FIFTEENTH CONGRESS )
OF THE REPUBLIC OF THE PHILIPPINES )

First Regular Session )

HOUSE OF REPRESENTATIVES,

House Bit No, 1898

Introduced by Representative Ben P.

EXPLANATORY NOTE

Voice over Internet Protocol (VoIP) is that transmission technology
delivering voice communications over internet protocol networks ‘such as the
internet or other packet-switched networks instead of going through publi
switched telephone networks of telecommunication companies. In short, VolP
allows voice communications through the internet. This technology proves to be
very useful especially to those who have relative abroad like Filipino families who
have members working as OFWs. It is said to be way cheaper, by almost 30% to
50%, as compared to doing long distance calls.

However, this 21* century innovation is not well-known to many; and thus,
its potential has not been fully utilized and exhausted. This bill seeks to promote
widespread utilization and deployment of VolPs as an aid in lowering
communications costs, especially international calls, and in assisting local
companies, like the business process outsourcing (BPO) firms, enhance their

competitiveness in the global economy.

VoIP systems do not require complicated set-ups nor do they use
complicated wirings. In fact, it is highly mobile as transfer of voice, which is
converted into signals, is dependent on the software, not on the hardware, A
desktop computer, internet connection and a VoIP phone would complete a system
already. New components may be added without difficulty for bigger scale use, like
in companies.

The money saved in VoiPs can then be used for other purposes and needs so
itis really cost-efficient.

Hence, the urgent passage of this bill is eamestly sought

BEN B. EVARDONE

Representative, Lone District of Eastern Samar



FIFTEENTH CONGRESS )
OF THE REPUBLIC OF THE PHILIPPINES )
First Regular Session )

HOUSE OF REPRESENTATIVES.

1898

House Bill No.__

Introduced by Representative Ben P, Evardone

AN ACT
TO PROMOTE AND GOVERN THE DEV!
INTERNET PROTOCOL IN THE PHILIPPINES

OPMENT OF VOICE OVER

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

ARTICLE |
GENERAL PROVISIONS

ECTION 1. Short title. - This Act shall be known as the "Phili

ine VOIP Act of 2010",

2. Scope and Application, - This Act shall apply to any pei
provide Voice Over Internet Protocol (VOIP) services to the publ

son or entity seeking to
or compensation.

. 3. Definitions. - For purposes of this Act, the following terms, where used shall
have the following meaning:

‘on, firm, partnership ot
jon of telecommunications

(a) Public telecommunications
corporation, government or private, engaged
services to the public for compensation;

(b) Value-added service (VAS) - enhanced services beyond those ordinarily
provided for by local exchange and inter-exchange operators, and overseas carriers,
where “ordinarily provided" services shall mean voice services offered through circuit
swwitehed networks;

(c) Voice Over Internet Protocol (VOIP) - provision of voice communication using
Internet Protocol (IP) technology, instead of traditional circuit switched technology:

(d) Customer Premises Equipment (GPE) - equipment located in the premises of a
h is not part of but connected to the system or network of the PTE.

ntity (PTE) - any
n the provi

ARTICLE Il
POLICY AND OBJECTIVES

SEC. 4, Declaration of National Policy. - Itis the policy of the State to recognize the role
and contribution of communications in nation building. 1t is likewise the policy of the
State to recognize the need to (1) provide for the emergence of communications structure
Suitable to the needs and aspirations of the nation, and (2) encourage the development of
new applications and services that can enhance Philippine competitiveness in the global
information and communications technology (ICT) market

‘The growth and development of voice over internet protocol shall be pursued in
accordance with the following objectives:

(a) To protect, promote and develop any and all modes, means and forms of

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communications, and make the same available and accessible to the general public;

(b) To encourage the growth, development and sustenance of VOIP as an
alternative mode of communications; and

(c) To foster a healthy competitive environment in which telecommunication
companies and internet service providers are free to interact with one another in
providing VOIP while maintaining affordable rates and ensuring their financial viability.

ARTICLE II]
ADMINISTRATION

SEC. 5. Responsibilities of the National Telecommunications Commission (NTC). The
National Telecommunications Commission (NTC) shall be the principal administrator of
this Act and as such shall take the necessary measures to implement the policies and
objectives set forth in this Act.

SEC. 6. Registration. - Any person or entity seeking to provide VOIP for use by the
public for compensation shall register as such with the NTC prior to operation as VOIP
provider.

SEC. 7. Interconnection, - No value-added service provider shall provide VOIP services
which require access to and/or use of a network provider's network, facilities and/or
equipment unless it has entered into an agreement with such network provider as to the
term and conditions of fair and reasonable access and or interconnection charges for such
access and/or use.

In cases where the VAS provider and network provider refuse to negotiate or are

unable to come to an agreement on the interconnection of their networ shall,
upon the complaint of any interested party or upon its own initiative, intervene and
assume jurisdiction over the matter and immediately direct physical interconnection of
the network of the parties under such terms and conditions it may deem proper under the
circumstance:
‘Nothing in this Act shall, however, prevent the parties from negotiating and
executing an interconnection agreement and submitting the same to the NTC for
approve .
For this purpose, the parties shall be given a period of ninety (90) days from receipt
of notice of the filing of the complaint within which 10 negotiate and execute an
interconnection agreement; Provided, that until an interconnection agreement is executed
the interconnection’ mandate adverted to in the immediately preceding paragraph shall
remain in fill force and effect.

SEC. 8. Equal Access. - Network providers shall ensure equal access in terms of quantity
and quality, at the same prices for substantially similar service 10 VAS providers, and
shall not discriminate between VAS providers. The parties shall submit a copy of their
agreements on these matters for purposes of monitoring and supervision by the NTC. No
public telecommunications entity, nevsork provider or other entity providing internet
access to subscribers and VAS providers shall impede or degrade the access of such
subscribers and VAS providers to the internet content of another application or service
providers, except where such access demonstrably threatens the integrity of their network
or facilities.

SEC. 9. Customer Premises Equipment, - The sale, lease, importation, distribution and/or
provision of CPE designed to enable or ease the use of VOIP shall be governed by the
existing rules and regulations on CPEs. CPEs and/or accessories designed to enable or
ease the use of VOIP not directly connected to the networks of PTEs shall not require
type approval or acceptance except when the VOIP equipment and/or accessories use
radio spectrum.



SEC. 10. Subscribers’ Rights. - Network and/or internet service providers shall not
require subscribers to purchase or use or to refrain from purchasing or using any 1P-
enabled service as a precondition to obtaining their broadband sei

SEC. 11. Separability Clause. - If any part or provision of this Act shall be held
unconstitutional or invalid, other provisions hereof that are not affected thereby shall
continue to be in full force and effect.

SEC. 12. Repealing Clause, -All laws, presidential decrees, executive orders, rules and
regulations, or parts thereof, which are not consistent with this Act, are hereby repealed,
amended or modified accordingly.

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

Approved,