Republic of the Philippines 
House of Representatives 
Quezon City, Metro Manila 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL No. _______ 
---------------------------------------------------------------------------------------------------------------- 
Introduced by HONORABLE ERNESTO “ERNIX” M. DIONISIO, JR. 
---------------------------------------------------------------------------------------------------------------- 
AN ACT 
PROMOTING THE GROWTH AND DEVELOPMENT OF WIRED INTERNET 
INFRASTRUCTURE IN RURAL AREAS, AND FOR OTHER PURPOSES 
EXPLANATORY NOTE 
Filipinos in rural communities have long been at a disadvantage in terms of 
accessibility and connectivity to Internet services, relative to their counterpart in urban areas. 
While 32.3% of households in NCR have Internet, only 5.7% of households in Region V, and 
5.1% in Bangsamoro Autonomous Region in Muslim Mindanao (BARMM) do – illustrating that 
the 84.3% of households and 70% of barangays without Internet are disproportionately in the 
countryside.1 Moreover, where those in highly-developed areas can rely on fast and reliable 
fiber optic connectivity, those in the countryside make do with inconsistent mobile data– if 
available at all.  
The necessity of Internet connectivity, and the gap in access between urban and rural 
areas, only became more apparent during the COVID-19 pandemic as work and learning 
activities shifted online. News reports frequently showed teachers and students in the 
countryside climbing rooftops to access spotty mobile connectivity, bereft of the wired 
connections enjoyed by their peers in urban areas. In other cases, those who had access only 
to congested mobile networks joined those without Internet access at all in being left out of 
online classes, remote work, telehealth, and other high-bandwidth applications.   
Figures from the pandemic bear this out: of the more than 19 million public K-12 
students enrolled in school year 2020-2021, 79% had to make do with learning using printed 
modules, with only about 7% able to go online.2 A World Bank study found that without direct 
access to teachers or interactive learning resources, “learning poverty” among Filipino 
students reached 90% in 2021, with 9 out of 10 10-year-olds falling below the minimum 
expected proficiency for reading skills.3  
1 National Information and Communications Technology Household Survey (NICTHS). 2020 June 26.  
https://dict.gov.ph/ictstatistics/nicths2019/ 
2 Llego, M. A. (2021). DepEd Basic Education Statistics for School Year 2020-2021. TeacherPH. 
https://www.teacherph.com/deped-basic-education-statistics-school-year-2020-2021/   
3 Cordero, T. (24 Nov 2021). World Bank: 90% of 10-year-olds in remote classes can’t read. GMA News. 
https://www.gmanetwork.com/news/topstories/nation/812114/world-bank-90-of-10-year-olds-in-remote-classes-can-t-
read/story/  
October 7, 2022
9:00 am
5469


With data from the International Telecommunication Union (ITU) suggesting that fixed 
broadband usage in developing nations has flattened since the pandemic, it is unlikely that 
users in the countryside will get access to world-class fiber Internet without intervention.4 In 
the Philippines, to compensate for the lack of accessibility to wired Internet connections, 
Filipinos resort to mobile cellular services.5 However, the pandemic has shown us that mobile 
data can be unreliable when it comes to time- and latency-sensitive activities such as digital 
payments and expensive if used for bandwidth-heavy services such as video calls or virtual 
meeting platforms.  
 
Despite the government’s efforts to promote digital inclusion, such as through the Free 
Internet Access in Public Places Act, rural areas continue to be sparsely covered by wired 
broadband networks. These communities are considered less commercially viable by the big 
telecommunication operators, whose business models do not apply to the lower population 
densities and difficult terrain in the countryside.6 It is therefore critical to support alternative 
players who can deploy the fiber infrastructure necessary to support all Internet technologies 
– whether wired or wireless. Robust rural wired infrastructure is key to an inclusive and 
accessible Internet ecosystem where different types of broadband technologies are available, 
even in the countryside. 
 
To address the digital divide and facilitate Internet infrastructure rollout in rural areas, this 
bill aims to: 
• 
Incentivize industry players and/or local Internet services providers to expand their 
ICT services in rural areas and include opportunities for providing access to radio 
spectrum; 
• 
Simplify the qualification and registration process, and consider the creation of a new 
classification, Rural Wired Internet Providers (RWIPs), that will be subject to the 
incentives and other benefits; 
• 
Promote infrastructure sharing through a "dig once" policy, as well as cross-sector 
infrastructure sharing; and 
• 
Allow access to network resources, which will potentially allow RWIPs to access wired 
and wireless networks. 
 
At a time when Internet connectivity is almost as important as having access to electricity, 
it is only appropriate that the government step up to address digital inequality. 
 
In view of the forgoing, the immediate passage of this bill is earnestly sought. 
 
 
 
 
4 International Telecommunication Union. 2021. Measuring Digital Development: Facts and figures 2021. 
https://www.itu.int/en/ITU-D/Statistics/Documents/facts/FactsFigures2021.pdf 
5 Santos, Mary Grace Mirandilla. September 2021. Bridging the digital infrastructure gap:  
Policy options for connecting Filipinos. PIDS ISSN 2508-0865, No. 2021-07. 
https://pidswebs.pids.gov.ph/CDN/PUBLICATIONS/pidspn2107.pdf 
6 Rural Communications. Retrieved from https://www.itu.int/en/ITU-D/Technology/Pages/RuralCommunications.aspx 


Republic of the Philippines 
House of Representatives 
Quezon City, Metro Manila 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL No. _______ 
---------------------------------------------------------------------------------------------------------------- 
Introduced by HONORABLE ERNESTO “ERNIX” M. DIONISIO, JR. 
---------------------------------------------------------------------------------------------------------------- 
AN ACT 
PROMOTING THE GROWTH AND DEVELOPMENT OF WIRED INTERNET 
INFRASTRUCTURE IN RURAL AREAS, AND FOR OTHER PURPOSES 
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 "Rural Wired Internet 
Development Act." 
Section 2. Declaration of Policy. - The State reaffirms its recognition of the 
vital role of communication and information in nation-building, as stated in Article II, 
Section 24, of the Constitution. As such, it is hereby declared the policy of the State to 
improve Internet accessibility in rural areas and promote digital equality. 
Section 3. Definition of Terms. - For purposes of this Act, the following terms 
shall mean: 
a. Customer Premises Equipment (CPE) - refers to service provider equipment
set up on the physical location of the subscriber to provide the subscriber
with Internet services. A CPE may include, but is not limited to, a telephone
handset, modems, and router.
b. Cost to connect- refers to the sum of the following costs:
i.
Cost of the wire used to connect the facility to the CPE of the
subscriber;
ii.
Costs related to equipment used by the small player to ensure an
acceptable level of quality of service, such as signal amplifiers, which
are installed outside of the facility and along the connection distance;
iii.
Costs related to the mounting of the wire in compliance with good
engineering practice, such as, but is not limited to, brackets, staples,
and hangers used along the connection distance.
iv.
Costs related to the mounting of the wire in compliance with third-
party business arrangements, such as, but not limited to, pole rental
fees.
5469


c. Facility, refers to a permanent structure, comprised of (a) all installed 
electrical and electronic wiring, cabling, and equipment; and (b) all 
supporting structures, such as utility, ground network, and electrical 
supporting structures, from which wired services are delivered to 
subscribers. 
d. Project – refers to a wired infrastructure build out plan of an RWISP. 
e. Rural Wired Internet Service Provider (RWISP) - refers to any entity, duly 
authorized or registered by the National Telecommunications Commission 
(NTC) that operates at least one facility and offers internet service using 
wired technology, such as but not limited to, copper wire, coaxial cable, or 
optical fiber, that is used to deliver internet services in a city or municipality, 
where 50% of barangays are classified as rural by the Philippine Statistics 
Authority (PSA). 
f. Total network cost – refers to the total cost of connection, equipment to 
maintain service level, customer premise equipment, and mounting of 
facilities necessary for the ISP to deliver wired internet services to the 
subscriber. 
 
Section 4. Eligibility To Access Incentives. - A RWISP shall be granted an 
incentive for building and operating a wired internet network to connect a new 
subscriber, provided that: 
a. The total network cost per project is at least three (PHP 3) million pesos but 
not exceeding one hundred (PHP 100) million pesos, as indicated in the 
network plan submitted to the NTC; and 
b. The RWISP's facility extends to a subscriber CPE located in a rural 
barangay, as classified by the PSA. 
 
Additional incentives may apply to RWISPs that build their facilities 
underground to promote network resilience against disasters and the safety and well-
being of the community where the ISPs operate. 
 
Section 5. Proof of Installation. - Subject to existing regulations and evidence 
requirements of the Bureau of Internal Revenue (BIR), an Audited Financial Statement 
containing the following may be used by the RWISP to prove: 
a. Income tax paid in the previous year; 
b. Total number of subscribers; 
c. Total number of new subscribers; 
d. Total number of new subscribers for installations that may be granted 
incentives; 
e. Total number of rural barangays covered by a project; 
f. Total cost to connect for installations that may be granted incentives; and 
g. Total costs of the CPES for installations that may be granted incentives. 
 
Nothing in this Act shall be construed as limitations to the power of the BIR and 
other regulatory agencies to perform audits and other regulatory functions in pursuit 
of this Act. 
 
Section 6. Incentives. - The fiscal incentives review board shall grant 
incentives to eligible RWISPs who shall apply for such incentives.  
 


A RWISP may choose either, but not both, of the following incentive schemes: 
a. Total of costs of CPEs of new installations, to be applied as a tax credit, for 
five (5) years, or; 
b. Total of costs of CPEs and costs to connect new installations, to be applied 
as a tax credit, for three (3) years. 
 
A RWISP may choose either, but not both, of the following taxes to which the tax 
credits may be applied: 
a. Value added tax, remitted quarterly, or; 
b. Income tax, remitted annually. 
 
Section 7. Ease of doing business. – to fast-track the development of wired 
internet networks and facilitate the implementation of this act, the following policy and 
regulation shall apply: 
a. All ISPs shall register with, and submit their network plans to, the ntc who 
shall decide on the application using an administrative process, within 60 
days from the receipt of the application; 
b. A duly registered ISP shall be allowed to build and operate a wired network, 
which may traverse cities and municipalities, to acquire bandwidth for its 
own use without the need to secure a legislative franchise, provisional 
authority, or a certificate of public convenience and necessity or CPCN from 
the NTC; 
c. The Department of Information and Communications Technology (DICT) 
shall promulgate, together with the Anti-Red Tape Authority (ARTA) and 
other relevant government agencies, rules, policies, and regulations that 
mandate the streamlining and fast-tracking of the approval process by 
national government agencies, local government units, homeowners’ 
associations, and premises and estate management, for permits, 
registrations, forms, certificates, requests or other requirements for the 
installation and deployment of internet networks, including supporting 
structures, in accordance with the provisions of Republic Act No. 11032 also 
known as the Ease of Doing Business Act, or its amendments or future 
iterations; and 
d. As far as possible, a wired internet network shall be deployed together with 
roadworks, pipe-laying, and other infrastructure development in other 
networked infrastructure by both government and private entities. 
 
Section 8. Penalties. - An ISP who fraudulently accesses the incentives 
provided by this Act shall be penalized by three (3) times the total amount of tax credits 
granted. 
 
Section 9. Preparation of Revenue Memorandum Circular. - The BIR shall 
publish a Revenue Memorandum Circular for the implementation of this Act within 90 
days from its approval. 
 
Section 10. Separability clause. -  Any portion or provision of this Act is 
declared unconstitutional, the remainder of the Act or any provisions not affected 
thereby shall remain in force and effect. 
 


Section 11. Repealing clause. - Any law, presidential decree or issuance, 
executive order, letter of instruction, rule, or regulation inconsistent with the provisions 
of this Act is hereby repealed or modified accordingly. 
 
Section 12. Effectivity clause. - This Act shall take effect after fifteen (15) 
days following its complete publication in the Official Gazette or a newspaper of 
general circulation. 
 
Approved,