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SIXTEENTH CONGRESS OF THE REPUBLIC 
) 
(l}fh;nuf tllp.;~t't'r,br¥ 
OF THE PHILIPPINES 
) 
Second Regular Session 
) 
'15 
MAR 16 P 4 :40 
SENAT2698 
S.B.Noo __ 
_ 
HECE1VED llY: __ ~~ 
Introduced by: Senator Paolo Benigno ItBam" A. Aquino IV 
AN ACT PROVIDING FOR AN ONLINE NETWORK ESTABLISHMENT FOR THE PHILIPPINES 
EXPLANATORY NOTE 
Filipinos have been known to be a social and relational people. 
Its culture of 
inclusiveness features close-knit families living in compounds, Friday night barkada gimmicks 
and being the social media capital of the world. 
Maintaining a level of closeness with our family and friends are vital to our happiness!. 
Through information communications technology (leT), we have found ways to make human 
connections perpetual and instantaneous through the digital world. The Internet allows us to 
stay eternally connected with loved ones living in other parts of the country and other parts of 
the world. 
Being a nation with over 7,000 islands and with an estimated 10 million Filipinos living abroad, 
it is imperative that we establish quality access to the Internet, and other means of 
communication, across the country. 
What's more, leT facilities, such as the Internet, can improve the local economy. According to a 
study by the Nathan Institute and the Oxford Institute, improving access to leT can improve 
GDP by up to 1 percent2• 
However, according to a report by a United Nations (UN) agency, the Internet remains 
inaccessible to 7 out of 10 Filipinos and only 18.9% of households have Internet connection3. 
There is an urgent need to address the lack of Internet access in the Philippines so Filipinos can 
sustain their connections alive and strong and businesses can continue to thrive. 
The Online Network Establishment (ONE) Philippines Act is a concrete step to build and develop 
basic leT infrastructure through the solidarity of both public and private agencies. 
This bill calls for the establishment of ICT Hubs in every legislative district and the development 
of an advanced Internet superhighway. 
, Public Broadcasting Service (PBS). "This Emotional Life" TV Series Website. Last accessed 3.11.2015. 
<http://www.pbs.org/thisemotionallife/topic/connecting/conneetion-happiness> 
2 Matikas Santos. PDI. June 19,2012. Ulnternet can boost economy - networkingjirm". Last accessed 
3.11.2015. < http://technology.inquirer.netI12343/internet-can-boost-economy---networking-firm> 
3 Broadband Commission 


The approval of this bill will not only lead to stronger personal connections between Filipino 
families and friends, it will also advance industry and support the country's exceptional 
economic growth. 
In view of the foregoing, the approval of this bill is earnestly sought. 
2 


SIXTEENTH CONGRESS OF THE REPUBLIC 
) 
OF THE PHILIPPINES 
) 
Second Regular Session 
) 
'15 
MAR 16 P4 :40 
SENAT~ 
S.B. No. 
~698 
Introduced by: Senator Paolo Benigno "Bam" A. Aquino IV 
AN ACT PROVIDING FOR AN ONLINE NETWORK ESTABLISHMENT FOR THE PHILIPPINES 
Be it enacted by the Senate and the House of Representatives of the Philippines in Congress 
assembled: 
1 
SECTION 1. Short Title. - This Act shall be known as the "Online Network Establishment 
2 
Policy for the Philippines" or the "ONE Philippines Act". 
3 
SECTION 2. Declaration of Policy. -It is hereby declared the policy of the State: 
4 
a. 
To recognize the vital role of information and communications technology in 
5 
nation-building and encourage investment in the countryside by providing the infrastructure 
6 
necessary for the growth of information and communications technology; and 
7 
b. 
To promote the adaption of technology from all sources for the benefit and 
8 
embolden the widest participation of private groups, local government, and community based 
9 
organizations in the generation and utilization of available technology. 
10 
Towards this end, the State shall provide for a comprehensive policy for the creation 
11 
and establishment of an Information and Communication Technology Center (ICTC) or an 
12 
Information Communications Technology Hub (iCT Hub), whichever is applicable, in every 
13 
legislative district of the country with the end view of enhancing the access of every Filipino to 
14 
information. 
15 
SECTION 3. Scope. - This act shall provide for a policy framework for the establishment 
16 
of ICTCs or ICT Hubs in every legislative district of the country. This Act shall: 
17 
a. Mandate the development and enforcement of a comprehensive national information 
18 
and communications technology plan; 
19 
b. Mandate the development of the information superhighway; 
20 
c. 
Define the powers and functions of key national government entities in the 
21 
implementation of this policy; and 
22 
d. Provide incentives for all private industry partiCipants. 
1 


1 
In support of these mandates, the issuance of the necessary permits of telecommunications 
2 
and leT service providers shall be accelerated. 
3 
SECTION 4. Definition of Terms. -
4 
a. 
Bandwidth refers to the amount of data that can be transmitted over a network 
5 
connection over a fixed amount oftime; 
6 
b. 
Bit or Binary digit refers to either 1 or 0 in the binary system which is the smallest unit 
7 
of information handled by a computer; 
8 
c. 
Broadband refers to high-speed, high capacity internet and data connection. It is a 
9 
communications medium that uses wide bandwidth channels for sending and receiving 
10 
large amounts of data, video, or voice information; 
11 
d. 
Committed information rate refers to the average bandwidth for a virtual circuit 
12 
guaranteed by a public telecommunications entity to work under normal conditions. At 
13 
any given time, the bandwidth cannot fall below this committed figure; 
14 
e. 
Information and Communications Technology (lCT) refers to the totality of electronic 
15 
means to collect, process, and present information to end-users in support of their 
16 
activities. It consists, among others, of computer systems, office systems and consumer 
17 
electronics, as well as networked information structure, the components of which 
18 
include the telephone system, the internet, fax machines, and computers; 
19 
f. 
Information and Communications Technology Center (lCTe) refers to a center or 
20 
21 
location where services may be provided through the use of leT with a minimum speed 
of 4 megabits per second (Mbps). Such services may include telecommunications 
22 
services, broadband and convergence services, business processing and data 
23 
management; 
24 
g. 
Information and Communications Technology Hub (lCT Hub) refers to a center or 
25 
location where services may be provided through the use of leT with a minimum speed 
26 
of 100 Megabits per second (Mbps). Such services may include telecommunications 
27 
services, broadband and convergence services, business processing and 
data 
28 
management; 
29 
h. 
Information Technology (IT) refers to all matters concerned with the furtherance of 
30 
computer 
science 
and 
technology, 
design, 
development, 
installation 
and 
31 
implementation of information systems and applications; 
32 
i. 
Information superhighway refers to the digital communication systems and the internet 
33 
telecommunications network; 
34 
j. 
Megabit per second or Mbps refers to the measure of the speed of data transfer which 
35 
amounts to one million bits per second; 
2 


1 
k. Public Telecommunications Entity (PTE) refers to any person, natural or juridical, 
2 
government or private, engaged in the provision of telecommunications services to the 
3 
public for compensation. 
4 
SECTION 5. Role of the Information and Communications Technology Office (lCTO) -
5 
The Department of Science and Technology (DOST) Information and Communications 
6 
Technology Office herein referred to as "ICTO", consistent with the Philippine Development 
7 
Plan (PDP) and in coordination with the National Telecommunications Commission (NTC), shall 
8 
formulate and approve a national ICT Plan, based on a National ICT Roadmap, which shall 
9 
include, among others, the development of an information superhighway that will accelerate 
10 
the establishment of ICTCs and/or ICT Hubs, in every legislative district of the country and ICTCs 
11 
in every barangay. The ICTO shall likewise be the lead agency to oversee the implementation of 
12 
the NationallCT Plan. The updated National ICT Plan shall be submitted annually to the Office 
13 
of the President of the Republic of the Philippines, the ICT Joint Congressional Oversight 
14 
Committee established under Sec. 13 herein, and the National Economic Development 
15 
Authority (NEDA) on or before the fifteenth of (15th) of April. The ICTO may call on other 
16 
government entities to assist in the development of the information technology. 
17 
SECTION 6. Role of National Telecommunication Commission (NTC). -
The NTC, 
18 
through the exercise of its quasi-legislative and quasi-judicial powers, shall be the primary 
19 
infrastructure regulator to ensure the monitoring of the implementation of this Act. It shall take 
20 
the necessary measures to implement the policies and objectives set forth herein. The NTC shall 
21 
approve proposed ICTC or ICT Hub projects and shall ensure the compliance of public 
22 
telecommunications entities with the required committed information rate and the quality of 
23 
service as prescribed by NTC. The PTE shall regularly submit all necessary data and reports as 
24 
required by NTC, especially on the development of the information superhighway. 
25 
SECTION 7. Advisory Committee. - There is hereby created an Advisory Committee, to 
26 
be convened by the ICTO that shall solicit inputs for the policy, direction, coordination and 
27 
supervision of ICT Hubs or ICTCs in every legislative district of the country. The composition of 
28 
the Advisory Committee shall be determined by the ICTO which shall include equal 
29 
representation from (a) the government, (b) the service providers and (c) the end users. 
30 
SECTION 8. Establishment of ICT Hubs or ICTCs in each Legislative District. - Pursuant 
31 
to the development of a comprehensive information superhighway, NationallCT Plan and the 
32 
national, provincial, city, or municipal spatial development plans, the ICTO shall identify the 
33 
area where the ICT Hubs or ICTCs shall be established, with the end in view of establishing one 
34 
in every legislative district. The private sector shall be encouraged to establish the ICT Hubs or 
35 
ICTCs in accordance with the standards set by the ICTO. The ICTO shall come up with a scheme 
36 
to address the unviable areas, using the latest and emerging technologies available. 
3 


1 
SECTION 9. Incentives. - Any locator enterprise or Public Telecommunications Entity 
2 
(PTE) in the ICT Hub or the Information and Communications Technology Center (ICTC) may be 
3 
granted incentives provided under Executive Order No. 226, otherwise known as the Omnibus 
4 
Investment Code of 1987 or Republic Act No. 7916, otherwise known as The Special Economic 
5 
Zone Authority Act of 1995, as amended by Republic Act No. 8748, or an Act Amending RA 7916 
6 
otherwise known as the Special Economic Zone Act of 1995 and other relevant laws; Provided, 
7 
That such locator enterprise or PTE in ICT Hubs or ICTCs are qualified under the said laws: 
8 
Provided further, That no locator enterprise may avail of the incentives mandated in both laws 
9 
at the same time: Provided finally, That these incentives shall be granted in addition to the 
10 
incentives given by the local government unit where such ICT Hub or ICTC is located. 
11 
SECTION 10. Prohibition Against Exclusivity. - All ICT Hubs or ICTCs established under 
12 
this Act are hereby declared free zones within which any public communications technology 
13 
may operate. Any agreement or arrangement designating a public telecommunications entity, 
14 
or any of its subsidiaries, 
affiliates or dummy entities, 
as 
an 
exclusive 
public 
15 
telecommunications entity within an ICT Hub or ICTC shall be void and unenforceable. The 
16 
domestic internet exchanges shall be interconnected. The interconnection agreement between 
17 
the public telecommunications entities shall be submitted for the approval of the NTC. If the 
18 
parties fail to reach an agreement within ninety (90) days from start of negotiation, the NTC 
19 
shall intervene and prescribe the terms and conditions ofthe interconnection. 
20 
SECTION 11. Penalties. - The NTC, in the exercise of its quasi-judicial authority, shall 
21 
impose a fine of Three hundred thousand pesos (P300,000.00) for any of the following acts: (a) 
22 
non-disclosure, (b) non-interconnection, or (c) non-compliance with the committed information 
23 
rate and quality of service. 
24 
The NTC shall increase the amount of the fine every five (5) years subject to a 
25 
certification from the National Economic Development Authority (NEDA) on the computation of 
26 
cost of money based on the current consumer price index. 
27 
SECTION 12. Implementing Rules and Regulations. (IRR) - Within sixty (60) days from 
28 
the effectivity ofthis Act, the ICTO, in coordination with the NTC, NEDA, the Department of the 
29 
Interior and Local Government, the Board of Investments, the Philippine Economic Zone 
30 
Authority and the Advisory Committee, shall issue the necessary rules and regulations of this 
31 
Act. 
32 
SECTION 13. ICT Joint Congressional Oversight Committee. - There is hereby created an 
33 
ICT Joint Congressional Oversight Committee to be composed of the Chairpersons of the House 
34 
Committee on Information and Communications Technology and Senate Committee on Science 
35 
and Technology and two (2) members from each of the Senate and the House of 
36 
Representatives who shall be designated by the Senate President and the Speaker of the House 
4 


1 
of Representatives, respectively: Provided, That one (1) member from each House shall be 
2 
nominated by their respective Minority Leader. 
3 
The Chairpersons of the House Committee on Information and Communications 
4 
Technology and the Senate Committee on Science and Technology shall serve as Chairperson of 
5 
the ICT JOint Congressional Committee on rotational basis every six (6) months. In every case, 
6 
the other member of the Committee belonging to the majority in the House or in the Senate 
7 
shall be the vice Chair. The Secretariat of the Congressional Oversight Committee shall come 
8 
from the existing secretariat personnel of the concerned Committees of the House of 
9 
Representatives and the Senate. 
10 
The ICT Joint Congressional Oversight Committee shall monitor and ensure the effective 
11 
implementation of this Act, including the approval of the rules and regulations issues pursuant 
12 
hereto. It shall determine inherent weakness and loopholes in the law, recommend the 
13 
necessary remedial legislation or administrative measures and perform such other duties and 
14 
functions as may be necessary to attain the objectives ofthis Act. 
15 
SECTION 14. Separability Clause - If any part or provision is held unconstitutional or 
16 
invalid, other provisions that are not affected shall remain in full force and effect. 
17 
SECTION 15. Repealing Clause. - All laws, rules and regulations, other issuances or parts 
18 
thereof, which are inconsistent with this Act, are hereby repealed or modified accordingly. 
19 
SECTION 16. Effectivity. - This Act shall take effect fifteen (15) days after its complete 
20 
publication in the Official Gazette or in any newspaper of general circulation. 
Approved, 
5