EIGHTEENTH CONGRESS OF THE ) 
SENATE OF THE PHILIPPINES 
)
First Regular Session 
)
SENATE
S. No.
340
■irtf
t T^vrrrtsrp
.11.11 
A11:10
Introduced by SENATOR CYNTHIA A. VILLAR
AN ACT
PROHIBITING 
TEXT 
SCAMS, 
MISLEADING 
ADVERTISEMENTS, 
AND 
FRAUDULENT SALES PROMOTIONS, MANDATING FOR THIS PURPOSE THE 
REGISTRATION OF ALL USERS OF SUBSCRIBER IDENTITY MODULE (SIM ) 
CARDS, AND PROVIDING PENALTIES FOR THE VIOLATIONS THEREOF
EXPLANATORY NOTE
Article II, Section 24 of the 1987 Philippine Constitution states that the "State 
recognizes the vital role of communication and information in nation-building". 
Pursuant to this national policy, laws have been passed supporting the growth of the 
telecommunications industry in the Philippines, which is in turn essential to the 
country's economic development, integrity, and security.
There is no doubt that that the existence of mobile phones has largely 
contributed to the growth of the economy as the ease and speed with which people 
can connect with each other help improve the efficacy of business. The downside, 
however, is the risk in the security and safety of the mobile phone user.
It should be noted that mobiles phones require a Subscriber Identification 
Module or SIM card, which is used to connect to a wireless service provider and 
access its services. A SIM card holds all of a subscriber's personal information and


phone settings and is the subscriber's authorization to use the network. It also holds 
the phone number, personal security key and other data necessary for the handset 
to function.
SIM cards can either be for a post-paid or prepaid account, the difference 
being that in the former, the SIM card is registered under the subscriber's name 
including all the details necessary to identify said subscriber, while in the latter, no 
registration is necessary, and anyone can simply buy a prepaid SIM card from the 
network itself or from re-sellers and start using it.
Although prepaid cellular service has its advantages, the fact that it provides 
anonymity to the subscriber becomes appealing to those who wish to commit 
mischief and other crimes. Prepaid SIM cards are commonly used by syndicates in 
committing fraudulent money-making activities like e-raffle and random lottery, used 
by "dugo-dugo gang" in committing robbery, used by individuals for harassments, 
and it is even used by unscrupulous individuals to impersonate personalities and 
solicit donations. Basically, anyone with a prepaid SIM card can do anything and not 
be caught because they cannot be traced, their identity cannot be determined, and 
they can simply throw away the SIM card after use.
It is estimated that the National Telecommunications Commission (NTC) 
receives one thousand (1,000), more or less, complaints for text scams. The NTC 
has admitted that apprehending scammers is difficult considering that they can 
always buy a new prepaid SIM card even if the old one was blocked.1 
As a 
preemptive measure against scams, 
the NTC, from time to time, engage in 
intensified information drive to warn the public against the latest text scams.
Similarly, the Department of Trade and Industry (DTI) and the Bangko 
Sentral ng Pilipinas (BSP) has cautioned the public against text scams sent to 
random mobile phone numbers using ordinary2 cellphone numbers that are prepaid 
accounts.
1http://www.abs-cbnnews.com/video/nation/metro-manila/07/22/14/how-text-scammers-get-your-phone-numbers
2 Ordinary cellphone numbers contain at least seven digits on top of the country code, area code, and network 
code.


With the proliferation of text scams and in order to curb misleading 
advertisements and the fraudulent sales promotions, which is made easy through 
the use of prepaid SIM cards, the proposed measure therefore seeks the mandatory 
registration of all prepaid SIM card users. This is similar to the practices of countries 
like Singapore3 and Kenya4 on buying prepaid SIM cards.
In view foregoing, immediate passage of this bill is immediately requested.
CYNTHIA A. VILLAR
3 http://www.guidemesingapore.com/blog-post/singapore-life/getting-a-prepaid-sim-card-in-singapore
4 http://www.humanipo.com/news/1836/Tough-rules-on-SIM-cards-by-December-CCK-says/


EIGHTEENTH CONGRESS OF THE ) 
SENATE OF THE PHILIPPINES 
)
First Regular Session 
)
SENATE
' ( D l ' i l l l '  o ’ I -1 ■
*19 JULll Alino
S. No. 
RECEiW-^ff:
Introduced by SENATOR CYNTHIA A. VILLAR
AN ACT
PROHIBITING 
TEXT 
SCAMS, 
MISLEADING 
ADVERTISEMENTS, 
AND 
FRAUDULENT SALES PROMOTIONS, MANDATING FOR THIS PURPOSE THE 
REGISTRATION OF ALL USERS OF SUBSCRIBER IDENTITY MODULE (SIM ) 
CARDS, AND PROVIDING PENALTIES FOR THE VIOLATIONS THEREOF
Be it enacted by the Senate and House o f the Representatives o f the 
Phiiippines in Congress assembied:
1 
Section 1. Short Tide. -  This Act shall be known as the "Prepaid SIM Card
2 
Registration Act".
3 
Sec. 2. Deciaration o f Poiicy. -  It is the policy of the State to protect the
4 
interest of the consumer, promote his general welfare, and to establish standards of
5 
conduct for business and industry. Further, it is declared the policy of the State to
6 
protect the consumer from misleading advertisements and fraudulent sales
7 
promotion practices.
8 
To ensure the fulfillment of this goal, all users of subscriber identity module
9 
(SIM) cards, whether post-paid or pre-paid, shall be required to be registered and
10 
recorded with the National Telecommunications Commission (NTC).
11
Sec. 3. Definition o f Terms. -  As used in this Act:


1 
(a) 
Subscriber Identity Module or SIM Card refers to the removable plastic
2 
into which an integrated circuit that securely stores the international
3 
mobile subscriber identity and the related key used to identify and
4 
authenticate subscribers on mobile telephone devices is embedded,
5 
and which can be transferred between different mobile devices;
6 
(b) 
Prepaid SIM Card refers to a SIM card for which credit is purchased in
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advance of service use. Upon consumption of the credit or expiration
8 
of the term for the use of the credit, access to the requested service is
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denied;
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(c) 
Post-paid SIM Card refers to a SIM card for which the price for the use
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of sen/ice is billed and paid after such use and depends on the
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arrangement between the public telecommunications entity and user
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thereof;
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(d) 
Public Telecommunications Entity or PTE, as defined under Republic
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Act No. 7925, otherwise known as the Public Telecommunications
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Policy Act of the Philippines, refers to any person, firm, partnership or
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corporation, government or private, engaged in the provision of
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telecommunications services to the public for compensation; and
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(e) 
Subscriber refers to the user or owner, whether natural or juridical, of
20 
the prepaid SIM card.
21 
Sec. 4. Mandatory Registration o f Prepaid SIM Card Users. -  Except as
22 
otherwise stated in Section 6 of this Act, all persons wishing to purchase a prepaid
23 
SIM card shall be required to register the same under their name, showing
24 
competent proof of their identity. The purchased prepaid SIM card shall be for the
25 
account of and under the name of the purchaser, except in a representative
26 
capacity, in which case Section 5 herein shall apply.
27 
Existing users of prepaid SIM cards shall likewise be required to register the
28 
same within one hundred eighty (180) days from the effectivity of this Act. Failure


1 
to register within the prescribed period shall authorize the corresponding PTE to
2 
automatically deactivate its services to the specific existing prepaid SIM card user.
3 
Sec. 5. Representative Registration. -  In case the purchaser is not the end
4 
user of the prepaid SIM card, the purchaser shall have to present proof of identity of
5 
the end user for whom the prepaid SIM card is purchased, as well as a notarized
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letter of authorization, authorizing the purchaser to buy the prepaid SIM card in the
7 
name of the end user.
8 
In cases where the end user of the prepaid SIM card is a minor, the parent or
9 
guardian of the said minor shall include in the registration form a consent letter for
10 
the minor's use of the prepaid SIM card, together with the proofs of identity of the
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parent or guardian and the minor.
12 
Sec. 6. Corporate Prepaid Accounts. -  For prepaid accounts to be purchased
13 
by corporations, companies, associations, organizations, and other similar entities for
14 
the use of its employees or members, it shall be enough, for purposes of
15 
registration, that the prepaid account be registered under the name of the
16 
corporation, company, association, or organization as it appears in its articles of
17 
incorporation, association, or organization registered before the Securities and
18 
Exchange Commission or Department of Trade and Industry.
19 
The corporation, company, association, organization, or other similar entity
20 
shall, upon registration, submit a list of its personnel who shall be assigned the
21 
prepaid SIM card/s to be purchased.
22 
Corporations, companies, associations, organizations, and other similar
23 
entities possessing existing corporate prepaid accounts shall likewise be required to
24 
register its corporate prepaid accounts under its name with the list of its personnel
25 
currently using the same.
26 
Sec. 7. Role o f Sellers. -  It shall be the duty of the sellers of prepaid SIM
27 
cards to require purchasers of prepaid SIM cards to present government issued IDs
28 
reflecting their respective pictures before acquiring and activating the prepaid SIM
29 
cards.


1 
Sellers are further required to keep a record of the personal information of all
2 
their buyers and register the same with the corresponding PTE within fifteen (15)
3 
days from date of sale. It is incumbent upon the sellers to verify that the purchaser
4 
and the identification given are one and the same and shall see to it that all
5 
information required in the registration form is complete before selling the prepaid
6 
SIM card.
7 
Sec. 8. Role o f PTEs. -  It shall be the duty of the PTEs to keep a record of
8 
all their prepaid subscribers, including those registered with them by the sellers.
9 
Within fifteen (15) days from sale of the prepaid SIM card or from submission of the
10 
accomplished registration form by the sellers, the PTEs shall submit a copy of the
11 
same to the NTC.
12 
It shall likewise be the duty of the PTEs to submit to the NTC any changes in
13 
the ownership of the prepaid SIM card, within fifteen (15) from submission of such
14 
change.
15 
Incomplete registration forms submitted by the sellers shall authorize the
16 
corresponding PTE to deactivate its services to the specific prepaid SIM card user,
17 
provided, however, that notice and sufficient time is given the prepaid subscriber to
18 
complete the registration form. The PTE may temporarily deactivate its sen/ices to
19 
the specific SIM card user to compel complete registration.
20 
Sec. 9. Role o f NTC. -  The NTC shall be the chief agency in charge of
21 
implementing the provisions of this Act. It shall prescribe the form and necessary
22 
information required to be provided by the subscriber in the registration form as well
23 
as any changes therein.
24 
In the implementation of the provisions of this Act, the NTC may require the
25 
assistance of the Department of Trade and Industry (DTI) and the National Bureau
26 
of Investigation (NBI). The NTC shall likewise keep a registry of all prepaid
27 
subscribers as submitted by the PTEs.


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A massive information campaign must be implemented by the NTC, in 
cooperation with the Philippine Information Agency, to inform the public of the need 
for mandatory registration of prepaid SIM Cards.
Sec. 10. Changes in Prepaid SIM Account. -  In case of changes in their 
personal information or ownership of the prepaid SIM card, it shall be the duty of 
the concerned subscriber to submit the change to the corresponding PTE within 
fifteen (15) days from such change.
In case of change in ownership of the prepaid SIM card, whether donated or 
resold, the former subscriber shall include therein the registration form accomplished 
by the new subscriber.
For corporate entities as described under Section 6 of this Act, changes in its 
assigned personnel using the corporate prepaid SIM card shall be shall be submitted 
by the corporate entity to the corresponding PTE within thirty (30) days from such 
change.
Sec. 11. Pena! Provisions. -  W ithout prejudice to the filing of administrative 
cases, any person, whether juridical or natural, who violates any of the provisions of 
this Act shall, upon conviction by a court of competent jurisdiction, shall suffer the 
following as the case may be:
First Offense:
Second Offense:
Third Offense:
Fine 
of not 
less 
than Ten 
thousand 
pesos 
(Phpl0,000.00) 
but 
not 
exceeding 
Twenty 
thousand pesos (Php20,000.00);
Fine of not less than Twenty thousand pesos 
(Php20,000.00) but not exceeding Fifty thousand 
pesos (Php50,000.00) or imprisonment of not less 
than six (6) months but nor exceeding one (1) 
year or both;
Fine of not less than 
Fifty thousand 
pesos 
(Php50,000.00) but not exceeding One hundred


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g
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thousand pesos (Phpl00,000.00) or imprisonment 
of not less than one (1) year but not exceeding 
two (2) years.
4 
If the offense is committed by a corporate entity, the President and other
5 
executive officers shall be held liable for the above penalties.
6 
In case the offense is committed by a PTE or seller of prepaid SIM cards, the
7 
PTE or seller shall be suspended from selling the same as follows:
First Offense:
Three (3) months from finality of judgment;
Second Offense: 
Six (6) months from finality of judgment;
Third Offense: 
Three (3) years from finality of judgment.
Sec. 12. Implementing Rules and Regulations. -  The NTC shall issue such
12 
orders, rules and regulations, and other issuances as may be necessary to ensure
13 
the effective implementation of this Act.
14 
Sec. 13. Separability Clause. -  If for any reason, any part of or provision of
15 
this Act is declared unconstitutional or invalid, such parts not affected thereby shall
16 
remain in full force and effect.
17 
Sec. 14. Repealing Clause. -  Any law, executive order, letter of instruction,
18 
rules and regulations, circulars, issuances or any part thereof inconsistent with any
19 
of the provisions of this Act is hereby repealed, modified or amended accordingly.
20 
Sec. 14. Effectivity Clause. -  This Act shall take effect fifteen (15) days after
21 
its publication in the Official Gazette or in at least two (2) newspapers of general
22 
circulation.
23
Approved,