Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
First Regular Session
4886

HOUSE BILL NO.

Introduced by Representative Michael L. Romero

EXPLANATORY NOTE

The Philippines telecommunications setting has ominously changed since
the passage of RA7925 (Public Telecommunications Policy Act of the
Philippines). The present framework of the National Telecommunications
Commission (NTC) is no longer adequate to regulate and administer the
telecommunication industry.

The state shall therefor provide amendments, to give the NTC the powers
and functions to impose penalties and sanctions against telecommunication
companies that have violated RA7925.

‘This state shall also require telecommunication companies to provide
suitable access to their networks and infrastructures on a practical terms and
conditions.

This House Bill seeks to improve compliance among public telecommunication
entities and to expand the NTC's control and capability to standardize other
business-related bodies.

Thus, the early pai

€ of this bill is earnestly requested.

L. ROMERO


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
First Regular Session

4886
HOUSE BILL NO. __

Introduced by Representative Michael L. Romero

AN ACT

PROVIDING FOR A COMPREHENSIVE PUBLIC
TELECOMMUNICATIONS POLICY PROGRAM, PROVIDING
FOR PENALTIES AND SANCTIONS, AND FOR OTHER
PURPOSES

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

SECTION 1. DECLARATION OF POLICY - It is hereby a declared
policy of the state to provide Telecommunications services that is essential to the
economic development, integrity and security of the republic, and as such shall
be developed and administered as to safeguard, enrich and strength the
economic, cultural, social and political material of the Philippines.

The State shall promote the growth and development of this

telecommunications services in accordance with the prevailing policies.

SECTION 2. CREATION OF A COMPREHENSIVE PUBLIC
TELECOMMUNICATIONS POLICY PROGRAM - There shall hereby be created
a Comprehensive Telecommunications Policy Program, that shall facilitate and


spearhead the administrative, operational and regulatory powers and functions
of the National Telecommunications Commission (NTC).

(a) A fundamental objective of government is to develop and
maintain a viable, efficient, reliable and universal
telecommunication infrastructure using the best available
and affordable technologies, as a vital tool to nation building
and development;

(b) The expansion of the telecommunications network shall
give priority to improving and extending basic services to
areas not yet served. For this purpose, government shall
promote a fair, efficient and responsive market to stimulate
the growth and development of the telecommunications
facilities and services, with emphasis on the accessibility by
persons to basic services in unserved and underserved areas
at affordable rates;

(c) The radio frequency spectrum is a scarce public resource
that shall be administered in the public interest and in
accordance with international agreements and conventions to
which the Philippines is a party and granted to the best
qualified. The government shall allocate the spectrum to
service providers who will use it efficiently and effectively to
meet public demand for telecommunications service and may
avail of new and cost effective technologies in the use of
methods for its utilization;

(d) Rates and tariff charges shall be fair, just and reasonable
and for this purpose, the regulatory body shall develop tariff
structures based on socioeconomic factors and on financial,
technical and commercial criteria as measures to ensure a fair
rate of return and as a tool to ensure economic and social
development;

(e) Public telecommunications services shall be provided by
private enterprises. The private sector shall be the engine of
rapid and efficient growth in the telecommunications
industry;

(f) A healthy competitive environment shall be fostered, one in
which telecommunications carriers are free to make business
decisions and to interact with one another in providing
telecommunications services, with the end in view of


encouraging their financial viability while maintaining
affordable rates;

(g) A fair and reasonable interconnection of facilities of
authorized public network operators and other providers of
telecommunications services is necessary in order to achieve
a viable, efficient, reliable and universal telecommunications
services;

(bh) The government shall give all the assistance and
encouragement to Philippine international carriers in order to
establish interconnection with other countries so as to provide
access to international communications highways on a
competitive basis;

(i) For efficiency, practicability, and convenience, but with due
regard to the observance of due process at all times, regulation
of telecommunications entities shall rely principally on an
administrative process that is stable, transparent and fair,
giving due emphasis to technical, legal, economic and
financial considerations;

i) No single franchise shall authorize an entity to engage in
both telecommunications and broadcasting, either through
the airwaves or by cable;

(k) Ownership of public telecommunications entities to as
wide a number of people as possible, preferably to its
customers, in order to encourage efficiency and public
accountability and to tap personal savings shall be
encouraged;

(I) The development of a domestic telecommunications
manufacturing industry to meet the needs of the Philippines
and to take advantage of export opportunities shall be
promoted without preventing, deterring or hampering the goal
of full universal service; and

(m) Human resources skills and capabilities must be
harnessed and improved to sustain the growth and the
development of telecommunications under a fast changing
telecommunications environment.

SECTION 3. PENALTIES AND SANCTIONS:


In the exercise of its regulatory powers, impose fines against public
telecommunications entities within the scope of its regulation, which are found
to have violated, violating, or those which have failed or are failing to comply with
the terms and conditions of this act, any certificate, or any order, decision or
regulation of the commission.

The erring public telecommunications entity shall be subject to a fine
amounting to the total actual loss or overcharging as determined by the NTC for
every day during which such default or violation continues, or if it is not feasible
to quantify the offense, to a fine of not less than One million pesos
(P.1,000,000.00) for every day during which such default or violation continues
until the amount is fully pai

Provided, that, if the public telecommunications entity has a gross annual
income not beyond Ten million pesos (P10,000,000.00) the penalty shall be
equivalent to not less than two percent (2%) of Its gross annual income.
The commission shall hereby authorize and be empower impose such fine,
after due notice and hearing.

The erring public telecommunications entity shall be mandated to refund to
consumers the charges it erroneously imposed on subscribers.

‘The NTC is further authorized to impose a fine of not less than One million
pesos (P1,000,000.00) for every day that a violation of sections 18 and 19 of
RA7925 is committed, and until such time that the erring public

telecommunications entity fully complies with the terms and conditions of this
act, any certificate, or any order, decision, or regulation of the commission:

Provided, that, if the public telecommunications entity has a gross annual
income not beyond Ten million pesos (P10,000,000.00) the penalty that
shall be imposed shall be equivalent to not less two percent (2%) of its
gross annual income.

‘The NTC shall require all public telecommunications entities significant
market Power as determined by the Philippine Competition Commission (PCC)
to provide timely access to its network, facilities or equipment to access seekers

on a fair, reasonable and nondiscriminatory terms and conditions.


SECTION 4. TRANSITORY PROVISION — Existing industries,
businesses and offices affected by the implementation of this Act shall be given
six (6) months transitory period from the effectivity of the IRR or such other
period as may be determined, to comply with the requirements of this Act.

SECTION 5. IMPLEMENTING RULES AND REGULATIONS. - The
departments and agencies charged with carrying out the provisions of this Act
Shall, within sixty (60) days after the effectivity of this Act, formulate the

necessary rules and regulations for its effective implementation.

SECTION 6. REPEALING CLAUSE. - All laws, decrees, executive
orders, rules and regulations, or parts thereof inconsistent with the provisions
of this Act are hereby repealed or modified accordingly.

SECTION 7. SEPARABILITY CLAUSE. — If, for any reason, any
section or provision of this Act is held unconstitutional or invalid, the other
sections or provisions hereof shall not be affected thereby.

SECTION 8. EFFECTIVITY CLAUSE. - This Act shall take effect
after fifteen (15) days from its publication in the Official Gazette or in at least two
(2) national newspapers of general circulation whichever comes earlier,

Approved,