TWENTIETH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
oi tlir ^cuetatf
25 AUG-7 PI 28
RECEIVES BY:
SENATE
S.B. No.
1096
Introduced by SEN. WIN GATCHALIAN
AN ACT
PROMOTING CONSUMER PROTECTION AND FOSTERING COMPETITION 
IN THE TELECOMMUNICATIONS INDUSTRY BY MANDATING THE UNLOCKING
OF MOBILE WIRELESS DEVICES
EXPLANATORY NOTE
Switching to another service provider for improved wireless services and better 
options is a consumer right which is impaired by public telecommunications entities (PTE) 
when they lock mobile wireless devices to their respective networks. Such device locking 
makes it difficult for consumers to take advantage of competitive and better offers 
available in the market. Although there exist independent services from third parties that 
unlock the mobile device, this process would normally void its warranty.
Locking does not only deprive consumers the easy movement, using the same 
device, from their current telecommunications service provider to the one that best fits 
their needs and preferences, it also limits competition between and among industry 
players. Through device locking, industry players can reduce subscriber turnover even 
without improving their services or providing more competitive rates.
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While the National Telecommunications Commission (NTC) has mandated the 
unlocking of mobile phones and devices under Memorandum Circular 01-05-2019 dated 
May 31, 2019, its applicability is limited to (1) postpaid devices after having complied with 
the contract period contained in the subscription agreements; and (2) prepaid devices 
after having complied with usage requirements or agreed terms and conditions.
This legislative proposal mandates the unlocking of mobile wireless devices within 
definitive six- and nine-month periods from the date of purchase of the device. Under 
this bill, the eligibility of such devices for unlocking does not depend on the imposition of 
different lock-in periods that unduly binds the consumer to the public telecommunications 
entity (PTE) that no longer provides quality services.
It also mandates the unlocking of subsidized units or those mobile wireless devices 
with accompanying subscription contracts before the lapse of the mandated nine-month 
period, on demand and for a fixed and reasonable unlocking fee without voiding their 
warranties. This allows consumers to have their devices officially unlocked at any time, 
without resorting to third parties for unlocking and risking potential warranty issues.
Furthermore, the bill requires every PTE or retailer of mobile wireless devices to 
provide every consumer sufficient information on (1) official channels for unlocking 
mobile wireless devices without voiding their warranties; and (2) the manner, method or 
fee associated with the process of unlocking these devices.
This proposed legislation will contribute to the evolution of a more dynamic 
marketplace in the telecommunications industry where consumer choice is dictated by 
quality, price, and best value for money.
In view of the foregoing, the immediate passage of this measure is earnestly
sought.
CHALIAN


Senate
si tilt 
'
25 AUG -7 PI 28
TWENTIETH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
SENATE
RECEIVED BY:
S.B. No.
1096
Introduced by SEN. WIN GATCHALIAN
AN ACT
PROMOTING CONSUMER PROTECTION AND FOSTERING COMPETITION IN 
THE TELECOMMUNICATIONS INDUSTRY BY MANDATING THE UNLOCKING
OF MOBILE WIRELESS DEVICES
Be it enacted by the Senate and the House of Representatives of the Phiiippines in 
Congress assembied:
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SECTION 1. Short Title. -This Act shall be known as the "Unlock My Mobile Act".
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SEC. 2. Declaration of Policy-The State recognizes the vital role of information and
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communications technology in nation-building. Article 2, Title I of Republic Act No. 7394,
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otherwise known as the "Consumer Act of the Philippines" directs the State to protect the
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interests of consumers, promote their welfare, and establish the standards of conduct for
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business and industry. Towards this end, the State shall implement measures to achieve
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the following objectives: (a) protect the consumer against deceptive, unfair, and
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unconscionable sales act and practices; and (b) provide information and education to
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facilitate sound choice and proper exercise of consumer rights.
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SEC. 3. Definition of Terms. - As used in this Act, the following terms shall mean:


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a) Mobile Services Subscription Contract refers to an agreement between a
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public telecommunications entity (PTE) and a consumer for a postpaid
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subscription on the use of such entity's network for wireless communications
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and other telecommunications services covering a particular period of time.
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b) Lock-in Period refers to the duration of the mobile services subscription
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contract between the PTE and the consumer within which the latter agrees
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to maintain a monthly postpaid subscription with such entity exclusively.
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c) Mobile Wireless Device refers to any wireless telephone handset, tablet, or
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any other wireless device that operates on a wireless telecommunications
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network.
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d) Public Telecommunications Entity or PTE refers to any duly enfranchised and
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authorized public telecommunications entity that offers voice, short
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messaging system (SMS) or text, mobile data, value-added services (VAS),
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or any other mobile telecommunications services to the public for a fee.
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SEC. 4. Mandating the Unlocking of Unsubsidized Mobile Wireless Devices within Six
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Months from Date of Purchase. - A PTE or retailer of mobile wireless devices may sell
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such devices as unsubsidized units or without any accompanying mobile services
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subscription contract while locked to a specific network: Provided, That these devices
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shall be automatically unlocked on or before the sixth month from the date of purchase:
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Provided, further, That it shall be the obligation of the PTE or retailer of mobile wireless
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devices to provide official channels for unlocking mobile wireless devices without voiding
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their warranties in accordance with Section 6 of this Act.
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SEC. 5. Mandating the Unlocking of Subsidized Mobile Wireless Devices within Nine
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Months from Date of Purchase; No Extension of Lock-in Period for Subsidized Devices
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without Prior Approval of the National Telecommunications Commission; Unlocking on-
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Demand; Warranty Coverage. - A PTE or retailer of mobile wireless devices may sell such
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devices as subsidized units or with accompanying mobile services subscription contract
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while locked to a specific network: Provided, That the total lock-in period for subsidized


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devices shall in no case exceed the period of nine (9) months: Provided, further, That
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there shall be no extension of the lock-in period for subsidized devices without prior
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approval of the National Telecommunications Commission (NTC): Provided, furthermore,
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That after the completion of the lock-in period or upon fuil payment of the device, the
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PTE shall unlock the device, or give the consumer the means to unlock the same, on-
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demand, and completely free of charge: Provided, finally. That before the completion of
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the lock-in period, the PTE shall unlock the device, or give the consumer the means to
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unlock the same, on-demand, and for a fixed and reasonable unlocking fee.
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Mobile wireless devices that have been unlocked under this Section shall continue
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to be covered by their respective warranties.
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SEC. 6. Obligation of Public Telecommunications Entities or Retailers to Provide
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Official Channels for Unlocking Mobile Wireless Devices Without Voiding Warranties. -
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Every PTE or retailer of mobile wireless devices shall, following the terms and conditions
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under the implementing rules and regulations of this Act, provide official channels for
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unlocking mobile wireless devices without voiding their warranties.
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For purposes of transparency, sufficient information on the manner, method or fee
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associated with the process of unlocking these devices shall be provided to every
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consumer, stipulated in writing, and made an integral part of the mobile services
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subscription contract.
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SEC. 7. Administrative Penalties. - For every failure to comply with or for every
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instance of violation of any provision of this Act, the PTE shall pay a fine of not less than
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One Hundred Thousand Pesos (Php 100,000.00) but not more than Three Hundred
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Thousand Pesos (Php 300,000.00) for the first offense, and a fine of not less than Four
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Hundred Thousand Pesos (Php 400,000.00) but not more than Six Hundred Thousand
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Pesos (Php 600,000.00) for the second offense. In case of a subsequent offense, the
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penalty shall be a fine of not less than Seven Hundred Thousand Pesos (Php 700,000.00)
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but not more than One Million Pesos (Php 1,000,000.00) and revocation of the PTE's
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license to operate.


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SEC. 8. Implementing Rules and Regulations. - The NTC, in coordination with the 
Department of Trade and Industry (DTI), the Department of Information and 
Communications Technology (DICT), the Philippine Competition Commission (PCC), and 
other concerned agencies shall, within sixty (60) days from the effectivity of this Act, 
promulgate and submit the implementing rules and regulations (IRR) for its effective 
implementation. The IRR shall not preclude the NTC from issuing subsequent circulars, 
rules and regulations to make the unlocking process more convenient for the consumer.
SEC. 9. Transitory Provisions. - Existing business services and products affected by 
the implementation of this Act shall be given a six (6)-month transitory period from the 
effectivity of the IRR to comply with the requirements of this Act.
SEC. 10. Separability Clause. - If for any reason, any part or provision of this Act is 
declared invalid or unconstitutional, the remaining parts or provisions not affected shall 
remain in full force and effect.
SEC. 11. Repealing Clause. - All laws, presidential decrees, executive orders, rules 
and regulations contrary to or inconsistent with the provisions of this Act are hereby 
repealed or modified accordingly.
SEC. 12. Effectivity. - This Act shall take effect fifteen (15) days after its publication 
in the Official Gazette or in any newspaper of general circulation.
Approved,