Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
19TH CONGRESS 
First Regular Session 
HOUSE BILL NO. ___ 
Introduced by Honorable Michael L. Romero 
   EXPLANATORY NOTE 
In the Republic of the Philippines, it’s a common practice among all 
telecommunications company (service providers) to charge and collect advance 
monthly service fees, other monthly recurring fees and handset cost upon the 
availment of a postpaid plan (contract). 
However this billing scheme proves to be deceiving and misleading the actual 
charges that a subscriber is consummating on a monthly basis.  
The Statement of Account (SOA) itself is an important component of the services 
which acts as an envoy of the service provider and serves an evidence of the 
service itself.  
This House Bill seeks to uphold the protection and interests of the consumer, 
foster general welfare and to establish fair standards of conduct for all business 
and industry. 
Towards this end, the State shall implement measures to achieve these noble 
objectives. 
Thus, the early passage of this bill is earnestly requested. 
July 1, 2022 
11:44 am
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MICHAEL L. ROMERO Ph.D.  


Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
19TH CONGRESS 
First Regular Session 
HOUSE BILL NO. ___ 
Introduced by Honorable Michael L. Romero 
AN ACT 
PROHIBITING ALL TELECOMMUNICATIONS COMPANY (SERVICE 
PROVIDER) TO CHARGE AND COLLECT ADVANCE MONTHLY 
SERVICE FEES / MONTHLY RECURRING FEES / HANDSET 
COSTS  FROM ALL SUBSCRIBERS AVAILING FOR A POSTPAID 
SUBSCRIPTION, TO PROMOTE CONSUMER PROTECTION UNDER 
ITS SERVICE CONTRACT, PROVIDING PENALTIES AND 
SANCTIONS, AND FOR OTHER PURPOSES 
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled: 
SECTION 1. DECLARATION OF POLICY – it is hereby declared a policy 
of the state to: 
a. Foster the interests of the consumers;
b. Promote the general welfare and create justifiable standards of protocol
for all business and industries;
c. Protect the consumer against all forms of deception, unfair and
unethical practices and schemes;
d. Uphold the proper implementation of the rights of the consumer; and
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e. Hasten the imposition of all existing policies and guidelines of RA7394 
(Consumer act of the Philippines). 
 
SECTION 2. DEFINITION OF TERMS: 
Monthly Service Fee – A type of fee collected to pay for services related to the 
primary product or service being purchased on a monthly basis. 
 
Service fees are often levied when human interaction between a consumer and 
the company is involved, with services beyond the physical good itself considered 
extra. Service charges go by a number of different names depending on the 
industry, including booking fees (hotels), security fees (travel), maintenance fees 
(banking) 
and 
customer 
service 
fees. 
 
Monthly Recurring Fee – Recurring fee is when a merchant automatically 
charges a subscriber for specified goods or services on a prearranged schedule. 
Recurring fees requires the merchant to get the subscribers permission one time 
up front for recurring charges, then continues with scheduled charges until the 
subscriber withdraws permission.  
 
Any goods or services that a customer purchases repeatedly and regularly might 
be a good candidate for recurring billing. (cell phone bills, membership fees and 
utility bills). 
 
Handset Cost – handset repayments that are charged per month to cover 
the cost of your device over time, amortized evenly. 
 
SECTION 3. PROHIBITING THE CHARGING AND COLLECTION OF 
ADVANCE MONTHLY SERVICE FEES / MONTHLY RECURRING FEES / 
HANDSET COSTS: 
a. All telecommunications company / service provider shall be prohibited 
from charging and collecting advance monthly service fees, monthly 
recurring fees and handset costs from all subscribers availing for a 
postpaid contract/subscription; and 


b. This prohibition shall apply to all postpaid subscriptions under a 
service contract, regardless of the duration of its contract; 
c. This prohibition shall apply regardless of a handset bundle or not. 
 
SECTION 4. PENALTIES AND SANCTIONS: 
For every violation of this act; or for very failure to comply with;  
The Telecommunications company/Service provider shall pay a fine of not less 
than Two hundred thousand pesos (₱200,000.00) for the first offense; a fine of 
not less than Five hundred thousand pesos (₱500,000.00) for the second 
offense. 
In case of subsequent offenses; 
The penalty shall be a fine of not less than One million pesos (₱1,000,000.00), 
and revocation of the franchise to operate. 
SECTION 5. TRANSITORY PROVISION – Existing industries, businesses 
and offices affected by the implementation of this Act shall be given six (6) 
months transitory period from the effectivity of the IRR or such other 
period as may be determined, to comply with the requirements of this Act. 
SECTION 6. IMPLEMENTING RULES AND REGULATIONS – The 
departments and agencies charged, to be led by the Bureau of 
Communication Services (BCS) of the PCOO, Department of Trade and 
Industry (DTI), Department of Information and Communications 
Technology (DICT) and the National Telecommunication Commission 
(NTC) with carrying out the provisions of this Act, shall within sixty (60) 
days after the effectivity of this Act, formulate the necessary rules and 
regulations for its effective implementation. 


SECTION 7. REPEALING CLAUSE – All laws, decrees, executive orders, 
rules and regulations, or parts thereof inconsistent with the provisions of 
this Act are hereby repealed or modified accordingly. 
SECTION 8. SEPARABILITY CLAUSE – If, for any reason, any section or 
provision of this Act is held unconstitutional or invalid, the other sections 
or provisions hereof shall not be affected thereby. 
SECTION 9. EFFECTIVITY CLAUSE – This Act shall take effect after 
fifteen (15) days from its publication in the Official Gazette or in at least 
two (2) national newspapers of general circulation whichever comes earlier. 
 
Approved,