FOURTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES 
) 
First Regular Session 
1 
S E N A T E  
S. No. 
1185 
INTRODUCED BY THE HONORABLE MAR ROUS 
EXPLANATORY NOTE 
This bill seeks to promote the widespread use and deployment of Voice Over Internet 
Protocol (VOIP) as an aid in lowering communication costs so that overseas Filipino workers 
(OFWs) can easily and more frequently contact their families and so that local companies 
such as business process outsourcing (BPO) firms can enhance their competitiveness in the 
global economy. 
VOIP has emerged as a welcome enhancement to traditional voice service in the eady 
21st century. It enables users from different parts of the world to engage in voice 
conversations without having to pass through circuit switched facilities of telecom 
companies. In the end, this would translate to lower communication costs on the part of the 
consumer, value for their money on the part of OFWs, and lower costs of communicating 
with overseas clients on the part of exporters and BPOs. On the part of the 
telecommunication industry, the VOIP technology wilI increase competition and 
competitiveness and introduce borderless technology. 
While it is imperative to enhance the innovation, development and deployment of 
VOIP by promoting free and equitable competition and encouraging investments and 
innovation in the ICT sector, there is a need to protect consumers, provide them wider 
choices and promote their welfare, which is addressed as well by this bill. 
In view of the foregoing, the passage of this bill is earnestly sought. 


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FOURTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES 
) 
First Regular Session 
1 
S E N A T E  
INTRODUCED BY THE HONORABLE MAR ROUS 
AN ACT 
AN ACT TO PROMOTE AND GOVERN THE DEVELOPMENT 
OF VOICE OVER INTERNET PROTOCOL IN THE PHILIPPINES 
Be it enacted by the Senate and the House of Representatives of the Philippines in Congress 
assern bled: 
ARTICLE I 
GENERAL PROVISIONS 
SECTION 1. Short Etle. - This Act shall be known as the "Philippine VOIP Act of 
2007". 
SEC. 2. Scope and Application. - This Act shall apply to any person or entity seeking 
to provide Voice Over Internet Protocol (VOIP) services to the public for compensation. 
SEC. 3. Definitions. - For purposes of this Act, the following terms, where used shall 
have the following meaning: 
(a) Public telecommunications entity (PTE) - any person, firm, partnership or 
corporation, government or private, engaged in the provision of telecommunications services 
to the public for compensation; 
(b) Value-added service (VAS) - enhaced services beyond those ordinarily provided 
for by local exchange and inter-exchange operators, and overseas carriers, where "ordinarily 
provided" services shall mean voice services offered through circuit switched networks; 
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(c) Voice Over Internet Protocol (VOIP) - provision of voice communication using 
Internet Protocol (IP) technology, instead of traditional circuit switched technology: 
(d) Customer Premises Equipment (GPE) - equipment located in the premises of a 
customer which is not part of but connected to the system or network of the PTE. 
ARTICLE I1 
POLICY AND OBJECTIVES 
SEC. 4. Declaration of National Policy. - It is the policy of the State to recognize the 
role and contribution of communications in nation building. It is likewise the policy of the 
State to recognize the need to (1) provide for the emergence of communications structure 
suitable to the needs and aspirations of the nation, and (2) encourage the development of 
new applications and services that can enhance Philippine competitiveness in the global 
information and communications technology (ICT) market. 
The growth and development of voice over internet protocol shall be pursued in 
accordance with the following objectives: 
(a) To protect, promote and develop any and all modes, means and forms of 
communications, and make the same available and accessible to the general 
public; 
(b) To encourage the growth, development and sustenance of VOIP as an alternative 
mode of communications; and 
(c) To foster a healthy competitive environment in which telecommunication 
companies and internet service providers are free to interact with one another in 
providing VOIP while maintaining affordable rates and ensuring their' financial 
viability. 
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ARTICLE I11 
ADMINISTRATION 
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SEC. 5. Responsibilities of the National Telecommunications Commission (NTC). The 
National Telecommunications Commission (NTC) shall be the principal administrator of this 
Act and as such shall take the necessary measures to implement the policies and objectives 
set forth in this Act. 
SEC. 6. Registration. - Any person or entity seeking to provide VOIP for use by the 
public for compensation shall register as such with the NTC prior to operation as VOIP 
provider. 
. .  
SEC. 7. Interconnection. - No value-added service provider shall provide VOIP 
services which require access to and/or use of a network provider's network, facilities and/or 
equipment unless it has entered into an agreement with such network provider as to the 
term and conditions of fair and reasonable access and or interconnection charges for such 
access and/or use. 
In cases where the VAS provider and network provider refuse to negotiate or are 
unable to come to an agreement on the interconnection of their network, the NTC shall, 
upon the complaint of any interested party or upon its own initiative, intervene and assume 
jurisdiction over the matter and immediately direct physical interconnection of the network 
of the parties under such terms and conditions it may deem proper under the circumstances. 
Nothing in this Act shall, however, prevent the parries from negotiating and 
executing an interconnection agreement and submitting the same to the NTC for approval. 
For this purpose, the parties shall be given a period of ninety (90) days from receipt of notice 
of the filing of the complaint within which to negotiate and execute an interconnectioh 
agreement; Proded, that until an interconnection agreement is executed the 
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interconnection mandate adverted to in the immediately preceding paragraph shall remain 
in full force and effect. 
SEC. 8. Equal Access. - Nefmork providers shall .ensure equal access in terms of 
quantity and quality, at the same prices for substantially similar service to VAS providers, 
and shall not discriminate between VAS providers. The parties shall submit a copy of their 
agreements on these matters for purposes of monitoring and supervision by the NTC. 
No public telecommunications entity, network provider or other entity providing 
internet access to subscribers and VAS providers shall impede or degrade the access of such 
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subscribers and VAS providers to the internet content of another application or service 
providers, except where such access demonstrably threatens the integrity of their network or 
facilities. 
SEC. 9. Customer Premises Equipment. - The sale, lease, importation, distribution 
andor provision of CPE designed to enable or ease the use of VOIP shall be governed by the 
existing rules and regulations on CPEs. CPEs and/or accessories designed to enable or ease 
the use of VOIP not directly connected to the networks of PTEs shall not require type 
approval or acceptance except when the VOIP equipment and/or accessories use radio 
spectrum. 
SEC. 10. Subscribers' Rights. - Network and/or internet service providers shall not 
require subscribers to purchase or use or to refrain from purchasing or using any IP-enabled 
service as a precondition to obtaining their broadband service. 
SEC. 11. Separability Clause. - If any part or provision of this Act shall be keld 
unconstitutional or invalid, other provisions hereof that are not: affected thereby shall 
continue to be in full force and effect. 
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amended or modified accordingly. 
SEC. 12. Repeding Clause. -All laws, presidential decrees, executive orders, rules and 
regulations, or parts thereof, which are not consistent with this Act, are hereby repealed, 
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SEC. 13. Effectiwv Clause. - This Act shall take effect fifteen (15) .days after its 
publication in at least two (2) newspapers of general circulation. 
Approved, 
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