I 
INTRODUCED BY SENATOR ANTONIO “SONNY” F. TRILLANES IV 
EXPLANATORY NOTE 
The law has to adapt with technological changes in order to maintain the dynamism in 
society. It is often observed, however, that the law lags behind sweeping social and 
technological development of the time which significantly redefines our ways of living. 
This gospel of change is much more pronounced in the case of recent scientific 
breakboughs in micro-electronics, digital technology, optical fibers and satellite 
communications, computer hardware and software, and the advent of facsimile cable 
television technology, electronic mail, and internet telephony and the convergence of 
telecommunications and mass media technology and services, resulting in interactive 
multi-media services. 
Republic Act No. 7925, otherwise known as the “Telecommunications Law”, does not, 
however, cover cable television and internet service industries. The inadequacy of 
another law, E.O. No. 430, in addressing the concerns of the industry likewise 
necessitates remedial legislation. 
As the converging industries are impressed with public interest, this bill aims to provide 
the sectors covered by convergence the impetus it needs to develop by laying down the 
legal basis for the entry of needed capital, albeit foreign-owned. To ensure the dominance 
of local equity, the bill provides incentives and support mechanisms that will promote the 
leveling of the playing field and allows a better comparative advantage of the different 
and dominant market players. 
The proposed legislation also seeks to rationalize government regulation of the industry 
by clearly delineating the powers of the government agency mandated by law under E.O. 
No. 430 and R.A. No. 7925 and through the formulation of provision specific and 
categorical to the indushy. 
Finally, the legislation aims to bring the Philippine telecommunications, broadcast, 
communication Cable TV and broadband industry at par with global trends and standards 
through technology transfer. 
It is hoped that the innovations in law will ultimately redound to the benefit of the 
industry’s subscribers, of which a growing majority are the common Filipino masses. 
In light of the above premises, the early passage of this bill is earnestly urged. 
A N ~ O N ~ O  
“SONNY” F. TRILLANES IV 
Senator 
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I 
Introduced by Senator Antonio “Sonny” F. Trillancs IV 
AN ACT 
TO GOVERN THE INTRODUCTION, PROMOTION & DEVELOPMENT OF 
THE TELECOMMUNICATIONS- RELATBD CONVERGING TECHNOLOGIES 
& SERVICES 
Be it enacted by the Senate and the House of Representative of the Phil$pines in 
Congress Assembled: 
ARTICLE I. GENERAL PROVISIONS 
SECTION 1. Short Title. - This act shall be known as “The Telecommunications 
Convergence Act of the Philippines. ” 
SEC. 2. Scope and Applications. - This Act shall apply to the provisioning of 
telecommunications related converging services or technologies. 
SEC. 3. Definition and Interpretations. - For purposes of this Act, the following 
terms shall mean: 
a. “Convergence” refers to technologies moving together towards a common 
point, eliminating differences between the provision of video, voice and data, 
using digital and other emerging technologies; the ability of different network 
platforms to carry essentially similar kinds of services; and the coming 
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together of consumer devices such as the telephone, television and personal 
computer. 
b. “Emerging technologies”- refers to new technologies such as wireless local 
loop, telco-cable and wireless cable that permit the transmission and delivery 
of video, voice and data platforms; technologies that are now only becoming 
manifest or known, helping break down artificial monopolies and furnishing 
economic advantage via competitive provision of services; and new or 
enhanced telecommunications technologies, predominantly digital, that are 
becoming available through complementary advances in other disciplines and 
technologies including programming, material sciences, satellite technology, 
optics, etc. 
c. “Multimedia transmission” is the simultaneous transmission of voice, video 
and data in a digital format; the simultaneous transmission of text, sound, 
fixed and moving images and data through a common media from which users 
may interact. 
d. “Multimedia service” is the furnishing of simultaneous transmission of 
voice, video and data over common communication facilities including 
copper, coaxial cable, fiber and/or other means including wireless delivery 
systems in a digital format. 
e. “Authorized facilities” are the physical and intangible facilities used in the 
transmission of telecommunications by all companies authorized or enabled to 
furnish telecommunications, broadcast and value added services as defined 
under Republic Act 7925. 
f. “Broadband services” are the communication services distributed using 
bandwidth larger than voice grade, either wireline or wireless which typically 
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carry far more information in a short amount of time than narrowband voice 
technology but are much more expensive. 
g. “Asynchronous Transfer Mode (ATM)” - is a multiplexed information 
transfer technique in which information is organized into fixed length cells 
and transmitted according to each end user’s instantaneous needs. 
h. “Internet” refers to a large international ‘Network of interconnected 
networks;” a world-wide interconnection of national and regional networks 
that offer E-mail, file transfer, and other network services. 
ARTICLE 2. POLICY 
See. 4. Declaration of a National Policy.- The state recognizes the vital 
role of communications and information in nationbuilding and that 
telecommunications is essential to the economic development, integrity and 
security of the country. The State shall provide the policy environment for the full 
development of Filipino capability and the emergence of communication 
structures suitable to the needs and aspirations of the nation and the balanced flow 
of information into, out of, and across the country, in accordance with a policy 
that respects the freedom of speech and of the press. 
The State recognizes the reality of rapid and explosive change that has 
never previously occurred in human history, the way and manner in which 
humans communicate, as well as the need to understand and take stock of these 
changes and their technologies and the technological reasons essential to the 
economic development, integrity and security of the Philippines. 
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To promote the growth and development of telecommunication services, 
the development, future changes and growth of the Philippine economy and the 
telecom sector shall be pursued in accordance with the following policies: 
a. Recognizing 
and 
understanding that 
convergent multimedia 
applications for the simultaneous transmission of voice, video and data 
require new approaches to furnish these services on a widespread basis 
to the advantage of the Filipino people. 
b. Promoting the competitive provision of multimedia services by all 
companies authorized or enabled to furnish telecommunications, 
broadcast and value added services as defined under R.A. 7925 and 
other existing laws. 
c. Authorizing and conferring upon all companies currently authorized or 
enabled to furnish telecommunications, broadcast and value added 
services, as defined under R.A. 7925, and related business activities to 
provide multimedia services, such as the furnishing of simultaneous 
transmission of text, voice, and data over existing or new 
communication facilities, including cable plant, whether copper, coax 
fiber and/or by any other means including wireless delivery systems, 
and as further provided herewith. 
ARTICLE 3. ADMINISTRATION 
SEC. 5. Responsibilities of the National Telecommunications Commission. The 
National Telecommunications Commission (NTC) shall be the principal administrator of 
this Act and as such, shall take the necessary measures and remove any impediments to 
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implement the policies and objectives set forth in this Act and shall adopt the necessary 
rules and regulations based on market freedoms, business realities and the general interest 
to facilitate the rapid introduction of convergent multimedia services. 
Additionally, the NTC shall ensure fair and equitable access to critical radio 
frequency spectrum, and efficiency in the use of available spectrum by current and new 
users. 
ARTICLE 4. TELECOMMUNICATIONS PROVIDERS 
SEC. 6. Authorization of T e l e c o ~ ~ i c a t i o n  
Providers.- All companies 
authorized to furnish telecommunications, broadcast and value added services, as defined 
under R.A. No. 7925 and those in related business activities brought together into 
convergence under this Act shall henceforth be authorized to competitively provision, 
through their authorized facilities, multimedia services as defined in this Act. This 
includes telephone companies furnishing entertainment services, and broadcast, cable 
television and internet companies furnishing switched voice and data services as well as 
entertainment services as provided herewith 
ARTICLE 5. FRANCHISE, AUTHORITIES TO FURNISH SERVICES 
SEC. 7. Franchise, Authorities to Furnish Services.- All persons whose 
franchises authorize the “conduct of business of being a public telecommunications 
entity,” and all value added services providers engaged in furnishing internet service, 
who have received all required approval(s) from the NTC to operate and furnish services, 
shall be henceforth authorized to furnish multimedia services as enumerated in this Act. 
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ARTICLE 6. FINAL PROVISIONS 
SEC. 8. Separabil@ Clause.- Any provision or provisions of this Act that may be 
declared unconstitutional or invalid shall not have the effect of nullifying other portions 
or provision hereof as long as such remaining portions can still subsist and be given 
effect in their entirety. 
SEC. 9. Repealing Clause.- All laws, ordinances, rules and regulations, and other 
issuances or parts thereof which are inconsistent with this Act are hereby repealed or 
modified accordingly. 
SEC. 10. EffectivZty Clause.- This Act shall take effect fifieen (15) days from the 
date of its publication in at least two (2) newspapers of general circulation. 
Approved, 
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