Republic of the Philippines

HOUSE OF REPRESENTATIVES |/— ATE August 16,2022 a

Quezon City

NINETEENTH CONGRESS
First Regular Session

HOUSE BILL No. 3711

Introduced by Representative Rex Gatchalian

AN ACT
REQUIRING ALL PUBLIC TELECOMMUNICATIONS ENTITIES AND INTERNET
SERVICE PROVIDERS TO INCREASE SERVICE COVERAGE AND DELIVER A
MINIMUM STANDARD FOR INTERNET CONNECTION SPEED

EXPLANATORY NOTE

As of January 2022, there are now over 76 million internet users in the
Philippines translating to an internet penetration rate of 68%. The number of internet
users increased by 2.8% year-on-year and analysts predict that there will be a steady
increase in the number of internet users in the coming years. The Philippines
dominates internet-use and ranks 24 on the list of countries whose citizens spend
the most time on the internet.

On the other hand, the latest Speedtest Global Index Report published by
Ookla, fixed broadband speed in the Philippines improved to 52.16 mbps as of March
2022 while average mobile download speed improved to 19.38 mbps. While
significant progress has already been made in terms of internet speed, with the
Philippines now ranking 93" for mobile internet speed and 60* for fixed broadband
connections, further improvement on internet quality and coverage has to be made.

While many Filipinos are connected to the internet, the country’s weak digital
infrastructure has hampered its effective use. Digital technologies for public services
are still not used by most Filipinos and Filipino businesses and are limited to the
technologically literate. This is compounded by the fact that in rural and remote
areas, digitalization is basically non-existent contributing to unequal access for
services delivered via the internet.


And while the internet is accessible, many Filipinos still experience poor data
services, even with 4G and 5G. Users also experience slower speeds than advertised
and encounter poor performance on other important measures of Internet service
quality, such as upload speeds, latency, jitter, and packet loss, which affect
transmission of data. This leads to the poor adoption of digital applications such as
digital banking, telehealth, ecommerce, and e-governance.

Thus, there is a need for urgent and substantial improvements to our digital
infrastructure for it plays a key role in the Philippine economy. As we have seen
during the COVID-19 pandemic, access to basic government services like education,
healthcare, social security, trade and even business can be streamlined and
improved with the use of technology ~ red tape can be reduced, waiting times in
government offices limited, and efficiency among all stakeholders will be improved.

Thus, this bill sets minimum standards for broadband quality of service to
discourage the common practice of telecommunication companies and internet
service providers from advertising internet speeds, service reliability and other
measures that mislead the consumer. It enforces compliance to performance
standards and penalize service providers who consistently fail to deliver the
acceptable level of broadband quality of service. Ultimately, it seeks to promote the
tights and welfare of broadband end-users.

In view of the foregoing, approval of this bijT&\earnestly sought.

IN. REX GATCHALIAN
Representative
District, Valenzuela City


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Republic of the Philippines
HOUSE OF REPRESENTATIVES

NINETEENTH CONGRESS
First Regular Session

HOUSE BILL No. 3711

ee

Introduced by Representative Rex Gatchalian

—_—_—_—_————

AN ACT
REQUIRING ALL PUBLIC TELECOMMUNICATIONS ENTITIES AND INTERNET
SERVICE PROVIDERS TO INCREASE SERVICE COVERAGE AND DELIVER A
MINIMUM STANDARD FOR INTERNET CONNECTION SPEED

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

SECTION 1. Short Title. - This Act shall be known as the “Better Internet Act.”

SEC. 2. Declaration of Policy. - The State recognizes the importance of
technological advancements in nation building, economic development, and
Promoting people's well-being and as such, it endeavors to ensure the provision of
strategic, reliable, cost-efficient, and citizen-centric information and communication
technology (ICT) infrastructure, systems, and resources to guarantee that the
population has access to quality, reliable, and affordable ICT services,

In line with this, the State shall ensure that all Public Telecommunications
Entities (PTEs) and Internet Service Providers (ISPs) will continuously upgrade their
facilities and improve their services to be responsive to the growing demand for
quality Internet access services.

SEC. 3. Definition of Terms. - As used in this Act, the following terms are
defined as follows:

a. Bandwidth shall refer to the data transfer rate or the amount of data
that can be carried from one point to another in a given time period

expressed in bits per second or multiples of it;


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b. Broadband shall refer to high-speed internet service that is always on

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and faster than traditional dial-up access transmitted through various
wired or wireless data transmission technologies such as, but not
limited to, digital subscriber line (DSL), cable modem, fiber optic cable,
fixed wireless, satellite, cellular mobile, Television (TV) white space, and
other evolving and emerging technologies as may be developed in the
future;

Cellular towers shall refer to passive telecommunication tower
infrastructure, including, but not limited to, three-legged or four-legged
structure, poles, mast, or similar infrastructure used to support mobile
cellular network facilities;

Compliance period shall refer to the first two (2) years from the effectivity
of this Act within which all Internet Service Providers (ISP) and Public
Telecommunications Entities (PTE) are required to comply with the
minimum broadband download speeds set forth in this Act;

Greenfield Service Area shall refer to a barangay where an ISP is
completely absent or a barangay that has internet connection but such
connection does not reach an average minimum broadband speed of
two (2) megabits per second (MBPS) or such speed as may be prescribed
by the DICT, whichever is higher;

Internet Service Providers or ISPs shall refer to an entity, with or without
a Congressional franchise, registered as a value-added service (VAS)
provider from the National Telecommunications Commission (NTC) and
authorized to build, install, operate, and maintain an internet network
in order to offer internet access services to the public for compensation;

Jitter shall refer to the variation of end-to-end delay from one packet to
the next within the same packet stream, connection, or flow;

Latency shall refer to the time it takes for one data packet to travel from
one designated point to another;


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Packet shall refer to the unit of data that is routed between an origin or
source and a destination on the Internet or any other packet-switched

network;

Packet Loss shall refer to the number of packets that does not reach
the destination;

- Service reliability or Uptime shall refer to the probability that the

Product or service will deliver the advertised speed to a subscriber over
a given time;

Public Telecommunications Entity or PTEs shall refer to any person, firm,
partnership or corporation, government or private, engaged in the
provision of telecommunications services to the public for
‘compensation;

- National ICT Household Plan shall refer to the plan for the improvement

of ICT access and use, including broadband access, by households and
individuals developed by the Department of Information
Communications Technology (DICT) on the basis of information
gathered from the National ICT Household Survey;

- Threshold Speed shall refer to minimum upload and download speeds

that an ISP or PTE must provide to their end user as entry-level
broadband service;

. Unserved Area shall refer to a specific population or land area of a

city/municipality where broadband access service is not available, as
identified by the National ICT Household Plan;

._ Underserved Area shall refer to a specific population or land area of a

city/municipality where broadband access service is covered and
available, but below the threshold speed. The underserved areas shall
be identified by the National ICT Household Plan while the threshold
speed shall be determined by this Act and, subsequently, by the NTC.


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SEC. 4. Increase in Service Coverage. — The NTC shall require all ISPs and
PTEs to extend and expand the service coverage of wired and wireless broadband
service in all unserved and underserved areas in the Philippines within two (2) years
from the effectivity of this Act, according to the schedule and strategy to be set forth
by the DICT in the National ICT Household Plan.

The DICT shall develop the National ICT Household Plan, identify therein
unserved and underserved areas in the Philippines and devise a plan of action to
ensure Internet services shall be made available at the household level. The DICT
shall make such information and plans public within sixty (60) days from the
effectivity of this Act: Provided, That subject to regulatory requirements, ISPs shall
be allowed to own, establish, and operate wired and wireless networks, utilizing any
available technology, in order to meet their obligations under this Act. ISPs shall be
allowed access to unlicensed radio spectrum necessary to enable them to utilize
: Provided, Further, That ISPs shall
not build international carrier, inter-exchange carrier, local exchange carrier, and

wireless technologies to provide Internet servic

mobile radio telephone networks reserved for PTEs, as provided for in Republic Act
No. 7925, otherwise known as the Public Telecommunications Policy Act of the
Philippines.

SEC. 5. Delivery of Advertised Speeds. ~ Within one (1) year from the
effectivity of this Act, the NTC is hereby mandated to require all PTEs and ISPs to
only advertise and offer internet service download speeds that they can consistently
provide and work towards providing an average internet connection speed above
global average. PTEs and ISPs shall deliver at least eighty percent (80%) of advertised
broadband speed at eighty percent (80%) service reliability: Provided, That the entry-
level broadband connection speed offered by ISPs or PTEs to subscribers shall not
be lower than the following:

(A) Twenty (20) Megabits per second (Mbps) for wired broadband and ten
(10) Mbps for wireless broadband in metropolitan cities;

(B) Ten (10) Mbps for wired broadband and five (5) Mbps for wireless
broadband services in all other cities; and


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(C) Five (5) Mbps for wired broadband and two (2) Mbps for wireless
broadband services in rural areas.

PTEs and ISPs shall have two (2) years from the effectivity of this Act to ensure
that they provide the minimum threshold speeds stated in this section to their end
users; Provided, That PTEs and ISPs that will expand coverage and offer internet
services in Greenfield Service Areas or previously unserved or underserved areas, as
identified by the DICT, shall not be subjected to the minimum download speed for
the next five (5) years.

The NTC shall conduct a regular review of technological advancements in the
field of communications and data transmission to determine the necessity of
adjusting the minimum speed standards set in this Act: Provided, That internet
speed and service reliability of internet connections delivered by service providers
shall be measured based on the methodology prescribed by the NTC.

After the end of the compliance period, it shall be considered a violation of this
Act, subject to the penalties provided in Sec. 15 hereof, to offer paid internet service
below the threshold speed. For the avoidance of doubt, there shall be no minimum
‘Speed required for free Internet service: Provided, however, that the service provided
under Republic Act No. 10929, otherwise known as the “Free Internet Access in
Public Places Act”, shall meet the minimum speeds prescribed therein or under the
relevant rules of the DICT for free internet service programs.

SEC. 6. Measurement and Publication of Broadband Quality of Service
(QOS). - In order to monitor and enforce compliance of PTEs and ISPs, the NTC shall:

(A) _ Prescribe, in coordination with DICT, a criteria and methodology for the
measurement and publication of broadband QOS, including
Parameters such as download speed, upload speed, latency, packet
loss, jitter, and service reliability, with appropriate benchmarks, after
public consultations and hearings within six (6) months from the
effectivity of this Act;

(B) Provide the public a mechanism to run broadband diagnostic in a
secure and consumer-friendly format;


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(c)

(D)

(E)

F)

(@)

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Develop a procedure for collecting and analyzing broadband QOS
measurements from various platforms and processing test data in a
central database, which shall update and release results, at least, every
24 hours;

Make publicly available, on the NTC website and other media, the
criteria and methodology for the broadband QOS measurement tool and
the list of platforms using the NTC-prescribed broadband measurement
mechanism;

After the two-year compliance period, annually review the compliance
of PTEs and ISPs with the minimum download speeds;

After the two-year compliance period, annually prescribe and upgrade
the minimum broadband download speed and QOS standards to
ensure that the performance standards of ISPs and PTEs are at par
with the service levels established in regional data network
performance indices and are aligned with best practices. Such QOS
standards shall take into account download speed, upload speed,
latency, packet loss, jitter, and service reliability: Provided, That the
NTC shall not decrease the minimum speeds set forth in this Act:
Provided, further, That new performance standards shall be published
at least thirty (30) days before they take effect;

Diligently monitor and conduct monthly network audits or QOS tests
to ensure compliance of PTEs and ISPs with threshold speeds,
advertised speeds, and coverage obligations; and

Publish the results of all the NTC’s network audits, broadband QOS
tests, and the results of the consumer broadband QOS tests on their
official website and social media accounts, and furnish a copy of the
same to the DICT every month. Such reports should be in a format that
can easily be analyzed by third party data scientists.

SEC.7. Responsibilities of the DICT. - In addition to the responsibilities

imposed in other sections of this Act, the DICT shall:


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(a)

8)

()

(0)

Maintain and make public a National ICT Assets Index (NICTAI), which
shall be updated annually, in order to provide accurate data on
broadband coverage and ICT adoption and utilization in the country;

Conduct the National ICT Household Survey and publish the National
ICT Household Plan every three (3) years, and identify unserved and
underserved areas;

Regularly review and update ICT policy guidelines, strategies and
plans, including, the National Broadband Plan to ensure that the
Philippines’ internet service policy framework is at par with global
standards and best practices; and

Ensure the delivery of internet services at the household level through
a schedule and plan of action that includes infrastructure sharing and
co-location arrangement.

SEC. 8. Responsibilities of the NTC. - In addition to the responsibilities
imposed in other sections of this Act, the NTC shall:

(a)

(B)

(c)

Ensure that PTEs and ISPs meet the minimum standards regarding
connection, reception, just pricing, and billing practices to promote and
protect the rights of consumers of internet services;

Determine whether the ICT industry has built out the optimal number
of towers and other infrastructure necessary to meet the objectives of
this law;

Promulgate an efficient and expeditious administrative process for the
registration of ISPs and shall, in coordination with the DICT, develop a
set of criteria for qualifying service providers that will encourage the
widest possible participation of as many industry players as possible
who will build the necessary network infrastructure and offer internet
services to end users in different parts of the country and will take
national security into consideration, particularly for facilities that
interface directly with another country's domestic network;


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(D) Publish a spectrum management policy framework that promotes a
transparent, efficient, and equitable approach to distributing spectrum,
including clear guidelines for: (i) recalling unutilized spectrum, (i)
reassigning spectrum for more efficient use, and (ii) implementing an
open frequency approach to expand internet access in underserved and
unserved areas, to be developed together with the DICT and the
Philippine Competition Commission (PCC);

(£) _ Provide the public with annual reports on the performance of PTEs and
ISPs in terms of increasing internet coverage and meeting the threshold
download speeds;

(F) Provide policies and standards of network elements to ensure that PTEs
and ISPs will maintain the QOS of the internet service they provide to
their respective area of coverage;

(G) Provide for an expeditious mechanism to address consumer complaints
on slow internet speed and false advertising of internet speeds; and,

(H) Establish an efficient monitoring system or framework with regard to
the PTEs and ISPs’ management of consumer complaints and maintain
records of subscribers’ complaints.

SEC. 9. Reports to Congress, ~ The DICT and NTC shall submit a quarterly
Progress report to Congress of all acts performed pursuant to this Act during the first
week after the immediately preceding quarter for the next two (2) years from the
effectivity of this Act.

SEC. 10. Streamlining Permitting Requirement. - The DICT and other
relevant agencies including, the Department of Interior and Local Government
(DILG), Department of Public Works and Highways (DPWH), Department of Human
Settlements and Urban Development (DHSUD), Anti-Red tape Authority (ARTA), Civil
Aviation Authority of the Philippines (CAAP), Department of Health (DOH), and the
Food and Drug Administration (FDA) shall ensure the streamlining of the permitting
Process for the construction, installation, and operation of telecommunications tower
and other infrastructure such as, permits for base stations, cables, poles, and other
work elements necessary to offer internet service.


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The DICT shall set up a one-stop shop that shall coordinate with other
regulatory agencies regarding the permitting requirements and applicable regulatory
fees for installing common towers, cables, poles, and other network elements in order
to facilitate the attainment of the objectives of this Act.

To facilitate the expeditious planning of the country’s ICT infrastructure, all
PTEs and ISPs are required to submit, within fifteen (15) working days upon the
Fequest of the DICT or the NTC, a copy of their most updated and complete
broadband network map, enabling the government to draw up incentive plans and
opportunities in order to boost internet service and compel the creation of the
infrastructure essential for overall economic growth.

SEC. 11. Rights of End-Users. ~The user of internet services shall have the
following basic rights, in addition to other rights under existing laws:

(A) To be entitled to internet services which is reliable, non-discriminatory,
and conforms with the minimum standards set by the NTC;

(B) To be rendered internet services within two (2) months from application
for service, in areas where the service is advertised to be available;

(C) Timely correction of errors in billing or in prepaid load and the
immediate provision of rebates or refunds by the service provider
without the need for demand by the user; and

(D) Subject to the filing of a formal request to the service provider, a user
may request the immediate termination of service without the
imposition of fees or penalties, and with the refund of any fee or charge
already paid by the user, should a service provider not consistently
comply with paragraphs (a), (b), and (c) of this Section, or any minimum
performance standards by the NTC.

SEC. 12. Local Government Units (LGUs) as Partners in Broadband
Infrastructure Development. ~The LGU shall serve as a strategic partner who shall
ensure that all LGU-related permits and requirements necessary to expand internet


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coverage and improve quality of internet service shall be acted upon immediately. In

order to ensure that all municipalities and barangays have access to internet
facilities, an LGU shall be allowed to build and operate its own broadband network
in partnership with PTEs and ISPs.

SEC. 13. Infrastructure Sharing and Co-location. —

(a)

(B)

The DICT shall promulgate policies, rules and regulations, in
coordination or jointly with the concerned national government
agencies, government owned and controlled corporations, and LGUs to
ensure that infrastructure, whether existing or to be built in the future,
necessary or capable of supporting data transmission networks or

services are:

() Mandatory for open access and made available for co-location

and co-use by the owner of network facilities, equipment, and

infrastructure on an open, fair, and non-discriminatory basis to

any access secker’s network facilities;

(i) As far as possible, deployed together with roadworks, pipe-
laying, and other infrastructure development by both
government and private entities; and

(ii) Propagated in the most cost-efficient and timely manner through
various means, including encouraging the operation of
independent entities that build and operate towers, dark fiber,
and utility corridors, among other infrastructure that help
facilitate broadband network deployment.

The DICT shall, in coordination with the PCC and other relevant
government agencies, promulgate policies, rules, and regulations to
ensure that buildings, condominiums, villages, towns, and
subdivisions are all built with facilities, such as cable entrances, ducts,
and risers, that allow non-discriminatory and non-exclusive access to
multiple service providers, in order for PTEs and ISPs to provide
internet service;

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In case of disputes arising from infrastructure-sharing arrangements,
the DICT shall:

(i) Coordinate with the regulator of the infrastructure;

(ii) Mediate between a PTE or ISP and an infrastructure owner,
which may include a PTE, an ISP, or a public service network
provider; and

(ii) Serve as the primary enforcer of this provision.

The DICT shall encourage the use of existing infrastructure, such as
those of cable TV operators, to fast track the layout of networks, to
increase coverage, and to address the problem of unserved and
underserved areas;

The regulator of the shared infrastructure shall, in consultation with
concerned stakeholders, determine and ensure reasonable rental rates
for use of shared infrastructure such as utility poles, utility corridors
and ducts; and

For shared infrastructure arrangements, the DICT shall also look into
the following considerations:

() Technical feasibility of the access seeker’s request to use the
infrastructure;

(i) Incentives to encourage investment in less commercially viable

areas;

(ii) Fair and reasonable rates for shared facilities, depending on the
location and market size in a particular area.

All policies, rules, and regulations under this Section shall be operationalized

within one (1) year from the effectivity of this Act.

aL


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SEC. 14. Penalties. - The NTC may, motu proprio or upon complaint of any

interested party in any appropriate administrative or quasi-judicial Proceeding, an

in accordance with due process, shall:

(a)

(8)

(c)

Require any PTE or ISP who fails to meet the requirements set forth

under this Act to immediately comply with the minimum service
standards that have not been met;

Require any PTE or ISP who violates any provision of this Act, to cease
committing such violation and to comply with the provisions of this Act
that have been violated;

Impose upon entities who do not comply with internet service
Standards as laid down by Sections 4 and 5 of this Act and as
prescribed by the NTC:

i)

(ii)

The penalty of a fine of not less than two hundred thousand
Pesos (P200,000.00) but not more than two million pesos
(P2,000,000.00) for each count of violation: Provided, That if a
service provider has a gross annual income not exceeding Ten
Million Pesos (P10,000,000.00), the penalty shall be equivalent
to one percent (1%) to two percent (2%) of its gross annual
income; and

For repeated violations, the NTC shall revoke the PTE's
Provisional Authority or Certificate of Public Convenience and
Necessity, or cancel the registration of an ISP, whichever applies,
including the waiving of any pre-termination fees of affected
subscribers and timely disbursement of any remaining from
excessive downtime.

The foregoing is without prejudice to any other remedies available to the NTC

under existing laws.

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SEC. 15. Implementing Rules and Regulations (IRR). ~ Within sixty (60)
days after the effectivity of this Act, the DICT and the NTC shall issue a Joint
Memorandum Circular setting forth the rules and regulations to effectively
implement the provisions of this Act.

SEC. 16. Separability Clause. - If any provision or part of this Act is held
invalid or unconstitutional, the remaining parts or provisions not affected shall
remain in full force and effect.

SEC. 17. Repealing Clause. - All laws, executive orders, presidential decrees
or issuances, letter of instruction, administrative orders, rules, and regulations as
well as local ordinances contrary to or inconsistent with the provisions of this Act

are hereby repealed, amended, or modified accordingly.

SEC. 18. Effectivity Clause. -This Act shall take effect fifteen (15) days after
its publication in the Official Gazette or in a newspaper of general circulation,

Approved,

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