1
Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
TWENTIETH CONGRESS 
First Regular Session 
HOUSE BILL NO. 705 
Introduced by REP. JAVIER MIGUEL “JAVI” L. BENITEZ 
EXPLANATORY NOTE 
The COVID-19 pandemic highlighted the need to accelerate the digital 
transformation of our economy, bureaucracy and education system. On the 
other hand, the pandemic also exposed the wide digital divide in the country. 
The Philippines is ranked 14th among 22 Asian countries, and 53rd globally 
among 100 countries, in the 2022 Inclusive Internet Index. The Index assesses 
countries based on four elements: availability, affordability, relevance and 
readiness. In terms of affordability, the country is placed 59th and 48th in 
indicators with respect to price and competitive environment, respectively. 
Meanwhile, a study by the Philippine Competition Commission (PCC) 
identified inadequate ICT infrastructure as one factor that impedes growth of 
e-commerce in the country. The PCC study notes barriers to expansion of e-
commerce enterprises “include restrictive forms of regulation or broad
technological delays. The quality of connectivity infrastructure may also be
considered a barrier to the growth and development of e-commerce.”1
To address these, we need a comprehensive set of government 
interventions including higher public investment in ICT infrastructure and 
building an enabling regulatory framework for free and fair competition in the 
telecom industry to enhance access to fast, affordable and secure Internet, and 
promote digital innovation in the market, and state and social institutions. 
Republic Act No. 7925, or the Public Telecommunications Policy Act, 
which opened up the telecom market in the country in the 1990s, did not 
contemplate the expansion of the Internet, its commercial applications and 
impact on daily life. Rapid technological change, particularly in digital 
1 Serafica, Ramonette, et al. “Issues Paper on the Philippine Digital Commerce Market.” 
Philippine Competition Commission (2020).  
July 1, 2025
8:04 am


2
technologies, in the past 25 years has supervened the law and now requires a 
new regulatory system. While, under Republic Act No. 7925, Internet service 
providers (ISPs) are classified as value-added service (VAS) providers that do 
not need a congressional franchise to operate, an ISP cannot put up its own 
network and is constrained to connect to a telco facility.  
A study by Mirandilla-Santos, et al. (2018) illuminates on this barrier to 
entry in the Internet services market. It notes:  
“There needs to be policy that specifically addresses Internet 
connectivity and distinguish it from telecommunications services 
for the simple reason that they are two different services. While 
Internet 
connection 
may 
be 
established 
through 
a 
telecommunications network, the former is not entirely 
dependent on the latter. Their ecosystems are also different from 
each other, although they might deliver the same functions at 
times. Traditional telecommunications is anchored on a 
centralized system. The Internet, on the other hand, thrives on 
redundancy and decentralization, where the network becomes 
more resilient as more networks are connected. The policy 
framework should allow non-telcos, including VAS providers, to 
build and operate their own networks in order to offer Internet 
connectivity.”2 
This bill establishes a regulatory system that will address this problem. 
The bill removes the requirement for a legislative franchise and a certificate of 
public convenience and necessity from the National Telecommunications 
Commission for an ISP to build and operate a network. The bill also mandates 
interconnection and greater transparency in rates and spectrum assignment.  
This bill, championed by Rep. Victor Yap, had been approved on third 
reading by the House of Representatives in the 17th and 18th Congresses. If 
finally enacted into law, this will lower cost of operating an Internet service 
network, and enable smaller ISPs to compete with large telecom companies. 
With more market players providing Internet connection at varying qualities 
and prices, consumers have more options that satisfy the different needs of an 
increasingly digital world. 
In view of the foregoing, the approval of this bill is earnestly requested. 
JAVIER MIGUEL L. BENITEZ 
2 Mirandilla-Santos, Mary Grace, et al. “From Analog to Digital, Philippine Policy and Emerging 
Internet Technologies.” The Asia Foundation and Better Broadband Policy (2018). 


3
Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
TWENTIETH CONGRESS 
First Regular Session 
HOUSE BILL NO. 705 
Introduced by REP. JAVIER MIGUEL “JAVI” L. BENITEZ 
AN ACT PROMOTING OPEN ACCESS IN DATA TRANSMISSION AND 
PROVIDING 
ADDITIONAL 
POWERS 
TO 
THE 
NATIONAL 
TELECOMMUNICATIONS COMMISSION 
Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
assembled: 
CHAPTER I 
INTRODUCTORY PROVISIONS 
SECTION 1. Short Title. – This Act shall be known as the "Open Access in 
Data Transmission 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


 
4
freely in the spirit of fair competition and permission-less 
innovation; 
 
(c) Encourage investments in the digital infrastructure development 
in 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; 
 
(h) Encourage infrastructure sharing and co-location in order to 
promote 
network 
investment, 
eliminate 
the 
uneconomic 
duplication of infrastructure facilities, and strengthen competition; 
and 
 
(i) Ensure efficient and transparent management of the radio 
frequency spectrum, especially those utilized in the delivery of 
data transmission services. 
 
SEC. 3. Definition of Terms. – As used in this Act: 
 
(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/internet network; 


 
5
 
(d) Core or Backbone Network refers to the main line including 
international connection, that ties networks, delivers routes to exchange 
information among various subnetworks, connects regional distribution 
networks and, in some instances, provides connectivity to other peer 
networks; 
 
(e) Data transmission refers to the process of sending digital or digitized 
analog signal over a communication medium to one or more computing 
networks, communication or electronic devices. It enables the transfer 
and communication of devices in a point-to-point, point-to-multipoint 
and multipoint-to-multipoint environments. 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) that offer data transmission 
services as defined under Republic Act No.7925, otherwise known as the 
“Public Telecommunications Policy Act of the Philippines”; 
 
(g) International gateway or landing refers to a segment of data 
transmission that consists of any facility that provides an interface to 
send and receive data traffic between one country's domestic network 
facilities and those in another country; 
 
(h) Last mile refers to the segment of data transmission network that 
connects end users; 
 
(i) Middle mile refers to the segment of data transmission network that 
links the last mile network to the core or backbone network; 
 
(j) Open access refers to the system of allowing the use of data transmission 
or distribution systems and associated facilities subject to fair, 
reasonable, and nondiscriminatory terms in a transparent market; 
 
(k) 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 in exchange for consideration (monetary or 
otherwise) from a third party, or to benefit an affiliated entity; 
(l) Voice over Internet Protocol (VoIP) service refers to the provision of 
voice communication using Internet Protocol (IP) technology; and 


 
6
 
(m) 
Passive infrastructure collectively refers to telecommunication 
towers, poles, cable entrances, ducts, utility corridors, and any other 
non-electronic infrastructure and facilities, either existing or to be 
deployed in the future, that may be used to support data transmission. 
 
CHAPTER II 
ORGANIZATION AND OPERATION OF THE DATA TRANSMISSION 
INDUSTRY 
 
SEC. 4. Scope. – This Act applies to all persons who participate in the data 
transmission 
industry. 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 that are principally engaged in the provision of 
basic telephone services, such as an international carrier, inter exchange carrier, 
local exchange operator, and mobile radio services provider, as defined in 
Republic Act No. 7925, and 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 Telecommunications Commission (NTC). The NTC 
shall promulgate a speedy and expeditious administrative process for 
registration and shall, in coordination with the Department of 
Information and Communications Technology (DICT) for policy and 
standard-setting in the Information and Communications Technology 
(MT) sector, and Philippine Competition Commission (PCC) for the 
promotion of market competition, 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 in all segments of the network and 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 facilities 
that interface directly with another country's domestic network. 
 


 
7
(b) Those who will operate an international cable landing station shall 
secure a legislative franchise. Those who will operate a nationwide 
backbone network shall secure a permit from the NTC and submit its 
proposed route or rollout plan, as well as the manner of construction of 
the backbone network, subject to the approval of the NTC. 
 
All other industry participants shall not be required to secure a 
legislative franchise or a certificate of public convenience and necessity 
(CPCN) but must meet the criteria set by the NTC and the DICT in 
registering as industry participants in order to construct, operate, lease 
or own networks or facilities except if it owns and operates an 
international cable landing station: Provided, That an owner or operator 
of a cable landing station, not considered a public utility, shall no longer 
be required to secure a CPCN. All, industry participants intending to be 
spectrum holders shall need to secure a permit from the NTC and shall 
be allocated such spectrum in accordance with the provisions under 
Section 7 of this Act. 
 
(c) 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 International Organization for Standardization (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 ensure that the data transmission sector 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 accordance with the principles 
and policies under the Philippine Competition Act and its implementing 
rules in all segments of the data transmission network, allowing a wide 
variety of physical networks and applications to interact in an open 
architecture; 
 


 
8
(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 any single player or group of players is avoided; 
 
(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 PCC, rules defining and regulating 
entities with substantial market power; 
 
(i) Publish a Spectrum Management Framework to be developed together 
with the DICT and the PCC; and 
 
(j) Collect the necessary Supervision and Regulation Fee (SRF) and 
Spectrum User Fee (SLTF), and other relevant fees as provided by law. 
 
SEC. 7. Spectrum Allocation, Recall, and Reallocation. – The NTC shall 
maximize the allocation and assignment of finite radio spectrum resources 
used in the transmission of data by ensuring that the spectrum is made 
available for the use of all registered data transmission industry participants. 
To this end: 
 
(a) The procedure for radio spectrum assignment, joint use and recall shall 
be made transparent to the public. All applications, including letter 
requests, spectrum assignment, joint use, recall, and reallocation shall be 
posted in the NTC 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 
assignment, joint 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 assignment, joint use and 
recall. The NTC shall not assign, recall or allow co-use or joint use of 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 


 
9
disapproval of the same. This shall apply to all spectrum, whether used 
for data transmission or not; 
 
(b) All radio spectrums, radio frequency assignments, recalls, and joint use 
decisions of the NTC shall be published in the NTC website and in a 
conspicuous place in 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) herein shall not apply to applications for frequency assignments 
for fixed point-to-point radio links, wifi, and satellite networks; 
 
(c) The NTC shall avoid the concentration of spectrum resources in the 
hands of a few players and shall not assign, or allow joint use of radio 
spectrum in a manner that establishes, promotes or perpetuates the 
dominance of PTEs. Any entity who believes that any one or more of the 
NTC's decisions for the assignment of radio spectrum, whether past or 
present, which 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 deal with 
anti-competitive conduct in accordance with its mandate under 
Republic Act No.10667, otherwise known as the “Philippine 
Competition Act”; 
 
(d) The NTC shall promptly act on applications of data transmission 
industry participants for permits to import equipment. Any application 
for a permit to import equipment that is not acted on by the NTC within 
seven (7) days shall be deemed approved; 
 
(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, work with the data transmission industry participant or 
PTE concerned to take appropriate measures to minimize the impact of 
such recall on active users of services utilizing the recalled spectrum. 
The foregoing notwithstanding, no frequency shall be recalled within 
eighteen (18) months of the awarding of a provisional authority or 
license or registration; and 
 
(f) The NTC shall ensure that the allocation, reallocation, assignment, 
reassignment, reclassification, joint use or co-use, and recall of spectrum 
does not result in the concentration of spectrum resources which 


 
10
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 FCC 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 the PCC may 
once extend such period for an additional fifteen (15) working days 
upon their notification of the NTC and the concerned party or parties to 
a 
spectrum 
allocation, 
reallocation, 
assignment, 
reassignment, 
reclassification, joint use or co-use, and recall. 
 
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 2 megabits 
per second or as mandated by the National Broadband, whichever is 
higher, for mobile broadband and for fixed wireless/broadband access; 
 
(b) Prescribe performance standards after public consultation and hearings 
within six (6) months from the effectivity of this Act; 
 
(c) Regularly upgrade performance standards imposed on the data 
transmission industry 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 and made 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 according to the NTC's published performance standard and to 
require rectification of such noncompliance; and 
 


 
11
(f) Measure the performance of the data industry participants quarterly 
and publish the results of its assessment in 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 venue 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 shall be published, 
including a historical record, in a consolidated manner. The data 
transmission industry participants shall 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 the Philippine Competition Act are 
strictly adhered to in the data transmission industry. The PCC and the NTC 
shall ensure that all industry players observe fair, reasonable, and 
nondiscriminatory treatment in all their dealings, and that barriers to entry are 
eliminated to make the industry highly competitive. To this end, within thirty 
(30) days from the effectivity of this Act, the FCC and the NTC shall enter into 
an agreement to foster and develop interagency cooperation mechanisms, 
including information-sharing tools, that will guide them in 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 ensure that the 
provisions of this Act apply, mutatis mutandis, to future technologies in data 
transmission. 
 


 
12
SEC. 12. Infrastructure Sharing and Co-location. – The DICT and the NTC 
shall promulgate policies, rules, and regulations to ensure that passive 
infrastructure, whether existing or built in the future, necessary or capable of 
supporting data transmission networks or services are: 
 
(a) made 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 seekd'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; 
(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; 
 
(c) as far as possible, deployed together with roadworks, pipe-laying, 
and other infrastructure development by both government and 
private entities; and 
 
(d) proliferated in the most cost-efficient and timely manner through 
various means, including, encouraging the operation of 
independent entities that build and operate towers, dark fiber, and 
utility corridors, among other passive infrastructure that help 
facilitate data transmission network deployment, 
 
The DICT shall coordinate and issue a policy with other relevant 
government agencies upon consultation with stakeholders to implement this 
provision. For purposes of data transmission, the NTC shall, in case of a dispute 
arising from an infrastructure sharing agreement: (1) mediate between a data 
transmission industry participant and an infrastructure owner, and (2) serve as 
the primary enforcer of this provision. 
 
The DICT and the 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. They shall also promulgate policies, rules, 
and 
guidelines 
that 
will 
ensure 
a 
level-playing 
field 
and 
price 


 
13
nondiscrimination among data transmission industry participants and 
network facility and infrastructure owners. 
 
The DICT and the NTC, in coordination with relevant government 
agencies, shall also ensure the disaster resiliency and ease of recovery and 
restoration of passive 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. 
 
The DICT and the NTC shall maintain an updated database of data 
transmission infrastructure, including passive infrastructure used to support 
data transmission. The database, to be updated annually, shall include the exact 
location, ownership, technical specifications, and other relevant information 
about the facility. 
 
CHAPTER IV 
PROHIBITED ACTS 
 
SEC. 13. Prohibited Acts. – The following acts are prohibited: 
 
(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 participants 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 will provide significant public interest benefit and will not 


 
14
disadvantage content and applications that are not prioritized or harm 
the open nature of the internet; 
 
(c) Throttling. – A data transmission industry participant 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 
in the internet except where (1) access to such sites, services or 
applications are prohibited by law; (2) it is necessary to preserve the 
integrity and security of the network and service of the provider or 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 give the former sufficient time to rectify the 
situation; and (3) it is necessary to block the transmission of unwanted 
communications such as Spam and child pornographic materials upon 
the complaint of the end user or the data transmission industry 
participant; 
 
(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 to suppliers of 
data transmission services, on a timely basis, the technical information 
about its essential facilities or network facilities and commercially 
relevant information that are necessary for the efficient provision of their 
services; and 
 
(e) Anti-competitive cross-subsidization. – The NTC shall require separate 
books of accounts 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 
Philippine Competition Commission 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 interconnection 
facilities. 
 
SEC. 14. Administrative Penalties. – The NTC shall require data 
transmission industry participants and PTEs providing data transmission 
services to comply with prescribed performance standards and shall impose 
penalties for failure to comply with such performance standards. 


 
15
 
(a) Any date transmission industry participant who fails to comply with the 
minimum service standards set by the NTC shall be imposed a 
minimum penalty of a fine of not less than One hundred thousand pesos 
(P100,000.00) but not more than Five million pesos (P5,000,000.00) per 
day for every day during which such default or 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. 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) Any data transmission industry participant who engages in the 
prohibited acts under Section 12 of this Act or fails to comply with the 
performance standards set by the NTC 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, the imposable penalties are those provided under 
Republic Act No. 10667. 
 
(d) 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. 
 
(e) Any other violations not specifically penalized under the relevant 
provisions of this Act shall be penalized by a fine not less than Fifty 
thousand pesos (P50,000.00) and 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 


 
16
based on the current consumer price index, and subject to publication of such 
adjustments. 
 
 
CHAPTER V 
RIGHTS OF DATA TRANSMISSION SERVICE USERS AND 
RESPONSIBILITIES OF DATA TRANSMISSION SERVICE PROVIDERS 
 
SEC. 16. Rights of End Users. – The user of data transmission services shall 
have the following basic rights: 
 
(a) To be entitled to data transmission services which is nondiscriminatory, 
reliable, and confirming with minimum standards set by the NTC; 
(b) To be rendered data transmission services within two (2) months from 
application for service; 
 
(c) 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, 
 
(e) Through 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 of 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 fee or charge 
already paid by the user, should a data service provider not consistently 
comply with paragraphs (a), (d), and (e) of this section or any other 
minimum performance standards set by the NTC. 
 
CHAPTER VI 
FINAL PROVISIONS 
 
SEC. 17. 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. 
 


 
17
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 concerned national government 
agencies and LGUs, 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. 18. Implementing Rules and Regulations. – Within sixty (60) days from 
the effectivity of this Act, the NTC shall promulgate the necessary rules and 
regulations for its effective implementation. 
 
SEC. 19. Joint Congressional Oversight Committee on Open Access in Data 
Transmission. – There shall be 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; Provided, That two (2) members of each 
chamber’s nominees shall come from the ranks of the minority party/bloc. 
 
The Chairperson of the Senate Committee on Science and Technology and 
the Chairperson of the House of the Representatives Committee on Information 
and Communications Technology shall act as Cochairperson s of the 
JCOCOADT. The ranking minority members nominated by both the Senate 
and the House of Representatives shall act as Co-Vice Chairpersons. The 
Secretariat of the JCOCOADT shall come from the existing Secretariat 
personnel of the Committee on Science and Technology of the Senate and the 
Committee on Information and Communications Technology of the House of 
Representatives. The JCOCOADT shall have its own independent counsel. 
 
The JCOCOADT shall exist for a 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. 
 


 
18
SEC. 20. Separability Clause. – Should any provision herein be declared 
unconstitutional, the other provisions not affected shall remain in full force and 
effect. 
 
SEC. 21. Repealing Clause. – All laws, decrees, orders, rules and regulations 
or other issuances or parts 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 a newspaper of general circulation.