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

NINETEENTH CONGRESS
First Regular Session

o:_59

HOUSE BIL

Introduced by Representative Jaime R. Fresnedi

EXPLANATORY NOTE

This bill seeks, primarily, to require Public Telecommunications Entities (PTE’s) to
establish a system of identifying users and/or purchasers of Subscriber Identification Module
(SIM) cards. It also seeks to put a stop to the brazen theft of mobile phone units which have
become an indispensable communication tool to everyone.

In the last few years, the influx of personal digital assistants (PDA’s), hand-held
computers, digital cameras and state-of-the-art cellular phones have made such devices every
man’s accessory of choice. Though most of these innovations come with a high price, a few
are quite affordable to the average Filipino. Public Telecommunications Entities (PTE’s)
have grabbed the opportunity to expand their operations and turned increasingly towards
wireless technology. With the entry of new players in the market, new market strategies have
been developed by different companies to remain competitive in the information technology
race. Cellular network operators have introduced the pre-paid system that caters to the
majority of users. Anyone who owns a GSM cellular phone only has to purchase a pre-
programmed, pre-paid SIM card, from a dealer or retailer and can then readily call or send
text messages. While such system has proven to be very convenient, there are unscrupulous
individuals who have found ways of abusing these innovations or using them in pursuit of
nefarious schemes.

Numerous complaints have been made against the irresponsible and sometimes illegal
use of the cellular telephone. Our police and firefighters have complained of pranksters
making hoax emergency calls that resulted in wasted efforts. There has also been an
increasing incidence of “stalking” with the use of cellular telephones.

With the usual requirements for applying for a regular, postpaid cellular phone line
‘gone, the rigorous and careful process of screening and monitoring the prospective subscriber
has been eliminated. Gone are the days when authorities could track down and identify a
prank caller or any such person using the tool for no good. This has given way for the cellular
phone to become a standard tool for criminals and bad elements of society. Concomitantly,
theft and robbery of these gadgets have become very rampant. The cellular phone has become
a major object of interest among snatchers and hold-uppers because of the ease in which they
are sold to buyers who are eager to purchase a unit at a much lower price. Unfortunately,
deaths sometimes resulted during the commission of such crimes.



Syndicates engaged in illegal drugs, smuggling, extortion, kidnapping, and other
heinous crimes. and, lately, even groups seeking to sow panic and overthrow the government,
have increasingly used cellular phones to further their ends with minimal, or without, risk of
being caught. The authorities have encountered difficulty in their investigations because the
identity of the callers could not be established

Certain measures should be done in order to arrest this problem before it becomes any
worse. This bill seeks to: 1) remove one of the stumbling blocks of the police and other law
enforcers in investigating cases by requiring the identification and registration of subscribers
in the use and/or purchase of (SIM) cards and mobile phone units; and 2) prevent the theft’
robbery and sale of stolen mobile phone units.

For the premises cited above, the approval of this measure is earnestly sought.

Lone District, Muntinlupa City


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

NINETEENTH CONGRESS
First Regular Session

HOUSE BILL No-_ 59.

Introduced by Representative Jaime R. Fresnedi

AN ACT
REQUIRING THE REGISTRATION OF SUBSCRIBER IDENTITY MODULE CARDS

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 “Subscriber Identity Module
(SIM) Card Registration Act”

SEC. 2. Declaration of Policy. ~ The State recognizes the vital role of information and
communications technology in nation building and encourages its growth and development. It
is equally cognizant that beneficial as moder technology is. its illegal or malicious use
endangers people’s lives, damages property, poses hazards to public order, and even threatens
the security of nations.

Thus, there is a need to promote accountability in the use of Subscriber Identity Module
(SIM) card and provide law enforcement agencies the tools to resolve crimes which involve its
utilization and the platform to deter the commission of wrongdoings.

Towards this end, the State shall require the registration of SIM cards by all users.

SI

3. Definition of Terms. — As used in this Act:

(a) Direct seller refers to a person, natural or juridical, who directly dispenses or sells
a SIM card to an end user;

(b) End user refers to any individual/subscriber who directly purchases a SIM card
from a direct seller;

(c) Postpaid subscription refers to the subscription wherein service is provided by
virtue of a prior arrangement with a public telecommunications entity, and the end user thereof
is billed at the end of the monthly billing cycle according to the use of mobile service;

(d) Prepaid subscription refers to the subscription wherein credit is purchased in
advance of service use. The purchased credit is used to pay for mobile phone services at the
point the service is accessed or consumed. If there is no available credit, then access to the
requested service is denied;


(e) Public Telecommunications Entity or PTE refers to any person, natural or juridical,
government or private, engaged in the provision of telecommunications services to the public
for compensation;

(f) SIM refers to the Subscriber Identity Module which is an embedded circuit that
securely stores international mobile subscriber identity and related keys used to identify and
authenticate subscribers on mobile devices, such as mobile phones and computers;

(g) SIM card refers to a removable card into which an electronic integrated circuit is
embedded and is transferrable between different mobile devices; and

(h) SIM card registration refers to the process of recording and verifying mobile phone
number and personal
information ofa subscriber, by a PTE or other direct seller, including the subscriber's full name,
date of birth, gender, and address.

SEC. 4. Sale and Registration of SIM Cards. ~ Every PTE or direct seller shall require
the end user of a SIM card to present a valid identification document with photo to ascertain
the latter's identity. The PTE or direct seller shall further require the end user to accomplish
and sign a control-numbered registration form issued by the respective PTE of the SIM card
purchased. The registration form shall include an attestation by the end user that the person
appearing before the direct seller is the same person who accomplished and signed the
registration form and that the identification documents presented are valid and correct. Failure
of an end user to comply with the requirements under this section shall be a ground for the PTE
or direct seller to refuse the sale and issuance of a SIM card.

Except in cases where the PTE is the direct seller, the accomplished registration form
must be submitted by the direct seller to the concerned PTE within fifteen (15) days from the
date of sale. Failure on the part of the direct seller to comply under this section shall constitute
a violation of this Act.

SEC. 5. Coverage of Registration. — All direct sellers are hereby mandated to register
the following information in the SIM card registration form:

(a) Full name, date of birth, gender, and address of the end user appearing in a valid
government-issued identification document with photo. SIM card end users shall be required
to present the original copy of any of the following valid government identification document
(ID) with photo:

(1) Passport;

(2) National ID;

(3) Digitized Social Security Service (SSS) ID;

(4) Government Service Insurance System (GSIS) e-Card;
(5) Driver's license;

(6) Firearms’ License to Own and Possess (LTOP) ID;
(7) Professional Regulation Commission (PRC) ID;

(8) Integrated Bar of the Philippines (IBP) ID;

(9) Overseas Workers Welfare Administration (OWWA) ID;
(10) Digitized Bureau of Internal Revenue (BIR) ID;

(11) Voter's ID;

(12)Senior Citizen's card;

(13)Person with Disabilities (PWDs) card; or

(14) Other government-issued ID.



In the absence of any of the above IDs, a National Bureau of Investigation (NBI)
clearance, police clearance, or a Philippine Statistics Authority (PSA) certified birth certificate
with an ID picture taken within the last six (6) months prior to the purchase of a SIM card shall
suffice. The direct seller may make further inquiries or require the submission of additional
identification, if necessary. The purchase of a SIM card may be withheld pending submission
of the additional requirements;

(b) Assigned cell phone number of SIM card and its serial number.

In the case of end users who are foreign nationals, they shall register their full name,
passport number, and address in the SIM card registration form upon presentation of the
following:

(1) For foreign nationals visiting as tourists for not more than thirty (30) days:
(i) Passport;
(ii) Proof of address in the Philippines; and
(iii) Return ticket to own country of the tourist or any other ticket showing the date
and time of departure from the Philippines.

(2) For foreign nationals staying for more than thirty (30) days either as workers or
students:

(i) Passport;

Gi) Full name as indicated in the passport;

(iii) Proof of address in the Philippines;

(iv) Alien Employment Permit issued by the Department of Labor and
Employment (DOLE);

(v) Alien Certificate of Registration Identification Card or ACRI-Card issued by
the Bureau of Immigration (BI); or (vi) School registration and ID for
students.

SEC. 6. Submission of Registration Form. — The registration form shall be accomplished
in triplicate, and forwarded by the direct seller to the concerned PTE. The required registration
form and copies thereof shall be certified by the direct seller or any other duly appointed officer
of the PTE.

SEC. 7. Submission of Verified List of Dealers or Agents. ~ The PTE shall submit to the
National Telecommunications Commission (NTC), within thirty (30) days from the date of
effectivity of this Act, a verified list of their current authorized dealers/agents nationwide. The
PTE shall submit to the NTC every quarter of each year an updated list of the same.

SEC. 8. Confidentiality Clause. ~ Any information in the SIM card registration shall
be treated as absolutely confidential, unless access to information has been granted upon
written consent of the subscriber: Provided, That the waiver of absolute
confidentiality shall not be made a condition for the approval of subscription agreements. The
confidentiality clause in the SIM card registration shall take effect at the point of sale.

SEC. 9. Disclosure of Information. — Notwithstanding the provisions of Section 8 hereof
and in accordance with Section 12(e) of Republic Act No. 10173, otherwise known as the “Data
Privacy Act of 2012”, the PTE shall be required to disclose the full name and address
contained in the SIM card registration, upon a duly issued subpoena or order of a court upon


finding of probable cause, or upon written request from a law enforcement agency in relation
to an ongoing investigation, that a particular number is used in the commission of a crime or
that it was used as a means to commit an unlawful act.

SEC. 10. SIM Card Register. — All PTEs are required to maintain a SIM Card Register
of their subscribers containing information required under Section 5 of this Act.

In case of loss of a SIM card or any change in information contained in the registration
form after purchase of the SIM card, the subscriber shall notify the PTE within forty-eight (48)
hours from such loss or change in information. All PTEs are required to keep the data of their
subscribers and shall ensure that this data is kept with utmost confidentiality.

SEC. 11. Registration of Existing Prepaid Mobile Phone Subscribers. — Al existing
mobile phone subscribers with prepaid SIM cards are required to register with their respective
PTE within one hundred eighty (180) days from the effectivity of this Act. An extension period
of not longer than one hundred twenty (120) days shall be allowed upon a valid written request
to the Department of Information and Communications Technology (DICT).

Failure to register within the prescribed period shall authorize the PTE to automatically
deactivate its services to the concerned prepaid SIM card subscriber.

SEC. 12. Penalties. - The following penalties shall be imposed for failure to comply with
any of the provisions of this Act:

(a) If the offense is committed by a PTE, the President and other responsible officers of
the PTE shall be held liable, and the following penalties shall be imposed:

(1) First offense: a fine not exceeding Three hundred thousand pesos (P300,000.00);

(2) Second offense: a fine not exceeding Five hundred thousand pesos (P500,000.00);
and

(3) Third and subsequent offenses: a fine not exceeding One million pesos
(P1,000,000.00) for every offense;

(b) If the offense is committed by a direct seller, a penalty of suspension of its operation
and a fine of Five thousand pesos (P5,000.00) to Fifty thousand pesos (P50,000.00) shall be
imposed; and

(©) If the offense is committed by an officer or employee of an implementing agency
under this Act, a penalty of suspension or dismissal from service and a fine to be determined
by the court shall be imposed without prejudice to the filing of an appropriate criminal, civil
and administrative case.

SEC. 13. Implementing Rules and Regulations (IRR). — Within ninety (90) days from the
effectivity of this Act, the NTC, in coordination with the DICT and other concerned agencies,
shall promulgate the rules and regulations and other issuances as may be necessary to ensure
the effective implementation of this Act.

SEC. 14, Transitory Provision. - Only direct sellers who have been duly authorized by
the PTEs and the NTC shall be allowed to sell prepaid SIM cards. Upon the effectivity of this
Act, all PTEs are mandated to recall all prepaid SIM cards for sale to the public by those


establishments not authorized by it. Otherwise, they shall be liable for the penalties prescribed
in this Act.

SEC. 15. Separability Clause. — Should any part of this Act be declared unconstitutional
or invalid, the other provisions hereof that are not affected thereby shall continue to be in full
force and effect.

SEC. 16, 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. 17. Effectivity. ~ This Act shall take effect fifteen (15) days after its publication in
the Official Gazette or in a newspaper of general circulation.

Approved,