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

18% Congress
First Regular Session

Office of the Minority Floor Leader

HOUSE BILL No. _ 6701

INTRODUCED BY REP. BIENVENIDO “BENNY” M. ABANTE, JR.

AN ACT
AMENDING RA 7925 BY ABOLISHING THE NATIONAL
TTELECOMMUNICATIONS COMMISSION (NTC) AND
‘TRANSFERRING ITS POWERS AND FUNCTIONS TO THE
DEPARTMENT OF INFORMATION AND COMMUNICATIONS
TECHNOLOGY (DICT)

EXPLANATORY NOTE

This bill seeks to amend RA 7925 [AN ACT TO PROMOTE AND GOVERN
THE DEVELOPMENT OF PHILIPPINE TELECOMMUNICATIONS AND
THE DELIVERY OF PUBLIC TELECOMMUNICATIONS SERVICES] by
abolishing the National Telecommunications Commission (NTC) and transferring its
powers and functions to the Department of Information and Communications
Technology (DICT).

Our National Telecommunications Commission (NTC), supposedly in charge
of regulating and promoting the telecommunications industry has turned out to be one
of the most inept and useless agencies whose only relevance lies in being another model
for sheer wastage of taxpayer money. Its failure all these years to invoke sanctions
against the companies poorly serving the people’s telecommunications needs is a
perfect reason to abolish it already. But the latest act of the NTC in issuing a cease and
desist order against broadcast company ABS-CBN is a slap in the face of Congress and
an outright act of defiance.


‘The House Committee on Legislative Franchises in February 2020 urged the
NTC to grant provisional authority to ABS-CBN until it “has made a decision on its
application.” No less than House Speaker Alan Peter Cayetano and Palawan Rep.
Franz Alvarez, chair of the House Committee on Legislative Franchises, already sent a
letter to NTC urging it to issue a provisional authority effective May 4, 2020. The
Senate also passed a resolution calling on the NTC to issue a provisional authority to
ABS-CBN.

‘The NTC requested for a legal opinion from the Department of Justice. The
opinion given by DO} Secretary Menardo Guevarra is to the effect that there is basis
for ABS-CBN to be given authority to continue operating while its franchise renewal
is pending, to wit:

“There is sufficient equitable basis to allow broadcast entities to
continue operating while the bills for the renewal of their respective
franchise remain pending with Congress. However, a more stable legal
environment could be created if Congress, by a concurrent resolution,
would authorize the NTC to issue a provisional authority to these
broadcasting companics...until Congress’ final disposition of their
franchise renewal bills.”

On this basis, NTC Commissioner Gamaliel Cordoba told the House
Committee on Legislative Franchises on March 10 -- UNDER OATH that the NTC
will issue a Provisional Authority (PA) to ABS-CBN.

Contrary to its previous pronouncements, the NTC issued a Cease and Desist
Order directing ABS-CBN to cease operations immediately.

‘This brazen act of the NTC is an open defiance and an insult to Congress. The
NTC should be abolished and its functions and powers be transferred to the DICT
where it can be better exercised and hopefully be more responsive to the needs of our
changing times.

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

BIENVENIDO “BENNY” M. ABANTE, JR.
Minority Leader
Representative - 6" District of Manila


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EIGHTEENTH CONGRESS

(CONGRESS OF THE PHILIPPINES }
First Regular Session

HOUSE OF REPRESENTATIVES

6701
H.B.No._

INTRODUCED BY REP. BIENVENIDO “BENNY” M. ABANTE, JR.

AN ACT
AMENDING RA 7925 BY ABOLISHING THE NATIONAL
TELECOMMUNICATIONS COMMISSION (NTC) AND
‘TRANSFERRING ITS POWERS AND FUNCTIONS TO THE
DEPARTMENT OF INFORMATION AND COMMUNICATIONS
TECHNOLOGY (DICT)

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 NTC ABOLITION ACT of
2020.

SECTION 2. Polig.- It is the policy of the State:

‘a. To recognize the vital role of information and telecommunications in nation-
building;

b. To ensure the provision of a strategic, reliable, cost-efficient and citizen-centric
information and communications technology (ICT) infrastructure, systems and
resources as instruments of good governance and global competitiveness by
merging the functions and powers of the National Telecommunications
Commission within the Department of Information and Communications
Technology (DICT) framework;

c. To promote a unified and comprehensive plan towards a policy environment
that will promote a broad market-led development of the ICT and ICT-enabled
services (ICT-ES) sectors, including the telecommunication sector; and

d. To provide oversight over agencies governing and regulating the ICT and
telecommunications sector under one department (DICT) and ensure
consumer protection and welfare, data privacy and security, foster competition
and the growth of the ICT and telecommunication sectors.

SECTION 3. Abolition of the National Telecommunications Commission (NTC).-

‘A. The National ‘Telecommunications Commission created under Executive
Order No. 546 promulgated on July 23, 1979, and Article III, Section 5 of RA
7925 is hereby abolished.


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B. Article III, Section 5 of RA 7925 is hereby amended by replacing the -- National
‘Telecommunications Commission (NTC) - with the -- Department of
Information and Communications Technology (DICT).

C. Allreference or mention of National Telecommunications Commission (NTC)
~ in the other sections of RA 7925 is hereby amended to read as and refer to
the -- Department of Information and Communications Technology (DICT).
Alll other provisions of RA 7925 shall remain valid and effective.

D. All assets, real and personal properties, including existing appropriation and
monies allocated for the NTC are hereby transferred to the DICT for proper
disposition.

E, The DICT, in coordination with the Civil Service Commission, shall handle all
the legal procedures and requirement for the transfer of necessary personnel
from the NTC to the DICT and the termination of personnel with redundant
positions. The DICT shall determine which personnel are necessary and which
positions are redundant.

F. All contracts, records and documents relating to the powers and functions of
the NTC, in all its offices, are hereby transferred to the DICT.

SECTION 4, Sale of Assets The DICT, in coordination with the Commission on Audit
(COA) shall conduct a complete accounting and inventory of all assets of the NTC, to
determine and ascertain their nature, description, amount and value, as well as other
rights and obligations pertaining thereto, if any.

‘The DICT Secretary is hereby authorized to enter into sales through public
bidding, negotiated sale, lease or any other form of divestment or transmission of rights
over assets of the NTC and the money or proceeds of such sale shall be remitted to
the Bureau of Treasury.

SECTION 5. Seharation and Retirement Benefits. Officials and employees of the NTC who
chose to separate from government service ot who shall choose to retire, if eligible,
shall be given a Severance and Mitigation Package (SMP) in addition to any separation
and retirement package to which they may be entitled to under existing laws, rules and
regulations. The needed fund for the SMP may be taken from the proceeds of sale of
the assets of the NTC remitted to the Bureau of Treasury.

SECTION 6. Implementing Rules and Regulations.- Within ninety (90) days from the date of
effectivity of this Act, the DICT shall formulate the Rules and Regulations for the
proper implementation of this Act.

SECTION 7. Repealing Clause.- Executive Order No. 546 promulgated on July 23, 1979 is
hereby expressly repealed. All other laws, decrees, ordinances, administrative orders,
rules and regulations, ot any part thereof, which are inconsistent with this Act are
likewise repealed or amended accordingly.

SECTION 8. Separability Clause. Should any provision of this Act be subsequently
declared unconstitutional, the other provisions not so declared shall remain in full force
and effect.


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SECTION 9. Effeativit.-"This Act shall take effect fifteen (15) days after its publication in
the Official Gazette and at least two (2) newspapers of national circulation.

Approved.

BIENVENIDO “BENNY” M. ABANTE, JR.
Minority Leader
Representative - 6 District of Manila