Republi
HOUSE OF

NINETE!
First

fi 2 ccEINED

[ee
of the Philippines \
-PRESENTATIVES \

NTH CONGRESS
egular Session

House Bill-No._377

Introduced by Representa

ESTABLISHING
AND FOR

‘As a neophyte legislator i
information and communication
one to have done so. These I
subdivisions, such as provinces
these communities with each oth
ones farthest from the capital

Sadly, 15 years later, this
Congress, this Bill finally passed
and duly submitted to the Senat

five MARIA RACHEL J. ARENAS

AN ACT
.N ICT HUB NATIONWDE

2007 in the 14% Congress, I filed a bill on creating
hnology (ICT) hubs around the country, the first
Hubs may be based on political or geographical
legislative districts, with the purpose of connecting
and with the national government, specially, the

Bill has yet to become a law. In the preceding 18
tthe Third Reading in the House of Representatives
but action on the bill was not completed. As I

return to the House of Representatives, in the 19" Congress, it is my utmost desire to

see this Bill certified as urgent,

and soon become law. In this regard, I will be

adopting the Substitute Bill, referred to as “Online Philippine Network Act,”

approved in the said Third Readi
legislators and incisive committ

1g, which is a product of the collaboration of many
deliberations. This Bill, however, does not restrict

the hubs to either provinces or legislative districts, and will leave it up to the

appropriate Committee to decide

The archipelagic nature of
progress. Roads and bridges alon|
or with the capital centers. The
along with building roads

this.

the Philippines has been a challenge to peace and
cannot interconnect these islands with each other,
jore urgent, potent, and vital connection needed,
d bridges, is building the information and

communications technology highway, around the country. While there has been a

steady progress on physically i

terconnecting our more than 7,000 islands, this

progress has not been fast enough, and the pressing need to keep up with other

countries in building new hij

ays for information and communication, have



resulted in the marginalization
country, who find themselves |:

The deregulation of the
1990s, brought tremendous chang,
world. This enabled universal
thereby allowing the develop

of more efficient government
mention, a glue that holds humani

The Philippines has ab
legislative districts, and 81 provini
1634 nodes can be established
promote unprecedented develop
so-called digital divide, as well
infrastructure.

With an ICT Hub, a provi
we will be able to harness its pot
to tourists and investors. It can al!
to connect the same to the varil
pushing the growth of e-Gov
link an area or province to the n:
and disasters. At no other time in
pandemic, have we realized how
have become the new normal
international assemblies.

id isolation of some, if not many, areas in the
ing behind.

lecommunications industry in the Philippines in the
to the way we relate with each other and with the
to information and communications technology
ent of cyber services. IT-related industries,
are among the priority investment areas in the
is a major driver of the global economy, an enabler
tion, service delivery, and productivity, not to
together.

1,634 cities and municipalities combined, 243
If this Bill becomes a law, at least 81 or 243 or
pump prime social and economic activities and
mnt in the country. This Bill hopes to minimize the
as speed up building wireless communications

ce or legislative district or every city/municipality,
ial to making these areas accessible and attractive
electronically promote the province nerve center
s agencies of the national government thereby
ent, locally and nationally. The ICT Hubs can also
jonal government during times of natural calamities
history, than in the last 2 years of the Covid-19
vital digital tools are and how online interactions
for schools, churches, offices, governments, and

In light of this urgency, I humbly seek the immediate vie

ARIA ae ARENAS

a District tthe! revioce of Pangasinan



Republi

of the Philippines

HOUSE OF REPRESENTATIVES

NINETEENTH CONGRESS

First

House

Introduced by Representative MARIA RACHEL J. ARENAS

ESTABLISHING INFORMATII
HU!

Be it enacted by the House of Repre

AN ACT
AND COMMUNICATIONS TECHNOLOGY
NATIONWIDE

esentatives of the Philippines in session assembled:

SECTION 1. Short Title. - This Act shall be known as the “One

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 communi
throughout the country to facil
services. Pursuant thereto, the

country in accordance with the

ations technology (ICT) and infrastructure
tate the access of the citizenry to goods and
tate shall establish ICT hubs throughout the
lational 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 4 period of time;
b) Broadband refers to a high capacity transmission technique using a wide

range of frequencies whit

ch enables a large number of messages to be


)

d)

e)

8)

communicated sntenety In the context of internet access, it refers
to access that is continuing and unhindered, and faster than the
traditional dial-up mode;
Broadband network refers td 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);

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;
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;
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, tore 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, especially on matters of national
security;
Digital innovation hub 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 communici

electronic means to acd

Information and communi

tions technology (ICT) refers to the totality of

fess, create, collect, store, process, receive,

transmit, present, and oles, information;

tions 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
data management;
Information technology and
location that caters to and

‘onvergence services, business processing and

business processing management hub refers to a
offers support mechanisms for companies and

enterprises engaged in IT services and business process management

and operations;
k) Public telecommunications
juridical, government

telecommunications servi

entity (PTE) refers to any person, natural or

r private engaged in the provision of

es to the public for compensation.

SEC. 4 Establishment of Information and Communications Technology

Hubs. — There shall be establish
with a National ICT Plan to be
Communications Technology (D]
The ICT Plan shall as
district, in the country and ider
ICT hubs to be developed

ICT hubs all over the country in accordance
ed by the Department Information and

CN.

s the needs of every province or legislative

tify the appropriate types and the number of

ein. Every province or a selected local

government unit (LGU) in the legislative district, shall have at least one (1) of

the following classifications of
hosts:
a)
b)

Data Farms;
Information Technology
(BPM) Hub;

ICT hubs based on the type of activity that it

IT) and Business Processing Management



©) 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|
spatial development plans, the
shall identify the areas where
geographical area and populati
in geographically equitable and
Provided, further, That the area
owned by an LGU.

The private sector shal

and the national, provincial, city, or municipal
DICT and the local government units (LGU)
the ICT hubs shall be established based on
n: Provided, That ICT hubs shall be developed

accessible locations throughout the given area.

r site of an ICT hub shall be on a property

ll 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
participation and promotion of
Coordinating Center of the DIC]
cyber plan of the ICT hubs.

of incentives to encourage private sector
ompetition. The Cybercrime Investigation and
shall formulate, oversee and validate the ICT

The DICT shall update the National ICT Plan and shall submit the same

on or before the 15* of April
Republic of the Philippines,
Authority (NEDA), and the IC
established under this Act.

SEC. 6. Advisory Comm:

ff every year to the Office of President of the
the National Economic and Development
IT Joint Congressional Oversight Committee

ittee. — 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 governm
of the Advisory Committee an
government, (b) the service pro}
stakeholders.

lent. The DICT shall determine the composition
id ensure the equal representation of the (a)
‘iders, (c) the end users, and (d) other industry

SEC. 7. Role of the National Telecommunication Commission (NTC). —

The NIC, through the exerci
powers, shall be the primary i
and implementation of this Ac

telecommunications projects th

of its quasi-legislative and quasi-judicial
structure regulator to ensure the monitoring
The NTC shall approve proposed ICT hub

ugh 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 ré

SEC. 8. Incentives. — An
may be granted incentives prov!
Revenue Code of 1997, as ame!
granted in addition to the incen

are located.

iports as required by the NTC.

y registered business enterprise in the ICT hub
ded under Title XIII of the National Internal

nded: Provided That, these incentives shall be

tives given by the LGU where such ICT hubs

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
subject to compliance monitori

and the LGU where such ICT hul

SEC. 9. Digital Skills
Department of Education, Com:
Education and Skills Develop
digital skills development for

highly desirable ICT investments and shall be
g, by the Fiscal Incentives and Review Board

ibs are located.

Development. - The DICT, together with the

ission on Higher Education, and the Technical
ent Authority, shall establish a program on

Il 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.



SEC. 10. Digital Net

work Infrastructure. - A digital network

infrastructure shall be established to connect the local ICT hubs to the National

Broadband Program through a
funded from the spectrum users

core backbone network of the DICT, to be
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 Mai
shall be subject to applicable
auditing rules and regulations.

agement in its records. The release of funds

laws and existing budgeting, accounting and

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 an
competitiveness and ICT integr:

Local Government (DILG) shall include ICT

ion as a criterion of governance under the Seal

of Good Local Governance progtam.

SEC. 12. Private Sector
LGUs may engage the private

upport and Public-Private Partnership. - The
tor 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
nstruction, Operation and Maintenance of
Private Sector and for Other Purposes”, as

Authorizing the Financing, Ct
Infrastructure Projects by the
amended.

SEC. 13. Prohibition Against Exclusivity. - All ICT hubs established
jared 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

under this Act are hereby dec



and unenforceable. The domestic internet exchanges shall be interconnected.

The interconnection agreement
NTC for its approval. If the parti
days from the start of negotiati

between the PTEs shall be submitted to the
ies fail to reach an agreement within ninety (90)
yn, the NTC shall intervene and prescribe the

terms and conditions of the interconnection.

SEC. 14. Penalties. — In
shall impose a fine of Five hund:

disclosure, (b) non-interconnec

the exercise of its quasi-judicial power, the NTC
thousand pesos (Php500,000.00) for (a) non-
ion, or (c) non-compliance with the committed

information rate and quality of service.

The NTC shall increase the amount of fine every five (5) years subject to

a certification from the NEDA

n the computation of the cost of money based

on the current consumer price index.

SEC. 15. Implementing R
from the effectivity of this Ac
NEDA, DILG, the League of Pr
Investments, the Philippine E
Committee, shall issue the nec

implementation of this Act.

ules and Regulations. — Within sixty (60) days
the DICT as the lead agency, together with
winces and the Leagues of LGUs, the Board of
nomic Zone Authority, and the Advisory
sary rules and regulations for the effective

SEC. 16. ICT Joint Congressional Oversight Committee. — An ICT Joint

Congressional Oversight Comm

the effective implementation o

ittee (ICTJCOC) is hereby created to monitor

this Act, recommend the necessary remedial

legislative or administrative measures and perform such other duties and

functions as may be necessary

composed of the Chairpersons

Communications Technology

to attain the objectives of this Act. It shall be
of the House Committee on Information and
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 of 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 it
publication in the Official Gazette or in a newspaper of general circulation.

Approved.

10