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Re.public of the Philippines
HOUSE 0F REPRESENTATIVES
Quezon City, Metro Manila
NINETEENTH CONGRESS
First Regular Session
HouseBi||No.8052
Introduced by Representative Midy N. Cua
Lone District, Quirino
RECEIVED
£    DATE
i        TI:VIE
.'i 0  MAT  2m
AN ACT ESTABLISHING INFORMATION AND COMMUNICATIONS
THCHNOLOGY HUBS NATI0NWIDF
HXPLANATORY NOTE
The use of different forms of information and communications technology (ICT) in a country erLables
growth as it allows people from long distances to interact and engage in productive activities, which
in turn results in additional benefits, which translate to larger economic growth.
The  rise  of ICTs  had  been  steady  even  before  the  COVID-19  pandemic.  However,  the  pan(lemic
further highlighted the role and importance of ICTs in fostering growth and maintaining transactions
and operations across a variety of industries. In a post-pandemic economy, the new normal relnains
the accepted norm, which entails the  indispensability of the  ICT sector.  It is  in this regard that the
state shall be able to encourage the expansion of information and communications technology I(ICT)
and infrastructure throughout the country to facilitate and expedite the access of the citizenry to goods
and services.
In consideration of these, this bill seeks to establish ICT hubs throughout the country in accorthance
with  the  National  ICT  Roadmap  and  National  ICT  Plan  to  be  prepared  by  the  Department  of
Information  and Communications Technology (DICT).  The said ICT Plan shall assess the needs of
every province in the country and identify the appropriate types and the number of ICT hubs to be
developed therein, with at least one (1) hub in each province. Through the provision of incentives, this
proposed measure also encourages the private sector in establishing ICT hubs in accordance wi.th the
standards set forth  by the DICT,  who  in turn shall  employ the up-to-date technologies available to
serve commercially unviable or far-flung areas.
This   measure   previously   passed  the  third  reading   in  the   18th   Congress.   It   was   proposed  by
Representatives  Manuel  D.  Cabochan,  Ill,  Henry  R.  Villarica,  Virgilio  S.  Lacson,  Alfred  V{argas,
Rose Marie "Baby" J. Arenas, Victor A. Yap, Joey Sarte Salceda, Eric G. Yap, Jose Francisco "Itiko"
8.  Benitez,  Carlito  S.  Marquez,  Joy  Myra  Sa]vador-Tambunting,  Micaela  S.  Violago,  Ruffy  8.
Biazon, John Reynald M. Tiangco, Maricel G. Natividad-Nagafio, MD., Ranon C. Nolasco, Jr.., Wes
Gatchalian, France L. Castro, Faustino Michael Carlos T. Dy, Ill, Strike 8. Revilla, Alyssa Sheena P.
Tan,  Jose  Enrique  "Joet"  S.  Garcia,  Ill,  Ronnie  L.  Ong,  Julienne  "Jam"  L.  Baronda,  Gabriel  H.
Bordado,  Jr.,  Alan  "Aldu"  R.  Dujali,  Faustino  "Inno"  A.  Dy,  V,  Sharon  S.  Garin,  Pablo  John  F.
Garcia, Christopher V.P. De Venecia, Jose "Ping-Ping" I. Tejada, Jericho Jonas 8. Nograles, Kr.istine
Singson-Meehan,  Jose  Gay  G.  Padiemos,  Bemadette  "BH"  Herrera-Dy,  Sergio  C.  Dagooc,  Allan
Benedict  S.  Reyes,  Angelo  Marcos  Barba,  Teodorico  T.  Haresco,  Jr.,  Cheryl  P.  Deloso-Montalla,


Angelina "Helen" D.L. Tan, MD., Florida "Rida" P. Robes, Adriano A. Ebcas, Estrellita 8. Suansing,
Horacio P. Suansing, Jr., Lianda 8. Bolilia, Rico 8. Geron, Jumel Anthony I. Espino, Anthony Peter
"Onyx" D. Crisologo, Courado M. Estrella, Ill, Marlyn "Len" 8. Alonte, Jose L. Atienza, Jr., Rufus
8. Rodriguez, Michael  8. Gorriceta, Janice Z.  Salimbangon, Joaquin M. Chipeco, Jr.,  Stella Luz A.
Quimbo, Raul C. Tupas, Mark 0. Go, John Marvin "Yul Servo" C. Nieto, Lorenz R. Defeusor, Jesus
"Bong" C. Suntay, Sonny "SL" L. I.agon, Camille A. Villar, Deogracias Victor "DV" Savellano, Jose
"Jun" L. Ong, Jr., A]fredo A. Garbin, Jr., Tyrone D. Agabas, Rosanna "Ria" Vergara,  Sabiniano S.
Canama, Sarah Jane I. Elago, Alfel M. Bascug, Arlene D. Brosas, Edgar M. Chatto, Jose Christiopher
Y.  Belmonte,  Ed Christopher  S.  Go,  Cristal  L.  Bagatsing,  Juan Miguel  Macapagal Arroyo,  Divina
Grace C. Yu, Loren Legarda, Evelina G. Escudero, Johnny Ty Pimentel, Lawrence "Law" H. Fortun,
Jake  Vincent Villa,  Ria Christina G.  Farifias,  Manuel  Jose  "Manmix"  M.  Dalipe,  Argel  Joseph T.
Cabatbat, Loma P. Bautista-Bandingan, Junie E. Cua, Luisa Lloren Cuaresma. Paul Ruiz Daza, John
Michael R. Duavit, Rudys Cesar G. Farifias, I, Greg G. Gasataya, Jocelyn Sy Limkaichong, Corazon
T. NufiezoMalanyaon, Manuel T. Sagarbarria, Way Kurat Zamora, Cyrille "Beng" F. Abueg-Za]divar,
Yasser  Alonto  Balindong,  Narciso  R.  Bravo,  Jr.,  Carl  Nico]as  C.  Cari,  Maximo  Y.  Dalog,  Jr.,
Abdullali D.  Dimaporo, Edunrdo "Eddie" R.  Gullas,  Godofredo N.  Guya, Ann K.  Hofer, Glo.na G.
Labadlabad,  Edward  Vera Perez Maceda, Na.  Lucille  L.  Nava,  MD.,  Emmarie  "Lolypop"  Ouano-
Dizon, Eddiebong G.  Plaza, Hector S.  Sanchez, Kristine Alexie 8.  Tutor,  Samantha Louise Vargas
Alfonso,   Shirlyn  Bafias-Nograles,  Precious  Hipolito  Castelo,  Joseph  "Jojo"  L.  Lara,  Dahlia  A.
Loyola,  Macnell  Lusotan,  Josephine Ramirez-Sato,  Amihilda H.  Sangcopan,  and  Rowena Nifia 0.
Taduran as principal authors thereof.
In view of the foregoing, approval of this measure is earnestly sought.
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iifii;;;\,,
Republicoft-hePhilippines
HOUSE 0F REPRESFNTATIVES
Quezon City, Metro Manila
NINETEENTH CONGRESS
First Regular Session
HouseBillNo.'8052
Introduced by Representative Midy N. Cua
Lone District, Quirino
AN ACT AN ACT ESTABLISHING INFORMATION AND COMMUNICATIONS
TECHNOLOGY HUBS NATIONWIDE
Be it enacted by the Senate and House Of Representatives Of the Philippines in Congress assembled:
1        SHCTION I. Sfeor/ rz.//e. -This Act shall be known as the "Online Network philippines Act".
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3        SHC. 2. Dec/c}rcrJz.o7z o/Po/I.c}J. -The state recognizes the vital role of information and communication
4       in the development and in promoting growl in the countryside. To this end, the state shall encourage
5       the expansion of information and communications technology (lcT) and infrastructure throughout the
6       country to facilitate the access of the citizenry to goods and services. Pursuant thereto, the state shall
7       establish lcT hubs throughout the country in accordance with the National IcT Roadmap and National
8        ICT plan.
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SEC. 3. De¢#z./z.on o/re7.7.cs. -As used in this Act:
a)    Bc7#cZwz.d/fe refers to the amount of data that can be transmitted over a network connection
over a period of tine;
b)   Brocldbc]nd  refers  to  a  high  capacity  transmission  technique  using  a  wide  range  of
frequencies which enables large number of messages to be communicated simultaneously.
In the context of internet access, it refers to access that is continuing and unhindered, and
faster than the traditional dial-up mode;
c)   Broedbcr#d #etwor4 refers to a network able to transmit signals with high bit rate and a
transmission channel being equal to or greater than two megabits per second (2 mbps);
d)   CommJ./fed  i.#/orma/jo#  rtz/a  refers  to  the  information  rate  guaranteed  by  a  public
telecommunications entity (PTE). The bandwidth cannot fall below the committed rate of
ninety-eight point five percent (98.5%) of the time;
e)    Cyber skills learming hub or Digital transfiormation center refers to a. £achirty  spectfiicarty
designed  for cyber-education  and digital  literacy,  and that provides   knowledge,  skills,
theoretical and practical experiences, and access to technologies for all learners to become
infonnation and technology proficient;
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a    Dc!fcI/arm refers to a physical facility that houses servers, network equipment, personnel
like   information  technology  specialists  and  network  technicians  for  business-critical
support such as online data storage, data processing,  core computing services, data and
application  backup  services,  and  distributing  large  amounts  of data  from  remote  data
facilities.  The operation and management thereof shall be  subject to pertinent laws and
policies  on  data   security  to  prevent,  detect and  intercept unauthorized  access  of data,
specially on matters of national security;
g)    D7.g7./c7/ z.##ovtzfror2 fr#b refers to a specialized business incubation and acceleration facility
offering   physical   workspace,   mentoring   and   coaching,   and   devices   for   technical
application testing or experimenting, and training.  It is a one-stop-shop, usually but not
always  affiliated with  educational  institutions,  that  helps  companies  including start-ups
become more competitive with regard to their business production processes, products or
services using digital technologies by providing access to the latest knowledge, expertise
and technology to support them;
h)   Information  and  communications  technology  (ICT)  refiers  to  the  totality  of e\ectroriic
means to access, create, collect, store, process, receive, transmit, present, and disseminate
information;
•\)    Inif;ormation  and  communications  technology  hub  (ICT hub)  refers to 8, toe:di+on where
ICT services may be provided by a PTE with at least the minimum internet speed required
by  the  National  Telecommunications  Commission  (NTC).  Such  services  may  include
telecommunications  services,  broadband  and  convergence  services,  business  processing
and data management;
i)    Irformation technology and business processing management hob rcters to iL location that
caters  to  and  offers  support  mechanisms  for  companies  and  enterprises  engaged  in  IT
services and business process management and operations;
k)   Public   telecommunications   entity   (PTE)   refers  to   any   person.  ntrfuri\1  or  |uridieal,
government or  private  engaged  in  the  provision  of telecommunications  services  to  the
public for compensation.
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35       EEC.  4.  Establishment  Of Inif;ormation  and  Communications  Technology  Hubs.  -  There  shall  be
36       established lcT hubs all over the country in accordance with a National lcT plan to be prepared by the
37       Department Information and communications Technology (DICT).
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39                      The  ICT  Plan  shall  assess  the  needs  of  every  province  in  the  country  and  identify  the
40       appropriate types and the number oflcT hubs to be developed therein. Every province shall have at
41        least one (I) of the following classifications oflcT hubs based on the type of activity that it hosts:
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a)   Data Farms;
b)    Information Technology (IT) and Business Processing Management (BPM) Hub;
c)    Cyber Skills Learning Hub and Digital Transformation Center (DTC);
d)   Digital Innovation Hub; and
e)   Any other ICT hub that may arise in the future.
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1                      Pursuant to the lcT plan and the national, provincial, city, or municipal spatial development
2       plans, the DICT and the local  government units (LGU) shall identify the areas where the ICT hubs
3        shall  be  established  based  on  geographical  area and  population:  Provj.cJed,  That  ICT  hubs  shall  be
4       developed  in  geographically  equitable  and  accessible  locations  throuchout  the  province:  Provj.dec7,
5      /wr¢foer, Thatthe area or site of an IcT hub shall be on a property owned by an LGU.
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7                      The private sector shall be encouraged to establish lcT hubs in accordance with the standards
8       set forth by the DICT. The DICT shall employ the latest and emerging technologies available to serve
9       commercially unviable areas.
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1\       EEC. S. Role of the Departmenl of lnf ormation and communications Technology (DICT). ~The"CT
12       shall  formulate a National  ICT Plan,  based on the National  ICT Roadmap,  which shall  include the
13       development  of a national  broadband network,  provision  of incentives  to  encourage  private  sector
14       participation and promotion of competition. The cybercrime Investigation and coordinating center of
15       the DICT shall formulate, oversee and validate the lcT cyber plan of the IcT hubs.
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17                      The DICT shall update the National IcT plan  and shall submit the same on or before the l5th
18       of April  of every  year to the  Office  of President of the  Republic  of the  Philippines,  the National
19       Economic   and   Development   Authority   (NEDA),   and   the   ICT   Joint   Congressional   Oversight
20       Committee established under this Act.
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22       SEC.  6. 4dw.sory  Commztfee.  -  There  is  hereby  created  an  Advisory  Committee  that  shall  solicit
23       inputs towards the shaping of policy directions of the National IcT plan, including the supervision of
24       ICT  hubs  and  the  coordination  to  be  undertaken  with  the  private  sector  and  other  agencies  and
25       instrumenta]ities  of the  government.  The  DICT  shall  determine  the  composition  of the  Advisory
26       Committee and ensure the equal representation of the (a) government, (b) the service providers, (c) the
27       end users, and (d) other industry stakeholders.
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29       SE:C.  I.  Role  Of the  National  Telecommunications  Commission  prTC).  - The NTC.  throuch the
30       exercise of its quasi-legislative and quasi-judicial powers, shall be the primary infrastructure regulator
31       to ensure the monitoring and implementation of this Act. The NTC shall approve proposed IcT hub
32       telecommunications projects through an  administrative  process prescribed  for the purpose and shall
33       ensure  the  compliance  of PTEs  with  the  required  and  committed  information  rate  and  quality  of
34       service. All pTEs shall regularly submit the necessary data and reports as required by the NTC.
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36        SEC.  8.  /77ceH/i.veg.  - Any  registered business  enterprise  in  the  ICT hub  may  be  granted  incentives
37       provided under Title XIII of the National Intemal Revenue code of 1997, as amended: Provz.cJed, That,
38       these incentives shall be granted in addition to the incentives given by the LGU where such lcT hubs
39        are located.
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41                       The  eligibility  of the  ICT  hubs  for  the  incentives  provided  herein  should  be  within  the
42       boundaries  of a  performance-based,  time-bound,  and  transparent  system  of incentives  tailor-fit  for
43        highly  desirable  ICT  investments  and  shall  be  subject  to  compliance  monitoring  by  the  Fiscal
44       Incentives and Review Board and the LGU where such IcT hubs are located.
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SEC.  9.  DJ.gj.f¢/  S*j.//a  Deve/oprme#/.  -  The  DICT,  together  with  the  Department  of  Education,
Commission on Higher Education,  and the Technical Education and  Skills Development Authority,
shall   establish   a   program   on   dighal   skills   development   for   all   learners   to   enhance   their
competitiveness,  adaptability  and  employability  in  the  emerging  digital  economy,  which  shall  be
integrated into the pertinent programs of the ICT hubs.
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SHC.  10.  Dj.gjJCI/ Ivetwork /7!;crstrwc/#re. - A  digital  network infrastructure  shall  be established to
connect the local ICT hubs to the National Broadband Program through a core backbone network of
the DICT, to be funded from the spectrum users fees.
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5                      The   DICT   is   hereby   authorized   to   classify  the   said   funds   for  capital   outlay,   which
6       classification shall be furnished to and duly reflected by the Department of Budget and Management
7       in  its  records.  The  release  of funds  shall  be  subject  to  applicable  laws  and  existing  budgeting,
8       accounting and auditing rules and regulations.
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10       SEC.11. £oca/ Gover#me#r Refpo#sz.bz./z.fy.  -The  issuance  of licenses  and permits  for  ICT-related
11        activities and infrastructure construction projects shall not be delayed and hampered, and shall further
12       be prioritized, subject to the provisions of Republic Act No.11032, otherwise known as the Ease of
13       Doing Business and Efficient Government service Delivery Act of2018.
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15                      The   Department   of  the   Interior   and   Local   Government   (DILG)   shall   include   ICT
16       competitiveness  and  ICT  integration  as  a  criterion  of governance  under  the  Seal  of Good  Local
17       Govemanceprogram.
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19       EEC.12. Private sector support and public~Private partnership. -The LGUs nery engalg,a tine priva;te
20       sector through  PPP  agreements  targeted  towards  financing,  designing,  implementing  and  operating
21        infrastructure  facilities  and  services  for  the  ICT  hub  to  maximize  costs  and  allow  for  sharing  of
22       revenue, subject to the provisions of Republic Act No. 6957, otherwise known as "An Act. Authorizing
23       the  Financing,  Construction,  Operation  and  Maintenance  of Infrastructure  Projects  by  the  Private
24       Sector and for other purposes", as amended.
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26       SEC.  13.  Prch!.bz./i.an  Agrl.#s/  Exc/#sz.vjty.  -  All  ICT  hubs  established  under  this  Act  are  hereby
27       declared free zones within which any PTE may operate. Any agreement or arrangement designating a
28       PTE, or any of its subsidiaries or affiliates as an exclusive PTE within an ICT hub shall be void and
29       unenforceable.   The   domestic   internet   exchanges   shall   be   interconnected.   The   intercormection
30       agreement between the pTEs shall be submitted to the NTc for its approval. If the parties fail to reach
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32       within ninety (90) days from the start of negotiation, the NTC shall intervene and prescribe the terms
3 3       and conditions of the interconnection.
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35       SEC.14. Pe#c7/fz.es. -In the exercise of its quasi-judicial power, the NTC shall impose a fine ofFive
hundred thousand pesos (Php500,000.00) for (a) nonrdisclosure, (b) non-interconnection., or (c) non-
compliance with the committed information rate and quality of service.
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39                      The NTC shall increase the amount of fine every five (5) years subject to a certification from
40       the NEDA on the computation of the cost of money based on the current consumer price iridex.
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42       SEC.15. Jmp/e»Ic#/i.#g j}zt/es crnd jteg#/afz.o#S.  -Within  sixty (60) days from the effectivity of this
43       Act,  the  DICT  as  the  lead  agency,  together with NEDA,  DILG,  the  League  of Provinces  and  the
44       Leagues  of LGUs,  the  Board  of  Investments,  the  Philippine  Economic  Zone  Authority,  and  the
45       Advisory committee, shall issue the necessary rules and regulations for the effective implementation
46       of this Act.
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48       SEC.  16.  Jcr /oj.#/  Co#gressi.o#¢/ Oversj.gfe/ Commz.ffee.  - An  ICT  Joint Congressional  Oversight
49       Committee  (ICTJCOC)  is  hereby  created  to  monitor  the  effective  implementation  of  this  Act,
50       recommend  the  necessary  remedial  legislative  or  administrative  measures  and  perform  such  other
51        duties and functions as may be necessary to attain the objectives of this Act. It shall be composed of
52       the  Chairpersons  of the  House  Committee  on  Information  and  Communications  Technology  and
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1        Senate committee on science and Technology and two (2) members from each of the senate and the
2       House  of Representatives who  shall  be  designated  by  the  Senate  President and the  Speaker  of the
3        House  of Representatives,  respectively:  Provj.dec7,  That one  (1)  member  from  each House  shall  be
4       nominated by their respective Minority Leaders.
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6                     The chairpersons of the House committee on Information and communications Technology
7       and  the   Senate   Committee   on   Science   and   Technology   shall   serve   as   Chairperson   and   Vice
8       Chairperson or vice versa of the lcTJCOc on a rotational basis every six (6) months. The secretariat
9       of the lcTJCOc shall be the existing secretariat persormel of the concerned committees of the House
10       of Representatives and the senate.
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SEC.  17.  Sepcrrc}bz./j.fy  C'/a#se.  -  If any  provision  of this  Act  shall  be  declared  unconstitutional  or
invalid, the other provisions not affected shall remain in full force and effect.
SHC.  18.  Repea/i.#g  C/c}"se.  -  All  laws,  decrees,  executive  orders,  rules  and  regulations  or  parts
thereof, which are inconsistent with this Act, are hereby repealed, amended or modified accordingly.
SEC.19. E#ec/i.w.ty. -This Act shall take effect flfteen (15) days after its publication in the O#cz.a/
Gc7zeffe or in a newspaper of general circulation.
21                       Approved,
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