Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SIXTEENTH CONGRESS
First Regular Session

House Bill no. 2624

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Introduced by Honorable Sherwin T. Gatchalian

EXPLANATORY NOTE

As a country that is hailed as the texting capital of the world, we should now be
familiar with the Subscriber Identity Module or more commonly called SIM cards, The
use of the mobile phones with these SIM cards has greatly altered the way of life of
every Filipino to an unbelievable degree. The technology has paved the way for an
easier and faster medium of communication, a handy tool for information accessibility,
and has mobilized a broader citizen engagement for social and civic affairs. Indeed, we
have come to acknowledge the great benefit this technology has given us.

As innovations bring countless advantages, we usually become unconcerned with
its inimical effects. ‘Thus, markets for supply of SIM cards continue to flood at an
unabated rate. We change SIM cards as fast as we change our soiled shirts.
Alarmingly, this seeming boundless stream of supply has become a magnet of
nefarious and illegal activities. Nowadays, we hear countless victims of text scams,
ransom demands thru untraceable mobile numbers and the most alarming of all, are
in instances that mobile phones become triggering devices for bomb explosion that kill
hapless civilians in our midst.

It is in this wise that we find it imperative to regulate the sale and distribution of
these SIM cards by establishing a registry or database of validated information of its
authorized owner. We follow the lead taken by Singapore, Malaysia, Indonesia and
Brunei and other countries that have put this into law and succeeded in its effort of
regulation.

In view of the unlawful activities we earnestly sect
immediate approval is highly recommended.

vive 28 AUG 2013 a



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SIXTEENTH CONGRESS
First Regular Session
2624

House Bill no.

Introduced by Honorable Sherwin T. Gatchalian

AN ACT
MANDATING THE REGISTRATION OF ALL PREPAID SUBSCRIBER
IDENTITY MODULE (SIM) CARDS AND REQUIRING THE

TELECOMMUNICATION COMPANIES TO KEEP A REGISTRY OF THESE
SUBSCRIBERS INFORMATION AND PROVIDING FOR THE PENALTIES
FOR VIOLATION THEREOF

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

SECTION 1. Objective. - This SIM Card Registration Measure is made to provide
a legal framework for the registration of all prepaid SIM Card sold and providing
thereof a database for the validated information of its authorized owner, for control,
administration, and management of the database.

SECTION 2. Scope. ~ This Act shall apply to all Telecommunications Company
engaged in the business of selling and dispensing SIM cards in the Philippines. It
shall likewise cover agents of these Telecommunications Companies as well as
individual, corporate, private, and commercial users of SIM cards. It shall not
extend to the users of SIM cards issued by foreign telecommunications company,
under a roaming arrangement with the local telecommunications company.

SECTION 3. Submission of Proof of Identification. Telecommunication
Companies are hereby directed to ensure that the users of their prepaid SIM cards
are properly identified and their addresses verified through the presentation of valid
identification cards which shall consist of any of the following:

- Driver's License
- School Identification Card
- Company Identification Card
- SSS/GSIS Card
- Passport
- Senior Citizen’s Card
NBI Clearance
- Firearms License


If the sale of the prepaid SIM cards are done through sales agents,
Telecommunication companies shall ensure that said agents submit
to them the verified names and addresses of the buyers of the pre-
paid SIM cards within fifteen (15) days from the date of sale.

SECTION 4. Issuance of Official Receipt. - Proof of payment of the sale shall be
evidenced by an official receipt, duplicates of which shall be submitted by the
‘Telecommunications Company to the National Telecommunications Company
(wre),

SECTION 5. Disclosure of Information.- Information obtained in the SIM card
registration shall be treated as confidential. Except upon order of any competent
court or based upon a written request from a government law enforcement agency
upon finding of probable cause that a particular number is used in the
commission of a crime or that it was utilized as a means to commit an unlawful
act, the Telecommunications Company shall be obliged to provide the information.

SECTION 6. Submission of Verified List of Dealers/Agents. -
‘Telecommunication Companies shall submit to the National Telecommunications
Commission (NTC), within thirty (30) days from the date of effectivity of this Act, a
verified list of their current authorized dealers/agents nationwide, Thereafter,
Telecommunication Companies shall submit to the NTC, every quarter of each year
an updated list of the same.

SECTION 7. Activation Period. - The Telecommunication companies shall only
activate the SIM cards after the process of registration has been completed.

SECTION 8, Transitory Provision, - All existing prepaid subscribers are required
to register their SIM cards with their respective mobile phone companies
within three (3) months from the effectivity of this Act. Failure to register
within the prescribed period shall authorize the Telecommunications
Company to suspend its services to the negligent user. The
Telecommunications Company shail lift suspension of its service upon
compliance of the provision of this Act.

SECTION 9. Penalties. ~

{a) The following penalties shall be imposed on any Telecommunications
Company found guilty of violating any provision of this Act:
al First offense- A fine of Three Hundred Thousand Pesos
(P300,000)
a2 Second offense- A fine of Five Hundred Thousand Pesos (
500,000)
a3 Third offense and subsequent offenses, A fine of One Million
Pesos (1,000,000)

If after two (2) years from the effectivity of this Act, the
‘Telecommunications Company continues to violate any of its
provision, the National Telecommunications Commission (NTC) shall
recommend to Congress the immediate revocation of its franchise

(b) A penalty of suspension of its operation and a fine of Ten Thousand
Pesos (P10,000) shall likewise be imposed on any dealer, retailer or
seller who shall fail to comply with the provisions on this Act.


SECTION 10. Implementing Rules and Regulations. The National
Telecommunications Commission shall issue such orders, rules and regulations
and other issuances as may be necessary to ensure the effective implementation of
this Act.

SECTION 11. Separability Clause. - Should any part of this Act be declared
unconstitutional, the rest of the provisions of this Act shall continue to be in effect
and subsisting.

SECTION 12. Repealing Clause. - Any law, executive order, letter of instruction,
rules and regulations, circulars, issuances or any part thereof inconsistent with
any of the provision of this Act is hereby repealed, modified or amended
accordingly.

SECTION 13. Effectivity Clause. - This Act shall take effect fifteen (15) days after
its publication in the Official Gazette or in at least two (2) newspapers of general
circulation.

Approved.