NINETEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES
First Regular Session
Senate
of tlK
72 OCT 12 P2 32
NATE
1380
RECEIVED BY:
Senate Bill
Introduced by Senator JUAN MIGUEL F. ZUBIRI
AN ACT
ENCOURAGING AND PROMOTING THE USE AND DEVELOPMENT 
SATELLITE-BASED TECHNOLOGIES FOR INTERNET CONNECTIVITY
OF
EXPLANATORY NOTE
The COVID-19 pandemic has forced many Filipinos to shift their day-to-day 
activities online to meet physical distancing requirements. With the end of the pandemic 
still uncertain, Internet connectivity is critical to the recovery and growth of the Philippine 
economy.
However, not all Filipinos have access to the Internet and, therefore, the benefits 
of digitalization. The 2019 National ICT Household Survey found that 82% of the nation's 
households have no access to the Internet, particularly in the countryside—a digital divide 
between rural and urban communities.1
Internet access is also crucial to advancing new opportunities. Digital 
transformation is forecasted to unlock up to PHP 5 trillion worth of economic value in the 
Philippines by 2030.2 Digitalization of the business process outsourcing (BPO) industry 
alone could grow to be equivalent to 12% of the Philippines' gross domestic product 
(GDP), and generate PHP 25 billion by 2025.3
Hence, it is crucial for the Philippines to bridge this digital divide, especially in the 
rural and disadvantaged communities.
Satellite broadband offers an efficient and relatively affordable means to connect 
an archipelago, particularly the geographically isolated and disadvantaged areas (GIDA). 
It can provide a viable connectivity solution that can help deliver rural banking, e-health 
services, educational content, and other public services anywhere in the remote rural 
areas. 
^
For decades, only telecommunications companies and broadcasters were allowed 
to connect to international satellite operators. With the passage of Republic Act 11659 or 
the amendments to the Public Services Act and Executive Order No. 127 s. 2021 entitled
1 Jose Ramon G. Albert et al., Expanded Data Analysis and Policy Research for National ICT Household Survey 2019 
(PIDS, 2019), https://dict.gov.ph/ictstatistics/wp-content/uploads/2021/08/NICTHS-EDAPR.pdf
2 AlphaBeta, The Growing Digital Economy in the Philippines: Opportunities, Challenges, and Google's Contributions 
(AlphaBeta, 2021), https://alphabeta.eom/wp-content/uploads/2021/10/philippines-economic-impact-report.pdf
3 Marielle C. Lucenio, "PHL digital economy seen accounting for 12% of GDP by 2030," Business World, (March 
2022), https://www.bworldonline.eom/economy/2022/03/10/435346/phl-digital-economy-seen-accounting-for- 
12-of-gd p-by-2030/


"Expanding the Provision of Internet Services Through Inclusive Access to Satellite 
Services," Internet service providers (ISPs) and value-added service (VAS) providers can 
now connect directly to satellites to offer broadband services.
This bill aims to institutionalize the reforms initiated by EO No. 127 s. 2021 and 
further expand access to satellite services in the country. More specificaily, the bill eases 
regulatory requirements for use of sateliite Internet as it allows ISPs and VAS providers 
to use sateiiite Internet without acquiring a Congressionai telecommunications franchise 
or a Certificate of Pubiic Convenience and Necessity. It aiso aliows international satellite 
operators to enter the Phiiippine market and offer sateliite Internet directly. The proposed 
legislation empowers various types of organizations—from government to civil society 
organizations—to own and operate satellite Internet through an administrative process 
only. Finally, it clarifies the responsibilities and powers of the Department of Information 
and Communications Technology over the satellite broadband sector.
The passage of this biii wili update the Phiiippine poiicy environment for the digital 
age and set the stage for digital connectivity that is truiy inciusive. This bili will be critical 
to bridging the digital divide and ensuring Filipinos have access to technologies needed 
for a globally competitive society and economy.
In view of the foregoing, passage of the bill is earnestly sought.
MIGUEL F. ZUBIRI


NINETEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES
First Regular Session
111 &««•»
•22 OCT 12 P2 32
SENATE
Senate Bill No. 1380
RECEIVED BV;
Introduced by Senator JUAN MIGUEL F. ZUBIRI
AN ACT
ENCOURAGING AND PROMOTING THE USE AND DEVELOPMENT 
SATELLITE-BASED TECHNOLOGIES FOR INTERNET CONNECTIVITY
OF
Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled.
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Section 1. Short Title. — This Act shall be known as the "Satellite-Based 
Technologies for Internet Connectivity Act of 2022."
Sec. 2. Declaration of Policy. — It shall be declared the policy of the State to 
promote broad and inclusive access to satellite technology for reliable and affordable 
broadband internet services, which are crucial for stimulating economic growth, providing 
opportunities for decent employment in the countryside, and improving access to 
education, healthcare and government services.
The State shall also foster an ICT sector policy environment that promotes a broad 
market-led development of the ICT and ICT-enabled services sectors, a level playing field, 
partnership between the public and private sectors, strategic alliance with foreign 
investors, and balanced investments between high-growth and economically depressed 
areas.
The State shall recognize provision of broadband internet and internet access as 
an information service in line with modern ICT industry and global practices, in order to 
address the global calls for all countries to prioritize universal access to the Internet and 
develop concrete and effective policies to make the Internet widely available, accessible, 
and affordable to all segments of the population, and for purposes, inter alia, of 
implementing the national policy of expanding the provision of internet services through 
inclusive access to satellite service.
Towards these objectives, the State shall liberalize access to satellite-based 
services and expedite the expansion of broadband infrastructure, especially in places 
unserved or underserved by conventional wired and cellular mobile networks and bring 
reliable internet service to all Filipinos anywhere in the country.
Sec. 3. Definition of Terms. — For the purposes of this Act, the term:
a. Authorized Entity/ies refers to the entity or entities authorized under Executive
Order (EO) No. 467, s. 1998, as amended by EO 127, s. 2021, and under the


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provisions of other existing laws, insofar as their conduct of activities and their 
rendition of services pursuant to the authorities granted therein;
b. Broadband refers to high-speed internet access that is always-on and capable of 
multiple service provision simultaneously, delivered via broadband networks, i.e., 
high capacity fixed or wireless data links, that are propagated via ICT and ICT- 
enabled technologies that facilitate the use of various types of networks as 
underlying transmission mediums, or through the deployment of computer-based 
area network configurations, or any combination thereof. As an information 
service, broadband internet enables users to access information from the internet, 
and makes the data processing capabilities necessary to use the internet available 
to them, via several devices or any one or a combination of several high-speed 
transmission technologies;
c. Core Services refers to circuit switched voice services rendered over cellular 
mobile, fixed line (local exchange), and inter-exchange facilities;
d. Enfranchised Telecommunications Entity or Public Telecommunications 
Entity (ETE/PTE) refers to any person, firm, partnership or corporation, 
government or private, that holds a valid and existing Congressional franchise 
authorizing it to operate in one or more of the telecommunications categories 
provided by law, such as a local exchange operator, inter-exchange carrier, or 
international carrier, pursuant to which it can put up, install, own, or operate the 
telecommunications service network appropriate for the telecommunications 
category for which it is enfranchised. ETE/PTEs are utilities that offer and provide 
for the public, for compensation, with telecommunications services covered within 
certain telecommunications categories for which the law requires a franchise. An 
ETE/PTE is likewise issued a valid Certificate of Public Convenience and Necessity 
(CPCN) by the NTC;
e. Direct Access refers to any one of a number of measures permitting direct 
dealings between authorized entities and satellite system providers or operators 
at specified levels as defined by the NTC. With direct dealings between Authorized 
Entities and Satellite System Providers or Operators (SSPO) being allowed, 
intervening third party arrangements with ETEs/PTEs shall not be imposed as a 
regulatory requirement by the government;
f. ICT Sector shall mean those engaged in providing goods and services primarily 
intended to fulfill or enable the function of information processing and 
communication by electronic means. The ICT Sector includes telecommunications 
and broadcast information operators, ICT equipment manufacturers, multimedia 
content developers and providers, ICT solution providers, internet service 
providers, ICT training institutions, software developers and ICT-ES providers, and 
other ICT and ICT-ES providers;
g. ICT-Enabled Sector or ICT-ES shall mean those engaged in providing services 
that require the intrinsic use of ICTS including engineering or architectural design, 
informatics service providers, offshoring and outsourcing service providers such as 
call centers, back-office processing, software development, medical or legal 
transcription, animation, game development, and other services that require the 
intrinsic use of a networked information infrastructure;
h. Internet Service Providers (ISP) refers to any person or entity, natural or 
juridical, public or private, that provides internet services or services for access to.


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use of, or participation in the Internet or the worldwide web, via any one or a 
combination of transmission or delivery systems or networks for internet services. 
The term shall likewise include persons or entities that supply or propose to supply 
internet carriage services to the public. Commercial and private sectors ISPs are 
generally required to be registered with the IMTC as Value-Added Service (VAS) 
Providers when they rely on the telecommunications service network of an 
ETE/PTE as the underiying transmission medium for providing internet services. 
As a VASP, an ISP need not secure a franchise unless it intends to put up its own 
telecommunications service network for any of the telecommunications categories, 
such as a local exchange carrier or landline telephone service, an inter-exchange 
carrier or national long distance telephone service, an international carrier or 
international long distance service, or a mobile radio telephone service, for which 
a franchise is required;
Permitted Entities refer to: (i) ETE/PTE duly authorized by the NTC to provide 
internet services; (ii) VAS providers duly registered with the NTC and (iii) Internet 
Service Providers (ISPS) duly registered with the DICT, whether with or without a 
legislative franchise;
j. Satellite-based technologies refer to technologies for the 
administration, deployment, or use of communications satellites;
operation.
k. Satellite refers to "communications satellites" or earth-orbiting systems capable 
of receiving and relaying signals to and from the ground to provide iinks for use in 
the provisioning of a variety of ICT services, such as telephony, radio, television, 
or broadband internet. For purposes of this Act, satellites used exclusively for 
space/earth exploration are not included;
l. 
Satellite Services - refer to:
i. 
Fixed Satellite Services (FSS) refers to a radio communications service 
between earth stations at given points, when one or more satellites are 
used; the given position may be a specified point or any fixed points within 
specified areas.
ii. 
Mobile Satellite Service (MSS) refers to a radio communications service 
between mobile earth stations and one or more space stations, or between 
space stations used by this service, or between mobile earth stations by 
means of one or more space stations;
m. Satellite Systems Provider or Operator (SSPO) refers to providers or 
operators of satellite systems, whether fixed or mobile, international or domestic, 
that are duly authorized to engage in the provision of satellite communications 
services under the iaws of their respective countries of domiciie;
n. Value-Added Service or VAS, as applied to the telecommunications industry, 
refers to enhanced or specialized services and/or expertise that are beyond the 
telecommunications services ordinarily provided by ETE/PTEs, such as local 
exchange and interexchange operators, and overseas carriers. The variety of 
enhanced or specialized VAS offerings that are outside or beyond the services in 
the telecommunications categories ordinarily provided by ETE/PTEs, include but 
are not limited to the provision of oniine databases, electronic mail, voice maii, 
internet, and other information services. When offered on top of, in addition to, or 
in conjunction with the services falling under the ETE/PTE's teiecommunications


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category, a VAS serves to promote or add value to the telecommunications services 
ordinarily provided by the ETE/PTE;
0. Value-Added Service Providers (VASP) refer to entities which offer enhanced 
or specialized services beyond the telecommunications services ordinarily provided 
by ETE/PTEs, i.e., operators of local exchanges or interexchange, and over 
carriers, but are reliant on the carriers' transmission, switching and local 
distribution facilities. As such, VASPs are duly registered with the NTC and allowed 
to competitively offer to the domestic and/or international markets, their enhanced 
or specialized service(s) as an added value over and above the services in the 
telecommunications category of the ETE/PTE whose telecommunications service 
networks, composed of transmission, switching, and local distribution facilities, are 
being relied upon by the VASP as the underlying transmission medium for the 
latter's enhanced or specialized service offerings, in accordance with network 
compatibility. VASPs are generally not required to secure a franchise.
An ETE/PTE may provide its own VAS offerings on top of its telecommunications 
services, subject to the additional requirements that (a) prior approval of the NTC 
is secured to ensure that their VAS offerings are not cross-subsidized from the 
proceeds of their telecommunications service operations, (b) other VASPs are not 
discriminated against in rates nor denied equitable access to their facilities, and 
(c) separate books of accounts are maintained for the VAS. In such cases, the 
ETE/PTE may likewise be considered as a VASP as regards its VAS offerings.
The term shall likewise include entities expressly recognized or mandated by 
special laws or legislative charters to offer a service or services that fall under any 
of the VAS categories, provided they are compliant with the said special law or 
legislative charter, as well as the applicable policies and requirements on 
governmental authorization or registration of their respective VAS offerings, 
inclusive of the submission of their schedule of rates; and
p. Very-small-aperture terminal (VSAT) shall refer to a small-sized ground 
station or earth terminal used for receiving or transmitting data, voice, and video 
signals over a satellite communications network.
Sec. 4. Additional Mandate to the Department of Information and 
Communications Technology (DICT). — To expand access to satellite-based 
technologies as an alternative connectivity solution to ensure universal access to the 
internet, the DICT shall:
1.
2.
3.
Exercise regulatory and administrative jurisdiction over ISPs and satellite policies; 
Adopt an expeditious administrative process for the registration of ISPs, whether 
local or foreign; for this purpose, the registration of, and jurisdiction over, ISPs is 
hereby transferred from the National Telecommunications Commission (NTC) to 
the DICT.
Pursue policies to secure and preserve necessary orbital slots for Philippine 
satellite(s) and the NTC shall provide all necessary assistance in this effort;
Pursue such plans, programs, activities, or initiatives as may be necessary or 
desirabie to incentivize duly accredited SSPOs and Permitted Entities that invest 
in, adopt, roll out, implement, establish, own, maintain, operate or utilize new and 
next generation satellite technologies, inclusive of in-country satellite earth 
complexes or teleports, in order to propagate ICT and to expand the provision of 
quality internet services across the country through direct access to the services 
of satellites and other emerging technologies for purposes of ensuring universal


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coverage. The departmental plans, programs, activities, or initiatives shall include, 
but not be limited to, effectively coordinating with the Board of Investments (BOI), 
Philippine Economic Zone Authority (PEZA), the LGUs, and other concerned 
government agencies or instrumentalities, for the issuance and implementation of 
policies for the grant of applicable incentives and benefits;
5. Create a coherent spectrum management policy which include radio frequency 
spectrum for satellite systems;
6. Conduct annual policy review together with relevant stakeholders and concerned 
government agencies with consideration of different opportunities and challenges 
that satellite internet brings;
7. Identify areas that are underserved and unserved by traditional broadband 
network operators and where the use of satellite-based internet can be maximized;
8. Issue rules and regulations on the development, use, and maintenance of satellite- 
based technology; and
9. Perform such other functions as may be relevant to its work as the principal 
regulatory and development agency for satellite technology.
Sec. 5. Policy on the Use of Satellite Technology for Internet 
Connectivity. — The government shall promote the use and development of satellite 
services as a means to ensure universal access to the internet, especialiy in critical areas 
such as e-government and the delivery of basic services, education, health, trade, 
finance, disaster preparedness, and public safety, specificaily:
a. To promote the expansion of satellite-based networks, particularly in rural areas, 
and in areas with limited fixed or celluiar mobile network connectivity, VAS 
providers and ISPs shall be allowed direct access to all satellite systems—whether 
fixed or mobile, international or domestic—for all segments of the broadband 
network. VAS providers and ISPs shail be allowed to directly access, utilize, 
construct, install, own and operate networks for internet access service utilizing 
satellite technologies such as VSAT and other similar technologies for all segments 
of the broadband network without need of a franchise and a provisional authority 
or Certificate of Public Convenience and Necessity (CPCN) from the NTC. VAS 
providers and ISPs shall, however, comply with existing policies requiring 
registration of VAS and ISP offerings and submission of their schedule of rates; 
and
b. To invite investment and the propagation of new internet technologies in the ICT 
and ICT-enabled sector, Sateliite Systems Provider or Operators (SSPO) may be 
100% foreign-owned. SSPOs shall comply with the policies of the DICT for the 
registration of SSPOs.
The NTC and DICT shall comply with international regulations on the allocation 
and use of frequency for satellite services and shall not re-allocate or assign them to the 
detriment of users of VSAT or other satellite technologies. The NTC and DICT shall 
observe transparency in the allocation and assignment of spectrum and shall ensure the 
availability of satellite frequencies for the use of SSPOs and Permitted Entities. The NTC 
and DICT shall regularly publish on its website the allocation and assignment of all 
spectrum and shall promptly reply to Freedom of Information (FOI) requests on spectrum 
allocation and assignment. The NTC shall, within thirty (30) days upon the effectivity of 
this Act, issue the ruies and regulations necessary for the implementation of portions of 
this paragraph that require administrative and regulatory oversight; Provided, that. 
Section 7 of this Act shall be immediately executory upon the effectivity of this Act.


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Sec. 6. Direct Access to Satellite Systems. — Permitted Entities are allowed 
to (i) deploy satellite technology and use associated spectrum in any or all segments of 
their broadband network without needing to go through, lease or rent capacity for such 
from PTEs, and (ii) apply with the NTC for permission to use spectrum for this purpose. 
PTEs, VAS Providers, and ISPs may directly access, utilize, own and operate facilities for 
internet access service using satellite technologies such as, but not limited to, VSAT, 
Broadband Global Area Network, and other similar technologies, for all segments of the 
broadband network without need of a congressional franchise.
Prior authorization of either the DICT (for broadband networks) or the NTC (for 
broadcast providers and for services that do not involve broadband networks) shall not 
be required for direct access to sateilite systems under this provision provided that the 
terms and conditions, which include levels of access to any international fixed or mobile 
satellite system, shall be submitted by the Permitted Entities to the DICT or NTC, as 
applicable, for record purposes.
Sec. 7. Promotion of Satellite-based Technologies for Sustainable 
Development and Inclusive Growth. — Government organizations, public and non­
profit private institutions, volunteer organizations engaged in education, health, finance, 
agriculture, environmental management, climate change management, disaster 
preparedness and crisis response shail be allowed to own and operate satellite-based 
technology in order to aid and augment their activities.
The NTC shall, within thirty (30) days upon the effectivity of this Act, establish an 
expeditious administrative process to allow such entities to apply for permits to import 
and/or own such technology. The Anti-Red Tape Authority (ARTA) shall ensure that the 
procedures set forth by the NTC pursuant to this Section complies with Republic Act No. 
11032, or the Ease of Doing Business and Efficient Government Service Act.
Sec. 8. Satellite-powered Communication Tool for Disaster and 
Emergency. — Every Local Government Unit (LGU) shall be required to set up a satellite- 
powered communication tool, such as but not limited to satellite phones, satellite- 
powered portable cell sites, and/or wireless or wired broadband networks, to aid in 
disaster preparedness and emergency response.
Sec. 9. Requirements for Satellite Systems Providers or Operators 
(SSPOs). — All operators or providers of satellite systems desiring to provide satellite 
services in the Philippines by directly engaging with Authorized Entities under the 
provisions of Executive Order (EO) No. 467, s. 1998, as amended by EO No. 127, s. 2021, 
and other existing laws, shall have the following:
a. Digital Presence - have adequate digital presence in the Philippines. Digital 
presence shall include, but not limited to, having an official website, with sufficient 
content and information, that is readily accessible online in the Philippines;
b. Local Presence - have adequate local presence in the Philippines. For foreign or 
international SSPOs, local presence shall mean having a branch office, 
representative office, institutional agent, official distributor, or a combination 
thereof, in the Phiiippines;
c. Capacity, Coverage or Satellite Footprint - have the capacity, coverage, and 
satellite footprint in the Philippines for purposes of providing adequate satellite 
services to the areas covered therein; and
d. SSPO Accreditation by the DICT - be duly accredited with the DICT by fulfilling the 
application requirements for SSPO accreditation issued by the DICT in relation to 
this Act.


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For a seamless and expeditious registration process, the DICT within 30 days upon 
the effectivity of this Act shall establish a one-stop shop where the SSPOs can inquire, 
clarity, and submit all requirements as provided by this Act.
Sec. 10. SSPOs desiring to do business as Authorized Entities. — All SSPOs 
desiring to do business as Authorized Entities providing services or product offerings 
directly to the general public in the domestic market shall, in addition to the requirements 
for SSPO accreditation, strictly comply with all pertinent permitting, filing, registration, 
and/or authorization requirements for an ETE/PTE, ISP, VAS, or other Authorized Entity, 
whichever is applicable, and other existing laws of general and special application in 
relation to doing business in the Philippines.
Sec. 11. DICT Accreditation Certificate; Renewal. — No entity shall engage, 
continue to engage, or otherwise be engaged, in the provision of satellite services as an 
SSPO in the Philippines unless it is duly accredited by the DICT, as evidence by a valid 
and subsisting SSPO Accreditation Certificate.
The SSPO Accreditation Certificate shall be valid for five (5) years, subject to 
renewal upon complete and proper application for renewal filed within the third (3rd) 
month proceeding the prior certificate's expiration. The validity period for the succeeding 
renewal certificates shall not exceed five (5) years at any single instance.
No Authorized Entity shall engage any private entity purporting to be an SSPO, 
unless the latter is duly accredited as such by the DICT.
Sec. 12. Annual Review of Guidelines and Regulations. — The DICT shall, 
in consultation with the NTC and other concerned agencies and sectors, conduct a review, 
annually or as often as it may deem necessary, of the responsiveness of this Act, which 
review shall include, but not be limited to, the following considerations;
a. The opportunities and challenges of its implementation;
b. The areas served by terrestrial broadband network operators, as well as the 
quality and cost of internet services therein;
c. The areas that are underserved and unserved by terrestrial broadband 
network deployments, inclusive of GIDAs;
d. Potential areas for the deployment of satellite services, whether as a 
primary, complementary, or supplemental source of ICT connectivity, 
support, backhaul, or protection route;
e. Study and research towards an updated and coherent spectrum 
management policy that is compliant with international regulations, and 
beneficial to consumers and users of satellite technologies through the 
proper allocation of sufficient spectrum for VASPs and ISPs;
f. Further guidance on the use of international earth stations to the registered 
VASPs and ISPs that offer satellite broadband services; and
g. Other matters as may be necessary, incidental, related to, or in connection 
with improving the effective implementation of the national policy for 
inclusive access to satellite services.
When deemed necessary, the DICT may create Task Forces, Technical Working 
Groups, Committees, or Advisory Bodies in accordance with Section 14, RA No. 10844 to 
assist in the conduct of the review.


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The Dicr shall from time to time, and as may be warranted by its review, submit 
its report to Congress, with recommendations for such legislative action as may be 
needed for appropriate policy improvement towards a more responsive national policy for 
inclusive access to satellite services.
Sec. 13. Appropriation. — The amount necessary for the implementation of this 
Act shall be charged against available funds of the DICT and NTC, as may be applicable. 
Thereafter, the amount shall be included in the General Appropriations Act.
Sec. 14. Implementing Rules and Regulations. — Unless otherwise stated, 
the DICT, in coordination with the NTC, and in consultation with relevant groups and 
sectors, shall issue the implementing rules and regulations ("IRRs") within sixty (60) days 
upon the effectivity of this Act. The IRRs shall incorporate the provisions of NTC 
Memorandum Circular Nos. 04-03-99 and 01-03-2008, and DICT DC No. 002 s. 2021 in 
so far as practicable and in furtherance to the objectives of this Act.
Sec. 15. Repealing Clause. — Provisions of Executive Order Nos. 467 (s. 1998) 
and 127 (s. 2021) that are inconsistent with this Act are hereby repealed or modified 
accordingly. All other laws, decrees, rules, and regulations inconsistent with the 
provisions of this Act are hereby repealed or amended accordingly.
Sec. 16. Separability Clause. — If, for any reason, any part or provision of this 
Act is declared invalid or unconstitutional, any part or provision not affected thereby shall 
remain in full force and effect.
Sec. 17. Effectivity. — This Act shall take effect fifteen (15) days after its 
complete publication in at least one (1) newspaper of general circulation and/or the 
Official Gazette.
Approved,