Republic of the Philippines
HOUSE OF REPRESENTATIVES

NINETEENTH CONGRESS
First Regular Session

House Bill No. 1734

Introduced by Representative Maria Rachel J. Arenas

AN ACT
MANDATING AND INSTITUTIONALIZIN G ROLL-OVER DATA ALLOCATION
SCHEME
AND PROVIDING FOR PENALTIES

EXPLANATORY NOTE

We cannot imagine the world without the internet which connects billions of
people around the world in what we now know of, as digital citizens of this modern
information society

According to STATISTA, a leading market and consumer data provider, “as of
April 2022, there were five billion internet users worldwide, which is 63 percent of the
global population.” This data was taken from Statista’s Key Market Indicators (KMI)
‘The KMI are a collection of primary and secondary indicators on the macro-economic,
demographic and technological environment in up to 150 countries and regions
worldwide. All indicators are sourced from international and national statistical offices,
trade associations and the trade press and they are processed to generate comparable data
sets (see supplementary notes under details for more information

Of about 150 countries surveyed, the Philippines ranked No. 11 as the country
with the highest number of internet users, or about 85 million users, where China, with
more than a billion users, India and the United States ranked ahead all other countries
As of 2021, Asia’s region had the largest number of online users at over 2.8 billion, with
Europe ranking a far second with almost 744 million internet users.

Internet users continue to grow in big waves, such that the 12 months leading up
to April 2022, the world’s connected population grew by almost 200 million. The
average global internet user spends almost 7 hours online a day.


Considering the number of internet users in the country, and the role interne plays
in our lives, it is important that governments are able to craft the best policies and
exercise best practices to enhance internet usage. In this regard, one of the most
important concerns should be the protection of consumer rights over access, use and cost
of data allocation, such as enabling data rollover by service providers.

Data rollover is a feature that mobile service providers can offer on prepaid and
postpaid mobile plans. Data rollover or mobile data rollover is a feature in your monthly
mobile data plan that allows you to carry forward unused data in a given period. If you
exceed your data allowance in any given month, your mobile operator may charge you
for data overage, or block your usage once you exceed your limit. What happens then, to
your unused data allocation, if you do not consume your it within a given period?

This Bill aims to entitle consumers to a data rollover scheme which allows them
to take any leftover data from one month to the next month. For example, if the monthly
data allowance is 10 GB and only 8 GB has been used in the month of August, the
remaining 2 GB will be rolled over to the next month giving the user 12 GB in
September, which, in turn this extra 2GB must be used in September or a given period

This Bill enabling data rollover, protects consumers from unfair business
practices. Unused data allocation from internet data packages or promotions will not
expire but instead, be allowed to carry over to the next allocation in the succeeding
months until the end of the year. If at the end of the year there are still remaining unused
data allocations, the same may be converted into other forms of benefit or reward of
equal value to the internet user or subscriber. To ensure strict compliance, this measure
provides for the imposition of penalties for violations or non-compliance

This Bill is based on House Bill No. 9057 from the Committee Report of the
Committee on Information and Communication Technology chaired by Representative
Victor Yap in the 18 Congress, the “Roll-Over Internet Act.’ — This Bill was passed on
‘Third Reading after committee deliberations were done on House Bill No. 7509
introduced by Representatives Enrico A. Pineda and Michael Odylon L Romero; House
Bill No. 8085 introduced by Rep. Strike B. Revilla, and House Bill No. 8639 introduced
by Rep. Joy Myra S. Tambunting

In view of this, the early passage of this Bill is earnestly sought.

mal

RIA RAGHEL J. A iAS-
Representative
3rd Hpistrict of the Province of Pangasinan



Republic of the Philippines
HOUSE OF REPRESENTATIVES.

NINETEENTH CONGRESS
First Regular Session

House Bill No.L734

Introduced by Representative Maria Rachel J. Arenas

AN ACT
MANDATING AND INSTITUTIONALIZIN G ROLL-OVER DATA AL
SCHEME
AND PROVIDING FOR PENALTIES

OCATION

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

SECTION 1. Short Title. ? This Act shall be known as "Roll-Over Internet Act”

SECTION. 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 provided by internet service providers and
ensure that the interest and welfare of the people and the consuming public are protected
and upheld

SECTION 3. Definition of Terms. - As used in this Act

a. Data Capping refers to the limit of bandwidth allocation an internet service
providers (ISP) is offering to its subscriber per day, week, or month;

b. Internet Data Package refers to the internet service packages, plans or promos
offered by ISPs with maximum limits on the open access data volume an end user may
avail per set period of the package;

©. Internet Service Provider refers to any service-based operator whose services
involve the combination of computer processing, information storage, protocol
conversion, and transmission to enable subscribers to access internet content and services
as well as multimedia services and its transmission of data through digital subscriber line
(DSL), fixed wireless broadband, cable broadband, fiber optic or fiber-to-the-home
(ETTH) and mobile data to enable subscribers to access internet content and services, as
well as multimedia services,



4. Offer Duration refers to the length of time a subscriber or user is allowed to use
an internet data package service and promos.

©. Roll-Over Data Allocation refers to the unused internet data allocation per day,
week or month, as the case may be, depending on the applicable Internet Data Package,
which shall be carried over to the following day, week or month until it is fully

consumi

£. Unlimited Internet Data Package refers to an internet service package with no
data cap;
SECTION 4, Coverage. - All ISPs in the Philippines shall be covered by this Act.

SECTION 5. Roll-Over Data Allocation Scheme. - All ISPs are required to implement
a Roll-Over Data Allocation Scheme for their subscribers as follows:

a. For postpaid subscribers or users:

The rolled-over data allocation shall be prioritized to be consumed in the preceding
month: Provided, That the unused data every month will be rolled-over and accumulated
up until the last month of the year: Provided farther, That all unused data allocation for a
year may be used and converted as rebates, that may be used by subscribers as payment
for internet service in the succeeding year of subscription

b. For prepaid subscribers or users and postpaid subscribers who avail of internet data
package promo offers:

1. Unused data allocation shall be rolled-over provided that the subscriber or
user renews the subscription right after the lapse of the offer duration.

2. ‘The unused data allocation of subscribers or users who fail to renew
subscription shall be reduced by twenty percent (20%) every day until the
subscription is renewed.

3. Ifafter five (5) days, the subscription is not renewed, all unused data
allocation shall be considered consumed.

SECTION 6. Exemptions. - Subscribers who availed and shall avail of any unlimited
Internet data package with no data cap shall be exempted from this Act.

SECTION 7. Penalties. Any ISP who fails to comply with any of the provisions of this
Act, the following penalties shall be imposed

a. A fine of Fifty thousand pesos (P 50,000.00) per violation per subscriber; and

b. For repeated violations, aside from ?ne, revocation or cancellation of the license,
registration or franchise of an ISP including the waiving of any pre-termination
fees of affected subscriber.


SECTION 8. Implementing Rules and Regulations. - 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 rules and regulations and other issuances as may be

necessary to ensure the effective implementation of this Act.

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

SECTION 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

SECTION 11. Effeetivity. - This Act shall take effect fifteen (15) days after its
publication in the Official Gazette or in a newspaper of general circulation

Approved,