1 
Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
TWENTIETH CONGRESS 
First Regular Session 
HOUSE BILL NO. 704 
Introduced by REP. JAVIER MIGUEL “JAVI” L. BENITEZ 
EXPLANATORY NOTE 
The COVID-19 pandemic has highlighted the need to accelerate the digital 
transformation of our economy, bureaucracy and education system.  
Digital revolution, however, must then be complemented with a reskilling 
revolution. The digitalization of economic activities does require new skill sets. 
The shift of responsibilities from humans to machines and algorithms threatens 
to make certain jobs obsolete and displace workers. Our workers must not be 
left behind. Our workforce must be able to transition from manual to digital 
jobs.  
We must therefore establish more digital learning and incubation hubs to 
enable our learners, entrepreneurs and workers to cope with the demands of 
digital learning, digital economy and digital jobs. 
Digital transformation is our ticket to full economic recovery, and key to 
sustained economic growth. Innovating business processes, using digital 
technologies, and developing digital skills, have provided many businesses 
and workers a lifeline in the pandemic, and will enhance their competitiveness 
in the new normal. To do this, we need to build the necessary ICT infrastructure 
and digital hubs to ensure our workforce adapts to and flourishes in the midst 
of disruptions brought about by the Fourth Industrial Revolution. 
In view of the foregoing, the enactment of this bill is earnestly sought. 
JAVIER MIGUEL L. BENITEZ 
July 1, 2025
8:04 am


2 
Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
TWENTIETH CONGRESS 
First Regular Session 
HOUSE BILL NO. 704 
Introduced by REP. JAVIER MIGUEL “JAVI” L. BENITEZ 
AN ACT ESTABLISHING INFORMATION AND COMMUNICATIONS 
TECHNOLOGY HUBS NATIONWIDE 
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 “Online 
Network Philippines Act”. 
SEC. 2. Declaration of Policy. – The State recognizes the vital role of 
information and communication in the development and in promoting growth 
in the countryside. To this end, the State shall encourage the expansion of 
information and communications technology (ICT) and infrastructure 
throughout the country to facilitate the access of the citizenry to goods and 
services. Pursuant thereto, the State shall establish ICT hubs throughout the 
country in accordance with the National ICT Roadmap and National ICT Plan. 
SEC. 3.  Definition of Terms. – As used in this Act: 
(a) Bandwidth refers to the amount of data that can be transmitted
over a network connection over a period of time;
(b) Broadband refers to a high capacity transmission technique using
a wide range of frequencies which enables a large number of
messages to be communicated simultaneously. In the context of
internet access, it refers to access that is continuing and
unhindered, and faster than the traditional dial-up mode;


 
3 
(c) Broadband network refers to a network able to transmit signals 
with a high bit rate and a transmission channel being equal to or 
greater than two megabits per second (2 mbps); 
 
(d) Committed information rate refers to the information rate 
guaranteed by a public telecommunications entity (PTE). The 
bandwidth cannot fall below the committed rate of ninety-eight 
point five percent (98.5%) of the time; 
 
(e) Cyber skills learning hub or Digital transformation center refers to 
a facility specifically designed for cyber-education and digital 
literacy, and that provides knowledge, skills, theoretical and 
practical experiences, and access to technologies for all learners to 
become information and technology proficient; 
 
(f) Data farm refers to a physical facility that houses servers, network 
equipment, personnel   like   information   technology   specialists   
and network technicians for business-critical support such as 
online data storage, data processing, core computing services, data 
and application backup services, and distributing large amounts of 
data from remote data facilities. The operation and management 
thereof shall be subject to pertinent laws and policies on data 
security to prevent, detect and intercept unauthorized access of 
data, specially on matters of national security; 
 
(g) Digital innovation hub refers to a specialized business incubation 
and acceleration   facility offering   physical workspace, mentoring 
and coaching, and devices for technical application testing or 
experimenting, and training. It is a one-stop-shop, usually but not 
always affiliated with educational institutions, that helps 
companies including start-ups to become more competitive with 
regard to their business production processes, products or services 
using digital technologies by providing access to the latest 
knowledge, expertise and technology to support them; 
 
(h) Information and communications technology (ICT) refers to the 
totality of electronic means to access, create, collect, store, process, 
receive, transmit, present, and disseminate information; 
 
(i) Information and communications technology hub (ICT hub) refers 
to a location where ICT services may be provided by a PTE with at 
least the minimum internet speed required by the National 
Telecommunications Commission (NTC).  Such services may 
include telecommunications services, broadband and convergence 
services, business processing and data management; 


 
4 
 
(j) Information technology and business processing management hub 
refers to a location that caters to and offers support mechanisms 
for companies and enterprises engaged in IT services and business 
process management and operations; 
 
(k) Public telecommunications entity (PTE) refers to any person, 
natural or juridical, government or private engaged in the 
provision of telecommunications services to the public for 
compensation. 
 
SEC. 4. Establishment of Information and Communications Technology 
Hubs. – There shall be established ICT hubs all over the country in accordance 
with a National   ICT   Plan   to   be   prepared   by   the   Department   Information   
and Communications Technology (DICT). 
 
The ICT Plan shall assess the needs of every province in the country and 
identify the appropriate types and the number of ICT hubs to be developed 
therein. Every province shall have at least one (1) of the following 
classifications of ICT hubs based on the type of activity that it hosts: 
 
(a) Data Farms; 
(b) Information Technology (IT) and Business Processing Management 
(BPM) Hub; 
(c) Cyber Skills Learning Hub and Digital Transformation Center (DTC); 
(d) Digital Innovation Hub; and 
(e) Any other ICT hub that may arise in the future. 
 
Pursuant to the ICT Plan and the national, provincial, city, or municipal 
spatial development plans, the DICT and the local government units (LGU) 
shall identify the areas where the ICT hubs shall be established based on 
geographical area and population: Provided, That ICT hubs shall be developed 
in geographically equitable and accessible locations throughout the province: 
Provided, further, That the area or site of an ICT hub shall be on a property 
owned by an LGU. 
The private sector shall be encouraged to establish ICT hubs in accordance 
with the standards set forth by the DICT. The DICT shall employ the latest and 
emerging technologies available to serve commercially unviable areas. 
 
SEC. 5. Role of the Department of Information and Communications 
Technology (DICT). – The DICT shall formulate a National ICT Plan, based on 
the National ICT Roadmap, which shall include the development of a national 
broadband network, provision of incentives to encourage private sector 
participation and promotion of competition. The Cybercrime Investigation and 


 
5 
Coordinating Center of the DICT shall formulate, oversee and validate the ICT 
cyber plan of the ICT hubs. 
 
The DICT shall update the National ICT Plan and shall submit the same 
on or before the 15th of April of every year to the Office of President of the 
Republic of the Philippines, the National Economic and Development 
Authority (NEDA), and the ICT Joint Congressional Oversight Committee 
established under this Act. 
 
SEC. 6. Advisory Committee. – There is hereby created an Advisory 
Committee that shall solicit inputs towards the shaping of policy directions of 
the National ICT Plan, including the supervision of ICT hubs and the 
coordination to be undertaken with the private sector and other agencies and 
instrumentalities of the government. The DICT shall determine the 
composition of the Advisory Committee and ensure the equal representation 
of the (a) government, (b) the service providers, (c) the end users, and (d) other 
industry stakeholders. 
 
SEC. 7. Role of the National Telecommunications Commission (NTC). – 
The NTC, through the exercise of its quasi-legislative and quasi-judicial 
powers, shall be the primary infrastructure regulator to ensure the monitoring 
and implementation of this Act. The NTC shall approve proposed ICT hub 
telecommunications projects through an administrative process prescribed for 
the purpose and shall ensure the compliance of PTEs with the required and 
committed information rate and quality of service. All PTEs shall regularly 
submit the necessary data and reports as required by the NTC. 
 
SEC. 8. Incentives. – Any registered business enterprise in the ICT hub 
may be granted incentives provided under Title XIII of the National Internal 
Revenue Code of 1997, as amended: Provided, That, these incentives shall be 
granted in addition to the incentives given by the LGU where such ICT hubs 
are located. 
 
The eligibility of the ICT hubs for the incentives provided herein should 
be within the boundaries of a performance-based, time-bound, and transparent 
system of incentives tailor-fit for highly desirable ICT investments and shall be 
subject to compliance monitoring by the Fiscal Incentives and Review Board 
and the LGU where such ICT hubs are located. 
 
SEC. 9. Digital Skills Development. – The DICT, together with the 
Department of Education, Commission on Higher Education, and the Technical 
Education and Skills Development Authority, shall establish a program on 
digital skills development for all learners to enhance their competitiveness, 
adaptability and 
employability in the emerging digital economy, which 
shall be integrated into the pertinent programs of the ICT hubs. 


 
6 
 
SEC. 10. Digital Network Infrastructure. – A digital network 
infrastructure shall be established to connect the local ICT hubs to the National 
Broadband Program through a core backbone network of the DICT, to be 
funded from the spectrum users’ fees. 
 
The DICT is hereby authorized to classify the said funds for capital outlay, 
which classification shall be furnished to and duly reflected by the Department 
of Budget and Management in its records. The release of funds shall be subject 
to applicable laws and existing budgeting, accounting and auditing rules and 
regulations. 
 
SEC. 11. Local Government Responsibility. – The issuance of licenses and 
permits for ICT-related activities and infrastructure construction projects shall 
not be delayed and hampered, and shall further be prioritized, subject to the 
provisions of Republic Act No. 11032, otherwise known as the Ease of Doing 
Business and Efficient Government Service Delivery Act of 2018. 
 
The Department of the Interior and Local Government (DILG) shall 
include ICT competitiveness and ICT integration as a criterion of governance 
under the Seal of Good Local Governance program. 
 
SEC. 12.  Private Sector Support and Public-Private Partnership. – The 
LGUs may engage the private sector through PPP agreements targeted towards 
financing, designing, implementing and operating infrastructure facilities and 
services for the ICT hub to maximize costs  and  allow for  sharing  of revenue, 
subject to the provisions of Republic Act No. 6957, otherwise known as “An 
Act Authorizing the Financing, Construction, Operation and Maintenance of 
Infrastructure Projects by the Private Sector and for Other Purposes”, as 
amended. 
 
SEC. 13. Prohibition Against Exclusivity. – All ICT hubs established 
under this Act are hereby declared free zones within which any PTE may 
operate. Any agreement or arrangement designating a PTE, or any of its 
subsidiaries or affiliates as an exclusive PTE within an ICT hub shall be void 
and unenforceable. The domestic internet exchanges shall be interconnected. 
The interconnection agreement between the PTEs shall be submitted to the 
NTC for its approval. If the parties fail to reach an agreement within ninety (90) 
days from the start of negotiation, the NTC shall intervene and prescribe the 
terms and conditions of the interconnection. 
 
SEC. 14. Penalties. – In the exercise of its quasi-judicial power, the NTC 
shall impose a fine of Five hundred thousand pesos (Php500,000.00) for (a) non-
disclosure, (b) non-interconnection, or (c) non-compliance with the committed 
information rate and quality of service. 


 
7 
 
The NTC shall increase the amount of fine every five (5) years subject to a 
certification from the NEDA on the computation of the cost of money based on 
the current consumer price index. 
 
SEC. 15. Implementing Rules and Regulations. – Within sixty (60) days 
from the effectivity of this Act, the DICT as the lead agency, together with 
NEDA, DILG, the League of Provinces and the Leagues of LGUs, the Board of 
Investments, the Philippine Economic Zone Authority, and the Advisory 
Committee, shall issue the necessary rules and regulations for the effective 
implementation of this Act. 
 
SEC. 16. ICT Joint Congressional Oversight Committee. – An ICT Joint 
Congressional Oversight Committee (ICTJCOC) is hereby created to monitor 
the effective implementation of this Act, recommend the necessary remedial 
legislative or administrative measures and perform such other duties and 
functions as may be necessary to attain the objectives of this Act.  
 
It shall be composed of the Chairpersons of the House Committee on 
Information and Communications Technology and Senate Committee on 
Science and Technology and two (2) members from each of the Senate and the 
House of Representatives who shall be designated by the Senate President and 
the Speaker of the House of Representatives, respectively: Provided, That one 
(1) member from each House shall be nominated by their respective Minority 
Leaders. 
The   Chairpersons of the House Committee on Information and 
Communications Technology and the Senate Committee on Science and 
Technology shall serve as Chairperson and Vice Chairperson or vice versa of 
the ICTJCOC on a rotational basis every six (6) months. The Secretariat of the 
ICTJCOC shall be the existing secretariat personnel of the concerned 
Committees of the House of Representatives and the Senate. 
 
SEC. 17. Separability Clause. – If any provision of this Act shall be 
declared unconstitutional or invalid, the other provisions not affected shall 
remain in full force and effect. 
 
SEC. 18. Repealing Clause. – All laws, presidential decrees, executive 
orders, rules and regulations or parts thereof which are inconsistent with or 
contrary to the provisions of this Act are hereby amended, repealed or modified 
accordingly. 
 
SEC. 19. Effectivity. – This Act shall take effect fifteen (15) days after its 
publication in the Official Gazette or in a newspaper of general circulation. 
 
Approved,