1 
Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City, Metro Manila 
NINETEENTH CONGRESS 
1st Regular Session 
House Bill No. ________ 
Introduced by Representatives PAOLO Z. DUTERTE, ERIC G. YAP, 
EDVIC G. YAP, and JEFFREY SORIANO 
EXPLANATORY NOTE 
The vital role of information and communications technology (ICT) in the country 
becomes inviolable upon the proliferation of the COVID-19 pandemic since the said 
sector offered various modes of transactions during the pursuits of containing the 
virus. Despite the gradual recuperation of the economy, the new normal remains the 
accepted norm which entails the indispensability of information and communications 
technology (ICT) sector.  
It is in this regard that the state shall be able to encourage the expansion of information 
and communications technology (ICT) and infrastructure throughout the country to 
facilitate and expedite the access of the citizenry to goods and services. 
Hence, this bill seeks to establish ICT hubs throughout the country in accordance with 
the National ICT Roadmap and National ICT Plan to be prepared by the Department 
of Information and Communications Technology (DICT). The said ICT Plan shall 
assess the needs of every province in the country and identify the appropriate types 
and the number of ICT hubs to be developed therein, with at least one (1) hub in each 
province. Through the provision of incentives, this proposed measure also encourages 
the private sector in establishing ICT hubs in accordance with the standards set forth 
by the DICT, who in turn shall employ the up-to-date technologies available to serve 
commercially unviable or far-flung areas. 
In view of the foregoing, approval of this bill is earnestly sought. 
PAOLO Z. DUTERTE 
ERIC G. YAP 
        EDVIC G. YAP 
           JEFFREY SORIANO 
October 24, 2022
11:13 am
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Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City, Metro Manila 
NINETEENTH CONGRESS 
1st Regular Session 
House Bill No. ________ 
Introduced by Representatives PAOLO Z. DUTERTE, ERIC G. YAP, 
EDVIC G. YAP, and JEFFREY SORIANO 
AN ACT 
ESTABLISHING INFORMATION AND COMMUNICATIONS TECHNOLOGY 
HUBS NATIONWIDE 
 
Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
assembled: 
SECTION 1. Short Title. - This Act shall be known as the “Online Network   
Philippines Act.” 
SEC. 2. Declaration of Policy. - The State recognizes the vital role of 
information and communication in the development and in promoting growth in the 
countryside. To this end, the State shall encourage the expansion of information and 
communications technology (ICT) and infrastructure throughout the country to 
facilitate the access of the citizenry to goods and services. Pursuant thereto, the State 
shall establish ICT hubs throughout the country in accordance with the National ICT 
9 Roadmap and National ICT Plan.  
SEC. 3. Definition of Terms. - As used in this Act:  
a. Bandwidth refers to the amount of data that can be transmitted over a network
connection over a period of time;
b. Broadband refers to a high-capacity transmission technique using a wide range
of frequencies which enables a large number of messages to be communicated
simultaneously. In the context of internet access, it refers to access that is
continuing and unhindered, and faster than the traditional dial-up mode;
c.
Broadband network refers to a network able to transmit signals with a high bit
rate and a transmission channel being equal to or greater than two megabits
per second (2 mbps);
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d. Committed information rate refers to the information rate guaranteed by a public 
telecommunications entity (PTE). The bandwidth cannot fall below the 
committed rate of ninety-eight-point five percent (98.5%) of the time;  
e. Cyber skills learning hub or Digital transformation center refers to a facility 
specifically designed for cyber-education and digital literacy, and that provides 
knowledge, skills, theoretical and practical experiences, and access to 
technologies for all learners to become information and technology proficient;   
f. Data farm refers to a physical facility that houses servers, network equipment, 
personnel like information technology specialists and network technicians for 
business-critical support such as online data storage, data processing, core 
computing services, data and application backup services, and distributing 
large amounts of data from remote data facilities. The operation and 
management thereof shall be subject to pertinent laws and policies on data 
security to prevent, detect and intercept unauthorized access of data, especially 
on matters of national security;  
g. Digital innovation hub refers to a specialized business incubation and 
acceleration facility offering physical workspace, mentoring and coaching, and 
devices for technical application testing or experimenting, and training. It is a 
one-stop-shop, usually but not always affiliated with educational institutions, 
that helps companies including start-ups to become more competitive with 
regard to their business production processes, products or services using 
digital technologies by providing access to the latest knowledge, expertise and 
technology to support them;   
h. Information and communications technology (ICT) refers to the totality of electronic 
means to access, create, collect, store, process, receive, transmit, present, and 
disseminate information;   
i. Information and communications technology hub (ICT hub) refers to a location 
where ICT services may be provided by a PTE with at least the minimum 
internet speed required by the National Telecommunications Commission 
(NTC). Such services may include telecommunications services, broadband 
and convergence services, business processing and data management;  
j. Information technology and business processing management hub refers to a location 
that caters to and offers support mechanisms for companies and enterprises 
engaged in IT services and business process management and operations;  
k. Public telecommunications entity (PTE) refers to any person, natural or juridical, 
government or private engaged in the provision of telecommunications 
services to the public for compensation.   


 
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SEC. 4. Establishment of Information and Communications Technology Hubs. 
-  There shall be established ICT hubs all over the country in accordance with a 
National ICT Plan to be prepared by the Department Information and 
Communications Technology (DICT). 
 
The ICT Plan shall assess the needs of every province in the country and 
identify the appropriate types and the number of ICT hubs to be developed therein. 
Every province shall have at least one (1) of the following classifications of ICT hubs 
based on the type of activity that it hosts:  
 
a. Data Farms;   
b. Information Technology (IT) and Business Processing Management (BPM) 
Hub; 
c. Cyber Skills Learning Hub and Digital Transformation Center (DTC);  
d. Digital Innovation Hub; and  
e. Any other ICT hub that may arise in the future.  
 
Pursuant to the ICT Plan and the national, provincial, city, or municipal spatial 
development plans, the DICT and the local government units (LGU) shall identify the 
areas where the ICT hubs shall be established based on geographical area and 
population: Provided, That ICT hubs shall be developed in geographically equitable 
and accessible locations throughout the province: Provided, further, That the area or 
site of an ICT hub shall be on a property owned by an LGU. 
 
The private sector shall be encouraged to establish ICT hubs in accordance with 
the standards set forth by the DICT. The DICT shall employ the latest and emerging 
technologies available to serve commercially unviable areas.  
 
SEC. 5. Role of the Department of Information and Communications 
Technology (DICT). - The DICT shall formulate a National ICT Plan, based on the 
National ICT Roadmap, which shall include the development of a national broadband 
network, provision of incentives to encourage private sector participation and 
promotion of competition. The Cybercrime Investigation and Coordinating Center of 
the DICT shall formulate, oversee and validate the ICT cyber plan of the ICT hubs.  
 
The DICT shall update the National ICT Plan and shall submit the same on or 
before the 15th of April of every year to the Office of President of the Republic of the 
Philippines, the National Economic and Development Authority (NEDA), and the ICT 
Joint Congressional Oversight Committee established under this Act.  
 
SEC. 6. Advisory Committee. - There is hereby created an Advisory Committee 
that shall solicit inputs towards the shaping of policy directions of the National ICT 


 
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Plan, including the supervision of ICT hubs and the coordination to be undertaken 
with the private sector and other agencies and instrumentalities of the government. 
The DICT shall determine the composition of the Advisory Committee and ensure the 
equal representation of the (a) government, (b) the service providers, (c) the end users, 
and (d) other industry stakeholders.  
 
SEC. 7. Role of the National Telecommunications Commission (NTC). - The 
NTC, through the exercise of its quasi-legislative and quasi-judicial powers, shall be 
the primary infrastructure regulator to ensure the monitoring and implementation of 
this Act. The NTC shall approve proposed ICT hub telecommunications projects 
through an administrative process prescribed for the purpose and shall ensure the 
compliance of PTEs with the required and committed information rate and quality of 
service. All PTEs shall regularly submit the necessary data and reports as required 15 
by the NTC.  
 
SEC. 8. Incentives. - Any registered business enterprise in the ICT hub may be 
granted incentives provided under Title XIII of the National Internal Revenue Code 
of 1997, as amended: Provided, That, these incentives shall be granted in addition to 19 
the incentives given by the LGU where such ICT hubs are located.  
 
The eligibility of the ICT hubs for the incentives provided herein should be 
within the boundaries of a performance-based, time-bound, and transparent system 
of incentives tailor-fit for highly desirable ICT investments and shall be subject to 
compliance monitoring by the Fiscal Incentives and Review Board and the LGU where 
such ICT hubs are located.  
 
SEC. 9. Digital Skills Development. - The DICT, together with the Department 
of Education, Commission on Higher Education, and the Technical Education and 
Skills Development Authority, shall establish a program on digital skills development 
for all learners to enhance their competitiveness, adaptability and employability in the 
emerging digital economy, which shall be integrated into the pertinent programs of 
the ICT hubs. 
 
SEC. 10. Digital Network Infrastructure. - A digital network infrastructure 
shall be established to connect the local ICT hubs to the National Broadband Program 
through a core backbone network of the DICT, to be funded from the spectrum users’ 
fees.  
 
The DICT is hereby authorized to classify the said funds for capital outlay, 
which classification shall be furnished to and duly reflected by the Department of 
Budget and Management in its records. The release of funds shall be subject to 
applicable laws and existing budgeting, accounting and auditing rules and 
regulations. 
 
SEC. 11. Local Government Responsibility. - The issuance of licenses and 
permits for ICT-related activities and infrastructure construction projects shall not be 
delayed and hampered, and shall further be prioritized, subject to the provisions of 


 
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Republic Act No. 11032, otherwise known as the Ease of Doing Business and 10 
Efficient Government Service Delivery Act of 2018.  
 
The Department of the Interior and Local Government (DILG) shall include 
ICT competitiveness and ICT integration as a criterion of governance under the Seal 
of Good Local Governance program.  
 
SEC. 12. Private Sector Support and Public-Private Partnership. - The LGUs 
may engage the private sector through PPP agreements targeted towards financing, 
designing, implementing and operating infrastructure facilities and services for the 
ICT hub to maximize costs and allow for sharing of revenue, subject to the provisions 
of Republic Act No. 6957, otherwise known as “An Act Authorizing the Financing, 
Construction, Operation and Maintenance of Infrastructure Projects by the Private 
Sector and for Other Purposes”, as amended.  
 
SEC. 13. Prohibition Against Exclusivity. - All ICT hubs established under this 
Act are hereby declared free zones within which any PTE may operate. Any 
agreement or arrangement designating a PTE, or any of its subsidiaries or affiliates as 
an exclusive PTE within an ICT hub shall be void and unenforceable. The domestic 
internet exchanges shall be interconnected. The interconnection agreement between 
the PTEs shall be submitted to the NTC for its approval. If the parties fail to reach an 
agreement within ninety (90) days from the start of negotiation, the NTC shall 
intervene and prescribe the terms and conditions of the interconnection.  
 
SEC. 14. Penalties. - In the exercise of its quasi-judicial power, the NTC shall 
impose a fine of Five hundred thousand pesos (Php500,000.00) for (a) non-disclosure, 
(b) non-interconnection, or (c) non-compliance with the committed information rate 
and quality of service.  
 
The NTC shall increase the amount of fine every five (5) years subject to a 
certification from the NEDA on the computation of the cost of money based on the 
current consumer price index.  
 
SEC. 15. Implementing Rules and Regulations. - Within sixty (60) days from 
the effectivity of this Act, the DICT as the lead agency, together with NEDA, DILG, 
the League of Provinces and the Leagues of LGUs, the Board of Investments, the 
Philippine Economic Zone Authority, and the Advisory Committee, shall issue the 
necessary rules and regulations for the effective implementation of this Act.  
 
SEC. 16. ICT Joint Congressional Oversight Committee. - An ICT Joint 
Congressional Oversight Committee (ICTJCOC) is hereby created to monitor the 
effective implementation of this Act, recommend the necessary remedial legislative or 
administrative measures and perform such other duties and functions as may be 
necessary to attain the objectives of this Act. It shall be composed of the Chairpersons 
of the House Committee on Information and Communications Technology and Senate 
Committee on Science and Technology and two (2) members from each of the Senate 
and the House of Representatives who shall be designated by the Senate President 


 
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and the Speaker of the House of Representatives, respectively: Provided, That one (1) 
member from each House shall be nominated by their respective Minority Leaders. 
 
The 
Chairpersons 
of 
the 
House 
Committee 
on 
Information 
and 
Communications Technology and the Senate Committee on Science and Technology 
shall serve as Chairperson and Vice Chairperson or vice versa of the ICTJCOC on a 
rotational basis every six (6) months. The Secretariat of the ICTJCOC shall be the 
existing secretariat personnel of the concerned Committees of the House of 
Representatives and the Senate.  
 
SEC. 17. Separability Clause. - If any provision of this Act shall be declared 
unconstitutional or invalid, the other provisions not affected shall remain in full force 
and effect.  
 
SEC. 18. Repealing Clause. - All laws, presidential decrees, executive orders, 
rules and regulations or parts thereof which are inconsistent with or contrary to the 
provisions of this Act are hereby amended, repealed or modified accordingly.  
 
SEC. 19. Effectivity. - This Act shall take effect fifteen (15) days after it 
publication in the Official Gazette or in a newspaper of general circulation 
 
 
Approved,