EIGHTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
SENATE
S.NO. 
7 9 3
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c itt.ii jp
'19 
JUL 25 P4 55
INTRODUCED BY SENATOR RISA HONTIVEROS
AN ACT
PROVIDING FOR THE ALLOCATION AND MANAGEMENT OF THE RADIO 
FREQUENCY SPECTRUM
EXPLANATORY NOTE
The radio frequency spectrum is critical to modern telecommunications. The 
State apportions spectrum to telecommunications entities, enabling them to provide 
services to the public, such as mobile telephony and access to the internet: services 
that form the backbone of our social media networks, ride-sharing services, and online 
commerce platforms.
The 
radio 
frequency 
spectrum 
is 
composed 
of 
naturally 
occurring, 
electromagnetic radiating energy. This natural resource, unlike oil, gas, and minerals, is 
non-depletable but finite. Because spectrum is a limited resource, its use is considered 
a privilege which may be withdrawn by the State at any time in the interest of public 
welfare.
The Philippines itself has experienced substantial growth in the demand for 
mobile data communications, with roughly 67 million internet users consuming an 
estimated 150,000 terabytes of data annually.
However, in OpenSignal's latest State o f LTE Report, using data parsed from over 
50 billion measurements worldwide, taken between October 1 to December 29, the 
Philippines ranked 75l:h out of 88 countries in terms of 4G availability (at 63.73% 
consistent accessibility) and 85th in terms of 4G speed (at an average speed of 9.49 
Mbps).
Secretary Eliseo Rio, Jr. of the Department of Information and Communications


Technology (DICT) has stated that one of the reasons the country has lagged behind 
the rest of the world has been a lack of competition in the telecommunications sector, 
which is currently dominated by the duopoly of Globe Telecom, Inc. and Smart 
Communications, Inc. This lack of competition has been exacerbated by the scarcity of 
available spectrum for allocation to new players looking to break the duopoly.
This scarcity limits competition from new entrants and increases the cost of using 
spectrum to business and consumers. Similarly, the lack of unassigned usable spectrum 
stifles and delays the introduction and development of new technology.
National Telecommunications Commission (NTC) Memorandum Circular No. 3-3- 
96 provides that, where demand for specific frequencies exceeds availability, allocation 
shall be through open tenders. Despite this, spectrum has not been allocated in this 
manner. 
Instead the 
Commission 
has chosen 
to 
assign 
frequencies through 
administrative "beauty contests" to various telecommunications entities.
The great irony is that, where spectrum has been assigned and allocated in this 
way, lucrative secondary markets have commonly arisen, resulting in licenses and 
permits being warehoused and sold to other parties. This has often led to the anti­
competitive concentration of spectrum resources in the hands of a few industry players, 
as is the current situation in the Philippines.
Consequently, economists and other commentators have long questioned the 
wisdom of granting valuable spectrum rights to commercial entities for a fraction of 
their actual economic value.
In other jurisdictions, auctions of portions of the radio spectrum have led to 
substantial windfalls for the public: in Thailand, the auction of the 900 MHz license 
earned the government 4.2 billion USD; in India, auctions held in March 2015 earned 13 
billion USD; in the United Kingdom, auctions held in 2000 for the frequencies necessary 
to support the 3G mobile telephony standard earned 36.9 billion EUR; and, in Canada, 
an auction held in 2008 raised 4.25 billion USD.
Assignments of spectrum in the Philippines have also been open-ended: 
subsisting until annulled, revoked, or suspended by the Commission or by the expiration 
or termination of the assignee's corporate existence. This has led to a regulatory regime


where mergers and acquisitions have resulted in the hoarding of critical frequencies, 
specifically those required for mobile telephony and data.
This accentuates the need for a better framework to manage this critical 
resource by, among others, establishing a system to regularly reallocate or re-farm 
portions of the spectrum through competitive bidding. It is respectfully submitted that 
this will not only generate additional revenue for the government, it will also, by 
promoting competition and more efficient use of a scarce public resource, lead to better 
telecommunications services for the public.
Hence, the immediate passage of this measure is earnestly sought.
RISA HONTIVEROS 
7 T ^  
Senator


EIGHTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
S. No
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SENATE
7 9 3
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'19 JUL 25 P4 55
RECEIVlD bV
INTRODUCED BY SENATOR RISA HONTIVEROS
AN ACT
PROVIDING FOR THE ALLOCATION AND MANAGEMENT OF THE RADIO 
FREQUENCY SPECTRUM
Be it enacted by the Senate and House o f Representatives o f the Philippines in 
Congress assembled:
1 
Sec. 1. Short Title. 
—  This Act shall be known as the "Philippine Spectrum
2 
Management Act."
3 
Sec. 2. Declaration o f Policy. -  The radio frequency spectrum is a scarce public
4 
resource that shall be administered in the public interest and in accordance with
5 
international agreements and conventions to which the Philippines is a party. The
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government shall allocate the radio frequency spectrum to service providers capable
7 
of efficiently and effectively using it to meet public demand for telecommunications
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services. The use of any portion of the radio frequency spectrum is a privilege
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conferred by the State which may, after due process, be withdrawn at any time.
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Sec. 3. Objectives. -  The objectives of this Act are, as follows:
11 
a) 
Encourage the development and rapid deployment of new technology;
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b) Ensure better service by preventing excessive concentration and
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consolidation of spectrum licenses;
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c) Recover a greater portion of the economic value of the radio frequency
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spectrum for the public; and
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d) Promote more efficient use of spectrum.
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Sec. 4. Spectrum Management Plan. -  The Commissioner of the National
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Telecommunications Commission (NTC) and the Secretary of the Department of
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Information & Communications Technology (DICT) shall meet at least annually to


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develop a spectrum management plan for the Philippines with respect to the
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following issues, among others:
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a) Public revenue generated from the radio frequency spectrum;
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b) Future spectrum requirements for public and private use;
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c) Spectrum allocation measures necessary to accommodate those uses;
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and
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d) Measures necessary to promote the efficient use of spectrum.
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Sec. 5. Definition o f Terms. 
-  As used in this Act, the following terms are
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defined as follows:
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a) "Allocation" refers to an entry in the National Radio Frequency
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Allocation Table of a given frequency band for the purpose of its use
12 
by one or more telecommunication services;
13 
b) "Assignment" refer to an authorization given to a Licensee to use
14 
specific frequencies or channels;
15 
c) "Block" refers to a portion of the radio frequency spectrum allocated
16 
to a Licensee pursuant to this Act.
17 
d) "License" refers to a license to be granted pursuant to this Act to
18 
establish or use a wireless telegraphy station or install or use wireless
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telegraphy apparatus in the Philippines at frequencies comprising a
20 
portion or several portions of the radio frequency spectrum;
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e) "Licensee" refers to a natural or juridical person issued a License to
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pursuant to this Act; and
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f) "Material Interest" refers to any interest, whether direct or indirect, in
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any share which carries, or any shares which together carry, more
25 
than twenty-five per cent (25%) of the votes entitled to be cast at a
26 
general meeting of a Licensee; or any share or shares in the case
27 
where the consent of the holder of that share or those shares is
28 
required for the conduct of any business of a Licensee; or the right to
29 
appoint or remove a majority of Licensee's board of directors or
30 
trustees.
31 
Sec. 6. Scope. -  Only the portions of the radio frequency spectrum designated
32 
by 
the 
International 
Telecommunications 
Union 
(ITU) 
as 
purposed 
for
33 
telecommunications, telemetry, navigation, public safety, and broadcast may be
34 
licensed pursuant to this Act. The National Telecommunications Commission (NTC)
35 
shall ensure that a portion of the radio frequency spectrum is allocated for unlicensed


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public use, such as those needed for consumer electronics, citizens' band radio,
2 
national defense, and VHF and UHF ham radio.
3 
Sec. 7. Allocation o f the Radio Frequency Spectrum. -  Insofar as consistent
4 
with national priorities and demand for radio frequency spectrum, the allocation of
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the radio frequency spectrum shall be in accordance with the International Table of
6 
Radio Frequency Allocation issued by the International Telecommunications Union
7 
(ITU). The NTC shall have the authority to allocate, assign, reallocate, or reassign
8 
portions of the radio frequency spectrum to achieve the objectives of this Act,
9 
including the express authority to revoke or annul any such allocations or
10 
assignments, and impose terms and conditions for the use thereof.
11 
The NTC shall divide the usable radio frequency spectrum into a sufficient
12 
number of Blocks in each spectrum band for the purposes of ensuring
13 
adequate 
com petition 
in 
the 
telecommunications 
industry 
as 
well 
as
14 
preventing harmful interference. The NTC shall also reserve a sufficient
15 
number of Blocks for non-commercial use by the government and members of
16 
the public.
17 
If prim ary use o f a Block to be allocated involves, or is likely to involve, the
18 
receipt 
o f 
compensation 
from 
subscribers 
to 
receive 
or 
transm it
19 
communications signals using allocated frequencies, the NTC shall carry out
20 
the allocation to qualified public telecommunications entities through auction
21 
or competitive bidding. As provided in the implementing rules and regulations
22 
issued pursuant to this Act, portions of the radio frequency spectrum may be
23 
allocated on a territorial basis.
24 
Sec. 8. Auctions. -  The NTC and DICT shall establish a competitive bidding
25 
methodology for the allocation of Blocks pursuant to this Act. This methodology shall
26 
include safeguards to protect the public interest as well as measures to promote the
27 
stated objectives of this Act. Thus, the NCT and DICT shall;
28 
a) Consider alternative payment schedules and methods of calculation,
29 
including lump sums or guaranteed installment payments, with or
30 
without royalty payments, or other schedules or methods that
31 
promote the objectives of this Act, and combinations of such
32 
schedules and methods;
33 
b) Include performance requirements, such as appropriate deadlines and
34 
penalties for performance failures, to ensure prompt delivery of
35 
services to the public, prevent stockpiling or warehousing of
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spectrum, and promote investment in and rapid deployment of new 
technologies and services;
c) Prescribe methods for allocation and assignment that promote an 
equitable distribution of licenses and services among geographic 
areas, economic opportunity for a wide variety of applicants, including 
small businesses, and businesses owned by members of minority 
groups and women, and investment in and rapid deployment of new 
technologies and services; and
d) Require such transfer disclosures and anti-trafficking restrictions and 
payment schedules as 
may 
be 
necessary to 
prevent 
unjust 
enrichment as a result of the methods employed to issue licenses.
Sec. 9. Validity o f Licenses for the Use o f the Radio Frequency Spectrum. -  
Unless sooner withdrawn, revoked, or voluntarily surrendered in accordance with 
current rules and regulations, all existing licenses for the utilization of the radio 
frequency spectrum shall be deemed revoked three (3) years from the effectivity of 
this Act. Licenses issued pursuant to this Act shall be valid for five years (5), unless a 
shorter period is provided in the implementing rules and regulations thereof.
Sec. 10. Prohibition on Sale, Lease, Transfer, Usufruct and Assignment -  A 
licensee shall not lease, transfer, grant the usufruct of, sell nor assign a License 
issued pursuant to this Act, or the rights and privileges acquired thereunder, to any 
person, firm, company, corporation, or other commercial or legal entity.
Sec. 11. Mergers and Acquisitions. 
-  A Licensee shall not merge with any 
person, firm, company, corporation or entity, nor shall a Material Interest in a 
Licensee be transferred, whether as a whole or in parts, and whether simultaneously 
or contemporaneously, to any such person, firm, company, corporation or entity, 
without the prior approval of the NTC and the Philippine Competition Commission 
(PCC).
Sec. 12. Qualifications. -  Licensees shall possess the following qualifications:
a) Filipino citizenship;
b) Holder of a Congressional franchise;
c) The technical and financial capacity to utilize allocated spectrum to 
provide services to the public;
d) The Licensee, or any other person, firm, company, corporation or 
entity which holds a Material Interest in the Licensee, or in which the 
Licensee holds a Material Interest, must not have been allocated an


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aggregate amount of spectrum greater than the spectrum cap 
provided for in this Act;
e) Not otherwise disqualified by law or existing regulations.
Sec. 13. Spectrum Cap. 
-  No entity or group of entities sharing a Material 
Interest in each other, may hold more than 25% of the licensed radio frequency 
spectrum in any given band.
Sec. 14. Obligations o f a Licensee. -  Every Licensee shall be bound by the 
following obligations:
a) Observe the spectrum cap;
b) Utilize allocated spectrum to provide telecommunications services to 
the public;
c) Comply with this Act, its implementing rules and regulations, and all 
other applicable administrative issuances;
d) Payment of lawful fees, charges and taxes due the national 
government in connection with Licenses issued pursuant to this Act; 
and
e) Obtain prior approval from the NTC and PCC prior to any merger, 
acquisition, or transfer of Material Interest in a Licensee
Sec. 15. Revocation o f Licenses and Return o f Assigned Frequencies. A License 
shall be revoked by the National Telecommunications Commission and reallocated in 
the following circumstances:
a) Violation by a Licensee of its obligations hereunder;
b) Loss of corporate personality or cessation of business;
c) Expiration of a License's validity period; and
d) Failure to pay lawful fees, charges and taxes due the national 
government in connection with Licenses issued pursuant to this Act
Sec. 16. Preparation and Publication o f National Radio Frequency Allocation 
Table. -  The NTC shall prepare a National Radio Frequency Allocation Table (NRFAT) 
containing a list of all spectrum holders and the portion of the radio frequency 
spectrum assigned to them. An updated NRFAT must be published annually, posted 
on the NTC's website, and otherwise made available to the public.
Sec. 17. Implementing Rules and Regulations (IRR). 
-  The Secretary of 
Information and Communications Technology, upon the recommendation of the NTC 
and PCC, shall issue the Implementing Rules and Regulations for the effective 
implementation of this Act, within sixty (60) days from the approval thereof.


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Sec. 18. Separability Clause. -  If any provision of this Act is declared 
unconstitutional or invalid by a court of competent jurisdiction, the remaining 
provisions not affected thereby shall continue to be in full force and effect.
Sec. 19. Repealing Clause. -  Section 3 of Republic Act 3846 insofar as it 
provides for the allocation of the radio frequency spectrum, as well as all other laws, 
decrees, 
executive 
orders, 
department 
or 
memorandum 
orders 
and 
other 
administrative issuances or parts thereof which are inconsistent with the provisions of 
this Act, are hereby modified, superseded or repealed accordingly.
Sec 20. Effectivity. -  This Act shall take effect fifteen (15) days after 
publication in the Official Gazette or in at least two (2) newspapers of general 
circulation.
Approved,