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EIGHTEENTH CONGRESS OF THE 
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REPUBLIC OF THE PHILIPPINES 
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First R egular Session 
j
SENATE
170
S.B. No.
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of III? f v r - P
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J U L -2  
P1-.10
REQiV-Di
Introduced by SEN. WIN GATCHALIAN
AN ACT
PROMOTING CONSUMER PROTECTION AND FOSTERING COMPETITION 
IN THE TELECOMMUNICATIONS INDUSTRY BY MANDATING THE 
UNLOCKING OF MOBILE WIRELESS DEVICES
EXPLANATORY NOTE
Switching to another service provider for improved wireless services 
and better options is a consumer right which is impaired by public 
telecommunications entities when they lock mobile wireless devices to their 
respective networks. Such device locking makes it difficult for consumers to 
take advantage of competitive and better offers available in the market. 
Although there exist independent devices or services from third parties that 
unlock the mobile device, this process would normally void its warranty.
Locking does not only deprive consumers the easy movement -  using 
the same device -  from their current telecommunications service provider to 
the one that best fits their needs and preferences. It ffiso limits competition 
between and among industry players who are able to reduce subscriber 
turnover by using device locking as a deterrent, or even an irritant, to 
subscribers from switching providers.
While the National Telecommunications Commission has mandated 
the unlocking of mobile phones and devices under Memorandum Circular 
01-05-2019 dated May 31, 2019, its applicability is limited to (1) postpaid


devices after having complied with the contract period contained in the 
subscription agreements; and (2) prepaid devices after having complied with 
usage requirements or agreed terms and conditions.
This legislative proposal m andates the unlocking of mobile wireless 
devices within definitive six- and nine-month periods from the date of 
purchase of the device. Under this bill, the eligibility of such devices for 
unlocking does not depend on the imposition of different lock-in periods that 
unduly binds the consumer to the public telecommunications entity that no 
longer provides quality services.
It also m andates unlocking of subsidized units or those mobile 
wireless devices with accompanying subscription contracts before the lapse 
of the mandated nine-month period -  on-demand and for a fixed and 
reasonable unlocking fee without voiding their warranties. This allows 
consumers to effectively have their devices officially unlocked at 8iny time 
without having to resort to third parties for unlocking and risking possible 
warranty issues.
Furthermore, the bill requires every public telecommunications entity 
or retailer of mobile wireless devices to provide every consumer sufficient 
information on (1) official channels for unlocking mobile wireless devices 
without voiding their warranties; and (2) the manner, method or fee 
associated with the process of unlocking these devices.
Existing 
business 
services 
and 
products 
affected 
by 
the 
implementation of this Act are given six (6) months transitory period from 
the effectivity of the implementing nales and regulations to comply with its 
requirements.
This legislation will contribute to the evolution of a more dynamic 
marketplace in the telecommunications industry where consumer choice is
dictated by quality, price, and best value for money. I t ^  
is earnestly sought.
.ediate approval


EIGHTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
]
SENATE
S.B. No. 
170
o( Ihr 'T: ""■ <t P
*19 
J J L -2  
F1 ;10
RECEIVED :•
Introduced by SEN. WIN GATCHALIAN
AN ACT
PROMOTING CONSUMER PROTECTION AND FOSTERING COMPETITION 
IN THE TELECOMMUNICATIONS INDUSTRY BY MANDATING THE 
UNLOCKING OF MOBILE WIRELESS DEVICES
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Be it enacted by the Senate and the House of Representatives of the 
Philippines in Congress assembled:
Section 1. Short Title. -  This Act shall be known as the “Unlock My 
Mobile Act. ”
Sec. 2. Declaration of Policy. -  The State recognizes the vital role of 
information and communications technology in nation-building. Under 
Article 2, Title I of Republic Act No. 7394, otherwise known as the 
“Consumer Act of the Philippines,” the State shall protect the interests of the 
consumer, promote his or her welfare, and establish the standards of 
conduct for business and industry. Towards this end, the State shall 
implement m easures to achieve the following objectives: (a) protect the 
consum er against deceptive, unfair, and unconscionable sales act and 
practices; and (b) provide information and education to facilitate sound 
choice and proper exercise of consum er rights.
Sec. 3. Definition of Terms. -  As used in this Act:


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a. Mobile Services Subscription Contract refers to an agreement 
between a public telecommunications entity and a consumer for a 
postpaid subscription on the use of such entity’s network for 
wireless communications and other telecommunications services 
covering a particular period of time.
b. Lock-in Period refers to the duration of the mobile services 
subscription contract between the public telecommunications 
entity and the consumer within which the latter agrees to 
exclusively maintain a monthly postpaid subscription with such 
entity.
c. Mobile Wireless Device refers to any wireless telephone handset, 
tablet, or any other wireless device that operates on a wireless 
telecommunications network.
d. Public Telecommunications Entity or PTE refers to any duly
enfranchised and authorized public telecommunications entity th at 
offers voice, short messaging system (SMS) or text, mobile data, 
value 
added 
services 
(VAS), 
or 
any 
other 
mobile
telecommunications services to the public for a fee.
Sec. 4. Mandating the Unlocking of Unsubsidized Mobile Wireless 
Devices uAthin Svc Months from Date of Purchase. -  A PTE or retailer of mobile 
wireless devices may sell such devices as unsubsidized units or without any 
accompanying mobile services subscription contract while locked to a 
specific network: Provided, That these devices shall be automatically 
unlocked on or before the sixth month from the date of purchase: Provided, 
further. That it shall be the obligation of the PTE or retailer of mobile 
wireless devices to provide official channels for unlocking mobile wireless 
devices without voiding their warranties in accordance with Sec. 6 of this 
Act.
Sec. 5. Mandating the Unlocking of Subsidized Mobile Wireless Devices 
within Nine Months from Date of Purchase; No Extension of Lock-in Period for 
Subsidized Devices without Prior Approval of the National Telecommunications


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Commission; Unlocking on-Demand; Warranty Coverage. -  A PTE or retailer of 
mobile wireless devices may sell such devices as subsidized units or with 
accompanying mobile services subscription contract while locked to a  
specific network; Provided, That the total lock-in period for subsidized 
devices shall in no case exceed the period of nine (9) months: Provided, 
further, That there shall be no extension of the lock-in period for subsidized 
devices without prior approval of the National Telecommunications 
Commission: Provided, furthermore. That after the completion of the lock-in 
period or upon full payment of the device, the PTE shall unlock the device, 
or give the consumer the means to unlock the same, on-demand, and 
completely free of charge: Provided, finally, That before the completion of the 
lock-in period, the PTE shall unlock the device, or give the consumer the 
means to unlock the same, on-demand, and for a fixed and reasonable 
unlocking fee.
Mobile wireless devices that have been unlocked under this section 
shall continue to be covered by their respective warranties.
Sec. 6. Obligation of Public Telecommunications Entities or Retailers to 
Provide Official Channels for Unlocking Mobile Wireless Devices Without 
Voiding Warranties. -  Every PTE or retailer of mobile wireless devices shall, 
following the terms eind conditions under the implementing rules and 
regulations of this Act, provide official channels for unlocking mobile 
wireless devices without voiding their warranties.
For purposes of transparency, sufficient information on the manner, 
method or fee associated with the process of unlocking these devices shall 
be provided to every consumer, stipulated in writing, and made an integral 
part of the mobile services subscription contract.
Sec. 7. Administrative Penalties. -  For every failure to comply with, or 
for every instance of violation of any provision of this Act, the PTE shall pay 
a fine of not less than One Hundred Thousand Pesos (PI00,000.00) up to 
Three Hundred Thousand Pesos (P300,000.00) for the first offense, and a 
fine of not less than Four Hundred Thousand Pesos (P400,000.00) up to Six


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Hundred Thousand Pesos (P600,000.00) for the second offense. In case of a  
subsequent offense, the penalty shall be a fine of not less than Seven 
Hundred Thousand 
Pesos 
(P700,000.00) 
up 
to 
One 
Million 
Pesos 
(PI,000,000.00) and revocation of the PTE’s franchise to operate.
Sec. 
8. 
Implementing Rules and Regulations. 
-  The 
National 
Telecommunications Commission, in coordination with the Department of 
Trade and Industry, the Department of Information and Communications 
Technology, the Philippine Competition Commission, and other concerned 
agencies shall, within sixty (60) days from the effectivity of this Act, 
promulgate and submit the implementing rules and regulations (IRR) for its 
effective implementation. The IRR shall not preclude the NTC from issuing 
subsequent circulars, rules and regulations to make the unlocking process 
more convenient for the consumer.
Sec. 9. Transitory Provision. -  Existing business services arid products 
affected by the implementation of this Act shall be given six (6) m onths 
transitory period from the effectivity of the IRR to comply with the 
requirements of this Act.
Sec. 10. Separability Clause. -  If any provision of this Act is held 
invalid or unconstitutional, the other provisions not affected thereby shall 
remain in full force and effect.
Sec. 11. Repealing Clause. -  All laws, decrees, executive orders, 
proclamations, rules and regulations, and issuances, or parts thereof which 
are inconsistent with the provisions of this Act, are hereby repealed, 
amended, or modified accordingly.
Sec. 12. Effectivity Clause. -  This Act shall take effect fifteen (15) days 
after its publication in the Official Gazette or in any newspaper of general 
circulation.
Approved,