FIFTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
First Regular Session 
SENATE 
S. No. 964 
) 
) 
) 
Introduced by Senator Manuel "Lito" M. Lapid 
EXPLANATORY NOTE 
Internet Service Providers (ISPs) in the Philippines numbering more 
than two hundred (200), serves over seven million (7,000,000,000) 
subscribers and independent users in 2007. However, majority of these 
users or at least 90%, are confined within Metro Manila and a few of the 
country's selected urbanized cities and municipalities. This is mainly due to 
the concentration of the ISPs' operation within the Metropolis. ISPs cannot 
be blamed for being reluctant to operate outside the Metropolitan Manila 
area because of the lack of available telecom infrastructure in other parts of 
the country needed to send out internet signals. 
Even these ISPs 
operating in Metro Manila still. encounters the problem of limited telecom 
line availability and still cannot keep up with the actual demand for internet 
services. 
This bill which will put in place a scheme to spread out ISPs 
operations, will not only provide the entire Philippines with universal access 
to the information highway, but will at the same time respond to ISPs 
growing demand for bandwidth. 
The scheme will allow all ISPs to render service in any area of their 
choice but will however be required to operate a branch in at least one 
provincial area where there is an equal demand for internet access. The 
trade off on the part of the ISPs, will give them automatic license to set-up 
their own broadband network; a privilege not being enjoyed by any 
TELCOS and Value Added Service (VAS) providers intending to construct 
their own backbone under the Public Telecom Policy Act. 
Granting this long time request of most ISPs to have their own 
network will also be beneficial to the country. By having a broadband 
network spread throughout the country, we can take advantage of the 
benefits the technology can deliver such as simultaneous and speedy 
transmission of multimedia signals between subscribers. 
Through this 
means, our country will no longer be left out in the broadband race in the 
Asian region. In one of the featured articles in Newsweek magazine, it has 


been reported that China's fone service provider is instaffing a 47,000 km. 
broadband network to link the 180 Chinese cities. 
Internet Protocol (IP) applications nowadays is no longer exclusive for 
internet web browsing use 910ne. It can also be used for business 
applications where cheaper and faster exchange of data and real time 
voice communications will make the country a more attractive investment 
site to global industries. For the ordinary household folks, broadband 
technology utilizing the internet protocol will be a cheaper alternative of 
telecommuting. These expanded services which the internet is also 
capable of delivering, is likewise defined in this act as a VAS to address the 
problem 
of interpretation of internet telephony under the 
Public 
Telecommunications Act (RA 7925). 
Moreover, if the government is really keen in making e-commerce 
proliferate and playa dominant role in both the domestic and international 
economic activity, having a reliable internet network and services all over 
the country is the way to go. Besides, e-commerce will be useless without 
the suitable medium to support it. 
The immediate passage of this bill is earnestly sought. ---.... 
~.-, 


FIFTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
First Regular Session 
SENATE 
'5. No. 964 
) 
) 
) 
Introduced by Senator Manuel "Lito" M. Lapid 
AN ACT 
PROVIDING A SERVICE AREA SCHEME TO ALL INTERNET SERVICE 
PROVIDERS 
(ISPs), 
LIBERALIZING 
THE 
GRANTING 
OF 
ITS 
OPERATIONAL 
LICENSE TO 
OFFER EXPANDED 
SERVICES AND 
DEPLOY INTERNET BROADBAND INFRASTRUCTURE 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 the "Internet 
Universal Access and Liberalization Act of 2010". 
SEC. 2. 
Coverage. - All Intemet Service Providers in the Philippines shall 
be covered by this Act. 
SEC. 3. 
Declaration of State Policies. - The state recognizes the vital role 
of communication and information in nation building. 
SEC. 4. 
Definition of Terms. - Whenever used in this Act, the following 
terms shall mean: 
a. 
Broadband -
it shall refer to any particular transmission medium or 
technology, capable of delivering digital signals of not less than 1.0 megabits of data per 
second to the user and 0.5 megabits of data per second from the user that enables the 
users to originate and receive high quality voice, data, graphics, and video 
telecommunications. 
b. 
Commission - as used in this act, shall refer to the National 
Telecommunications Commission. 
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c. 
Internet - shall refer 'to the myriad of computer and telecommunications 
facilities, 
including 
equipment 
and 
operating 
software, 
which 
comprise 
the 
interconnected world-wide network of networks that employ the Transmission Control 
Protocol/Internet Protocol, or any predecessor or successor protocols to such protocol, 
to communicate information of all kinds. 
d. 
Internet Service Provider or ISP -
shall be used interchangeably in this 
act, will refer to any services-based operators whose services is to combine computer 
processing, information storage, protocol conversion, and routing with transmission to 
enable subscribers to access internet content and services as well as broadband 
multimedia services, and the transmission of such services. 
e. 
Internet network I infrastructure - as used in this act, shall refer to 
satellite, wireline, and wireless infrastructure utilizing Internet Protocol in delivering 
services. 
f. 
Internet Protocol (IP) - a scheme that enables digital information to be 
routed from one network to another as necessary. 
g. 
Internet Services - shall refer to interactive and multimedia applications 
utilizing IP to deliver data, image, video, music and voice and other similar signals. 
h. 
Internet Telephony - shall refer to a voice telephone service utilizing the 
internet infrastructure as medium. 
i. 
Voice Over Internet ,Protocol (VOIP) - shall refer to a technology of 
transmitting voice by converting the voice signal into data divided into small packets and 
sent using internet protocol. 
SEC. 5. 
Internet Service Provider Service Area Scheme. - All Internet 
Service Providers shall be required to set-up at least one provincial branch in a 
designated area to be assigned by the commission as a requirement for the granting of 
certificate of registration for operation: Provided, however, That the main branch of 
operation of Internet Service Providers shall be allowed to be put up in the area of their 
preference: Provided further, That if. the ISP's main choice of preference fall under the 
area covered by the scheme, such ISP shall no longer be required to set up another 
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provincial branch: Provided finally, 'That for existing ISPs that still have no existing 
branch covered by the scheme, shall be required to comply with this act as a 
requirement for the renewal of their expired certificate of registration currently being 
issued by the commission for a term of five (5) years. 
SEC. 6. 
Internet Cafe of ISP Provincial Branch. - Aside from offering 
internet services, an ISP Provincial Branch shall have an option to operate an internet 
cafe with a minimum of at least ten (10) personal computers connected to the internet 
for purposes of leasing it out to the public. 
SEC. 7. 
Designated Provincial Branch Areas Covered by the Scheme -
The commission shall determine the designated Cities and Municipalities in the 
provincial areas to be covered by the Service Area Scheme based on the following 
order of priority: 
a.) 
areas where no more than a single Internet Service Provider exist; 
b.) 
areas with a consumer demand for internet access; 
c.) 
areas with the least presence of an available telecommunication 
infrastructure. 
SEC. 8. 
Deployment of an Internet Network. - Any provision of law to the 
contrary notwithstanding, all internet service providers, if they may deem necessary, 
are authorized to deploy their own internet network for exclusive use in delivering 
internet services without the need to secure for a congressional franchise: Provided, 
, 
however, That such infrastructure shall utilize the broadband technology as defined in 
this Act. 
SEC. 9. 
Internet Telephony Service. - Internet Service Providers making use 
of 
their own internet broadband network, may opt to expand their services by offering 
internet telephony using Voice Over Internet Protocol (VOIP). 
The expanded ISPs 
services offering internet telephony shall be classified by the Commission as a value 
added service (VAS) that will be offered to the subscribers free of charge or at a cost 
significantly lower than the prevailing rate using a standard voice telephony. 
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• 
• 
SEC. 10. 
Implementing Agency. -
The Commission shall enforce the 
provisions of this Act, and within fifteen (15) days from its effectivity, promulgate the 
necessary implementing rules and regulations. 
SEC. 11. 
Repealing Clause. - The provision of any law, Issuance, Executive 
Order, Letter of Instruction, Rules or Regulations which are inconsistent with the 
provision of this act are hereby repealed, amended or modified accordingly. 
SEC. 12. 
Separability Clause. - If for any reason, any provision of this Act 
is declared invalid or unconstitutional, the remainder of this Act shall not be affected. 
SEC. 13. 
Effectivity Clau~e. - This Act shall take effect immediately upon 
publication in a newspaper of general circulation. 
Approved, 
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