NINETEENTH CONGRESS OF THE 
)
REPUBLIC OF THE PHILIPPINES 
)
Third Regular Session 
)
24 OCT-1 F6:16
SENATE
Introduced by Senator Grace Poe
AN ACT
GRANTING STARLINK INTERNET SERVICES PHILIPPINES, INC. A 
FRANCHISE TO CONSTRUCT, MAINTAIN, AND OPERATE SATELLITE 
GROUND STATIONS FOR THE PROVISION OF BROADBAND INTERNET 
SERVICES IN THE PHILIPPINES
EXPLANATORY NOTE
Filipinos are among the world's most avid internet users, with the average 
person spending at least ten (10) hours a day online. Ironically, the Philippines also 
has one of the slowest and least reliable internet infrastructure in the region. The 2024 
edition of the Worldwide Broadband Speed League ranked the Philippines 92nd out of 
229 countries with an average download speed of 52.07 Mbps, which was considerably 
slower than the global average of 55.58 Mbps and the Asian average of 57.24 Mbps1. 
Furthermore, a 2024 World Bank Report found that internet connectivity in the 
Philippines is the most expensive in Southeast Asia but is relatively slow compared to 
its neighboring countries2.
Another World Bank report found that an average Filipino household spends 
11% of its income to pay for fixed broadband internet, twice as much as the ASEAN 
average3. The harsh reality of internet service in the country is reflected in the most 
recent national census which found that only 56.1% of Filipino households can access 
the internet at home while 42.1% can access it via mobile broadband networks.4
1 Business World. (24 July 2024). Philippines further falls in broadband speed tracker.
https://www.bworldonline.eom/infographics/2024/07/24/609887/philippines-further-falls-in-broadband-speed-tracker/
2 Philippine Star. (26 June 2024). World Bank urges reforms to address 'slow, costly' internet in Philippines. 
https://www.philstar.eom/business/technology/2024/06/26/2365751/world-bank-urges-reforms-address-slow-costly-internet- 
philippines#:~:text=According%20to0/o20the%202024%20World,slow%20compared%20to%20Singapore%2C%20Thailand% 
2C
3 Philippine Star. (01 May 2024). Philippines internet divide expanding. 
https://www.philstar.eom/business/2024/05/01/2351596/philippines-internet-divide-expanding
4 
Business World. (05 July 2023). PHL home internet penetration rate at 56.1% of households. 
https://www.bworldonline.eom/economy/2023/07/05/532628/phl-home-internet-penetration-rate-at-56-l-of- 
households/#:~:text=THE%20Philippine%20Statistics%20Authority%20(PSA,connect%20via%20mobile%20broadband%20ne 
tworks.


This disparity in access has wide-ranging effects on the Philippine economy. 
Poor internet access limits the opportunities available to Filipinos, particularly for low- 
income households. On a broader scale, a deficit in digital skills and internet access 
will result in citizens who are unprepared for future jobs. Poor internet access also 
leads to low technology adoption and limited innovation and productivity growth by 
firms, especially micro, small, and medium enterprises.
The entry of Starlink in the Philippines seeks to bridge the digital gap by 
providing satellite-based internet connectivity in areas not covered by traditional 
terrestrial networks and in remote areas where it is difficult to build 
telecommunications infrastructure. The use of satellite technology is particularly well- 
suited in an archipelago like the Philippines, where large portions of the population 
live in rural areas and isolated islands.
Starlink Philippines is a subsidiary of Stariink Sateliite Services Corp. which 
operates the world's first and largest satellite constellation. As of June 2024, Stariink 
has more than 6,200 active satellites, representing half of all active satellites in orbit, 
allowing it to deliver broadband internet capable of supporting streaming, online 
gaming, video calls and more.
At present, Starlink Philippines has been granted accreditation as a Satellite 
Systems Provider and/or Operator by the Department of Information and 
Communications Technology and registered as a Value-Added Service provider by the 
National Telecommunications Commission. While these regulatory accreditations 
already allow Starlink Philippines to provide internet services in the country, it is 
seeking the grant of a legislative franchise so it can further improve its services by 
constructing and operating gateway earth stations. Under Republic Act No. 3846 or 
the Radio Control Act, gateway earth stations qualify as 'radio stations' which requires 
legislative franchise.
In view of the foregoing, the enactment of this bill is earnestly sought.
/ GRACE POI\


NINETEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
Third Regular Session
)
SENATE
S. No. 2844
24 QCT-1 ."6:16
Introduced by Senator Grace Poe
AN ACT
GRANTING STARLINK INTERNET SERVICES PHILIPPINES, INC. A 
FRANCHISE TO CONSTRUCT, MAINTAIN, AND OPERATE SATELLITE 
GROUND STATIONS FOR THE PROVISION OF BROADBAND INTERNET 
SERVICES IN THE PHILIPPINES
Be it enacted by the Senate and the House of Representatives of the Phiiippines 
in Congress assembied:
1 
Section 1. Nature and Scope of Franchise. - Subject to the provisions of the
2 
Constitution and applicable laws, rules and regulations, Starlink Internet Services
3 
Philippines Inc. (Starlink Philippines), its successors or assignees, hereunder referred
4 
to as the grantee, is hereby granted a franchise, to establish, construct, maintain,
5 
operate, own, manage, lease and purchase, in the Philippines, or in such places as the
6 
grantee may select radio transmitting stations and/or radio receiving stations, as these
7 
terms are defined under Republic Act No. 3846, as amended, including earth stations,
8 
satellite earth stations, telecommunication satellite systems, satellite terminal stations,
9 
and associated equipment and facilities to support solely the provision of value-added
10 
services (VAS), such as internet access services, with authority to receive and transmit
11 
data, messages, facsimile, impressions, pictures, music, and voice, without however
12 
engaging in other telecommunication services such as broadcasting, telecasting and
13 
cable television services, throughout the Philippines and between the Philippines and
14 
other countries and territories, ships at sea, aircrafts and other conveyance, stations,
15 
and telecommunications systems of other countries.
16 
This franchise includes the right and privilege of operating such earth stations,
17 
including transmitting and receiving information via satellite and other
18 
telecommunications systems/technologies as are at present available or be made


1 
available through technological/technical advances or innovations in the future, to
2 
support the provision of value- added services, such as internet access services, and
3 
to purchase any or ali of the equipment and materials needed in its operations; and
4 
to estabiish, construct, maintain, operate, own, manage, lease and purchase radio
5 
transmitting and receiving stations for locai and international services, as may be
6 
convenient to efficientiy carry out the purpose of this franchise. The grantee, its
7 
successors or assignees, are further authorized to connect and keep connected its
8 
sateilite earth stations in the Philippines and other countries and territories. The
9 
grantee shali be authorized to iease or acquire facilities, channels or circuits in the
10 
pursuance of its business.
11 
Sec. 2. Manner of Operation of Stations or Faciiities. — The stations or facilities
12 
of the grantee shall be constructed and operated in a manner as will, at most, result
13 
only in the minimum interference on the waveiengths or frequencies of existing
14 
stations or other stations which may be established by law, without, in any way
15 
diminishing its own priviiege to use its assigned wavelengths or frequencies and the
16 
quality of transmission or reception thereon as should maximize rendition of the
17 
grantee's services and/or the avaiiability thereof.
18 
Sec. 3. Authority of the Nationai Teiecommunications Commission. - The
19 
grantee shali secure from the National Telecommunications Commission (NTC) a Radio
20 
Station License and the appropriate permits and licenses for the construction,
21 
installation and operation of its earth stations or facilities. In issuing the certificate,
22 
the NTC shaii have the power to impose such conditions relative to the construction,
23 
operation, maintenance, or service ievel of the earth stations. The grantee shaii not
24 
use any frequency in the radio spectrum without authorization from the NTC. Such
25 
certificate shall state the areas covered and the date the grantee shall commence the
26 
operation of such earth stations. The NTC, however, shall not unreasonably withhold
27 
or delay the grant of such authority, permit or license.
28 
In case of any violation of the provisions of this franchise, the NTC shall have
29 
the authority to revoke or suspend, after due process, the permits or licenses it issued
30 
pursuant to the franchise. The NTC may recommend to Congress of the Philippine the
31 
revocation of the franchise for any violation of the provisions of this franchise.


1 
Sec. 4. Responsibility to the Public. - The grantee shall conform to the ethics of
2 
honest enterprise and not knowingly use its stations/facilities for obscene or indecent
3 
transmission, or for dissemination of deliberately false information, or willful
4 
misrepresentation, or assist in subversive or treasonable acts.
5 
The grantee shall operate and maintain all its earth stations and equipment for
6 
the transmission and reception of messages, signals, fed pulses in a satisfactory
7 
manner at all times, and as far as economical and practicable, modify, improve, or
8 
change such stations, lines, cables, systems, and equipment to keep abreast with the
9 
advances in science and technology.
10 
The Grantee shall improve and extend its services in unserved and underserved
11 
areas, geographically isolated and disadvantaged areas, and in hazard- and typhoon-
12 
prone areas as determined by the National Disaster Risk Reduction and Management
13 
Council, or its legal successor, in coordination with the NTC.
14 
Sec. 5. Right of the Government - The radio spectrum is a finite resource that
15 
is part of the national patrimony and the use thereof is a privilege conferred upon the
16 
grantee by the Senate and may be withdrawn any time after due process.
17 
A special right is hereby reserved to the President of the Philippines, in times
18 
of war, rebellion, public peril, calamity, emergency, disaster, or disturbance of peace
19 
and order: to temporarily take over and operate the facilities or equipment of the
20 
grantee; to temporarily suspend the operation of any facility or equipment in the
21 
interest of public safety, security and public welfare; or to authorize the temporary
22 
use and operation thereof by any agency of the government, upon due compensation
23 
to the grantee, for the use of said facilities or equipment during the period when these
24 
shall be so operated.
25 
Sec. 6. Term of Franchise. - This franchise shall be in effect for a period of
26 
twenty-five (25) years from the date of the effectivity of this Act, unless sooner
27 
revoked or cancelled. This franchise shall be ipso facto revoked in the event the
28 
grantee fails to operate continuously for two (2) years.
29 
Sec. 7. Commitment to Provide and Promote the Creation of Employment
30 
Opportunities. - The grantee shall create employment opportunities and shall allow
31 
on-the-job trainings in their franchise operation: Provided, That, priority shall be
32 
accorded to the residents in the area where their principal office is located: Provided,


1 
further, That the grantee shall follow the applicable labor standards and allowance
2 
entitlement under existing labor laws, rules and regulations and similar issuances:
3 
Provided, finally. That the employment opportunities or jobs created shall be reflected
4 
in the General Information Sheet (GIS) to be submitted to the Securities and Exchange
5 
Commission annually.
6 
Sec. 8. Right of Interconnection. - The grantee is hereby authorized to connect
7 
or demand connection of its telecommunications systems to other telecommunications
8 
systems installed, operated., and maintained by any other duly authorized person or
9 
entity in the Philippines for the purpose of providing extended and improved
10 
telecommunications services to the pubiic, under such terms and conditions mutualiy
11 
agreed upon by the parties concerned and the same shali be subject to the review
12 
and modification of the IMTC.
13 
Sec. 9. Warranty in Favor of the Nationai and Locai Governments. — The
14 
grantee shail hoid the national, provincial, city, and municipal governments of the
15 
Philippines free from all claims, liabilities, accounts, demands, or actions arising out of
16 
accidents causing injury to persons or damage to properties, during the construction
17 
or operation of the stations, transmitters, facilities, or equipment of the grantee.
18 
Sec. 10. Saie, Lease, Transfer, Usufruct, or Assignment of Franchise. - The
19 
grantee shall not sell, lease, transfer, grant the usufruct of, nor assign this franchise
20 
or the rights and privileges acquired thereunder to any person, firm, company,
21 
corporation or other commercial or legal entity, nor shall transfer the controlling
22 
interest of the grantee, simultaneously or contemporaneously, to any third person,
23 
firm, company, corporation, or entity without the prior approval of the Congress of
24 
the Philippines. Provided, That the Congress shall be informed of any sale, transfer,
25 
grant of usufruct of, sale, or assignment of the franchise or the rights and privileges
26 
acquired thereunder, or of the merger, or sale of the controlling interest within sixty
27 
(60) days after the completion of said transaction: Provided, further. That, any such
28 
transfer, sale, or assignment is in accordance with the constitutional limitations:
29 
Provided, furthermore. That failure to report to Congress such change of ownership
30 
shall render the franchise ipso facto revoked: Provided, finally. That any person or
31 
entity which this franchise is validly sold, transferred, or assigned shall be subject to
32 
the same conditions, terms, restrictions, and limitations of this Act.


1 
Sec. 11. Reportoria! Requirement - The grantee shall submit an annual report
2 
to the Congress of the Philippines, through the Committee on Legisiative Franchises
3 
of the House of Representatives and the Committee on Public Services of the Senate,
4 
on its compiiance with the terms and conditions of the franchise and on its operations
5 
on or before April 30 of every year during the term of its franchise.
6 
The annual report shall include an update on the commencement of activities,
7 
deveiopment, operation or expansion of business; audited financial statements; latest
8 
CIS officially submitted to the SEC, if applicable; certification of the NTC on the status
9 
of its permits and operations; and an update on the dispersai of ownership
10 
undertaking, if applicable.
11 
The reportorial compliance certificate issued by Congress shail be required
12 
before any appiication for permit or certificate is accepted by the NTC.
13 
Sec. 12. Penalty Clause. - Faiiure of the grantee to submit the requisite annuai
14 
report to the Congress shall be penalized with a fine in the amount of One miilion
15 
pesos (P1,000,000.00) per working day of noncompliance, the effectivity of which shall
16 
commence upon applicability with other telecommunications franchise grantees:
17 
Provided, That in the interim, the grantee shali be iiable to pay the fine of Five hundred
18 
pesos (P500.00) per working day of noncompiiance. The fine shall be collected by the
19 
NTC from the delinquent franchise grantee separate from the reportorial penalties
20 
imposed by the NTC, and the same shall be remitted to the Bureau of the Treasury.
21 
Sec. 13. Equality Clause. — Any advantage, favor, privilege, exemption, or
22 
immunity granted under existing franchises, or which may hereafter be granted, upon
23 
prior review and approval of Congress, shall become part of this franchise and shall
24 
be accorded immediately and unconditionally to the herein grantee: Provided, That
25 
the foregoing shali neither appiy to nor affect the provisions of a telecommunications
26 
franchise pertaining to the term, type of service, or territorial coverage of the
27 
franchise.
28 
Sec. 14. Separability Clause. — If any of the sections or provisions of this Act
29 
is held invalid, ali other provisions not affected thereby shail remain valid.
30 
Sec. 15. Repealability and Nonexclusivity Clause. - This franchise shall be
31 
subject to amendment, alteration, or repeal by the Congress of the Philippines when


1 
the public interest so requires and shall not be interpreted as an exclusive grant of the
2 
privileges herein, provided for.
3 
Sec. 16. Repealing Clause. - All laws, decrees, executive orders, ruies and
4 
regulations, or parts or provisions thereof which are not consistent with this Act are
5 
hereby repealed, amended, or modified accordingly.
6 
Sec. 17. Effectivity. - This Act shall take effect fifteen (15) days after its
7 
publication in the Official Gazette or in a newspaper of general circulation.
Approved,