Seventeenth Congress
First Regular Session

HOUSE BILL NO, 4646

Introduced by Representative Joel Mayo Z. Almario

EXPLANATORY NOTE

Wirel communications is a real tool that provides convenience in
the transmission of opinions and exchange of ideas. It facilitates the sharing
of information that encourages collaboration and cooperation, and makes
transactions swift and speedy, thereby promoting productivity.

There are, however, devious individuals or groups who have found
\ways to abuse this innovation for illegal purposes. Syndicates engaged in
illegal drugs, kidnapping, carnapping, extortion, smuggling and other
heinous crimes have increasingly used cellular or mobile phones to further
their criminal activities. They are able to do this with minimal or without
risk of being caught because the identities of cellular phone users cannot be
ascertained. Mobile phones have become a standard tool for criminals.

Complaints against irresponsible use of mobile phones are also on the
rise. Law enforcement authorities have complained of pranksters dropping
calls made to emergency numbers and of numerous hoax calls received by
their offices. There is likewise an increase in the incidence of “stalking” and
harassment with the use of unregistered mobile phones that allow the
perpetrator invisibility and protection,

The registration of prepaid subscriber identity module (SIM) card:
will remove that invisibility and unmask the perpetrator, thereby maki
them criminally liable, Similarly, the bill will provide law enforcement
agencies the proper means necessary to crack down and track criminals.

While the 1987 Constitution recognizes the vital role of information
and communication in nation building as stated in Section 24, Article Il
thereof, it is also incumbent upon the State to protect its citizens from
criminality.



The regulation and registration of the use of prepaid SIM cards as a
measure to curb unlawful activities is one such move towards the protection
of the citizens,

A bill of similar import, House Bill No. 5231, which was a substitute
bill submitted by the Committee of Information and Communications
Technology under Committee Report No. 497, was approved by the House
of Representatives on Third Reading during the Sixteenth Congress.
However, the same was not acted upon timely by the Senate.

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

J. i

Representative
2" District, Davao Oriental


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Seventeenth Congress
First Regular Session

HOUSE BILL NO. AS4E

Introduced by Honorable Jocl Mayo Z. Almario

AN ACT

REQUIRING THE REGISTRATION OF ALL USERS OF PRE-PAID
SUBSCRIBER IDENTITY MODULE CARDS AND PROVIDING
PENALTIES FOR VIOLATION THEREOF
Be it enacted by the Senate and House of Representatives of the Philippines
in Congress assembled:

SECTION 1 Short Title. — This Act shall be known as the
“Pre-Paid SIM Card Registration Act.”

SEC.2. Declaration of Policy. — The State recognizes the
technological advancement in information and communication especially in

wirel

s communication. The State likewise recognizes that the use of such
modern technologies must be regulated to promote the general welfare and
protect public safety and national security. Towards this end, the State shall
regulate the use of SIM cards by requiring end-users to comply with the
registration requirements for the purchase and use of prepaid subscriber
identity module (SIM) cards.

SEC. 3 Definition of Terms. — As used in this Act:

a) Direct seller refers to person or entity, whether natural or

juridical, who directly dispenses or sells a SIM card to an end user:


b) End user refers to any individual or subscriber who directly
purchases a postpaid or prepaid SIM card from a_ public
telecommunications entity or direct seller for personal use;

¢) Postpaid mobile phone refers to services provided by a
public telecommunications entity where the users are billed after the fact
or at the end of the monthly billing cycle according to their use of the
mobile services;

4) Prepaid mobile phone refers to services provided by a public
telecommunications entity where credit is purchased in advance to pay
for mobile phone services at the point the services is accessed or
consumed;

ec) Public telecommunications entity refers to any duly
enfranchised entity that offers voice, short messaging system (SMS),
mobile data, value added services or any other telecommunications
services to the public for a fee;

f) SIM card registration refers to the process of recording and
verifying the mobile phone number and personal information of the

subscriber which include the name, date of birth, gender, complete home

address, the date of sale and photograph of the end user by the public
telecommunications entity or other direct seller; and
2) Subscriber identification module (SIM) card refers to an

integrated circuit inside a mobile phone, usually a removable plastic card,

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which encrypts voice and data transmissions and stores data about the
specific user so that the user can be identified and authenticated to the
network supplying the phone service.

SEC. 4. SIM Card Registration. — The _ public
telecommunications entity, or the direct sellers distributing their SIM
cards, shall require the end user of the SIM card to duly accomplish,
before the purchase and release of a SIM card, a registration form with a
corresponding control number in triplicate, and an attestation that the
person purchasing and the person registering the SIM card are one and
the same as shown by the presentation of a valid government-issued
identification card pursuant to Section 5 hereof.

The registration form shall contain the following information:

a) Full name of the purchaser,

b) Complete home addi

c) Date of birth of the purchaser

d) Assigned mobile phone number of SIM card and serial
number; and

e) Date of purchase.

SEC. 5, Identification and Verification. — ‘he public
telecommunications entity, and the direct sellers distributing SIM cards to
end users, shall verify the veracity of the information given by the end

user under Section 4 by requiring the end user to present the original and

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submit a true and faithful reproduction or photocopy of a valid

government-issued photographic identification card, which may be any of

the following:

a)
b)
c)
qd)
e)
f)

8)

h)

Passport

Driver’s license

Unified multi-purpose identification card

Senior citizen’s card

Person with disabilities card

Voter’s identification card

Postal identification card

‘Taxpayer’s identification number (TIN) card
Professional Regulation Commission (PRC) card
Integrated Bar of the Philippines membership card
Government office identification card

School identification card (for minors)

National Bureau of Investigation clearance
Police clearance

Firearms license

Other government-issued identification cards

2. 6. Submission of the Registration Form. — The direct

sellers shall submit the registration form accomplished by the end user to

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the public telecommunications entity within ten (10) days after the close
of the month when the sale of the SIM card was made.

The public telecommunications entity shall submit a copy of the
registration form accomplished by the end user, including those submitted
by the direct sellers, to the National Telecommunications Commission
(NTC) within thirty (30) days after the close of the month when the sale of
the SIM card was made.

SEC. 7. Verified List of Dealers and Sellers. — The public
telecommunications entity shall submit to the NTC, within six (6) months
from the date of effectivity of this Act the verified list of all its dealers and
sellers. Thereafter, the public telecommunications entity shall submit to the
NTC, every quarter of each year, an updated list of the same.

SEC. 8. Limitation on SIM Card Ownership — No end user shall
be allowed to register more than five (5) active prepaid SIM cards under his
name. In the event that a previously registered prepaid SIM card is rendered
obsolete due to expiration, deactivation, destruction, or lost, the end user
shall be authorized to obtain a new SIM card, provided proof of the
inoperability of the previously registered SIM card is shown.

The public telecommunications entity, or the direct sellers distributing
the SIM cards shall then put an annotation on the registration form declaring

the inoperability of the previously registered SIM card.



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SEC.9. Confidentiality of the Information. — All information
gathered from the SIM card registration shall be absolutely confidential,
unless by reason of public safety and national security disclosure of such is
required, or upon written consent of the subscriber.

SEC. 10. Registration of Existing Prepaid Mobile Phone. —
Existing mobile phone subscribers are given a period of six (6) months from

the time of the effectivity of this Act within which to register their SIM card

with their respective public telecommunications entity. Failure to register
will authorize the public telecommunications entity to automatically
deactivate the subject SIM card.

SEC. 11. Loss or Change of SIM Card. — In case of loss of the
SIM card or change in the information of the end user, the end user must
duly notify the public telecommunications entity within thirty (30) days
from such loss of SIM card or change in information. The public
telecommunications entity must notify the NTC within a period of thirty (30)
days from receipt of such notification from the subscriber.

SEC. 12. Public Telecommunications Entity. — The public
telecommunications entity shall submit a quarterly update of its SIM card
registry of all subscribers to the NTC, whether postpaid or prepaid,
containing all the information as mandated under Section 4 of this Act. The
NTC likewise, shall ensure that such data is kept with outmost

confidentiality.



1 SEC. 13. Penalties. — The following penalties shall be imposed on
2 any public telecommunications entity found guilty of violating any of the
3 provisions of this Act:

4 a) First Offense - A fine of Three hundred thousand pesos

5 (P300,000.00);

6 b) Second Offense - A fine of Five hundred thousand pesos
7 (P500,000.00):
8 c) Third and subsequent Offense - A fine of One million pesos

9 (P1,000,000.00); and

10 d) Ifa public telecommunications entity has been found to have
11 been continuously violating any of the provisions of this Act, the NTC shall
12 recommend to Congress the immediate revocation of its franchise.

13 The following penalties shall be imposed on any direct seller found

14 _ guilty of violating any of the provisions of this Act:

15 a) _ First Offense — A fine of Ten Thousand First Offense ;

16 b) Second Offense - A fine of Twenty Thousand pesos
17 (P20,000.00);

18 c) Third and subsequent Offense - A fine of Thirty Thousand
19 pesos (P30,000.00).

20 SEC. 14. Criminal Liability. — Any end user who knowingly

21 provides false or misleading information as mandated by Section 4 of this



Act shall be subject to criminal prosecution under Article 171 or Article 172

of the Revised Penal Code.

SEC. 15 Implementing Rules and Regulation. — The NTC shall

issue such orders, rules and regulations and other issuances as may be
necessary to ensure the enforcement and immediate implementation of this
Act.

SEC. 16,  Separability Clause. — If any provision or part of this Act

is declared unconstitutional or invalid, the remaining parts or pro
affected shall remain in full force and effect.

SEC. 17. Repealing Clause. — All laws, decrees, orders, rules and
regulations, and other issuances, or parts thereof which are inconsistent with
the provisions of this Act are hereby repealed, amended or modified
accordingly.

SEC. 18. Effectivity. — This Act shall take effect fifteen (15) days
after its publication in the Official Gazette or in a newspaper of general
circulation.

Approved,