HOUSE F REPRESENT ses
RECEIVED
SEVENTEENTH CONGRESS. ) 11 AUG 2016
OF THE REPUBLIC OF THE PHILIPPINES ) Se

First Regular Section ) tvs SOO

By: f A
HOUSE OF REPRESENTATIVE:

PESS ON UNIT
House Bill No, 2869 | eis avy xwex Service

Introduced by Representative Vietor A. Yap

EXPLANATORY NOTE

Wireless telephone services are fast becoming the standard in many Filipino
homes and businesses. Competition between Telecommunication Companies (Telcos)
has driven down the price of such services and technological advance has likewise
made devices much more affordable. However, there is a lack of consumer protection
in this area, and it is necessary for the state to legislate, in the interest of consumers,
and to ensure that competition in this area occurs on a level playing field.

Among the common complaints raised are (a) consumer issues on the terms and
conditions under which the wireless telephone services are provided; (b) poor service
quality; (c) billing errors; (d) service interruption and maintenance issues; and (e) lack
of effective procedures to address consumer complaints. Hence, the necessity of this
proposed measure to establish consumer remedies.

Given the growing need for stability and efficiency in wireless telephone
services, this measure will likewise establish such standards as are necessary to ensure
the public interest while balancing the need for maintaining a competitive
environment that fosters innovation and growth amongst Telcos.

In view of the foregoing public interest, the immediate passage of this bill is
earnestly sought.

VIGTOR A. YAP
Representative. 2nd District of Tarlac


wns

CorNan

10
1
12
13
14
15
16
7
18
19
20
21
22
23
24

SEVENTEENTH CONGRESS )
OF THE REPUBLIC OF THE PHILIPPINES )
First Regular Session )

HOUSE OF REPRESENTATIVES

2869

House Bill No.

Introduced by Representative Vietor A. Yap

AN ACT
PROTECTING CONSUMERS OF WIRELESS TELEPHONE SERVICES

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

SECTION 1. Title. — This Act shall be known as the “Wireless Telephone Consumer

Protection Act”.

SECTION 2. Definitions. - For purposes of this Act, the following terms shall:

(a) Commission ~ means the National Telecommunications Commission (NTC);

(b) Internet — means the shared global computing network. A network based on
standards including Internet Protocol (IP), Simple Mail Transfer Protocol (SMTP)
and the Domain Name System (DNS), which enables global communications
between all connected computing devices. It provides the platform for web
services and the World Wide Web;

(c) Wireless telephone service ~ means commercial mobile radio service:

(d) Wireless telephone service provide or provider — means any entity that
provides wireless telephone service in the country; and

() Wireless telephone number information- means the telephone number,
electronic address and any other identifying information by which a calling party
may reach a subscriber to commercial mobile services, and which is assigned by a

wireless telephone service provider to such subscriber.

SECTION 3. Information Requirement. ~ Within one-hundred eighty (180) days
following the effectivity of this Act, the Commission shall adopt rules and regulations
requiring that any publication, including publication on the internet, of a wireless telephone
service provider concerning the terms of its plans or contracts for wireless telephone service

shall set forth, in a plain and conspicuous manner, the following information:


Cowan s

10
coe
12
13
14
15
16
7
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38

(1) Information on charges, including the originating location of the call, monthly
base charge, per-minute charges, for minutes not included in the plan, and the
method of calculating minutes charged;

(2) Information of the minutes included in the plan, including allowable minutes
during the daytime on weekdays, allowable minutes during nights and weekends,
or any other differing charges for long-distance, roaming and directory assistance;

(3) Information on plan contract terms, including length of contract, early or other
termination fees, trial periods, and start-up fees;

(4) Information on taxes to be collected by the provider for, and paid to the national,
local or other governmental agency;

(5) Information on surcharges imposed by the provider for the costs of compliance
with regulations for other purposes; and

(6) Any other information the Commission considers appropriate to ensure the
consumers of wireless telephone service are fully informed of the terms of the

plan or contract.

The wireless telephone service providers shall provide the information required by

this section to a consumer prior to entering into any contract with a consumer for wireless

telephone service.

SECTION 4. Information on Service Coverage. ~ Each wireless telephone service

provider shall make available maps showing the wireless telephone service of area of such
provider and the wireless telephone service area of such provider within the country. Such
maps shall contain the maximum predictable level of granularity and shall be updated

quarterly.

Each map of a service area shall be provided to a consumer:
(1) Upon the request of the Consumer; and

(2) Whenever a plan or contract for the service is entered into.
Each map of a service area shall be available:

(1) On the Internet website of the provider concerned; and

(2) On the Internet website of the Commission.

SECTION 5. Monitoring. - The Commission shall monitor the quality of wireless

telephone service providers based on the following standard:

(1) Dropped calls;
(2) Blocked calls;


Cowra es wn

10
oe
12
13
14
15
16
7
18
19
20
2
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38

(3) Known coverage gaps (including average signal strength) or dead zones;

(4) Predicted street level signal strength; and

(5) Any other matters the Commission considers appropriate.

In monitoring the quality of wireless telephone service, the Commission shall
establish a website which allows the public to submit their comments and views to the
Commission on the quality of such service. The Commission shall also accept written

complaints by mail.

SECTION 6. Availability of Information. ~ The Commission shall make information
available to wireless telephone service providers and the public on a semi-annual basis

concerning the quality of wireless telephone service of the provider.

SECTION 7. Extension of Contract. — An extension of a contract for wireless
telephone service shall not be valid unless the extension of the contract is in writing and is
signed by the subscriber, or confirmed in writing and signed by the subscriber within seven

(7) days of receipt by the subscriber.

SECTION 8. Notice of Change of Terms. ~ A wireless telephone service provider
shall provide subscribers with written notice of any change in rates, terms, or conditions of
service at least days before the change is to take effect. If any such change will result in
higher rates or more restrictions on service or otherwise will result in material, adverse
change for such subscriber, the subscriber may, within such thirty (30) day period, terminate
the service without penalty and receive a pro rata refund of the charges, if any, paid for the
handset used for the service. The notice of change shall inform the subscriber of the right to
terminate the contract, the right to handset refund, and the steps to take to implement such a

termination.

SECTION 9. Cancellation of Contract. — A contract for wireless service may be,
canceled upon the request of the subscriber for any reason during the first days. There shall
be no penalty or other costs to the subscriber for any cancellation during these thirty (30)
days, except that the subscriber shall be responsible for the cost of the service used during

the time period that the contract was in effect.

SECTION 10. Billing. ~ A wireless telephone service provider shall provide bills for
wireless telephone services that are clearly organized and clearly describe in plain language
the products and services for which charges are imposed, and that conform to format

standards established by the Commission.


Cow nnaewn

10
1
12
13
14
15
16
7
18
19
20
2
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38

SECTION 11. Taxes. - Taxes and fees which are required by the law, or local
ordinance or regulation to be collected from the subscriber shall be set forth in a separate
section of the bill and shall be itemized separately. This section of the bill shall only contain

charges that the provider is required to be recovered from the subscribers pursuant to law.

SECTION 12. Roaming Charges. - Roaming or off-network charges shall be
itemized on the subscriber's bill within sixty (60) days of the call being placed, and such

roaming or off-network charges shall identify the date and originating location of the call

SECTION 13. Request for Billing Statement, — Upon the request of the subscriber, a
wireless telephone service provider shall provide an itemized bill to the subscriber at no cost

to the subscriber.

SECTION 14. Charges on Unauthorized Use. — Charges associated with the use of
wireless telephone equipment or services shall not be the liability of the subscriber if such
use was unauthorized by the subscriber due to loss or theft, provided that such loss or theft is

promptly reported to the wireless telephone service provider.

SECTI

adopt rules and regulations as may be necessary to allow subscribers to file complaints with

15. Rules and Regulations on Complaints. ~ The Commission shall

the Commission with regard to billing disputes between wireless telephone service providers

and subscribers.

SECTION 16. Non-termination of service. ~ A wireless telephone service provider
shall refrain from terminating a subscriber's service for nonpayment so long as the
subscriber's billing complaint is pending before the Commission and for fifteen (15) days
thereafter, or for such period as the Commission for good cause shall establish: Provided,
that as a condition of continued service during the pendency of such dispute, the subscriber
shall pay the undisputed portions of any bill for service and any amount the Commission
determines as necessary to fairly compensate the wireless telephone providers for services

rendered while the complaint is pending and fifteen (15) days thereafter.

SECTION 17. Publication of Information. ~ A wireless telephone service provider,
or any direct or indirect affiliate or agent of a provider, providing the name and wireless
telephone number information of a subscriber for inclusion in any directory of any form, or

selling, leasing, licensing or sharing the contents of any directory database, or any portion or

segment thereof, shall not include the wireless telephone number information of any


Cavan swn

10
uw
12
13
14
15
16
7
18
19
20
2
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38

subscriber without first obtaining the express consent of that subscriber. The provider's form
for obtaining the subscriber's express consent shall meet all of the following requirements:

(1) It shall be a separate document that is not attached to any other document;

(2) It shall be signed and dated by the subscriber;

(3) It shall be unambiguous and legible, and shall conspicuously disclose that, by
signing the form, the subscriber contents to having the subscriber's wireless
telephone number information sold or licensed as part of a list of subscribers and
having the subscriber’s wireless telephone number information included in a
publicly available directory; and

(4) If under the subscriber's calling plan the subscriber may be billed for receiving
unsolicited calls or text messaging from a telemarketer, the provider's form shall
be unambiguous and legible, and shall conspicuously disclose that, by consenting
to have the subscriber’s wireless telephone number information sold or licensed
as part of a list of subscribers or be included in a publicly available directory, the
subscriber may incur additional charges for receiving unsolicited calls or text

messages.

SECTION 18. Revocation of Consent. — A subscriber who provides express prior
consent pursuant to the preceding section may revoke that consent at any time. A wireless
telephone service provider shall comply with the subscriber’s request to opt out within a

reasonable period of time, not to exceed sixty (60) days.

SECTION 19. Exceptions. — The provisions of Section 17 shall not apply to the
following parties for the purposed indicated:
(1) To a collection agency, to the extent disclosures made by the provider are
exclusively for the collection of the subscriber's unpaid debt to the provider;
(2) To any law enforcement agency;
(3) To a lawful process issued by the court under the law;
(4) To a telephone company providing service between service areas for the

provision to the subscriber of the telephone service between service areas, or

third parties for the limited purpose of providing billing services;
(5) To a telephone company to effectuate a subscriber's request to transfer the
customer's assigned telephone number from the customer's existing provider of

telecommunications services to a new provider of telecommunications services:

and
(6) To the Commission pursuant to its jurisdiction and control over wireless

telephone providers


Caovausun

10
a
12
13
14
15
16
7
18
19
20
2a
22
23
24
25
26
27
28
29
30
31
32

SECTION 20. Penalties. — Any director, officer or agent of a corporation who shall

authorize, order or perform any of the acts or practices constituting in whole or in part a
violation of Section 3, and who has knowledge or notice of noncompliance received by the
corporation from the Commission, shall upon conviction, be subject to a fine of not less than
One Hundred Thousand Pesos (P100,000) but not more than One Million Pesos
(P1,000,000) or imprisonment of not less than six (6) years but not more than twelve (12)

years, or both upon the discretion of the court.

In case the violation is committed by, or in the interest of a juridical person duly
licensed to engage in business in the Philippines, such license to engage in business shall be

immediately revoked.

SECTION 21. Authority of the Commission. - The Commission shall enforce this
Act in the same manner and by the same means as though all applicable terms and
provisions of the Public Telecommunications Policy Act of the Philippines were
incorporated into and made part thereof. The Commission may prescribe regulations to carry

out this Act.

SECTION 22. Separability Clause. — If any provision or part thereof is held invalid
or unconstitutional, the remainder of the law or the provision not otherwise affected shall

remain valid and subsisting.

SECTION 23. Repealing Clause. - All laws, presidential decrees or issuance,
executive order, letter of instruction, administrative order, rule or regulation contrary to, or
inconsistent with the provision of this Act is hereby repealed, modified or amended

accordingly.
SECTION 24. Effectivity. - This Act shall take effect fifteen (15) days from the date
of its publication in the Official Gazette or in at least two (2) newspapers of general

circulation.

Approved,