Republic of the Philippines
HOUSE OF REPRESENTATIVES
‘Quezon City

FIFTEENTH (1STH) CONGRESS
‘Third Regular Session

38d?

House Bill No.

Jntroduced by: Rep. Bernadette Herrera-Dy

EXPLANATORY NOTE

This bill seeks to authorize the NTC to implement a mobile voice service billing
scheme of 6 seconds per pulse, down from a 60 seconds per pulse (per minute billing),
in order to protect consumers from excessive mobile phone charges.

As of 2011 there are about 92 million mobile phone subscribers’ and this number is
‘expected to grow in time,

The prevailing billing method is based on the number of minutes a mobile calt
consumed. However, our findings show that the per-minute billing scheme does not
provide consumers a fair and reasonable method since most calls do not terminate
exactly at the end of a minute. Subscribers are still charged for the whole minute even
if they consume less than sixty seconds

The Constitution, through Section 24, Article 2, fully recognizes the vital role of
commumications in nation building and provides for the emergence of communications
structures suitable to the needs and aspirations of the nation.

The promotion of competition in the telecommunications market is a key objective of
Republic Act No. 7925, otherwise known as The Public Telecommunications Policy
Act of the Philippines, which mandates that “a healthy competitive environment shall
be fostered, one in which telecommunications carriers are free to make business
decisions and interact with one another in providing telecommunications services, with

' Philippines — Telecoms, Mobile, Broadband, and Forecasts. Retrieved June 7 2012 from
bittp:/Aweww.budde, cont au/Research/Philippines-Telecoms-Mobile-Broadband-and-Forecasts html


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the end in view of encouraging their financial viability while maintaining affordable
rates.”"

Furthermore, Sec. 4(d) of R.A. No. 7925 provides that rates and tariff charges shal! be
fair, just and reasonable.

Pursuant to R.A. No. 7925 and in order to protect and promote the interest of
subscribers/end-users,” it is essential to decrease the maximum unit of billing for the
cellular mobile telephone service whether postpaid or prepaid to six (6) seconds per
pulse.

The use of per-pulse billing scheme is increasingly an industry practice all over the
world. The Philippines remains to be one of the few countries in the world where
subscribers are charged by the minute, and no less, on mobile phone calls." With the
implementation of the six-second per-pulse billing scheme, average subscribers are
expected to realize larger savings and our telecom charging system will be aligned to
international standards.”

Pursuant to the provision of its existing charter, Executive Order No. 546, the National
Telecommunications Commission is empowered to regulate the telecommunications
industry. One of its powers, under Section 15, paragraph k of the said Executive Order,
permits the Commission to perform such other functions as may be provided for by
law. Hence this bill sceks to authorize the Commission to require, if it finds necessary
and in the interest of the pubtic, to the billing of cellular phone charges on a per pulse
basis, to be implemented by the NTC accordingly.

In view of the foregoing, the approval of this bill is earnestly recommended.

BERNADETTE HEBRERA-DY

> Memorandum circular 05-07-2009. ntc,gov, pi. retrieved June 7, 2012 from
Jap /r7atc-gov pivindex php?optioncom_content&view=articledrid=1 168eItemi
i

* CA orders telecom firms to comply with ‘per pulse’ billing, nguirer News Online. Retrieved June 7
2012 from bitp-//ousiness inquirer net/42555/ca-orders-telecom-firms-to-comply-with- %E2%80%98per-
pulse 2%80%499-billing

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35

Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

FIFTEENTH (15TH) CONGRESS
Third Regular Session

S84?

House Bill No.

Introduced by: Rep. Bernadette Herrera-Dy

AN ACT AUTHORIZING THE NATIONAL TELECOMMUNICATIONS
COMMISSION TO IMPLEMENT A PER PULSE BILLING SCHEME FOR
TELECOMMUNICATIONS COMPANIES, AND FOR OTHER PURPOSES.

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

SECTION 1, Short Title. This Act shall be known as “The Per Pulse Mobile Voice
Service Billing Act.”

SECTION 2. Declaration of Policy. The State recognizes the vital role of the
telecommunications industry in national growth and development. Towards this end,
the State shall protect the interests of consumers by providing an internationally
acceptable and consumer friendly unit of measure for call charges

SECTION 3. Definition of Terms, - For purposes of this Act, the following terms
are hereby defined:

8) “Call” - refers to the moment a receiver is connected to a caller,
b) “Caller” - refers to the person dialing a mobile phone number,
¢) “Receiver” - refers to the person attempting to be contacted by the caller,

d) “Cellular mobile phone” - refers to any wireless telephone that communicates
with a local transmitter using a short-wave analog or digital transmission. This
definition includes units that are capable of relaying and receiving visible and or
audible electronic messages;

©)

“Commission” - refers to the National Telecommunications Commission;


f) “Postpaid” - refers to a conventional method of payment for wireless service
where a subscriber pays for a significant portion of services and usage in
arrears, subsequent to consuming the services:

g) "Prepaid" - refers to a method of payment for wireless service that allows a
subscriber to prepay a set amount of airtime in advance of actual usage;

h) “Pulse” — refers to a period of 6 seconds,

i) "Provider" - refers {o every cellular mobile phone service provider or any profit-
oriented entity or company that provides wircicss telecommunications 10 its
subscribers;

j) “Special Prefixes" — refers to codes or combinations added before the actual
contact number of the receiver in order 1o opt out of the per-minute billing
scheme when making a call.

kK

“Subscriber” - refers to a user of wireless service bought from a provider or a
person who ayails the cellular mobile phone services offered by a provider, and

SECTION 4. Default Rules for Call Billing. Unless the Commission sets a

different billing scheme subsequent to the effectivity of this Act, the following default
rales shall apply:

1. The standard unit of billing for the cellular mobile call whether postpaid or
prepaid shal} be six (6) seconds per pulse.

2. Existing authorized rates shall be adjusted correspondingly. The rate for the first
two (2) pulses, or its equivalent if a lower period per pulse is used, may be
higher than the succeeding pulses to recover the cost of the call set-up:
provided, however, that the first two (2) pulses or their equivalent shall not be
substantially more onerous to the subscriber than a standard six (6) seconds
pulse

3. A cali shall only be billed from the moment the receiver accepts the phone call
of the caller.

4. Providers shal! submit to the Commission their respective proposed rates based
on the herein prescribed unit of billing within thirty (30) days from the
effectivity of this Act.

SECTION 5. Exceptions.
1) Internationa! call service shall not be covered.”

2) Subscribers may opt to be billed on a one (1) minute per pulse basis or to
subscribe to unlimited service offerings or any service offerings if they actively
and knowingly enroll in the billing plam; provided, that such plan or billing

“Ibid


system would lead to significantly no less onerous results to the subscriber had
the latter enrolled in per pulse billing

SECTION 6. Amendment of Agreements. Interconnection agreements between
cellular mobile telephone service providers (CMTS) and between CMTS providers and
other interconnecting network and service providers shal! be amended to incorporate
the herein prescribed unit of billing within thirty (30) days from the effectivity of this
Act.

SECTION 8, Mandatory Nature of Billing. Service providers are prohibited from
requiring subscribers to dial special prefixes or their functional equivalent when

mandatory nature of the proposed billing,*

SECTION 7. fmplementing Agency, The Commission shall be the implementing
agency charged with carrying out the provisions of this Act, with authority to assign the
direct executive control of the enforcement of its provisions and the niles and
regulations that may hereafter be promulgated to such representatives, burcau, office or
service as the Commission may designate

SECTION 8. Separability Clause. In the event that any provision of this Act is
declared unconstitutional, invalid, or illegal, the constitutionality, validity, or legality of
the remainder of the provisions of this Act shall not be affected thereby.

SECTION 9. Repeating Clause. All laws, presidential decrees, letters of
instructions, executive orders, administrative orders, rules, regulations, and other
issuances or parts thereof which are contrary to or inconsistent with the provisions of
this Act are hereby revoked, repealed or modified accordingly.

SECTION 10. Effectivity. This Act shall take effect fifteen (15) days following
the completion of its publication in any two (2) national newspapers of general
circulation,

Approved,

7 Memorandum circular 05-07-2009, mic. gow,ph retrieved June 7, 2012 from
bttp:/7.ote gov phvindex. php? option=com _content& view=articleseid=1 168¢Itemid=53

* CA orders telecom firms to comply with ‘per pulse’ billing, Anguirer News Online. Retrieved June 7,
2012 from bntp://business. inquirer net/42555/ca-onders-telecom-firms-to-comply-with-"sE2%8O%9Sper-
pulse%E2%80%99-billing