Offer (where calculable);
ion of the Offer; and

(4) the maximum Charge payable for early termi
(5) the minimum term applicable in respect of the Telecommunications Product or
Service set out in the Offer.

(b) Details of the Account. In the next sections of the CIS, the following must be

included:

(1) if the Offer depends on a bundling arrangement with other
Telecommunications Products or Services, a description of those other Services;
(2) whether there is any Telecommunications Product that the Customer must take
as a mandatory component of the Offer (so the Consumer has no choice as to that
26


Telecommunications Product or service), what the _—_ mandatory
Telecommunications Product or Service is and if the Charge for the mandatory
Telecommunications Good is not already built into the Offer pricing disclosed in
the summary of Offer, then the separate Charge for this mandatory
Telecommunications Product or Service;

(3) for broadband services to which the Telecommunications Service apply, a link
to an information or education package or the equivalent information as provided
on the Provider’s website;

(4) where applicable, the exclusions and any important conditions, limitations,
Restrictions or qualifications for that Offer, such as mobile Data auto-subscription;
(5) where applicable, information sufficient for a Customer to determine the
approximate early termination fee applicable (if any) at any time during the
minimum term;

(6) where relevant and the Offer is not unlimited, the cost (prior to any Discounts
being applied) of making a 1-minute Standard Mobile Call;

(7) where relevant and the Offer is not unlimited, the cost (prior to any Discounts
being applied) of sending a Standard Mobile SMS or text message;

(8) where calculable and where the Offer, in respect of its Data component, is not
unlimited or subject to Shaping, the cost (prior to any Discounts being applied) of
using one megabyte of Data within the Philippines;

(9) a link to the Provider's website where the Customer can obtain call and Data
usage information or instructions on where the Customer can obtain call and Data
usage information;

(10) where relevant, warnings about roaming costs (both international costs
and the circumstances in which additional Charges may be imposed in the
Philippines when the service roams onto a different network);

(11) Customer Service contact details;

(12) information about how to access internal dispute resolution processes
and how to elevate complaints through the TCIP Office; and

(13) contact details for the TCIP Office.

(c) Format. A Provider must ensure that information contained in the CIS of each Offer
uses clear headings to identify the content contained in each section. A Provider must ensure
that each CIS is available to a Consumer as a standalone document where all its mandatory
contents are included for a single Offer; or where the Provider combines multiple Offers

2


available to a Consumer into a single CIS, no longer than it would be if a CIS was provided for
each Offer in the bundled Offer. For avoidance of doubt, where a Provider has multiple
products in an Offer and is bundling multiple Offers as part of a bundled package the Provider
may choose to supply a separate CIS for each Offer in the bundled package, or a combined
cis.

(d) Separate document. For the avoidance of doubt, a CIS must be a separate document
to the full contractual terms and conditions; and may include other relevant product or service
information the Provider determines would be useful to the Consumer.

(e) Other agreement via phone. Where the sale is carried out over the telephone and is
not treated as an unsolicited consumer agreement under the prevailing laws of the Philippines,
the Consumer may agree to opt out of their right to receive all information contained in the CIS
prior to sale. In this case, a Provider must:

(J) give the Consumer a general overview of the CIS prior to or at the point of sale
and dispatch a copy of the CIS to the Consumer within five (5) Working Days after
the sale; and

(2) not engage in practices that would encourage Consumers to opt out of receiving
the CIS prior to the sale. A Provider will not be regarded as having encouraged
Consumers to opt out of receiving a CIS prior to the sale merely by informing them
of their right to do so.

(f) Other relevant information. A Provider must make available other relevant
information about Telecommunications Products or Services currently offered by the Provider
beyond that which is covered in the CIS of each Offer, to assist Consumers to assess those
Telecommunications Products or Services compared with other Telecommunications Products
or Services that the Consumer is considering. A Provider must make available the following
information without charge to enable this outcome:

(1)Product description - a description of the key attributes of the
Telecommunications Products or Services offered by the Provider;
(2)Manufacturer - the manufacturer’s name for non-Provider branded
Telecommunications Product/s supplied by a third party as part of the Provider’s
Offers;

(3)Technical information - the main features for any Telecommunications
Product forming part of a Provider's Offers or where this information can be
obtained by the Consumer;

28


(4) Billing and payments - information on the Provider’s Bill or SOA formats,
Billing Options, Billing Period and payments offered by the Provider in relation to
its Telecommunications Products or Services;

(5) Usage - information to assist Consumers to estimate what capacity they may
need on a Telecommunications Product or Service to mect their usage
requirements;

(©) Post-sales support - details of any post-sales support for the
Telecommunications Product or Service and any fees or Charges for post-sales
support;

(7) Mobile coverage - the network coverage in the Philippines for the
Telecommunications Product or Service, which may include a map or diagram of
the mobile coverage;

(8) International roaming - information about whether a Consumer needs to take
any action to activate international roaming on the Provider’s Telecommunications
Product/Service (such as applying for activation of this functionality with the
Provider) or deactivate international roaming and the basic Charges to send SMS,
make and receive standard calls and for Data usage on the Provider’s
Telecommunications Product /Service from different countries (including that
roaming Charges may be higher than Charges for international calls from the
Philippines and Data usage may be more expensive, and that Customers may be
charged for both making and receiving calls while overseas);

(9) Virtual network operators - if a Provider does not own the network(s) over
which they are supplying a Telecommunications Service, the name of the principal
Carrier(s) whose network(s) is/are used to provide the Telecommunications
Services, ensuring it is clear to the Consumer that the Provider is responsible for
the service to the Consumer and is not affiliated or related to the principal Carrier(s)
unless it in fact is; and

(10) Products for Consumers with special needs or circumstances - information
about Telecommunications Products or Services offered by the Provider designed
for Consumers with different needs, circumstances, and abilities and how the
Telecommunications Products/Services operate, including, where the Provider is
supplying equipment, any information required to be supplied pursuant to universal

and national policies and practices on accessibility features.

29


@®

Remedies for inaccurate information. Where inaccurate information has been

provided by a Provider to a Consumer regarding an Offer and the Consumer has relied on it in

making a purchasing decision to sign up to that Offer with the Provider, the Supplier must:

)

(1)Remedies - attempt to Resolve Complaints about inaccurate information by
providing the Consumer with the correct information and a remedy that is
appropriate in the circumstances for that individual Consumer, which may include
a right for the Consumer to terminate the Contract or to the provision by the
Provider of a refund or equivalent service;
(2)Updating - take reasonable steps to promptly update inaccurate information
provided by the Provider to Consumers; and
(3)Continuous improvement - monitor Complaints about inaccurate information
and take steps to address any material issues regarding inaccurate information
(4) Other relevant laws - this Act Code should be read in conjunction with related
laws, policies, and issuances including Privacy, Competition and Consumer laws.
Providers are prohibited from sharing the numbers of its Consumers or indirectly
cause the sharing of such numbers through negligence or weak security measures.
Responsible approach to Selling. A Provider must ensure its Sales

Representatives promote and sell its Telecommunications Products and Services in a fair,

transparent, responsible, professional, and accurate manner to assist Consumers in making

informed purchasing decisions; and clearly explain the key terms, conditions, and costs of the

Telecommunications Products and Services that the Consumers are purchasing. A Provider

must take the following actions to enable this outcome:

(1) Training for Sales Representatives - ensure its Sales Representatives are
appropriately trained to promote and sell in a fair, transparent, responsible and
accurate manner;

(2) Ongoing monitoring - ensure the conduct of its Sales Representatives is
monitored periodically to see how they interact with Consumers, and take steps to
address emerging or systemic deficiencies in the sales conduct;

(3) Complaint handling system - monitor Complaints about the sales conduct of
the Provider's Sales Representatives and take steps to address emerging or

systemic deficiencies in the sales conduct; and

(i) Consumer understanding - ensure its Sales Representatives are appropriately trained

and have appropriate tools and aids to assist Consumers to understand the Telecommunications

Products and Services they are purchasing. If a Consumer identifies a particular need to a

30


Provider, the Provider must indicate if it has an Offer that may suit the Consumer's identified
need and if the Provider does indicate a particular Offer that may suit the Consumer's identified
need, the Provider must provide the Consumer with information about the particular Offer, to
allow the Consumer to assess the suitability of that Offer against that need.

Section 11. Consumer or Subscriber Contracts. - A Provider must provide Consumers
with a Customer Contract or Agreement that includes details of the entity providing the
Telecommunications Service or Product and of any associated Telecommunications Good
(eg. handset) that are provided by the Provider, or are required to be provided by the
Customer, to enable use of the Telecommunications Service and the details of inclusions in the
Telecommunications Service. A Provider must take the following actions to enable this
outcome:

(a) Identity of Provider - provide the Consumer with the name and contact details of the
Provider, and if a Provider does not own the network(s) over which they are supplying the
Telecommunications Service or Product, they must provide the Consumer with the name of the
principal Carrier(s) whose network(s) is/are used to provide the Telecommunications Services
and ensure it is clear to the Consumer that the Provider is responsible for the service to the
Consumer and is not affiliated or related to the principal Carrier(s) unless it in fact is;

(b) Equipment compatibility - inform the Consumer what type of equipment would be
compatible with the Provider's Telecommunications Service; and

(c) Equipment terms and conditions - where a Provider is providing equipment /device
as part of the Customer Contract, the Provider must provide the Consumer with the relevant
terms and conditions relating to any equipment/device purchased from the Provider for usc
with the Telecommunications Service.

(d) Customer specific information - A Provider must make available information about
the activation and expiry date of any current Contract that the Consumer has with the Provider
for a Telecommunications Product/Service upon the Consumer requesting this information
from the Provider.

(e) Information to re-contracting Customers: The Provider must inform the Consumer
at least one (1) month before the end of contract term or “lock-in” period of the end of such an
Agreement both via SMS/call and email. At the time of re-contracting, the Provider must
inform the Customer of features available on new plans that may not be available on their
existing plan, including spend management notifications.

(f) Right to pre-terminate contracts — aside from the right to switch to another network
and portability of mobile number, a Consumer has the right to pre-terminate a Contract if the

31


reason is to switch to another network or non-compliance of the Provider to the agreed upon
performance standards as provided for in this Act and the Agreement with the Consumer.
‘Subject to the filing of a formal request to the Provider or, upon escalation, the authorities as
provided for in this Act, a Consumer may request the immediate termination of service without
the imposition of fees or penalties, and with the refund of any fee or charge already paid by the
user, should a Provider not consistently comply with the minimum performance standards set
by this Act.

(g) Keeping records regarding Customer Contracts: A Provider must keep records to
enable a Customer to verify that the process for entering into the Customer Contract was
undertaken in accordance with this Act. The Provider must create, and retain for a minimum.
of the term of the Customer Contract plus three (3) years, or if cancelled prior to the minimum
term, two (2) years following cancellation, or as required by relevant laws or this Act’s IRR,
auditable records establishing that:

(1)Information about Supplier - the Provider provided to the Customer
information regarding the identity of the Provider and its role, and where relevant,
the role of other principal Carrier(s), in the supply of the relevant
Telecommunications Products/Services;

(2) Agreement to enter into Customer Contract - the agreement of the Customer
was obtained to enter into the Customer Contract.

Section 12. Customer Service. - A Provider must ensure enquiries by Customers are
dealt with by the Provider in a timely and effective manner. A Provider must take the following
actions to enable this outcome:

(a) Access - inform Customers how to contact the Provider about Customer Service
enquiries and the hours of operation of these contact methods;

(b) Average wait times - monitor average wait times experienced by Customers to
communicate with a Provider about a Customer Service enquiry and seek to keep the average
wait times to a reasonable minimum in the circumstances;

(c) First contact resolution - monitor the level of first contact resolution of Consumer
Service enquiries, take reasonable steps to understand the root causes for why enquiries cannot
be resolved at first contact, and address those root causes; and

(d) Record keeping - keep records of interactions between the Provider and Consumers
accessible to staff tasked with responding to such Service enquiries, to aid in resolving
Customer Service enquiries. The Provider should not deliberately cause destroy or delete
records related to Complaints process, which must be handled according to the procedures as

32


provided for in this Act and its IRR. All record requests through the TICP (in case of escalation)
or any other regulatory or law enforcement body must be complied with by the Provider.

(e) Assessing performance - a Provider must strictly self-monitor its performance vis-
a-vis standards set forth in this Act. It should ensure and monitor customer satisfaction by
regularly secking:

(1) Customer feedback — by obtaining feedback from Customers about how the
Provider deals with Customer enquiries; and
(2) Improvements - using this Customer feedback to identify any systemic issues
and take reasonable steps to implement improvements to its Customer Service
processes.
(3) Sanctions and reporting: Providers identified by the TICP Office as being the
worst Provider based on the largest number of complaints during the prior financial
year must be sanctioned either by community service, payment of fines, or both.
The details of the sanctions shall be stipulated in the IRR.

Section 13. Billing. - The Provider must always comply with legal and ethical standards

and universal best practices when it comes to billing.

(a) Pricing, Billing and payment terms: A Provider must ensure that information is
available to Consumers about its:

(1) charges and Discounts;

(2) various Bill Media;

(3) any Billing Options;

(4) Billing Period policy;

(5) terms and conditions applicable to the Provider’s Bill, any Billing Options, its
frequency and its payment; and

(6) processes to assist Customers who are experiencing difficulties paying their
Bills.

(a) Bill payment information: At the time of, or before, the issuc to the Customer

of the first Bill by the Provider, a Provider must advise Consumers in general terms of:

(1) the time they have to pay their Bill for Telecommunications Services;
(2) their obligation to pay Bills for Telecommunications Products or Services by
the due date;
(3) any processes the Provider has for:

(3a) interim Billing or changes in the Billing Period;

(3b) following up overdue Bills;

33


(Gc) assisting Customers who experience difficulties paying their Bills,
including where to access the Provider’s Financial Hardship policy referred to
in this Act.

(3d) the effect of part payment of a Bill and any method used by the Provider
for allocating amounts received; and

(Be) the fact that non-payment or repeated late payment of Bills may have an
effect on the provision of current or future Telecommunications Services to the
Customer.

(b) Format of Bill Media. A Provider must offer its Consumers the ability to
receive a Bill and any Billing information in a Bill Media that the Consumers is able to store
and reproduce. Bill Media options may include, but are not limited to, any one or more of the
following Bill Media: paper format, email, or online (e.g., via the Provider's website).

(0) Provision of Billing information. Following a Consumer's request and
irrespective of whether or not previously made available on a Bill or otherwise made available,
a Provider must provide to Consumers and former Consumers all Billing information related
to that Consumer’s or former Consumer’s Telecommunications Service, up to the period
provided for in this Act.

(d) _ Bill content requirements. A Provider must ensure that its Bills for a
Telecommunications Service contain relevant Billing information. The Bill must include at
least:

(1) the Consumer's or former Consumer’s Billing Name and Billing Address;
(2) the Provider's trading name;
(3) the Bill issue date and sequential identification (such as Invoice numbering or
dates) to enable a Consumer, or former Consumer, to readily identify if a previous
Bill has not been received and readily determine the chronological order of Bills
received;
(4) the Billing Period and an account reference number;
(5) a Customer reference to be used when paying online, which is the same on each
Bill for that Consumer, or former Consumer, for the same Telecommunications
Products. A Provider may, however, change the Consumer reference from time to
time when its circumstances require it (such as a change to its Billing systems);
(6) the current due date for the Billed Charges and the due date for any outstanding
amount;
(7) advice regarding any additional Charges

34


()

(8) the name of, or reference for, the agreement or plan to which the Bill relates;
(9) any Charges that exceeded any spend limits or included allowance thresholds;
(10) a description of the Charges included in the Bill including the total
amount of the Bill, any applicable Discounts or credits being applied to the Bill or
Charge, including any Third Party Charges;

(11) for Bills that contain Charges for an Included Value Plan, the total
amount of the Bill for of each the two previous Billing Periods;

(12) for Bills that contain Charges for an Included Value Plan, a link to the
area on the Provider's website where the Consumer can obtain call and Data usage
information or instructions on where the Consumer can obtain call and Data usage
information;

(13) contact point for the Consumer, or former Consumer, to make Billing
Inquiries that includes at least a telephone number and a working email address;
(14) acontact point for the Consumer, or former Consumer, to obtain pricing
information if not available from the contact point described above;

(15) the hours of operation of the contact point if the contact point is open
less than 24 hours, 7 days a week; and

(16) the nature of any Charges applying to Billing Inquiry calls, including
information about any Charge greater than the Provider's local call tariff, or
equivalent.

Timeliness of Bill issue. Providers must issue a Bill to a Consumer, or former

Consumer, within ten (10) Working Days after closure of the Billing Period, except when a

temporary system or processing problems or issues arise; a Force Majeure event occurs; or a

Provider delays the issue of a Bill for Customer Service purposes. If any delay extends beyond

(ten) 10 Working Days, the Consumer must be granted an extension of time to pay of not less
than the length of the delay.

10)

Supplier verification. A Provider must ensure it provides, and must be able to

verify and demonstrate, Billing Accuracy except for inaccuracies caused by:

(1) the Provider’s reliance on information provided by a person who is not its
director, employee or agent;

(2) an action or failure of another person who is not the Provider's director,
employee or agent; or

(3) an accident, mistake or any matter beyond the Provider’s control, where the
Provider took reasonable care and precautions to avoid the inaccuracy.

35


(g) _ Verification of Charges. A Provider must ensure that sufficient information is
readily available to the Consumer, or former Consumer, to allow them to verify that Charges
are correct and consistent with the Provider’s published or contracted Charges and Discounts;
and the Telecommunications Products/Services which the Consumer, or former Consumer, has
requested, used or contracted to receive.

(h) Itemized Charges. A Provider must ensure that Itemized details of all Charges
relating to its Telecommunication Products/Services are made available to the Customer, or
former Customer, unless they have otherwise requested or agreed. A Provider must inform its
Customers of any notice period required by the Provider in order for the Provider to provide
Itemized Billing details to them.

(i) Timed Calls. A Provider must supply or make available to the Consumer, or
former Customer, Itemized Timed Call Charges, unless they have otherwise requested or
agreed.

() Payment Options. A Provider must offer various and convenient ways of

payment of Bills such as but not limited to direct debit arrangement, credit card payment, over-
the-counter payments in banks, and online payment systems.

(k) _ Timeliness of Bill payment processing: A Provider must note Bill payments
in the Provider's relevant system within 24 hours from the settlement or after the Provider is,
formally notified of payment, and apply payments received by the due payment date to the
Customer's, or former Customer's account:

(1) prior to generating the subsequent Bill; or

(2) within two (2) Working Days of the payment being received by the Provider,
whichever is sooner; and

(3) apply payments received after the due payment date within two (2) Working
Days of receiving the payment.

(). Direct Debit payment. A Provider offering Direct Debit as a payment facility
for a Telecommunications Product or Service must comply with the Customer's authorization
and:

(1) must ensure that the Customer, or former Customer, can access all Billing
information on request and before the Direct Debit occurs;
(2) must ensure that the Customer, or former Customer, can, on request, verify that

its Direct Debit arrangements are in accordance with their authorization;

36


(3) except where otherwise agreed between the Provider and the Customer, must
allow the Customer, or former Customer, not less than ten (10) Working Days to
check the Bill, or if no Bill is required all applicable Charges, before the associated
Direct Debit transaction occurs;

(4) must provide details of a Direct Debit transaction to the Customer, or former
Customer's nominated financial institution in a timely manner, to ensure the
transaction to take place as close as possible to the due date for payment;

(5) must ensure that a Customer, or former Customer, can readily cancel a Direct
Debit authorization by providing a simple mechanism (such as email or faxed
request to do so);

(6) must cancel a Direct Debit authorization within three (3) Working Days of
receipt of the request; and

(7) if the amount of a Direct Debit is incorrect, must either ensure that the
Customer, or former Customer, receives a full and timely refund of any excess
amount paid or undertake other appropriate action agreed with the Customer or
former Customer.

(m) Third party charges. Where a Provider includes Third Party Charges on a
Customer's Bill, a Provider must address all enquiries and Resolve all Complaints made to it
regarding those Third Party Charges.

Section 14, Credit and Debt Management. - Providers must undertake due diligence and
Credit Assessment before providing a Postpaid Service with a minimum term greater than one
month to a Consumer and explain the financial implications of the provision of that Postpaid
Service to the Consumer or their Guarantor. The following principles shall apply:

(a) _ Assess capacity to pay - For all Postpaid Services, a Supplier must undertake
due diligence and Credit Assessment, the intention of which is to prevent Consumer over-
commitment and to enable a Provider to recover the Charges. To determine the Consumer’s
financial capacity to meet their contracted obligations, a Credit Assessment must include at a
minimum the following steps (this does not restrict the Supplicr’s ability to establish further
information for the purpose of a Credit Assessment):

(1)Existing Customers - For an existing Customer who seeks to purchase
additional or renew his Postpaid Services, the Provider must undertake a check of
that Customer’s payment history as well as his loyalty and lifetime value (typically
measured through his length of stay, among other considerations) with the
Provider;

37


(2) New Customers - For a new Customer secking to purchase one or more
Postpaid Services with the Provider and which have an aggregate Minimum
Quantifiable Contract Value of greater than PhP24,000.00, the Supplier must:
(2a) Financial capacity details - obtain details from the Consumer as to how
they will be able to afford their commitments under the Customer Contract. This
may be via savings, wages, or another form of income. Where the primary
source of income is from employment, identify the employment circumstances
(e.g., whether they are part-time, full-time, or permanently employed); and
(2b) External credit check - obtain an external credit check from a credit
reporting body.
(2c) Special circumstances — where capacity is easier to ascertain (¢.g., in cases
of qualified senior citizens who have pension accounts or minors who have trust
funds), obtain additional information for support such as reference letter from
any of Customer’s closest kin (children/sibling) who are also current
Subscriber/Customer of the Provider.
(2)Outcome of Credit Assessment. Following the Credit Assessment, if a
Provider concludes that a Consumer would be unable to satisfy their financial
obligations under the Customer Contract, or would only be able to meet those
financial obligations by incurring substantial hardship, the Provider must advise
the Consumer of that outcome; and provide the Consumer with information about
alternative products or services that may meet their needs, such as lower-cost
contracts, shorter-term contracts (12 months instead of 24 months) or Prepaid
Services.
(3) Other remedies. The Provider, upon request of a prospective Customer who
lacks paper requirement, may consider other means through which a Customer may
be allowed the availment of a Postpaid Service. The following shall be made
available to a qualified prospective Customer:
(3a) Requiring a Guarantee — a Provider may agree to open a Postpaid account
if the Customer can submit a Guarantee from his/her closest kin or immediate
family member who has been a Customer of the same Provider for more than
three (3) consecutive years and is in good credit standing. If a Provider and
Customer agree to such an arrangement, the Provider must provide advice to the
Guarantor regarding the nature and effect of the Guarantee before the Guarantee
is provided by the Guarantor and the Telecommunications Product/Service is
38


provided by the Provider; and provide a Guarantor with a minimum of ten (10)
Working Days as cooling off period in which the Guarantor may terminate the
agreement for which the Guarantee is provided.

(3b) Requiring a Security Deposit - a Provider and Customer may agree to
‘open a Postpaid service account if the Customer can issuc a refundable Security
Deposit. In the event that a Security Deposit is required by a Provider, the
Supplier must provide the Consumer with information about the terms of that
Security Deposit, including the circumstances in which the Security Deposit
may accrue interest, be forfeited, or be refunded.

(b) Spend management tools. A Provider must provide Account Management
Tools to all its Customers so they can track of their spending and usage history on 24/7 basis.
A Provider must ensure that Customers who obtain services other than internet services from
the Provider have access to at least one Spend Management Tool which, is not dependent on
the Customer having internet access (that is, at the minimum, customers or consumers should
have a system where they can easily request data usage update through SMS).

© Hard Cap. — A Provider should enforce a cap mechanism through which
charges to Customers are monitored and exorbitant billing is automatically prevented.

(1) A Provider must suspend national and international data roaming charges at no
extra charge once they reach a specific threshold within a single monthly billing
cycle, unless the account holder or authorized user expressly consents to pay
additional charges. this cap applies on a per-account basis, regardless of the number
of devices associated with the account.
(2) A service provider must suspend data overage charges at no extra charge once
they reach a specific threshold within a single monthly billing cycle, unless the
account holder or authorized user expressly consents to pay additional charges. In
all instances, this cap applies on a per-account basis, regardless of the number of
devices associated with the account, For a customer with a flexible plan, the
customer begins incurring overage fees after the first tier of data is exceeded, and
the service provider must suspend data service when they reach a certain threshold
in overage fees, unless the account holder or authorized user expressly consents to
additional charges.
(3) For a customer with a data add-on or as part of a fixed plan inclusion or
offering, the price of the data add-on must be included in the calculation of the cap
on data overage fees.

39


@) Provision of notifications. A Provider must provide free electronic
‘notifications to a Service for each Customer who receives either an Included Value Plan or a
Postpaid Service for a broadband plan with an included Data allowance where there is no Hard
Cap, Shaping (in relation to Data allowance) and/or equivalent measure that applies to the plan;
the usage type in question under the plan is not unlimited; and in relation to Included Value
Plans, where such plans were launched by the Provider after the effectivity of this Act. The
Timing of Notifications should be clear and timely enough so that Customers are always
informed of their Plan usage.

(c) Notice to Restrict, Suspend or Disconnect a service for Credit and/or debt
Management Reasons, Providers must ensure Customers are given adequate notice regarding
a decision by the Supplier to Restrict, Suspend or Disconnect their Telecommunications
Service for Credit and/or debt Management reasons.

(1) Prior notice of Restriction, Suspension or Disconnection action - A Provider
must give the Customer at least five (5) Working Days’ notice prior to the
Restriction, Suspension or Disconnection of the Telecommunications Service for
credit and/or debt management reasons, unless clause (1) below applies:
(1a) A Provider may only Restrict, Suspend, or Disconnect a
Telecommunications Service for Credit and/or debit Management reasons
without first informing the Customer if the Provider assesses that the Customer
or the account status presents an unacceptably high credit risk to the Provider;
the Provider reasonably suspects Fraud or attempted Fraud; or the Customer
has nominated to the Provider a Restriction Point and the Customer has reached
that Restriction Point.
(2) Precautions to be taken - when notifying a Customer about a Provider's
Restriction, Suspension or Disconnection of the Customer’s Telecommunications
Service, a Supplier must make reasonable attempts to ascertain whether the
Customer has understood any oral advice given; ensure that attempts to inform are
directed to the Customer; and ensure that the primary method of notification used
is a format reasonably acceptable to the Customer based on their usage history. The
Provider should also inform the Customer about the Financial Hardship provision
as provided for in this Act in case the Customer needs such assistance.
(3) Content of Disconnection notice. If notifying a Customer about a Provider’s
Disconnection of the Customer’s Telecommunications Service, it shall send a
separate Disconnection notice, not just a Bill, to the Customer and any relevant

40


Guarantor prior to Disconnecting the Telecommunications Service. The notice of
Disconnection, if issued by email or letter, must inform the Customer and
Guarantor of the following in a professional, non-threatening, and considerate
manner:
(3a) that, after Disconnection has occurred, the Customer’s
Telecommunications Service plan and/or Telecommunications Product (and/or,
where applicable, telephone number), may no longer be available;
(3b) about the consequences of non-payment, including that the Customer’s
default leading to the Disconnection may be disclosed to a Credit Reporting
Body and/or collection agency and/or debt buyer and may be added to the
Customer's credit file with a Credit Reporting Body;
(3c) about the Financial Hardship policy in case the Customer needs such
assistance;
that the debt may be passed to a collection agency and/or debt buyer; and
(3d) that legal action may be taken to recover the unpaid debt.
The notice of Disconnection, if issued by a method other than email or letter,
must also include a link /number through which a Customer may immediately
send a reply or make an inquiry.
(4) Fair credit management process. Providers must ensure that Customers and
former Customers are treated with fairness, professionalism, and consideration in
relation to the Credit Management process.
(4a) Review ~ following a Customer's request, a Provider must review any
decision to Restrict, Suspend or Disconnect the Telecommunications Service
and inform the Customer of the outcome of that review. If the review is not
undertaken and completed by the Provider at the time of the Customer’s request,
the Provider must notify the Customer at that time when the review will be
completed.
(4b) Options or solutions — options and solutions should be offered by
Providers for valid cases such as when Customers experienced financial
hardships. For resolved cases, the Provider must take steps to notify the Credit
Reporting Body within two (2) Working Days;
(4c) Advice of dispute resolution options - following a review as referred to
in this Act, if the Customer remains dissatisfied with the outcome of the review,
a Provider must advise the Customer of how they can make a Complaint.

41


(4d) No reconnection charge - A reconnection charge is prohibited by this Act.
(4e) No Credit Management Charges or Other Fees During Disconnection
— a Provider must not impose Credit Management Charges or still require a
Customer to pay for the Monthly Subscription Fees (upon resumption of
services or payment of back or unpaid dues) during the time when services had
been temporarily disconnected. To compensate for the lost income, Providers
shall extend the term of Contract commensurate to the number of months when
services had been disconnected.
(4) No payment for unjustified interruption of services — service
interruption caused by the negligence of the Provider or that which is unjustified
and lasted for more than eight (8) hours entitles a Customer for a refund, which
is calculated based on his MSF.
(4g) Issues before any sale of debt: A Provider must Resolve any Billing
Complaint or Telecommunications Service before considering selling of debt or
assign it to a third party. Only upon due process and the required notification
shall accounts be assigned to third-party entities.
(4h) Default listed in error: Where a Provider becomes aware that a Customer
or former Customer has been default listed in error, the Supplier must inform
the Credit Reporting Body and use reasonable endeavors to do so within one (1)
Working Day.
(4i) Failure to pay through no fault of Customer: Where a Customer or
former Customer can demonstrate that they have taken all reasonable steps to
pay a known due debt but the Bill has not been paid duc to the fault of a third
party or the Provider, the Provider must ensure that:
(4i-1) if the Customer or former Customer has been default listed with a
Credit Reporting Body as a result, it notifies the Credit Reporting Body
within one (1) Working Day;
(4i-2) no additional Credit Management Charges apply; and
(4i-3) no other credit-related disadvantages arise for the Customer or former
Customer.
(4j) Debt collection. The Provider should adhere to a clear, transparent,
considerate, and fair debt collection procedures.
(4j-1) Collection activities - a Provider must adopt best practices as set out
in relevant laws and based on universal best practices.

42


(4j-2) Internal dispute resolution - A Provider must require that all of the
Provider’s debt collection activities have an internal dispute resolution
process.
(4j-3) Debt buyers - A Provider must only sell a debt to a debt buyer if that
debt buyer is fully aware of the provisions of this Act and duly
accredited/recognized by governing bodies.
(4j-4) Notification of sale of debt - A Provider must notify the Customer or
former Customer in writing fifteen (15) Working Days before the schedule
of debt sale, If the Customer does not reply within ten (10) Working Days
upon receipt of the first notice of the Provider, the Provider must assume that
communications had not been received by the Customer. In such a case, the
Provider must exert all efforts again and release a second notice to ensure
that the Customer has duly received all notices/communications. In order that
a resolution or negotiation will take place, the Customer is required to reply
to the Provider within 25 Working Days from receipt of first notice or fifteen
(15) Working Days from receipt of the second notice. Failure to do so means
an implied agreement of the Customer to the sale of the debt to a third party
entity.

Section 15. Financial Hardships. — Providers must enforce a Financial Hardship

policy and ensure that it is easy for Consumers to find and access.

(a) Specific and private contact point. A Provider must provide the Customer or former
Customer with details of the relevant point of contact with whom to discuss the Provider's
Financial Hardship policy and Financial Hardship arrangements in utmost privacy.

(b) Summarizing the Financial Hardship policy - A Provider must provide a summary
to a Customer, or former Customer, of how the Financial Hardship policy may assist them
upon request; when the Customer, or former Customer indicates to the Provider that they are
experiencing Financial Hardship; or if the Provider considers the Customer, or former
Customer, may be eligible for the policy. The Policy should carry a paragraph or a similar
paragraph that says, “We are here to help. We will work with you to help you respond to
financial difficulty, whether temporary or long-term. We are committed to helping customers
facing financial hardship maintain telecommunications access and working with you to find a
sustainable solution. Any help we can give will depend on your individual circumstances, and

we provide help on a case-by- case basis.”

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(1) Circumstances under Financial Hardship. ~ Families/individuals, may, at
some point in their lives, experience unexpected financial hardships and the State
should recognize that such circumstances prevent them from continuing their
Services or fulfilling their obligations. The following should qualify as valid
circumstances where Customers may avail of Financial Hardship solutions/options
with their Providers:
(1a) Long-term hospitalization in the immediate family that incurred a hospital
bill beyond a certain threshold;
(1b) Unemployment, loss of job, or project/contract/opportunity beyond three
(3) months (consecutive);
(Ic) Business dissolution or bankruptcy;
(1d) Unpaid/withheld simultaneous (more than 3 consecutive months) of
salaries or professional fees or invoices where the Customer is not at fault
(including obvious retaliation in labor- or integrity-related cases);
(le) Loss of properties through force majeur where losses are financially
significant;
(If) Domestic violence; and
(1g) Other qualified extreme financial hardships that may be determined by the
Provider (or relevant authority, if escalated) through due diligence, background
check, or submission of supporting documents by Customer.
(2) Solutions or options — The Provider may make options available for Customers
who are experiencing Financial Hardships, such as but not limited to:
(2a) Options for keeping the Customer connected:
(2a-a) Spend controls;
(2a-b) Restriction of service, in respect of overall or specific services;
(2a-c) Transferring the Customer to a Prepaid Service;
(2a-d) Transferring the Customer to a contract which includes hard caps or
Shaping; or
(2a-e) Interim low-cost options until the Customer can continue with original
payments.
(2b) Options for suitable financial arrangements:
(2b-a) Temporary freezing of account or disconnection and deferment of
payments of up to twelve (12) months (for an agreed upon period; a longer

44


period shall be typically offered to Customers requesting an extension
outside of Financial Hardship arrangements);
(2b-b) Agreeing on an alternative arrangement, plan,
(2b-c) Discounting or waiving of debt;
(2b-d) Permanent disconnection of Service for extreme circumstances or
when the period of freezing had been extended beyond eighteen (18) months.
(2b-e) Incentives for making payments, for example payment-matching.
(3) Fair and timely Financial Hardship assessment — Providers must assess the
Customer's or former Customer’s eligibility for assistance under the Financial
Hardship policy in a fair and timely manner. A Provider must ensure that staff who
are directly involved in applying the Financial Hardship policy are appropriately
trained.
(4) Requesting Information from the Customer - A Provider must inform the
Customer or former Customer of the information which the Provider requires to
assess their eligibility for assistance under the Financial Hardship policy. A
Provider must also inform the Customer, or former Customer, of the following:
(4a) that the assessment may be based on the information provided by them or
other information available to the Supplier;
(4b) that, where the requested information is not provided, an assessment may
not be made;
(4c) that the provision of false or incomplete information may result in the
Supplier cancelling any hardship arrangements; and
(4d) if the information provided by the Customer, or former Customer, is not

sufficient to make an assessment of eligibility under the Financial Hardship
policy, of what other information is needed to make such an assessment.

(5) Communication of Financial Hardship arrangement/resolution:
(Sa) Arrangement details - A Provider must inform the Customer, or former
Customer, that they may request that the Provider give the details of the
Financial Hardship arrangement to them in writing. If the Customer or former
Customer requests that the Provider give the details to them in writing, the
Provider must do so.
(5b) Rights and obligations - A Provider must inform the Customer, or former
Customer, of their rights and obligations under the Financial Hardship
arrangement (including without limitation that they have an obligation to

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promptly advise a Provider if their circumstances change during the term of the
Financial Hardship arrangement) and of Credit Management arrangements.
(Sc) Duration of arrangement - A Provider must advise the Customer, or
former Customer, of the duration of the Financial Hardship arrangement or of
the review date of the arrangement.

(5d) Timing of communication - A Provider must advise the Customer, or
former Customer of the matters referred to in this Act within five (5) Working
Days of the Provider and the Customer or former Customer agreeing to the
specific Financial Hardship arrangements.

(Se) Commencement of arrangement - A Provider must ensure that the
Financial Hardship arrangement will not commence unless the Customer or
former Customer indicates their acceptance.

(5f) Prohibition on certain debt sale- A Provider must not sell the debt or
submit a negative or discriminatory report to any credit information body while
an arrangement under a Financial Hardship policy is in place.

(5g) Changed circumstances - A Provider must review the arrangements if the
Customer notifies the Provider that the Customer’s or former Customer’s
circumstances have changed.

Section 16. Changing Providers and Portability of Number. This Act as a whole and
this Section in particular shall be construed and interpreted in the light of Mobile Number
Portability Act (Republic Act 11202). This Act further strengthens the right of Consumers and
the obligation of Providers when it comes to changing of a current Provider (the “Donor
Provider”) of a Telecommunications Service to a new Provider (the “Recipient Provider”).

(a) Cooperation and synergy between and among Providers. The process shall follow
a level of cooperation between and among all Providers involved in the switching process in
order to facilitate consumer switching and promote consumer protection. Relevant authorities
such as the DICT, NTC, and DTI shall promote an industry framework for cooperation between
and among all relevant Providers in order to facilitate the transparent and inclusive governance
of consumer switching arrangements so that these can be developed by the industry, as markets
evolve, under appropriate regulatory directions.

(b) Right of consumers to switch anytime, Consumers who want to switch provider
and/or port their current numbers have the right to do this at any time. The right to switch to a
new Provider and/or port a number is decoupled from any contractual obligation of a Consumer
including existing lock-in or contract period, on the condition that the Consumer pays any

46


corresponding cost of losses for the Donor Provider (DP) or the enforcement of an alternative

arrangement between the Donor and Recipient Providers. The State guarantees freedom of

choice and number portability and that a Consumer is allowed to terminate a contract at any

time provided certain conditions are met. In this regard, Sections 8 (a-1) and (a-2) of RA11202
are hereby amended and replaced by clauses (iii), (iv), (v), (vi), (vii), (viii), and (ix) and will

read as:

(1) Transmit the notice of clearance to the Recipient Provider (RP): Provided, That
the mobile number to be ported is still active (not disconnected or subject to
disconnection) and any existing contractual obligation is subject to a carry-over
arrangement between the RP and DP and which will reasonably consider the
financial losses and/or device installment payments (if any) of the DP. In the case
ofa VNO, it shall first acquire clearance from its host Provider before transmitting
the notice of clearance to the RP;

(2) Notify the Customer and the RP that the mobile number to be ported has an
existing contractual obligation with the DP but that porting of number should still
procced upon the request of the Customer. The DP shall then issue the Final Billing
or Statement of Account following the usual schedule of the Customer’s Billing
Cycle but not exceeding thirty (30) Days from the date of the porting’s effectivity.
The Final Billing and all obligations must either be settled by the Customer in full
or be paid in a manner or scheme that is reasonable and fair to the DP, Provided
that, at the minimum, services already consumed (calls, SMS, and data usage) or
the consumed portion of the MSF with the DP should be paid.

(3) The scheme to be enforced (that which will compensate the DP for losses and
device subsidy, if applicable) shall involve any of the following: (a) continuation
of a plan, which is similar to the plan which the Customer enjoyed previously with
the DP (but not lower in value) with the RP agreeing to remit a corresponding
percentage of the monthly payments of the new Customer to the DP—an amount
which will reasonably cover DP’s losses because of the pre-termination of the
previous plan (which shall be subject to a threshold to be evaluated and enforced
by NTC but which should not exceed 30% of the Plan’s monthly Subscription
Fee}—and the continuation of the separate installments on the device (if
applicable), with the new Agreement still honoring the uncompleted term (¢.g., 6
months) to ensure full payment of the device issued by the DP and before
commencement of a new Agreement (with a new device) with the RP; (b) outright

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payment by the RP to the DP covering the remaining contractual obligations of the
Customer [based on the principles stipulated in (a)], Provided that the Customer
agrees to pay the DP on such advance payment either in full or a similar manner
with which he was paying the DP previously; or (c) an appropriate mechanism that
is reasonable to all parties involved such as the trade-in or surrender of the device
of the Customer to the RP, Provided that it is still in good condition and could still
fetch a fair market price and the cash equivalent of the device may be deducted
from the outstanding obligation of the Customer to the new Provider (the RP).

(4) In any of the above schemes, the Customer agrees that only upon the fulfillment
of the unfinished term of the previous contract (if applicable) or the full payment
of remaining obligation can he avail of a new Plan (a lower or higher Plan value or
MSF) with the RP and availment of corresponding new device under an installment
plan if he so desires and is being offered by the RP. Moreover, in order that the RP
can recoup whatever investment and operational costs that it will incur on the first
instance of portability request (per Customer), the Customer agrees that he will
stay with the RP for at least one year excluding the unfinished term (if beyond six
months) with the DP and which the RP already absorbed and co-financed (if
applicable). This principle shall always prevail in cases when the unfinished term
of contract with a previous Provider (the DP) is beyond six (6) months and the cost
of such remaining contractual obligation was absorbed or paid for in advance by
the RP unless the Customer agrees to reasonably compensate the new provider (the
RP) of whatever it already paid for in his unfinished term in the previous Provider
(the DP).

(c) Decoupling of the right from any contractual obligation. To further ensure case

and efficiency of portability, all Providers are mandated to decouple or unbundle the cost of

device installment (if applicable) from the service component (usually paid through the MSF)

so that a Customer shall be required to sign two Agreements (if applicable): one for the MSF

and another for the device installment. Those who will opt to avail of devices on installment
shall be entitled to a device subsidy (which can be incorporated in the MSF) as is the typical
industry practice. Nevertheless, Providers shall also be required to offer no lock-in or SIM-only

plans with understanding that the saved or freed-up costs that otherwise go to device subsidies

shall be enjoyed by Customers through better benefits such as higher data allocation, rebates,

rewards, and other incentives.

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(d) Unlocking of devices. In order to facilitate immediate switching of network and
portability of number, the locking of mobile devices to a particular network is prohibited. This
prohibition shall apply whether the device is sold on its own or as part of a bundled plan or
service contract. In case when a device had been locked prior to purchase, the Provider shall
unlock the device for free upon the Customer’s request.

(c) Customer lifetime value. The long-term loyalty of Customers shall also be given
financial and economic value by all Providers. Regardless of the reason for wishing to switch
to another network and break free from an existing contract, long-term Customers (those who
have been with a Provider beyond two years) has a quantifiable lifetime value (LTV) and must
be a significant business consideration when treating them and their remaining contractual
obligations (if any). Therefore the LTV based on the number of years of stay with the DP shall
have a corresponding financial value and shall be considered when calculating the Final Billing
or SOA. The mechanisms for this calculation shall be included in the IRR.

The rest of Section 8 of RA 11202 and all parts thereof unless contrary to the principles
being espoused in this law remain in force.

(f) Obtaining Consent. - An RP must use reasonable efforts to ensure that a Consumer
is only the subject of a Transfer by a DP if the Consumer has provided their consent to such a
Transfer.

(1) Consent - The RP must ensure that the Consumer provides consent to the
Transfer; and

(2) Authorization - The RP must use reasonable efforts to ensure that the person
requesting the Transfer is the Rights of Use Holder of the Telecommunications
Service to be Transferred, is an Authorized Representative of that person, or is
otherwise able to authorize the Transfer under Guidelines to be issued through this
‘Act's IRR or a policy issuance by NTC.

(g) Verification of transfers. A Gaining Provider must ensure that it uses appropriate
procedures for the Verification of a Transfer, or an appropriate sample of Transfers, in all
selling channels where the Gaining Provider or its Sales Representative initiates the contact
with the Consumer which leads to a Transfer request.

(h) Promoting Transfers: An RP must:

(1) Identify - ensure its Sales Representatives identify the RP that they represent

when promoting Transfers with Consumers;

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(2)Place - where its Sales Representatives promote Transfers to Consumers in
person, ensure that the promotions are conducted in locations that are appropriate;
and

(3) Identity - keep records to enable it to identify the Sales Representative
responsible for effecting a Transfer.

() Minimum information for Consumers: Before initiating a Transfer or when
requested by a Consumer, a Gaining Provider must ensure that the Consumer receives at least
the following information:

(1) Subject to validation - that the offer to Transfer the Telecommunications
Service is subject to validating that it can be Transferred;

(2) Service interruption or change - whether there will be an interruption or
change to the Telecommunications Service during or as a result of the Transfer
process;

(3) No penalties and fees - that the Consumer's right to switch to another provider
is guaranteed by the State and such a right must not be impeded; Provided, that the
necessary arrangement (for example, in case of unfinished service contracts) had
been forged or shall be forged between/among the Customer and the DP and RP as
provided for in this Act;

(4) Notice of completion of the Transfer - that the Gaining Provider will use
reasonable efforts to notify the Consumer of the completion of the Transfer on the
day it occurs or, if completion of the Transfer relies on a third party, on the day the
Gaining Supplier is advised that completion has occurred; and

(5) Lodging an inquiry or Complaint - the appropriate contact details for lodging
an inquiry or a Complaint about any aspect of the Transfer.

Section 17. Establishment of a Consumers Protection Desk by the DICT, NTC, and
DTI and Power to Handle Complaints under the Act.- DICT, NTC, and DTI shall establish
a Telecommunications Industry Consumers Protection (TICP) Office within 30 days of the
effectivity of the IRR of Act.

(a) _At least two members of the TICP Office shall come from the private and civil
society sectors (but not from any Telecom Provider or have relatives from any Provider), and
at least one of them a known and credible advocate in consumer rights protection. These
representatives shall be nominated by the private and civil society sectors every three (3) years.
‘Nominating organizations and the guidelines for inclusion shall be established in the IRR of
this Act.

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(>) Conferred with the Desk are functions and powers of
(J) receiving;
(2) investigating;
(3) facilitating the resolution of;
(4) making determinations in relation to;
(5) giving directions in relation to; and
(6) reporting on, complaints made by the end users of Providers about matters
arising under or in relation to this Act, including compliance with this Act by
industry participants to whom this Act applies.

(0) The TCIP Office is mandated to conduct a study on the possibility of
establishing a more long-term governing body such as a Telecommunications Industry
Ombudsman (TIO) within three (3) years of the enactment of this law. In case of the viability
of the creation of such a TIO Office, the TCIP Office shall draft a corresponding House Bill
on the 4" year of the effectivity of this Act.

(a) Upon establishment of TICP, it shall review relevant provisions of the
Consumer Act (RA 7394) including but not limited to Chapter II (Consumer Complaints)
Articles 159 to 166 and propose an investigation procedure following such provisions or taking
off from such provisions (considering enhancements in the operational level) for the purpose
of ensuring a timely, reasonable, fair, effective, and efficient system of reaching a resolution
and/or rendering justice to any aggrieved party.

Section 18. Promoting Awareness. — Providers must promote awareness of this Act
and its IRR to their Customers, Subscribers, partners, and staff. A Provider must take the
following actions to enable this outcome:

(a) Awareness for Consumers - promote the Act to its Customers through the
issuance of brochures, advertisements, and other information materials in both physical and
digital formats; and

(b) Awareness for staff - communicate the requirements of this Act to relevant
staff and ensure that staff are trained regarding the Provider’s processes for compliance with
the provisions of this Act.

Section 19. Monitoring Compliance. - The NTC shall set Performance Standards after
public consultation and hearings within six (6) months from the effectivity of this Act; and

(a) Mandate that all Providers submit an Action Plan within six (6) months of the issuance
of the IRR of this Act and annual Compliance Reports—which shall include all complaints
received and how they were acted upon and resolved—beginning on the first year from the

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effectivity of this Act. It shall require separate books of accounts between different data
stransmission segments in order to allow identification of costs and revenues for each segment.
Nothing herein shall prevent interconnecting networks from charging the appropriate cost-
based compensation for the use of interconnection facilities.

(b) Mandate all data transmission industry participant, including PTEs with regard to its
network and facilities, to make available, on a timely basis, to suppliers of data transmission

ities and

services the technical information about its essential facilities or network fa
commercially relevant information that are necessary for them to provide services;

(c) Upgrade performance standards imposed on the data transmission industry regularly
to ensure that performance standards shall, at a minimum, be at par with service levels
established in regional data network performance indices and aligned with international best
practices. Such standards shall take into account speed, packet loss, jitter, and latency;

(d) Regularly review performance standards at least once a year and shall publish new
performance standards at least thirty (30) days before they take effect. The publication of the
results of the performance measurements shall be done in an open data format accessible to the
general public;

(c) Any Consumer (through the TICP), or the NTC itself, may, motu propio, file a petition
to penalize any data transmission industry participant for failure to deliver service according
to the NTC’s published performance standard and to require rectification of such
noncompliance;

() Measure the performance of the data industry participants and publish the results of
its measurements in its website;

() Ensure that there are at least two (2) providers providing services at any given
segment.

(e) Ensure that there shall be no anti-competitive cross-subsidization by requiring
separate books of accounts between different data transmission segments in order to allow
identification of costs and revenues for each segment. Nothing herein, unless found to be
injurious to the rights and welfare of Consumers, shall prevent interconnecting networks from
charging the appropriate cost-based compensation for the use of interconnection facilities.

Section 20. Expedited Processing. — In all instances where a participant in the data
transmission industry shall require a form, certificate, or request from any government agency
or local government unit (LGU), there should be no more than two (2) public officers involved

in processing the form, certificate, or request. Processing fees and certifications required for

the deployment of any segment of data transmission networks shall be limited to those
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identified by the DICT. The DICT shall coordinate with the concerned national government
cagencies and LGUs, and conduct the necessary consultations with civil society organizations
and other stakeholder groups, for the development of the implementing rules and policies to
minimize the administrative burden of permitting and certification processes.

Section 21. Penalties — Any Provider who shall not meet the minimum standards
mentioned under this Act, shall be subject to fines and penalties.

(a) Direct authority of NTC - In the exercise of the regulatory powers of the NTC, and
with the support of DICT and DTI (through the TICP Office) in handling complaints, it shall
impose fines amounting to the actual loss, damage, 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 until the amount is fully paid;
Provided that if the Provider has a gross annual income not exceeding Ten Million Pesos (PhP
10,000,000.00), 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 Provider is also
mandated to refund the charges it erroneously imposed to its Consumers or Subscribers.

(b) Suspension of certificates/permits. Failure to pay the fines or penalties in any case
within the time specified in the order or decision of the NTC shall be deemed good and
sufficient reason for the suspension of the certificate of said public telecommunications entity
until payment thereof shall have been made.

(c) Restriction on the Issuance of Temporary Restraining Order or Writ of
Preliminary Injunction. No temporary restraining order or writ of preliminary injunction shall
be issued by a Regional Trial Court against any order, decision, rule or regulation promulgated
by the NTC unless there is prima facie evidence that the said order, decision, rule or regulation
was promulgated with evident bad faith or grave abuse of authority: Provided, That whenever
such temporary restraining order or writ of preliminary injunction is issued, the court that
issued the same shall, within ten (10) days from such issuance, submit a report to the Supreme
Court setting forth in detail the grounds or reasons for the same.

(a) Adjustment for Inflation, The fines imposed under this Act shall be adjusted, year-
on-year, considering the prevailing cost of money based on the current consumer price index,
and subject to publication of such adjustments.

(c) Relation with the Consumer Act (RA 7394). Penaltics and fines stipulated herein
shall govern all cases that are covered by this Act. The provisions of this Act shall apply

53


notwithstanding any agreement to the contrary but shall not restrict, limit or derogate from any
-other rights or remedies of a Consumer under any other law.

Section 22. Implementing Rules and Regulations. — Within sixty (60) days from the
effectivity of this Act, the NTC and relevant agencies shall promulgate the necessary rules and
regulations for the effective implementation of this Act. The NTC shall ensure that the
provisions of this law apply, mutatis mutandis, to future technologies in telecommunications
and data transmission.

Section 23. Joint Congressional Oversight Committee on Open Access in Data
Transmission. — There is hereby created a Joint Congressional Oversight Committee on Open
Access in Data Transmission (JCOCOADT), which shall monitor and ensure the effective
implementation of this Act. It shall determine weaknesses and loopholes in the law,
recommend the necessary remedial legislation or administrative measures and perform such
other duties and functions as may be necessary to attain the objectives of this Act.

(a) The JCOCOADT shall be composed of five (5) members from the Senate and five
(5) members from the House of Representatives in addition to the Chairperson of the Senate
Committee on Science and Technology and the Chairperson of the House of Representatives
Committee on Information and Communications Technology, who shall Chair the Oversight
Committee in the order specified herein: Provided, That two (2) members of each chamber’s
nominees shall come from the ranks of the minority party/bloc.

(b) The Chairperson of the Senate Committee on Science and Technology and the
Chairperson of the House of Representatives Committee on Information and Communications
Technology shall act as co-Chairpersons of the JCOCOADT. The ranking minority members
nominated by both the Senate and the House of Representatives shall act as co-Vice
Chairpersons. The Secretariat of the JCOCOADT shall come from the existing Secretariat
personnel of the Committee on Science and Technology of the Senate and the Committee on
Information and Communications Technology of the House of Representatives.

() The JCOCOADT shall have its own independent counsel. The JCOCOADT shall
exist for a period not exceeding five (5) years from the effectivity of this Act. Thereafter, its
oversight functions shall be exercised by the Senate Committee on Science and Technology
and the House of Representatives Committee on Information and Communications
Technology, acting separately.

Section 24. Separability Clause. — If any provision or portion of this Act is declared
‘unconstitutional, the remainder of this Act or any provision not thereby affected shall remain
in full force and effect.

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Section 25. Repealing Clause, — Section 23 (Equality of Treatment in the
+ aTelecommunications Industry) of the Public Telecommunications Policy Act (RA 7925) is

hereby repealed. All laws, decrees, executive orders, ordinances, rules, regulations, and other
issuances, or parts thereof, which are inconsistent with any provision of this Act, are hereby
repealed, amended, and/or modified accordingly.

Section 26. Effectivity. - This Act shall take effect fifteen (15) days after its publication
in the Official Gazette or in a newspaper of general circulation.

Approved,

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