REPUBLIC OF THE PHILIPPINES
HOUSE OF REPRESENTATIVES,
Quezon City

EIGHTEENTH CONGRESS
24 Regular Session

8085

House Bill No.

Introduced by REP. STRIKE B. REVILLA.

EXPLANATORY NOTE

AN ACT MANDATING AND INSTITUTIONALIZING ROLL-OVER DATA
ALLOCATION SCHEME, PROVIDING FOR PENALTIES AND FOR OTHER
PURPOSES EXPLANATORY NOTE

‘The New Normal brought about by the COVID-19 pandemic is characterized by ever
more reliance of the people and businesses on the internet, online/virtual communication and
digital technologies. From our shopping routines, to financial transactions and money transfers,
to work meetings, and even to classes and other modalities of learning - all of these activities
are now heavily dependent on internet connectivity. This transformation has brought to the fore
the gaps and weaknesses of our country's internet infrastructure and capabilities. And we are
literally lagging behind in this aspect. The Philippines currently sits 120th and 106th worldwide
in terms of mobile internet speed and fixed broadband speed, respectively - we even rank way
below our ASEAN neighbors Thailand, Vietnam, Laos, Malaysia and Singapore.

It is therefore imperative that the government enact and implement policies, measures
and strategies to address this connectivity problem and provide interventions that will improve
our citizens’ experience with the quality of services offered by Internet Service Providers
(ISPs), and telecommunication companies operating in our country.

As one possible intervention towards this goal, this bill seeks to institutionalize a "roll-
over data scheme" applicable to all ISPs. Through this scheme, unused data allocation from
internet data packages or promos will not expire but will instead carry over to succeeding
months until the end of the year. If at the end of the year, there are still remaining unused data
allocations, the same will be converted into rebates which, in turn, may be used for future
subscriptions. Subscribers will definitely get the full value of the money they have spent in

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paying for these packages and promo. This will prevent the common scenario wherein
subscribers will lose megabytes (MB), if not gigabytes (GB), of data allocation just because
the expiry date of the package or promo had already passed. This situation is quite unfortunate
in light of our current data-hungry, internet-based world, especially for the poor who are forced
to allocate their meager financial resources for internet subscriptions. To ensure strict
compliance to the scheme, this measure also proposes the imposition of penalties against
noncompliant ISPs in the form of fines and even revocation of licenses and franchises in case

of repeat offenders (three times or more)
REP. Pe REVILLA

24 District Cavite

‘In view of this, early passage of this bill is sought.

1 This bill is a counterpart measure of Senate Bill 1880 authored by Senator Manuel
“Lito” Lapid filed last October 12, 2020.

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REPUBLIC OF THE PHILIPPINES,
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
2™ Regular Session

8083
House Bill No.

Introduced by REP. STRIKE B, REVILLA

AN ACT MANDATING AND INSTITUTIONALIZING ROLL-OVER DATA
ALLOCATION SCHEME, PROVIDING FOR PENALTIES AND FOR OTHER
PURPOSES

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 "‘Roll-Over Internet Act”.

Sec. 2. Declaration of Policy. The State recognizes the vital role of information and
communications technology in nation building. The State shall implement measures to provide
for regulations on internet services offered by Internet service providers and ensure that the
interest and welfare of its people and the consuming public are protected and upheld.

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

a. Internet Service Provider (ISP) - refers to any service-based operators whose services
is to combine computer processing, information storage, protocol conversion, and routing with
transmission to enable subscribers to access internet content and services as well as multimedia
services and its transmission through digital subscriber line (DSL), fixed wireless broadband,
cable broadband, fiber-optic or fiber-to-the-home (FTTH) and mobile data.

b. Internet Data Package - refers to the internet service packages, plans or promos
offered by ISPs with maximum limits on the data volume an end user may avail per day, week,
or month.

¢. Unlimited Internet Data Package- refers to internet service package with no data cap.

d. Roll-Over Data Allocation - refers to the unused internet data allocation per month
which shall be carried over to the following month.

e. Data Capping- refers to the limit of bandwidth allocation an ISP is offering to its
subscriber per day, week, or month.

Sec. 4. Coverage. All Internet Service Providers (ISPs) In the Philippines shall be
covered by this Act.

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See. 5. Roll-Over Data Allocation Scheme. All Internet Service Providers (ISPs) are
required to implement a roll-over data system for their subscribers: Provided, That the rolled-
over data allocation shall be prioritized to be consumed in the preceding month: Provided
further, that the unused data every month will be rolled-over and accumulated up until the last
month of the year: Provided lastly, that all unused data allocation for a year may be used and
converted as rebates, that may be used by the subscribers as payment for internet service in the
succeeding year of subscription.

Sec. 6. Exemptions. Subscribers who shall avail of any unlimited Internet data package
shall be exempted from this Act.

Sec. 7. Penalties. Any ISP who fails to comply with any of the provisions of this Act
shall pay a fine of three hundred thousand pesos (Php 300,000.00) for the first offense, and a
fine of five hundred thousand pesos (Php 500,000.00) for the second offense. In case of
subsequent offense, a fine of one million pesos (Php 1,000,000.00) and the revocation of the
ISP's license and franchise.

Sec. 8. Implementing Rules and Regulations (IRR). Within sixty (60) days from the
effectivity of this Act, the Secretary of the Department of Information and Communications
Technology (DICT), in coordination with the National Telecommunications Commission
(NTC) and other concerned agencies, shall promulgate the Implementing rules and regulations
and other Issuances as may be necessary to ensure the effective implementation of this Act

Sec. 9. Separability Cause. Should any part or provision of this Act be declared
unconstitutional or invalid, the remaining parts or provisions not affected thereby shalll retain
in full force and effect.

Sec. 10. Repealing Clause. — All laws, decrees, executive orders, issuances, rules and
regulations which may be inconsistent with any of the provisions of this Act, are hereby deemed
repealed, amended or modified accordingly.

Sec. 11. Effectivity. — This Act shall take effect fifteen (15) days after its complete
publication in the Official Gazette or in two (2) newspapers of general circulation.

Approved,

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