Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

EIGHTEENTH CONGRESS
First Regular Session

House Bill No. SE

Introduced by HON. HENRY R. VILLARICA
4™ DISTRICT, BULACAN

EXPLANATORY NOTE

The Philippines gained some headway in economic performance in recent years. The
government must now sustain the high economic growth and achieve inclusive growth for the
people. Broadband internet access is an effective tool in these tasks in a globalized setting.

Although statistically the Philippines access to fixed broadband teclinology is second to
Singapore and has contributed to the improvement of its economy, broadband services have
remained poor. It has the second slowest average download speed in Asia at 3.64 Mega bit per
second (Mbps), next to Afghanistan at 2.5 Mbps.

The approval of bill will address this concern by establishing the Information and
Communications Technology Center in all legislative districts.

This bill was filed during the 17 Congress and was approved on 3" Reading by the
House of Representatives Plenary. Due to time constraints, however, no further action was taken
by the Senate on it. This bill is filed for the consideration of this Congress.

Support for the enactment of this measure is earnestly requested.

REP. Pe


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

EIGHTEENTH CONGRESS
First Regular Session

House Bill No,_4115

Introduced by HON. HENRY R. VILLARICA
4™ DISTRICT, BULACAN

AN ACT
ESTABLISHING AN ONLINE NETWORK FOR THE PHILIPPINES

Be it enacted by the Senate and House of Representatives of the Philippines in Congress
assembled:

SECTION I. Short Title. - This Act shall be known as the “Online Network Philippines
Act”.

SEC. 2. Declaration of Policy. — It shall be the policy of the State to establish the needed
infrastructure for an efficient information and communications technology system to jumpstart
the economy and promote nation-building.

SEC. 3. The Information and Communications Technology Center. ~ There shall be
established in all legislative districts an Information and Communications Technology Center
ICTC or ICT Hub. It shall adopt the National Information and Communications Technology
(ICT) Plan as prepared by the Information and Communications Technology Office (ICTO) of
the Department of Science and Technology (DOST), in coordination with the National
Telecommunications Commission (NTC).

Pursuant to the National ICT Plan and the national, provineial, city, or municipal spatial
development plans, the Information and Communications Technology Office (ICTO) shall
identify the area where the ICTCs or ICT Hubs shall be established, with the end in view of
establishing one in every legislative district. The private sector shall be encouraged to establish
the ICTCs or ICT Hubs in accordance with the standards set by the ICTO. The ICTO shall
address the unviable areas, using the latest and emerging technologies available.


SEC. 4, Advisory Committee. — There is hereby created an Advisory Committee, to be
convened by the ICTO that shall solicit inputs for the policy, direction, coordination and
supervision of ICTCs or ICT Hubs in every legislative district. The composition of the Advisory
Committee shall be determined by the ICTO which shall include equal representation from (a)
the government, (b) the service providers and (c) the end users.

SEC. 5. Definition of Terms, ~ For purposes of this Act these terms are defined as

follows:

(a.) Bandwidth is the amount of data that can be transmitted over a network connection
over a period of time;

(b.)Bit or Binary Digit is either 1 or 0 in the binary system which is the smallest unit of
information handled by a computer;

(c.) Broadband is a high speed, high capacity internet and data connection. It is a
communications medium that uses wide bandwidth channels for sending and
receiving large amounts of data, video, or voice information;

(d.) Committed Information Rate is the average bandwidth for a virtual circuit guaranteed
by a public telecommunications entity to work under normal conditions. At any
given time, the bandwidth cannot fall below this committed figure;

(e.) Information and Communications Technology (ICT) is the totality of electronic
means to collect, process, and present information to end-users in support of their
activities. It consists, among others, of computer systems, office systems and
‘consumer electronics, as well as networked information structure, the components of
which include the telephone system, the internet, fax machines and computers;

(£) Information and Communications Technology Center (ICTC) is the location where
services may be provided through the use of ICT with a minimum speed of 4
Megabits per second (Mbps). Such services may include telecommunications
services, broadband and convergence services, business processing and data
management;

(g.) Information and Communications Technology Hub (ICT Hub) is a location where
services may be provided through the use of ICT with a minimum speed of 100
Megabits per second (Mbps). Such services may include telecommunications
services, broadband and convergence services, business processing and data
management;

(h.) Information Technology (IT) are matters concerned with the furtherance of computer
science and technology, design, development, installation and implementation of
information systems and applications;

(i.) Information Superhighway is the digital communication systems and the internet
telecommunications network;


(j.) Megabit per second (Mbps) is the measure of the speed of data transfer which
amounts to one million bits per second;

(k.) Public Telecommunications Entity (PTE) is any person, natural or juridical,
government or private engaged in the provision of telecommunications services to the
public for compensation.

SEC. 6. The Information and Communications Technology Office (ICTO) ~ Department
of Science and Technology (DOST) and the National Telecommunications Commission (NTC). -
The Information and Communications Technology Office (ICTO) of the Department of Science
and Technology, shall, in coordination with the National Telecommunications Commission
(NTC), formulate and approve a National ICT Plan, based on a National ICT Roadmap, which
shall, include among others, the development of a national broadband network, provide for
incentives to encourage private sector participation and competition.

The ICTO is mandated to update the National ICT Plan and shall submit the same on or
before the 15" of April of every year to the Office of President of the Republic of the
Philippines, the ICT Joint Congressional Oversight Committee established under Section 13 of
this Act and the National Economic Development Authority (NEDA). The ICTO may call on
other government entities to assist in the development of the information technology.

SEC. 7. The National Telecommunication 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 of the implementation of this Act. The NTC shall approve
proposed ICTC or ICT Hub projects and shall ensure the compliance of public
telecommunications entities with the required committed information rate and the quality of
service as prescribed by it. The Public Telecommunications Entity shall regularly submit all
necessary data and reports as required by NTC, especially on the development of a national
broadband network.

SEC. 8. Incentives. ~ Any locator enterprise or Public Telecommuncations Entity (PTE)
in the ICTCs or ICT Hub or the Information and Communications Technology Center (ICTC)
may be granted incentives provided under Executive Order No. 226, otherwise known as the
“Omnibus Investment Code of 1987” or Republic Act No. 89748 or an “Act Amending R.A. No.
7916 otherwise known as the Special Economic Zone Act of 1995” and other relevant laws;
Provided, That such locator enterprise of PTE in ICTCs or ICT Hubs are qualified under the said
laws; Provided further, That no locator enterprise may avail of the incentives mandated in both
laws at the same time; Provided finally, That, these incentives shall be granted in addition to the
incentives given by the local government unit where such ICTCs or ICT Hubs are located.


SEC. 9. Prohibition Against Exclusivit All ICTCs or ICT Hubs established under this
Act are hereby declared free zones within which any public communications technology may
operate. Any agreement or arrangement designating a public telecommunications entity, or any
of its subsidiaries, affiliates or dummy entities as an exclusive public telecommunications entity
within an ICTCs or ICT Hub shall be void and unenforceable. The domestic internet exchanges
shall be interconnected. The interconnection agreement between the public telecommuncation
entities shall be submitted for the approval of the NTC. 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. 10. Penalties. — In the exercise of its quasi-judicial power, the NTC shall impose a
fine of five hundred thousand pesos (PhpS00,000.00) 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 National Economic Development Authority (NEDA) on the computation of cost of
money based on the current consumer price index.

SEC.11. Implementing Rules and Regulations (IRR). ~ Within sixty (60) days from the
effectivity of this Act, the ICTO, in coordination with the NTC, NEDA, the Department of
Interior and Local Government, the Board of Investments, the Philippine Economic Zone
Authority and the Advisory Committee, shall issue the necessary rules and regulations to
implement the provisions of this Act.

SEC. 12. ICT Joint Congressional Oversight Committee. ~ The ICT Joint Oversight
Committee is hereby created to 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 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 of
the ICT Joint Congressional Committee on rotational basis every six (6) months. In every case,
the other member of the Committee belonging to the majority in the House or in the Senate shall
be the Vice Chairperson. The Secretariat of the Congressional Oversight Committee shall be the
existing secretariat personnel of the concerned Committees of the House of Representatives and
the Senate.


SEC. 13. Separability Clause. — If, for any reason any provision of this Act is declared
unconstitutional or invalid, such parts or portions not affected thereby shall remain in full force
and effect.

SEC. 14. Repealing Clause. — All laws, executive orders, presidential decrees, issuances,
rules and regulations or parts thereof inconsistent with the provisions of this Act are hereby
repealed or modified accordingly.

SEC. 15. Efetivty. ~ This Act shall take effect fifteen (15) days after its publication in
the Official Gazette or in a newspaper of general circulation.

Approved,