Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO. ______ 
INTRODUCED BY REP. HARRIS CHRISTOPHER M. ONGCHUAN 
       EXPLANATORY NOTE 
In an increasingly globalized world, there is an increasing demand for 
interconnectivity; one that does not require physical presence, but through online and 
digital means. Even the Asian Development Bank has called on the importance of 
investing in digital infrastructure, especially in the Philippines. It does not only 
connect one another, but the lack of it in the Philippines has led to a slower economic 
recovery from the COVID-19 pandemic.  
Republic Act 
No. 10844 or the Department of Information and 
Communications Technology Act of 2015 aims to promote the national ICT 
development agenda. Part of the agenda is to ensure information and communications 
technology presence throughout the Philippines. With this, the filing of the bill is 
timely as it aims to establish eighty one (81) information and telecommunication hubs 
nationwide. This will not only improve digital infrastructure in the Philippines, but it 
will also improve economic activity, especially in the areas where the hubs will be 
established.  
This bill was first filed by Rep. Manuel Cabochan III in the 18th Congress. This 
bill is a copy of the Third Reading Copy that was transmitted to the Senate in the 18th 
Congress.  
In view of the foregoing, the immediate passage of this bill is earnestly sought. 
HARRIS CHRISTOPHER M. ONGCHUAN 
August 30, 2022
8:02 am        
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 Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO.  _________ 
Introduced by Representative 
HARRIS CHRISTOPHER M. ONGCHUAN 
AN ACT  
ESTABLISHING INFORMATION AND COMMUNICATIONS TECHNOLOGY 
HUBS NATIONWIDE 
Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
assembled: 
SECTION 1. Short Title. - This Act shall be known as the “Online Network 
Philippines Act”. 
SECTION 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 
communications technology (ICT) and infrastructure throughout the country to 
facilitate the access of the citizenry to goods and services. Pursuant thereto, the State 
shall establish ICT hubs throughout the country in accordance with the National ICT 
Roadmap and National ICT Plan. 
SECTION 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 a period of time;
b) Broadband refers to a high capacity transmission technique using a wide range
of frequencies which enables a large number of messages to be communicated
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simultaneously. In the context of internet access, it refers to access that is 
continuing and unhindered, and faster than the traditional dial-up mode; 
c) Broadband network refers to 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); 
d) 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; 
e) 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; 
f) 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, core 
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, specially 
on matters of national security; 
g) Digital innovation hub refers 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 communications technology (ICT) refers to the totality of 
electronic means to access, create, collect, store, process, receive, transmit, 
present, and disseminate information; 
i) Information and communications 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 convergence services, business processing and data management; 
j) Information technology and business processing management hub refers to a location 
that caters to and offers support mechanisms for companies and enterprises 
engaged in IT services and business process management and operations; 


k) Public telecommunications entity (PTE) refers to any person, natural or juridical, 
government or private engaged in the provision of telecommunications 
services to the public for compensation. 
SECTION 4. Establishment of Information and Communication Technology Hubs. 
— There shall be established ICT hubs all over the country in accordance with a 
National ICT Plan to be prepared by the Department Information and 
Communications Technology (DICT). 
The ICT Plan shall assess the needs of every province in the country and identify the 
appropriate types and the number of ICT hubs to be developed therein. Every 
province shall have at least one (1) of the following classifications of ICT hubs based 
on the type of activity that it hosts: 
a) Data Farms; 
b) Information Technology (IT) and Business Processing Management (BPM) 
Hub; 
c) 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 and the national, provincial, city, or municipal spatial 
development plans, the DICT and the local government units (LGU) shall identify the 
areas where the ICT hubs shall be established based on geographical area and 
population: Provided, That ICT hubs shall be developed in geographically equitable 
and accessible locations throughout the province: Provided, further, That the area or 
site of an ICT hub shall be on a property owned by an LGU. 
The private sector shall 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. 
SECTION 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 of incentives to encourage private sector participation 
and promotion of competition. The Cybercrime Investigation and Coordinating 
Center of the DICT shall formulate, oversee and validate the ICT cyber plan of the 
ICT hubs. 
The DICT shall update the National ICT Plan and shall submit the same on or 


before the 15th of April of every year to the Office of President of the Republic of the 
Philippines, the National Economic and Development Authority (NEDA), and the 
ICT Joint Congressional Oversight Committee established under this Act. 
SECTION 6. Advisory Committee. — 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 
government. The DICT shall determine the composition of the Advisory Committee 
and ensure the equal representation of the (a) government, (b) the service providers, 
(c) the end users, and (d) other industry stakeholders. 
 
SECTION 7. Role of the National Telecommunications Commission (NTC). — The 
NTC, through the exercise of its quasi-legislative and quasi-judicial powers, shall be 
the primary infrastructure regulator to ensure the monitoring and implementation of 
this Act. The NTC shall approve proposed ICT hub telecommunications projects 
through 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 reports as required by 
the NTC. 
 
SECTION 8. Incentives. - Any registered business enterprise in the ICT hub may be 
granted incentives provided under Title XIII of the National Internal Revenue Code 
of 1997, as amended: Provided, That, these incentives shall be granted in addition to 
the incentives given by the LGU where such ICT hubs are located. 
The eligibility of the ICT 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 highly desirable ICT investments and shall be subject to 
compliance monitoring by the Fiscal Incentives and Review Board and the LGU 
where such ICT hubs are located. 
SECTION 9. Digital Skills Development. - The DICT, together with the Department 
of Education, Commission on Higher Education, and the Technical Education and 
Skills Development Authority, shall establish a program on digital skills 
development for all 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. 
SECTION 10. Digital Network Infrastructure. — A digital network infrastructure 
shall be established to connect the local ICT hubs to the National Broadband Program 


through a core backbone network of the DICT, to be funded from the spectrum users’ 
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 Management in its records. The release of funds shall be subject to applicable 
laws and existing budgeting, accounting and auditing rules and regulations. 
SECTION 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 and Local Government (DILG) shall include ICT 
competitiveness and ICT integration as a criterion of governance under the Seal of 
Good Local Governance program. 
SECTION 12. Private Sector Support and Public-Private Partnership. — The LGUs 
may engage the private sector 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 Authorizing the Financing, 
Construction, Operation and Maintenance of Infrastructure Projects by the Private 
Sector and for Other Purposes”, as amended. 
SECTION 13. Prohibition Against Exclusivity. — All ICT hubs established under this 
Act are hereby declared 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 and unenforceable. The domestic 
internet exchanges shall be interconnected. The interconnection agreement between 
the PTEs shall be submitted to the NTC for its approval. If the parties fail to reach an 
agreement within ninety (90) days from the start of negotiation, the NTC shall 
intervene and prescribe the terms and conditions of the interconnection. 
SECTION 14. Penalties. — In the exercise of its quasi-judicial power, the NTC 
shallimpose a fine of Five hundred thousand pesos (Php500,000.00) for (a) non- 
disclosure, (b) non-interconnection, 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 on the computation of the cost of money based on the current 
consumer price index. 
SECTION 15. Implementing Rules and Regulations. — Within sixty (60) days from 
the effectivity of this Act, the DICT as the lead agency, together with NEDA, DILG, 
the League of Provinces and the Leagues of LGUs, the Board of Investments, the 
Philippine Economic Zone Authority, and the Advisory Committee, shall issue the 
necessary rules and regulations for the effective implementation of this Act. 
SECTION 16. ICT Joint Congressional Oversight Committee. — An ICT Joint 
Congressional Oversight Committee (ICTJCOC) is hereby created to monitor 
theeffective implementation of this Act, recommend the necessary remedial 
legislative or administrative measures and perform such other duties and functions 
as may be necessary to attain the objectives of this Act. It shall be composed of the 
Chairpersons of the House Committee on Information and Communications 
Technology 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. 
SECTION 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. 
SECTION 18. Repealing Clause. — All laws, presidential decrees, executive orders, 
rules and regulations or parts thereof which are inconsistent with or contrary to the 
provisions of this Act are hereby amended, repealed or modified accordingly. 


SECTION 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.