NINETEENTH CONGRESS OF THE 
republic of the PHILIPPINES 
First Regular Session
SENATE
S.B. No. 814
of tjJC,
■22 JUL 25 fill 27
RECEIVED BV:
Introduced by SEN. WIN GATCHALIAN
AN ACT
ENCOURAGING AND PROMOTING THE USE AND DEVELOPMENT OF
SATELLITE-BASED TECHNOLOGIES FOR INTERNET CONNECTIVITY
explanatory note
The importance of fast and reliable internet connectivity cannot be discounted, 
more so during the outbreak of the COVID-19 pandemic when most transactions were 
shifted to virtual platforms only to lessen physical interactions. However, the use of 
digital technologies in the country is still below its potential, with the country's digital 
adoption still falling behind many of its regional peers, with 45% of Filipino citizens 
and 74%% of public schools in the country still remaining unconnected.1 The situation 
IS much worse outside the National Capital Region, with Visayas and Mindanao 
recording less than 40% of Internet usage.
It also does not help that the internet speed in the country is trailing behind its 
neighboring countries. While there is a marked improvement on the ranking of the 
Philippines as shown in the Ookla Speedtest Global Index Report at 93rt spot in terms 
of mobile data and 60th spot in terms of fixed broadband connections in the first
Ph^ipp^^es {ne JanL "J]: Sma" Poi,Cy ^hf9e' B|9 ImPact: IniP1oving Internet Access in the
content/uDloads/pnmfnn/rrr n f 
c. FTdatl0n- https://sandbox.asiafoundation.org/wp-
content/uploads/2019/03/CfC-Reform-Story-l 1-Improving-Internet-Access-in-the-Philippines pdf


quarter of 2022,2 the country's average download speed for fixed broadband
connections was recorded at 52,16 Mbps2 in the first quarter of 2022 which is still so
far behind the global average of 113.25 Mbps as of September 2021.^ This is where
the need for better information and communications technology (ICT) infrastructure 
comes in.
currently, the country's broadband infrastructure is severely lacking. Some 
residents live on islands or in the mountains with low-population density and limited 
access to electricity, which are harder and more expensive to reach, making them 
commercially unattractive for traditional telecom operators. A broadband coverage 
assessment by the National Telecommunications Commission (NTC) revealed that 
Northern Luzon, Palawan, Central and Eastern Visayas, and many parts of Mindanao 
are either "unserved" or "undersewed" by Internet service providers (ISP).
With the despondent state of our broadband structure, amidst the increased 
reliance on internet for daily living during the pandemic and the critical role of digital 
infrastructure in economic recoveiy, the government shall continue to expiore various
technologies that will provide reliable and affordable internet service to all Filipinos, 
including satellite-based internet technology.
Sateliite-based internet technoiogy is a proven internet technoiogy commonly 
used by both developed and developing countries to provide internet services 
especially in areas where it is more expensive to roll out wired or mobile networks. It 
uses a satellite to get an internet signai from the ISP to the user. To further iilustrate, 
the ISP sends a fiber internet signal to a satellite in space. The satellite dish is 
connected to the modem of the user which then connects the user to the internet.
While Executive Order (EO) No. 127 s. 2021 amends EO No. 467 to aliow telcos, 
value-added sendee (VAS) providers, and ISPs registered with the NTC to have direct 
access to ail satellite systems to buiid and operate broadband faciiities to offer internet
3 Ibi(j.
4https://worldpopulationreview.com/country-rankings/internet-spee(js-by-country


services, the policy considerations under EO No. 127 create an ambiguity on the
mandate of Department of Information and Communications Technology (DICT) and 
NTC.
Accordingly, this bill aims to capitalize on the gains made under EO No. 127 to 
promote broad and inclusive access to satellite technology by institutionalizing its 
provisions. Moreover, the bill will clearly delineate the jurisdiction of the DICT over 
ISPs and VAS Providers as against the NTC's jurisdiction over PTEs rendering core 
voice services. Through this bill, ISPs may directly access available satellite-based 
technologies and need not wait for infrastructure to be set up by telcos.
In sum, this measure is envisioned to consequently improve internet access in 
the country by spurring investment In the ICT sector and expanding the existing digital 
infrastructure that will ensure universal access to the internet, especially in critical 
areas such as e-government and the delivery of basic services, education, health, 
trade, finance, disaster preparedness, and public safety
In view of the foregoing, passage of this bill is earnesjtlfsough


NINET^HENTH CONGRESS OF THE ] 
REPUBLIC OF THE PHILIPPINES ] 
First Regular Session 
]
S.B. No.
SENATE
°14
of tiie
*22 JUL 25 AH -27
RECEIVED BY:
Introduced by SEN. WIN GATCHALIAN
AN ACT
ENCOURAGING AND PROMOTING THE USE AND DEVELOPMENT OF 
SATELLITE-BASED TECHNOLOGIES FOR INTERNET CONNECTIVITY
Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled:
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SECTION. 1. Short title. - This Act shall be known as the "Satellite-Based 
Technologies for Internet Connectivity Act of 2022."
SEC. 2. Declaration of Policy. - It shall be declared the policy of the State to 
promote broad and Inclusive access to satellite technology for reliable and affordable 
Internet services, which are crucial for stimulating economic growth, providing 
opportunities for decent employment in the countryside, and improving education, 
healthcare and government services.
To further improve internet access and connectivity, the State shall also foster 
a policy environment that promotes a broad market-led development of the 
Information and Communication Technology (ICT) and ICT-enabled services sectors, 
a level playing field, partnerships between and among the public and private sectors.


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Strategic alliances with foreign investors, and balanced investments between high- 
growth and economically depressed areas.
The State shall recognize provision of broadband internet and internet access 
as an information service in line with modern ICT industry and global practices, in 
order to address the global calls for all countries to prioritize universal access to the 
Internet and develop concrete and effective policies to make the Internet widely 
available, accessible, and affordable to all segments of the population, and for
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purposes, inter alia, of implementing the national policy of expanding the provision of
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internet services through inclusive access to satellite service.
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Towards these objectives, the State shall open up and expand access to
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satellite-based services, hasten the expansion of broadband infrastructure, especially
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In places unserved or underserved by conventional wired and cellular mobile networks,
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and bring reliable internet service to all Filipinos anywhere in the country.
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SEC. 3. Definition of terms. - For the purposes of this Act, the term:
a. 
Authorized Entity refers to the entity or entities authorized under Executive 
Order (EO) No. 467, s. 1998, as amended by EO 127, s. 2021, and under the 
provisions of other existing laws, insofar as their conduct of activities and their 
rendition of services pursuant to the authorities granted therein;
b. 
Broadband refers to high-speed internet access that is always-on and 
capable of multiple service provision simultaneously, delivered via broadband 
networks, I.e., high capacity fixed or wireless data links, that are propagated via 
ICT and ICT-enabled technologies that facilitate the use of various types of 
networks as underlying transmission mediums, or through the deployment of 
computer-based area network configurations, or any combination thereof. As an 
Information service, broadband internet enables users to access information from 
the internet, and makes the data processing capabilities necessary to use the 
internet available to them, via several devices or any one or a combination of 
several high-speed transmission technologies;
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c. 
Core Services to circuit switched voice services rendered over cellular 
mobile, fixed line (local exchange), and inter-exchange facilities;
d. 
Enfranchised Teiecommunications Entity or Pubiic Teiecommunications 
Entity (ETE/PTE) refers to any person, firm, partnership or corporation, 
government or private, that holds a valid and existing Congressional franchise 
authorizing it to operate in one or more of the telecommunications categories 
provided by law, such as a local exchange operator, inter-exchange carrier, or 
international carrier, pursuant to which it can put up, install, own, or operate the 
telecommunications service network appropriate for the telecommunications 
category for which it is enfranchised. ETE/PTEs are utilities that offer and provide 
for the public, for compensation, with telecommunications services covered 
within certain telecommunications categories for which the law requires a 
franchise. An ETE/PTE Is likewise issued a valid Certificate of Pubiic Convenience 
and Necessity (CPCN) by the NTC;
e. 
Direct Access refers to any one of a number of measures perm'tting direct 
dealings between authorized entities and satellite system providers or operators 
at specified levels as defined by the NTC. With direct dealings between 
Authorized Entities and Satellite System Providers or Operators (SSPO) being 
allowed, intervening third party arrangements with ETEs/PTEs shall not be 
imposed as a regulatory requirement by the government;
f. 
ICT Sector shall mean those engaged in providing goods and services 
primarily intended to fulfill or enable the function of information processing and 
communication by electronic means. The ICT Sector includes 
telecommunications and broadcast information operators, ICT equipment 
manufacturers, multimedia content developers and providers, ICT solution 
providers, internet service providers, ICT training institutions, software 
developers and ICT-ES providers, and other ICT and ICT-ES providers;
g. 
ICT-Enabied Sector or ICT-ES shall mean those engaged in providing 
services that require the intrinsic use of ICT including engineering or architectural 
design, informatics service providers, offshoring and outsourcing service


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providers such as call centers, back office processing, software development, 
medical or legal transcription, animation, game development, and other services 
that require the intrinsic use of a networked information infrastructure; 
h. Internet Service Providers (ISP) refers to any person or entity, natural or 
juridical, public or private, that provides internet services or services for access 
to, use of, or participation in the Internet or the worldwide web, via any one or 
a combination of transmission or delivery systems or networks for internet 
services. The term shall likewise include persons or entities that supply or 
propose to supply internet carriage services to the public. Commercial and 
private sectors ISPs are generally required to be registered with the NTC as 
Value-Added Service (VAS) Providers whan they rely on the telecommunications 
service network of an ETE/PTE as the underlying transmission medium for 
providing internet services. As a VASP, an ISP need not secure a franchise unless 
it intends to put up its own telecommunications service network for any of the 
telecommunications categories, such as a local exchange carrier or landline 
telephone service, an :nter-exchange carrier or national long distance telephone 
service, an international carrier or international long distance service, or a mobile 
radio telephone service, for which a franchise is required;
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Permitted Entities refer to: (i) ETE/PTE duly authorized by the NTC to 
provide internet services; (ii) VAS providers duly registered with the NTC and (lii) 
Internet Service Providers (ISPS) duly registered with the DICT, whether with or 
without a legislative franchise;
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Sateiiite-based technoiogies refer to technologies for the operation, 
administration, deployment, or use of communications satellites;
k. 
Sateiiite refers to communications satellites" or earth-orbiting systems 
capable of receiving and relaying signals to and from the ground to provide links 
for use in the provisioning of a variety of ICT services, such as telephony, radio, 
television, or broadband internet. For purposes of this Act, satellites used 
exclusively for space/earth exploration are not included;
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Sateiiite Services refer to:


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i. Fixed Satellite Services (FSS) refers to a radio communications service 
between earth stations at given points, when one or more satellites are used;
the given position may be a specified point or any fixed points within specified 
areas.
ii. Mobile Satellite Service (MSS) refers to a radio communications service 
between mobile earth stations and one or more space stations, or between space 
stations used by this semce, or between mobile earth stations by means of one 
or more space stations;
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Satellite Systems Provider or Operator (SSPO) refers to providers or 
operators of satellite systems, whether fixed or mobile, international or domestic, 
that are duly authorized to engage in the provision of satellite communications 
services under the laws of their respective countries of domicile;
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Value-Added Service or VAS, as applied to the telecommunications industry, 
refers to enhanced or specialized services and/or expertise that are beyond the 
telecommunications services ordinarily provided by ETE/PTEs, such as local 
exchange and interexchange operators, and overseas carriers. The variety of 
enhanced or specialized VAS offerings that are outside or beyond the services in 
the telecommunications categories ordinarily provided by ETE/PTEs, include but 
are not limited to the provision of online databases, electronic mail, voice mail, 
internet, and other Information services. When offered on top of, in addition to, 
or in conjunction with the services falling under the ETE/PTE's 
telecommunications category, a VAS serves to promote or add value to the 
telecommunications services ordinarily provided by the ETE/PTE;
0. Value-Added Service Providers (VASP) refer to entitles which offer 
enhanced or specialized services beyond the telecommunications services 
ordinarily provided by ETE/PTEs, i.e., operators of local exchanges or 
Interexchange, and over carriers, but are reliant on the carriers' transmission, 
switching and local distribution facilities. As such, VASPs are duly registered with 
the NTC and allowed to competitively offer to the domestic and/or international 
markets, their enhanced or specialized sen/lce(s) as an added value over and


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above the services in the telecommunications category of the ETE/PTE whose 
telecommunications service networks, composed of transmission, switching, and 
local distribution facilities, are being relied upon by the VASP as the underlying 
transmission medium for the latter's enhanced or specialized service offerings, 
in accordance with network compatibility. VASPs are generally not required to 
secure a franchise.
An ETE/PTE may provide its own VAS offerings on top of its telecommunications 
services, subject to the additional requirements that (a) prior approval of the 
NTC is secured to ensure that their VAS offerings are not cross-subsidized from 
the proceeds of their telecommunications service operations, (b) other VASPs 
are not discriminated against in rates nor denied equitable access to their 
facilities, and (c) separate books of accounts are maintained for the VAS. In such 
cases, the ETE/PTE may likewise be considered as a VASP as regards its VAS 
offerings.
The term shall likewise include entities expressly recognized or mandated by 
special laws or legislative charters to offrr a service or services that fall under 
any of the VAS categories, provided they are compliant with the said special law 
or legislative charter, as well as the applicable policies and requirements on 
governmental authorization or registration of their respective VAS offerings, 
inclusive of the submission of their schedule of rates; and
p. Very-small-aperture terminal (VSAT) shall refer to a small-sized ground
station or earth terminal used for receiving or transmitting data, voice, and video 
signals over a satellite communications network.
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SEC- 4. Additional mandate to the Department of Information and
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Communications Technology (Did). - To expand access to satellite-based
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technologies as an alternative connectivity solution to ensure universal access to the
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internet, the DICT shall:


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Exercise regulatory and administrative jurisdiction over ISPs and satellite
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policies;
(2) 
Adopt an expeditious administrative process for the registration of ISPs, 
whether local or foreign; for this purpose, the registration of, and jurisdiction over, 
ISPs is hereby transferred from the National Telecommunications Commission (NTC) 
to the DICT;
(3) 
Pursue policies to secure necessary orbital slots for Philippine satellite(s) 
and the NTC shall provide all necessary assistance in this effort;
(4) 
Pursue such plans, programs, activities, or initiatives as may be 
necessary or desirable to incentivize duly accredited SSPOs and Permitted Entities that 
invest in, adopt, roll out, implement, establish, own, maintain, operate or utilize new 
and next generation satellite technologies, inclusive of in-country satellite earth 
complexes or teleports, in order to propagate ICT and to expand the provision of 
quality internet services across the country through direct access to the services of 
satellites and other emerging technologies for purposes of ensuring universal 
coverage. The departmental plans, programs, activities, or initiatives shall include, but
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not be limited to, effectively coordinating with the Board of Investments (BOI),
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Philippine Economic Zone Authority (PEZA), the LGUs, and other concerned 
government agencies or instrumentalities, for the issuance and implementation of 
policies for the grant of applicable incentives and benefits;
(5) 
Create a coherent spectrum management policy which include radio 
frequency spectrum for satellite systems;
(6) 
Conduct annual policy review together with relevant stakeholders and 
concerned government agencies with consideration of different opportunities and 
challenges that satellite internet brings;
(7) 
Identify areas that are undersnrved and unserved by traditional 
broadband network operators and where the use of satellite-based internet can be 
maximized;
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Issue rules and regulations on the development, use, and maintenance 
of satellite-based technology; and
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(9) Perform such other functions as may be relevant to its work as the 
principal regulatory and development agency for satellite technology.
SEC 5. Policy on the Use of Satellite Technology for Internet Connectivity. — 
The government shall promote the use and development of satellite services as a 
means to ensure universal access to the Internet, especially in critical areas such as 
e-government and the delivery of basic services, education, health, trade, finance, 
disaster preparedness, and public safety, speciilcally:
(a) 
To promote the expansion of satellite-based networks, particularly in 
rural areas, and in areas with limited fixed or cellular mobile network connectivity, VAS 
providers and ISPs shall be allowed direct access to all satellite systems—whether 
fixed or mobile, international or domestic—fora!! segments of the broadband network. 
VAS providers and ISPs shall be allowed to directly access, utilize, own and operate 
networks for internet access service utilizing satellite technologies such as VSAT and 
other similar technologies for all segments of the broadband network without need of 
a franchise and a provisional authority or Certificate of Public Convenience and 
Necessity (CPCN) from the NTC. VAS providers and ISPs shall, however, comply with 
existing policies requiring registration of VAS and ISP offerings and submission of their 
schedule of rates;
(b) 
To Invite investment and the propagation of new internet technologies 
in the ICT and ICT-enabled sector, ISPs and VAS Providers may be 100% foreign- 
owned. ISPs and VAS providers shall, however, comply with the policies of the DICT 
for the registration of ISPs and VAS Providers.
The NTC and DICT shall comply with International regulations on the allocation 
and use of frequency for satellite services and shall not re-allocate them to the 
detriment of users of VSAT or other satellite technologies. The NTC and DICT shall 
observe transparency in the allocation and assignment of spectrum and shall ensure 
the availability of satellite frequencies for the use of SSPOs and Permitted Entities. 
The NTC and DICT shall regularly publish on its website the allocation and assignment 
of all spectrum and shall promptly reply to Freedom of Information (FOI) requests on


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spectrum allocation and assignment. The NTC shall, within thirty (30) days upon the 
effectivity of this Act, issue the rules and regulations necessary for the implementation 
of portions of this paragraph that require administrative and regulatory oversight; 
Provided, that. Section 7 of this Act shall be immediately executory upon the effectivity 
of this Act.
SEC. 6. Direct Access to Satellite Systems. - Permitted Entities are allowed to 
(i) deploy satellite technology and use associated spectrum in any or all segments of 
their broadband network without needing to go through, lease or rent capacity for 
such from PTEs, and (ii) apply with the NTC for permission to use spectrum for this 
purpose. PTEs, VAS Providers, and ISPs may directly access, utilize, own and operate 
facilities for internet access service using satellite technologies such as, but not limited 
to, VSAT, Broadband Global Area Network and other similar technologies, for all 
segments of the broadband network without need of a Congressional franchise.
Prior authorization of either the DICT (for broadband networks) or the NTC (for 
broadcast providers and for services that do not involve broadband networks) shall 
not be required for direct access to satellite systems under this provision; Provided 
that, the terms and conditions, which include levels of access to any international fixed 
or mobile satellite system, shall be submitted by the Permitted Entities to the DICT or 
NTC, as applicable, for record purposes.
SEC. 7. Promotion of Sateiiite-based Teennoiogies for Sustainable Development 
and Inclusive Growth. - Government organizations, public and non-profit private 
institutions, volunteer organizations engaged in education, health, finance, 
agriculture, environmental management, climate change management, disaster 
preparedness and crisis response shall be allowed to own and operate satellite-based 
technology In order to aid and augment their activities.
The NTC shall, within thirty (30) days upon the effectivity of this Act, establish 
an expeditious administrative process to allow such entities to apply for permits to 
import and or own such technology. The Anti-Red Tape Authority (ARTA) shall ensure


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that the procedures set forth by the NTC pursuant to this Section complies with 
Republic Act No. 9485, or the Anti-Red Tape Act of 2007.
SEC. 8. Satellite-powered Communication Tool for Disaster and Emergency. — 
Every Local Government Unit (LGU) shall be required to set up a satellite-powered 
communication tool, such as but not limited to satellite phones, satellite-powered 
portable cell sites, and/or wireless or wired broadband networks, to aid in disaster 
preparedness and emergency response.
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SEC. 9. Requirements for Satellite Systems Pro viders or Operators (SSPOs). —
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All operators or providers of satellite systems desiring to provide satellite services in
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the Philippines by directly engaging with Authorized Entities under the provisions of
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Executive Order (EO) No. 467, s. 1998, as amended by EO No. 127, s. 2021, and other
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existing laws, shall have the following:
15 r,:; a. Digital Presence or having adequate digital presence in the Philippines. 
Digital presence shall include, but not limited to, having an official website, with 
sufficient content and information, that is readily accessible online in the 
Philippines;
b. 
Local Presence or having adequate local presence in the Philippines. For 
foreign or international SSPOs, local presence shall mean having a branch 
office, representative office, institutional agent, official distributor, or a 
combination thereof, in the Philippines;
c. 
Capacityf Coverage or Satellite Footprint or having the capacity, coverage, 
and satellite footprint in the Philippines for purposes of providing adequate 
satellite services to the areas covered therein; and
d. 
SSPO Accreditation by the DICTov being duly accredited with the DICT by 
fulfilling the application requirements for SSPO accreditation issued by the DICT 
in relation to this Act.
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For a seamless and expeditious registration process, the DICT within 30 days
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upon the effectivity of this Act shall establish a one-stop shop where the SSPOs can
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inquire, clarify, and submit all requirements as provided by this Act.
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SEC. 10. SSPOs desiring to do business as Authorized Entities. — All SSPOs
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desiring to do business as Authorized Entities providing services or product offerings
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directly to the general public in the domestic market shall, in addition to the
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requirements for SSPO accreditation, strictly comply with all pertinent permitting,
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filing, registration, and/or authorization requirements for an ETE/PTE, ISP, VAS, or
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other Authorized Entity, whichever is applicable, and other existing laws of general
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and special application in relation to doing business in the Philippines.
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SEC. 11. DICT Accreditation Certificate^ Renewai. — No entity shall engage,
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continue to engage, or otherwise be engaged, in the provision of satellite services as
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an SSPO in the Philippines unless it is duly accredited by the DICT, as evidence by a
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valid and subsisting SSPO Accreditation Certificate.
The SSPO Accreditation Certificate shall be valid for five (5) years, subject to
renewal upon complete and proper application for renewal filed within the third (3rd) 
month proceeding the prior certificate's expiration. The validity period for the 
succeeding renewal certificates shall not exceed five (5) years at any single instance.
No Authorized Entity shall engage any private entity purporting to be an SSPO, 
unless the latter is duly accredited as such by the DICT.
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SEC. 12. Annuai Review of Guideiines and Regulations. — The DICT shall, in 
•consultation with the NTC and other concerned agencies and sectors, conduct a 
review, annually or as often as it may deem necessary, of the responsiveness of this
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Act, which review shall ihclude, but not be limited to, the following considerations:
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9- The opportunities and challenges cf its implementation;
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b. The areas served by terrestrial broadband network operators, as well as 
the quality and cost of internet services therein;
c. The areas that are undersen/ed and unserved by terrestrial broadband 
network deployments, inclusive of GIDAs;
d. Potential areas for the deployment of satellite services, whether as a 
primary, complementary, or supplemental source of ICT connectivity, 
support, backhaul, or protection route;
e. Study and research towards an updated and coherent spectrum 
management policy that is compliant with international regulations, and 
beneficial to consumers and users of satellite technologies through the 
proper allocation of sufficient spectrum for VASPs and ISPs;
f. Further guidance on the use of international earth stations to the 
registered VASPs and ISPs that offer satellite broadband services; and
g. Other matters as may be necessary, incidental, related to, or in 
connection with improving the effective implementation of the national 
policy for inclusive access to sateH'te services.
When deemed necessary, the DICT may create Task Forces, Technical Working
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Groups, Committees, or Advisory Bodies in accordance with Section 14, RA No. 10844
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to assist in the conduct of the review.
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The DICT shall from time to time, and as may be warranted by its review,
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submit its report to Congress, with recommendations for such legislative action as may
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be needed for appropriate policy improvement towards a more responsive national
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policy for inclusive access to satellite services.
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SEC- i2- Appropriation, - The amount necessary for the implementation of this
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Act shall be charged against available funds of the DICT and NTC, as may be
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applicable. Thereafter, the amount shall be Included in the General Appropriations
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Act.
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SEC. 14. Implementing Rules and Regulations, - Unless otherwise stated, the 
DICT, in coordination with the NTC, and in consultation with relevant groups and 
sectors, shall issue the implementing rules ana regulations ("IRRs") within sixty (60) 
days upon the effectivity of this Act. The IRRs shall Incorporate the provisions of NTC 
Memorandum Circular Nos. 04-03-99 and 01-03-2008 in so far as practicable and in 
furtherance to the objectives of this Act.
SEC. 15. Repealing Clause. - Provisions of Executive Order Nos. 467 (s. 1998) 
and 127 (s. 2021) that are inconsistent with this Act are hereby repealed or modified 
accordingly. All other laws, decrees, rules and regulations inconsistent with the 
provisions of this Act are hereby repealed or amended accordingly.
SEC. 16. Separability Clause. - If, for any reason, any part or provision of this 
Act is declared invalid or unconstitutional, any part or provision not affected thereby 
shall remain in full force and effect.
Effectivity. — This Act shall take effect fifteen (15) days after its 
complete publication in at least two (2) newspapers of general circulation.
Approved,
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