Republic of the Philippines
HOUSE OF REPRESENTATIVES
Batasang Pambansa, Quezon City

FIFTEENTH CONGRESS
First Regular Session

HOUSE BILL NO. _2848

Authored by Hon. JOSEPH VICTOR G. EJERCITO

EXPLANATORY NOTE

This bill seeks to promote the widespread use and deployment of
Voice Over internet Protocol (VOIP) as an aid in lowering
communication costs so that overseas Filipino workers (OFWs) can
easily and more frequently contact their families and so that local
companies such as business process outsourcing (BPO) firms can
enhance their competitiveness in the global economy.

VOIP has emerged as a welcome enhancement to traditional
voice service in the early 21* century. It enables users from different
parts of the world to engage in voice conversations without having to
Pass through circuit switched facilities of telecom companies. In the
end, this would translate to lower communication costs on the part of
the consumer, value for their money on the part of OFWs, and lower
costs of communicating with overseas clients on the part of exporters
and BPOs. On the part of the telecommunication industry, the VOIP
technology will increase competition and competitiveness and
introduce borderless technology.

While it is imperative to enhance the innovation, development
and deployment of VOIP by promoting free and equitable competition
and encouraging investments and innovation in the ICT sector, there is
a need to protect consumers, provide them wider choices and promote
their welfare, which is addressed as well by this bill.

In view of the foregoing, the passage of this bill is earnestly
sought.

JOSEPH VICTOR G. EJERCITO


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Batasang Pambansa, Quezon City

FIFTEENTH CONGRESS
First Regular Session

House BILLNO. 2848

Authored by Hon. JOSEPH VICTOR G. EJERCITO

AN ACT
TO PROMOTE AND GOVERN THE DEVELOPMENT OF
VOICE OVER INTERNET PROTOCOL IN THE
PHILIPPINES

Be it enacted by the Senate and the House of Representatives of the
Philippines in Congress assembled:

ARTICLE 1
GENERAL PROVISIONS

SECTION 1. Short Title. - This act shall be known as the
“Philippine VOIP Act of 2010".

SECTION 2. Scope and Application. - This Act shall apply
to any person or entity to provide Voice Over Internet Protocol (VOIP)
services to the public for compensation

SECTION 3. Definitions. - For purposes of this Act, the
following terms, where used shall have the following meaning:

(a) Public telecommunications entity (PTE) - any person,
firm, partnership or corporation, government or private, engaged in
the provisionof telecommunications services to the public for
compensation;

(b) Value added services (VAS) - enhanced services
beyond those ordinarily provided for by local exchange and inter-
exchange operators, and overseas carriers, where “ordinarily provided”
services shall mean voice services offered through circuit switched
networks;

(c) Voice Over Internet Protocol (VOIP) - provision of
voice communication using Internet Protocol (IP) technology, instead
of traditional circuit switched technology:


(d) Customer Premises Equipment (GPE) - equipment
located in the premises of a customer which is not part of but
connected to the system or network of the PTE.

ARTICLE It
POLICY AND OBJECTIVE

SECTION 4. Declaration of National Policy. - It is the
policy of the State to recognize the role and contribution of
communications in nation building. It is likewise the policy of the State
to recognize the need to (1) provide for the emergence of
communications structure suitable to the needs and aspirations of the
nation, and (2) encourage the development of new applications and
services that can enhance Philippine competitiveness in the global
information and communications technology (ICT) market.

The growth and development of voice over internet protocol shall
be pursued in accordance with the following objectives:

(a) To protect, promote and develop any and all modes,
means and forms of communications, and make the same available
and accessible to the general public;

(b) To encourage the growth, development and sustenance of
VOIP as an alternative mode of communications; and

(c) To foster a healthy competitive environment in which
telecommunication companies and internet service providers are free
to interact with one another in providing VOIP while maintaining
affordable rates and ensuring their financial viability.

ARTICLE III
ADMINISTRATION

SECTION 5. Responsibilities of the National
Telecommunications Commission (NTC). The National
Telecommunications Commission (NTC) shall be the principal
administrator of this Act and as such shall take the necessary
measures to implement the policies and objectives set forth in this
Act.

SECTION 6. Registration. - Any person or entity seeking to
provide VOIP for use by the public for compensation shall register as
such with the NTC prior to the operation as VOIP provide.

SECTION 7. Interconnection. - No value-added service
provider shall provide VOIP services which require access to and/or


use of a network provider’s network, facilities and/or equipment unless
it has entered into an agreement with such network provider as to the
term and conditions of fair and reasonable access and/or
interconnection charges for such access and/or use.

In cases where the VAS provider and network provider refuse to
negotiate or are unable to come to an agreement on the
interconnection of their network, the NTC shall, upon the complaint of
any interested party or upon its own initiative, intervene and assume
jurisdiction over the matter and immediately direct physical
interconnection of the network of the parties under such terms and
conditions it may deem proper under the circumstances.

Nothing in this Act shall, however, prevent the parties from
negotiating and executing an interconnection agreement and
submitting the same to the NTC for approval.

For this purpose, the parties shall be given a period of ninety
(90) days from receipt of notice of the filing of the complaint within
which to negotiate and execute an interconnection agreement;
Provided, that until an interconnection agreement is executed the
interconnection mandate adverted to in the immediately preceding
paragraph shall remain in full force and effect.

SECTION 8. Equal Access. - Network providers shall ensure
equal access in terms of quantity and quality, at the same prices for
substantially similar service to VAS providers, and shall not
discriminate between VAS providers. The parties shall submit a copy
of their agreements on these matters for purposes of monitoring and
supervision by the NTC.

No public telecommunications entity, network provider or other
entity providing internet access to subscribers and VAS providers shall
impede or degrade the access of such subscribers and VAS providers
to the internet content of another application or service providers,
except where such access demonstrably threatens the integrity of their
network facilities.

SECTION 9. Customer Premises Equipment. - The sale,
lease, importation, distribution, and/or provision of CPE designed to
enable or ease the use of VOIP shall be governed by the existing rules
and regulations on CPEs. CPEs and/or accessories designed to enable
or ease the use of VOIP not directly connected to the networks shall
not require type approval or acceptance except when the VOIP
equipment and/or accessories use radio spectrum.

SECTION 10. Subscribers’ Rights. - Network and/or internet
service providers shall not require subscribers to purchase or use or to
refrain from purchasing or using any IP-enabled service as a
precondition to obtaining their broadband service.

SECTION 11. Separability Clause. - If any part or provision of
this Act shall be held unconstitutional or invalid, other provisions


hereof that are not affected thereby shall continue to be in full force
and effect.

SECTION 12. Repealing Clause. - All laws, presidential
decrees, executive orders, rules and regulations, or parts thereof,
which are not consistent with this Act, are hereby repealed, amended
or modified accordingly.

SECTION 13. Effectivity Clause. - This Act shall take effect

fifteen (15) days after its complete publication in at least two (2)
newspapers of general circulation.

Approved,