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NINETEENTH CONGRESS OF THE ) ¢ ZN
REPUBLIC OF THE PHILIPPINES ) > RECEIVED =z
First Regular Session )

HOUSE OF REPRESENTATIVES
H. B. No. 2566

Introduced by Representative Ralph G. Recto

AN ACT
PROMOTING OPEN ACCESS IN DATA TRANSMISSION, PROVIDING
ADDITIONAL POWERS TO THE NATIONAL TELECOMMUNICATIONS
COMMISSION (NTC), AND FOR OTHER PURPOSES

EXPLANATORY NOTE

Philippine telecommunication services have been besieged with persistent
issues of poor quality and high prices attributed to a weak regulatory environment
and a lack of real competition among the few players in the industry. The recent
mergers and acquisitions consummated without the proper review of the Philippine
Competition Commission has allowed current and large players to strengthen their
market share and encouraged vertical integration or the ownership or operation in
all segments of the telecommunications value chain over the years,

Another major concern is that our existing policies and regulations were
designed only for basic telecommunication service. Our current telecommunications
regime is still governed by an outdated law, Republic Act No. 7925 or the Public
Telecommunications Policy Act of 1995, passed at a time when the Internet and
data services are not yet commercially available. As the Age of Internet and data
services progressed, at present, operations in all segments in the
telecommunications industry still necessitate a number of requirements that was
originally intended for basic telecommunications services. Even when entering the
data transmission industry, securing a Certificate of Public Convenience and
Necessity (CPCN), Provisional Authority (PA), and the Congressional grant of a
franchise are still obligatory.


As this age transitions to a more decentralized, distributed and redundant
data transmission regime, it is necessary to create a more relevant regulatory
environment that will govern and focus on the Internet and data transmission
services. This will further lower barriers and costs to entry of new players especially
in certain segments which do not need stringent requirements. In particular, this bill
removes the requirement for a Congressional franchise and CPCN/PA, except for
international cable landing stations and national backbone network operators. The
franchise and CPCN/PA will still apply to a network operator that installs and
operates infrastructure on a nationwide scale, such as landing stations and backbone
networks, which are considered “nationally significant” such that when these
networks are compromised, the whole country is affected and may lose connectivity
with the rest of the world.

Amid the removal of a Congressional franchise and CPCN/PA for certain
segments, regulatory oversight remains as data transmission industry participants
need to register with the NTC, stating the services offered and providing their
schedule of rates. The NTC shall put in place a set of criteria for the qualification of
data transmission industry participants, which are in accordance with the provisions
of the bill, and which shall take into consideration national security concerns,
especially for facilities handling data traffic direct from another country’s domestic
network, such as a cable landing station.


This bill also aims to adopt an open access model for regulating the data

transmission industry, which promotes the following:

Efficient and speedy authorization and registration of industry players;
Technology-neutral framework;

Fair and open competition;

Mandated interconnection;

Mandated transparency in pricing;

Transparent and equitable spectrum management framework; and
Infrastructure sharing and co-location.

In view of the foregoing, immediate approval of this bill is earnestly sought.

‘Note: This version of this bill is essentially the Committee Report version reported out by the Committee on
Science and Technology in the 17% Congress, which was authored and sponsored by Sen. Benigno “Bam” Aquino
including some proposed’ additions to the measure by this representation.

Ny,

and


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NINETEENTH CONGRESS OF THE )

REPUBLIC OF THE PHILIPPINES )
First Regular Session )
HOUSE OF REPRESENTATIVES
H.B.No.__ 2986

Introduced by Representative Ralph G. Recto

AN ACT
PROMOTING OPEN ACCESS IN DATA TRANSMISSION, PROVIDING
ADDITIONAL POWERS TO THE NATIONAL TELECOMMUNICATIONS
COMMISSION (NTC), AND FOR OTHER PURPOSES

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

CHAPTER 1
INTRODUCTORY PROVISIONS

Section 1. Short Title. - This Act shall be known as the “Open Access in Data
Transmissions Act”.

Sec. 2. Declaration of Policy. — It is the policy of the State to narrow the
digital divide in the country by encouraging the development of data transmission
infrastructure and removing any barrier to competition in data transmission services.

Moreover, the State shall implement measures to require data transmission
service providers to adhere to telecommunications standards suitable to the needs
and aspirations of the nation and ensure that internet users enjoy the best quality of
data transmission service. The State shall:

a. Promote the construction and development of reliable, affordable, open

and accessible data networks that transmit information at speed and quality

comparable to the best in the world;

b. Create an entrepreneurial ecosystem where persons who wish to engage

in the data transmission industry can compete openly and freely in the spirit

of fair competition and permission-less innovation;


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c. Encourage investment in the digital infrastructure of the country;

d. Adopt and ensure open access in the regulation of the data transmission
industry;

e. Protect the public interest as it is affected by its ability to access data
networks;

f. Establish a strong and independent regulatory body and system to ensure
and enhance fair competition in the data transmission industry;

g. Protect and promote the internet as an open platform enabling consumer
choice, freedom of expression, end-user control, competition and the freedom
to innovate without permission, and thereby encouraging the development of
advanced telecommunications capabilities and the removal of barriers to
infrastructure investment; and

h, Encourage infrastructure sharing and co-location in order to promote
network investment, eliminate the uneconomic duplication of infrastructure
facilities, and strengthen competition.

Sec. 3. Definition of Terms. — As used in this Act, the following terms shall
mean:

a. Basic Telephone Service refers to the local exchange telephone service for
residence and business establishments provided via the circuit switched
telephone network;

b, Cellular Mobile Telephone Service (CMTS) refers to the wide area mobile
radio telephone system with its own switch, base stations and transmission
facilities capable of providing high capacity mobile telecommunications by
utilizing radio frequencies;

c. Content refers to, among others, texts, images, audios, videos, and
animations that are carried over the broadband or internet network;

d. Core/Backbone Network refers to the main line or connection including
international connection that ties networks, delivers routes to exchange
information among various sub-networks, connects regional distribution
networks, and in some instances, provides connectivity to other peer
networks;


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e. Data Transmissions refers to the process of sending digital or digitized
analog signal over a communication medium to one or more computing
networks, communication or electronic device. It enables the transfer and
communication of devices in a point-to-point, point-to-multipoint and
multipoint-to-multipoint environment. The term data transmission includes the
provision of Voice over Internet Protocol (VoIP) services but does not include
the provision of Basic Telephone Services;
f. Data Transmission Industry Participant refers to any person, firm,
partnership or corporation, government or private, engaged in the provision
of data transmission services to the public. This includes public
telecommunications entities (PTEs) as defined under Republic Act No. 7925,
otherwise known as the Public Telecommunications Policy Act of the
Philippines, that offer data transmission services;
g. International Cable Landing Station refers to a segment of data
transmission that consists of any facility that terminates an international
submarine cable, and which provides an interface to send and receive data
traffic between one country’s domestic network facilities and those in another
country;
h. Open Access refers to the system of allowing the use of data transmission
and/or distribution systems and associated facilities subject to fair,
reasonable, and non-discriminatory terms in a transparent market;
i, Paid Prioritization refers to the management of a data transmission network
to directly or indirectly favor some traffic over other traffic, through the use of
techniques such as, traffic shaping, prioritization, resource reservation, zero-
rating, or other forms of preferential traffic management, either:

1. in exchange for consideration, monetary or otherwise, from a third

party, or

2. to benefit an affiliated entity;
j. Voice over Internet Protocol (VoIP) Service refers to the provision of voice

communication using Internet Protocol (IP) technology.


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CHAPTER II
ORGANIZATION AND OPERATION OF THE DATA TRANSMISSION
INDUSTRY

Sec. 4. Scope. — This Act applies to all duly qualified persons who participate
in the data transmission industry subject to domestic regulations and existing laws.
For this purpose, any person or entity whose business deals substantially with the
transmission of data, including VoIP service provider, Internet Service Providers
(ISPs), and Data Center service providers, shall be governed by the provisions of this
Act. PTEs principally engaged in the provision of basic telephone services, such as
international carrier, inter-exchange carrier, local exchange operator, and mobile
radio services provider, as these entities are defined in Republic Act No. 7925, which
also provide data transmission services, shall likewise be subject to the provisions of
this Act with respect to the data transmission services they provide and the
interconnection to their networks that they extend to data transmission industry
participants.

Sec. 5. Registration and Certification. — All segments of the data transmission
network shall be competitive and open. Notwithstanding the provisions of this Act or
any other law, the following registration and certification shall apply to data
transmission:

a. All data transmission industry participants shall be required to register with

the National Telecommunication Commission (NTC). The NTC shall

promulgate a speedy and expeditious administrative process for registration
and shall, in coordination with Department of Information and

Communications Technology (DICT), develop a set of criteria for qualifying

data transmission industry participants that will encourage the widest possible

participation of as many industry players as possible who will offer data
transmission services to end users in different parts of the country. The
qualification requirements for data transmission industry participants shall
also take national security concerns into consideration, particularly for
ies that interface directly with another country’s domestic network;
b. A data transmission industry participant shall not be required to secure a
Congressional franchise and/or a Certificate of Public Convenience and

facil

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Necessity (CPCN) in order to construct, install, operate, lease, or own
networks and facilities except if (a) it owns and operates an international
cable landing station; or (b) it provides a nationwide backbone network,
offering services as a carrier's cartier. For purposes of this law, the term
nationwide means that the backbone network provides coverage for 80% of
all municipalities and 100% of chartered cities in the Philippines;

. Data transmission industry participants shall likewise be required to comply
with national and global best practices and standards on cybersecurity and
shall be subject to a network audit by the Cybersecurity bureau of the DICT.
Data transmission industry participants shall, after three (3) years of
operation, be required to secure a cybersecurity certification from a third-
party organization based on the prevailing ISO standards on information
security management.

CHAPTER III
REGULATION OF THE DATA TRANSMISSION INDUSTRY
Sec. 6. Open Access Approach to Regulation of the Data Transmission

Industry, - The NTC shall adopt and ensure that the data transmission industry
remains open and accessible to all qualified participants. Specifically, it shall:

a. Implement an efficient and speedy administrative process in the
authorization and registration of data transmission sector participants;

b. Adopt a technology-neutral framework that allows data transmission
industry participants to use any available technology to provide service;

c. Promote fair and open competition in all the segments of the data
transmission network, allowing a wide variety of physical networks and
applications to interact in an open architecture;

d. Mandate transparency in pricing and the publication of pricing information
to ensure fair trading within and between each data transmission segment so
as to allow clear, comparative information on market prices and services;

e, Mandate interconnection so that data transmission industry participants can
connect to each other at the various segments and interfaces, such that,
entities of any size may freely enter and exit the market, and dominance by a
single player or group of players is avoided;

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f. Promulgate policies that will encourage distributed local solutions rather
than centralized ones, encouraging services that are closer to the user;

g. Publish the list of registered data transmission industry participants at least
once a year;

h. Promulgate, together with the Philippine Competition Commission (PCC),
rules defining and regulating entities with substantial market power; and

i, Publish a spectrum management framework to be developed together with
the DICT and the PCC.

Sec. 7. Spectrum Allocation and Assignment. - The NTC shall maximize the

allocation and assignment of finite radio spectrum resources used in the
transmission of data by ensuring that spectrum is made available for the use of all
registered data transmission industry participants. To this end:

a. The procedure for radio spectrum allocation, re-allocation, assignment, re-
assignment, re-classification, joint use or co-use, and recall shall be made
transparent to the public. All applications, including letter-requests, allocation,
re-allocation, assignment, reassignment, re-classification, joint use or co-use,
and recall shall be posted in the NTC’s website and in a conspicuous place in
the offices of the NTC for at least three (3) consecutive months. The notice
shall specifically indicate the names of the applicants for spectrum allocation,
re-allocation, assignment, re-assignment, re-classification, joint use or co-use,
and recall including where the NTC itself is the proponent of any such action,
the affected spectrum, and the applicant's or NTC’s reasons for the proposed
spectrum allocation, re-allocation, assignment, _re-assignment, _re-
classification, joint use or co-use and recall. The NTC shall not allocate, re-
allocate, assign, re-assign, re-classify, allow joint use or co-use, or recall any
radio frequency band or bands without conducting at least one (1) public
hearing and allowing public comment for a period of fifteen (15) days from
the date of the public hearing, prior to approval and/or disapproval of the
same. This applies to all spectrum, whether used for data transmission or not;
b. All radio spectrum, radio frequency allocation, re-allocation, assignment,
re-assignment, re-classification, joint use or co-use, and recall decisions of the
NTC shall be published on the NTC’s website and in a conspicuous place in

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the offices of the NTC for at least three (3) consecutive months. The recall of
frequency for purposes of free public use shall be given priority.

The immediately preceding paragraphs (a) and (b) shall not apply to
applications for frequency assignment for fixed point-to-point radio links, Wi-
Fi and satellite networks;

c. The NTC shall ensure that the allocation, re-allocation, assignment, re-
assignment, re-classification, joint use or co-use, and recall of spectrum does
not result in the concentration of spectrum resources which promote,
establish, or perpetuate the significant market power of PTEs or of only a
limited number of participants. In instances where the resulting assignment of
spectrum for mobile and point-to-multipoint networks will give an assignee or
entities it controls, jointly or singly, or under common control, either by virtue
of that request or in combination with other previous requests by that party
or its affiliates, fifteen percent (15%) or above of assignable spectrum in the
same band, the party requesting for an assignment of spectrum or a joint use
of spectrum shall be required to serve notice to the PCC and secure a no-
objection notice from the PCC. The PCC shall issue a no-objection notice
within thirty (30) working-days upon its receipt of pertinent information
necessary for the review and issuance of the notice: Provided, That PCC may
‘once extend such period for an addition fifteen (15) working-days upon their
notification of the NTC and the party or parties concerned to a spectrum
allocation, re-allocation, assignment, re-assignment, re-classification, joint use
or co-use, and recall, Any person or entity who believes that any one or more
of the NTC’s decisions for the assignment of radio spectrum, whether past or
present, will promote the dominance of any entity and hinder competition
may file a complaint before the PCC to determine the dominance of a data
transmission industry participant and act on anti-competitive conduct in
accordance with its mandate under Republic Act No. 10667, otherwise known
as the Philippine Competition Act;

d. The NTC shall act promptly on applications of data transmission industry
participants for permits to import equipment. Any application for permit to


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import equipment that is not acted on by the NTC within seven (7) days shall
be deemed approved; and

e. If the NTC finds, on its own initiative or upon complaint, that any right,
license or radio spectrum assignment to any data transmission industry
participant or PTE is not being used, or is not being maximized by the user
thereof, or that the grantee has violated the provisions of this Act, it may,
motu proprio or upon petition by any person, subject to due process, recall
the radio spectrum assignment of the data transmission industry participant
or PTE, The NTC shall, where required and appropriate, make provisions for
substitute frequency to address the needs of active users of the spectrum
recalled from the data transmission industry participant or PTE.

Sec. 8. Setting Performance Standards. - The NTC shall:

a, Mandate that, within one (1) year from the effectivity of this Act, all last
mile providers shall provide a minimum download speed of 5 megabits per
second (5 Mbps) or as mandated by the National Broadband Plan, whichever
is higher, for mobile broadband and for fixed and fixed wireless/broadband
access;

b. In coordination with the DICT, prescribe performance standards after
public consultation and hearings within six (6) months from the effectivity of
this Act;

c. Upgrade performance standards imposed on the data transmission industry
regularly to ensure that performance standards shall, at a minimum, be at par
with service levels established in regional data network performance indices
and aligned with international best practices. Such standards shall take into
account speed, packet loss, jitter, and latency;

d. Regularly review performance standards at least once a year and publish
new performance standards at least thirty (30) days before they take effect.
The publication of the results of the performance measurements shall be
done in an open data format accessible to the general public;

e. Any person, or the NTC itself may, motu proprio, file a petition to penalize
any data transmission industry participant for failure to deliver service


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according to the NTC’s published performance standard and to require

rectification of such non-compliance; and

f. Measure the performance of data industry participants, furnish a copy of

the raw data of the measurements to the DICT, and publish the results of its

measurements on its website.

Sec. 9. Arms-length Transactions and Transparency. - The NTC shall:

a. Publish and make available in print and online formats all aspects of

spectrum use information, including the National Radio Frequency Allocation

Table (NRFAT), indicating therein the purpose or use to which each frequency

band is allocated, and, for frequency bands allocated for public use, the

persons and/or entities to whom each particular frequency is assigned. The

NRFAT and updated radio spectrum use information shall be made available

on the NTC’s website and to any person who requests the same, upon written

request; and

b. Promulgate rules requiring all data transmission industry participants to file

an annual report and include therein a fair and accurate statement regarding

their market prices and their services. The annual report shall include all costs
and charges relevant to the data transmission network segment where the
participants operate. The rates shall be made available online, in print, and in
any other viable venues to the public. Any person can file a complaint
pertaining to these rates within thirty (30) days of posting. Each player at
each segment shall submit a copy of their rates to the NTC and the PCC. The
rates will be published, including a historical record, in a consolidated manner.

The data transmission industry participants are required to keep a publicly

accessible archive of their rates.

Sec. 10. Fair Competition. - The PCC and the NTC shall ensure that the
principles and policies enshrined under Republic Act No. 10667, are strictly adhered
to in the data transmission industry. The PCC and NTC shall ensure that all industry
players shall observe fair, reasonable and non-discriminatory treatment in all their
dealings, and that barriers to entry are eliminated to make the industry highly
competitive. To this end, the PCC and NTC shall foster and develop interagency
cooperation mechanisms, including information-sharing tools, that will guide them in

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the performance of their respective mandates, and in the promotion of fair
competition in the data transmission industry.

Sec. 11. Technological Neutrality. - The NTC shall promulgate the necessary
rules and regulations to ensure that the provisions of this law apply, mutatis
mutandis, to future technologies in data transmission.

Sec. 12. Expedited Processing. — In all instances where a participant in the
data transmission industry shall require a form, certificate, or request from any
government agency or local government unit (LGU), there should be no more than
two (2) public officers involved in processing the form, certificate, or request.

Processing fees and certifications required for the deployment of any segment
of data transmission networks shall be limited to those identified by the DICT. The
DICT shall coordinate with the LG Us and national government agencies concerned
and conduct the necessary consultations with civil society organizations and other
stakeholder groups, for the development of the implementing rules and policies to
minimize the administrative burden of permitting and certification processes.

Sec. 13. Infrastructure Sharing and Co-Location, - The DICT and NTC shall
promulgate policies, rules, and regulations to ensure that a data transmission
network's active facilities and support infrastructure available through data
transmission networks or networks of public utilities, such as, but not limited to,
towers, poles, ducts, entrance cables, risers, dark fiber, and utility corridors are:

(a) Mandatory for open access and made available for co-location and co-use

by the owner of network facilities, equipment, and infrastructure on an open,

fair, and nondiscriminatory basis to any access seeker’s network facilities, in
any segment, subject to the technical feasibility of the access seeker’s request
and the network facility and infrastructure owner's standard published offer
terms, conditions, and rates: Provided, That the provision of access to
government-owned and -operated facilities and support infrastructure to
access seekers for the purpose of offering data transmission services shall be
mandatory, unless special circumstances, such as but not limited to national

security concerns, exist;

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(b) Built not only in the city centers, but most especially in the remote,
unserved, and underserved areas in order to extend data transmission
services by both the existing and new players throughout the country;

(©) As far as possible, deployed together with roadworks, pipe-laying, and

other infrastructure development by both government and private entities;

and

(d) Propagated in the most cost-efficient and timely manner through various

means, including, among others, encouraging the operation of independent

entities that build and operate towers, dark fiber, and utility corridors, among
other infrastructure that help facilitate data transmission network deployment.

The DICT and NTC shall promulgate policies, rules, and regulations to ensure
that buildings, condominiums, villages, towns, and subdivisions are all built with
facilities, such as cable entrances, ducts, and risers, that allow nondiscriminatory
access to multiple data transmission industry players in order for them to provide
service.

The DICT and NTC shall also promulgate policies, rules, and guidelines that
will ensure a level-playing field and price non-discrimination among data
transmission industry participants and network facility and infrastructure owners.

The DICT and NTC shall coordinate and issue a policy with other government
agencies, as necessary, including but not limited to the Department of Public Works
and Highways (DPWH), Metropolitan Waterworks and Sewerage System (MWSS),
the Metropolitan Manila Development Authority (MMDA), the National Electrification
Administration (NEA), and the Department of Human Settlements and Urban
Development (DHSUD), and private entities concerned to implement this provision.

The DICT and NTC shall also ensure the disaster resiliency and ease of
recovery and restoration of support infrastructure, such as towers, poles, and utility
corridors, from the effects of disasters by strictly enforcing compliance with
internationally-accepted engineering standards and best practices, and relevant
engineering codes and codes of practice.

CHAPTER IV
PROHIBITED ACTS
Sec, 14, Prohibited Acts. — The following acts shall be prohibited:

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a. Refusal to Plug and Play - Any data transmission industry participant, insofar as
such person is so engaged, shall not refuse access to infrastructure to any other
data transmission industry participant, except for failure to pay open market fees for
the access to the service.

Data transmission industry participant shall not impede the end-user’s right to
access and distribute information and content, use and provide applications and
services and use terminal equipment of their choice, regardless of the end-user’s or
provider's location or the location, origin or destination of the information, content,
application or service, via their data transmission service. Agreements between data
transmission providers of data services and end-users on commercial and technical
conditions and the characteristics of data access services such as price, data volume
‘or speed, and any commercial practices conducted by providers of internet access
services, shall not limit the exercise of the rights of end-users laid down in the
preceding paragraph;

b. Paid prioritization - A data transmission industry participant, shall not engage in
paid prioritization for monetary or other consideration except when allowed by the
NTC after such participant demonstrates that the practice would provide significant
public interest benefit and will not disadvantage content and applications that are
not prioritized nor harm the open nature of the Internet;

¢. Throttling - Data transmission industry participants shall treat all traffic equally
when providing data access services without discrimination, restriction or
interference, regardless of the sender and receiver, the content accessed or
distributed, the applications or services used or provided, or the terminal equipment
used.

It shall be prohibited for a data transmission industry participant to hinder or
slow down services or applications or access to specific sites on the internet except
where (a) access to such sites, services or applications are prohibited by law; (b) it
is necessary to preserve the integrity and security of the provider and the equipment
of the end-user: Provided, That if the breach of integrity or security is caused by the
equipment of the end-user, the provider has to notify the end-user first and provide
the end-user sufficient time to rectify the situation; or (c) it is necessary to block the

transmission of unwanted communications to an end-user, on the application or

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complaint of the end-user or the data transmission industry participant, and upon
lawful order of the court;
d. Refusal to give information - It shall be prohibited for any data transmission
industry participant, including PTEs with regard to its network and facilities, to refuse
or fail to make available, on a timely basis, to suppliers of data transmission
services, technical information about its essential facilities or network facilities and
commercially relevant information that are necessary for them to provide services;
and
e. Anti-competitive cross-subsidization - The NTC shall require separate books of
account between different data transmission segments in order to allow
identification of costs and revenues for each segment. Any violation of this provision
shall give rise to a presumption of anti-competitive cross-subsidization, which shall
then be referred to the PCC for proper determination and action, in accordance with
the provisions of Republic Act No. 10667. Nothing herein shall prevent
interconnecting networks from charging the appropriate cost-based compensation
for the use of interconnecting facilities.
CHAPTER V
PENALTIES

Sec. 15. Administrative Penalties. - The NTC shall require data transmission
industry participants and PTEs providing data transmission services to comply with
the prescribed performance standards and shall impose penalties for failure to
comply with such performance standards.

a. Any data transmission industry participant that engages in the prohibited

acts under Section 14 of this Act or fails to comply with the obligations under

Section 8 of this Act shall suffer a minimum penalty of a fine of not less than

Three Hundred Thousand Pesos (P300,000.00) but not more than Five Million

Pesos (P5,000,000.00) for every day that the violation continues until the

participant fully complies: Provided, That, if the data transmission industry

participant has a gross annual income not exceeding Ten Million Pesos

(P10,000,000.00), the penalty that may be imposed shall be equivalent to one

percent (1%) to two percent (2%) of its gross annual income. In cases of

anti-competitive cross-subsidization, which is prohibited under Section 14 (e)

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of this Act, the imposable penalties are those provided for under Republic Act
No. 10667. The NTC is hereby authorized and empowered to impose such
fine, after due notice and hearing.

b. An entity who fails to substantially comply with the NTC’s performance
standards for three (3) consecutive years shall, subject to due process, be
removed from the registry of registered data transmission industry
participants and shall be prohibited from rendering data transmission services.
c. A data transmission industry participant violating any provision of this Act
shall forfeit all certificates, licenses, authorizations, rights, and awards issued
to it in relation to its participation in the data transmission industry.

d. Any other violations of this Act shall be sanctioned with a fine of not less
than Fifty Thousand Pesos (P50,000.00) but not more than Two Million Pesos
(P2,000,000.00).

Sec. 16. Adjustment for Inflation. - The fines imposed under this Act shall be

adjusted by the NTC, year-on-year, considering the prevailing cost of money based
on the current consumer price index, and subject to publication of such adjustments.

CHAPTER VI
RIGHTS OF DATA TRANSMISSION SERVICE USERS AND
RESPONSIBILITIES OF DATA TRANSMISSION SERVICE PROVIDERS
Sec. 17. Rights of End-Users. — The user of data transmission services shall

have the 8 following basic rights:

a. Entitlement of data transmission service which is non-discriminatory,
reliable, and conforming with minimum standards as provided by the
appropriate national government agencies;

b. To be given data transmission services within two (2) months from
application for service;

cc. Regular, timely and accurate billing, courteous and efficient service
at business offices and by company personnel;

d. Timely correction of errors in billing and the immediate provision of
rebates or refunds by the data transmission service provider without
the need for demand by the user; and

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e. Thorough and prompt investigation of, and action upon complaints.
The data transmission service provider shall endeavor to allow
complaints to be received by any means convenient to the end-user,
including voice calls, post, short messaging service (SMS), multi-media
messages (MMS) and online communication, and shall keep a record of
all complaints received and the action taken to address the complaints.

Subject to the filing of a formal request to the data service provider, a user
may request the immediate termination of service without the imposition of fees or
penalties, and with the refund of any fees or charges already paid by the user,
should a data service provider not consistently comply with preceding paragraphs
(a), (d), (e), or any other minimum performance standards set by the NTC.

CHAPTER VII
FINAL PROVISIONS

Sec. 18. Joint Congressional Oversight Committee on Open Access in Data
Transmission. — There is hereby created a Joint Congressional Oversight Committee
on Open Access in Data Transmission (JCOCOADT) which shall monitor and ensure
the effective implementation of this Act. It shall determine weaknesses and
loopholes in the law, recommend the necessary remedial legislation or administrative
measures and perform such other duties and functions as may be necessary to
attain the objectives of this Act.

The JCOCOADT shall be composed of five (5) members from the Senate and
five (5) members from the House of Representatives in addition to the Chairperson
of the Senate Committee on Science and Technology and the Chairperson of the
House of Representatives Committee on Information and Communications
Technology, who shall Chair the Oversight Committee in the order specified herein:
Provided, That, two (2) members of each chambers’ nominees shall come from the
ranks of the minority party or bloc.

The Chairperson of the Senate Committee on Science and Technology and the
Chairperson of the House of Representatives Committee on Information and
Communications Technology shall act as co-Chairpersons of the JCOCOADT. The
ranking minority members nominated by both the Senate and the House of

Representatives shall act as Vice Co-Chairpersons.

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The Secretariat of the JCOCOADT shall come from the existing Secretariat
personnel of the Senate Committee on Science and Technology and the House of
Representatives Committee on Information and Communications Technology. The
JCOCOADT shall have its own independent counsel.

The JCOCOADT shall exist for the period not exceeding five (5) years from
the effectivity of this Act. Thereafter, its oversight functions shall be exercised by the
Senate Committee on Science and Technology and the House of Representatives
Committee on Information and Communications Technology, acting separately.

Sec. 19. Implementing Rules and Regulations. — Within sixty (60) days from
the effectivity of this Act, the DICT, in coordination with the NTC and the PCC, shall
promulgate the necessary rules and regulations for the effective implementation of
this Act.

Sec. 20. Separability Clause. - Should any provision herein be declared
unconstitutional, the same shall not affect the validity of the other provisions of this
Act.

Sec. 21. Repealing Clause. - All laws, decrees, orders, rules, and regulations
or other issuances or parts thereof inconsistent with the provisions of this Act are
hereby repealed, amended or modified accordingly.

Sec. 22. Effectivity. - This Act shall take effect fifteen (15) days after its
publication in the Official Gazette or in at least two (2) national newspapers of
general circulation.

Approved,

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