SIXTEENTH CONGRESS
REPUBLIC OF THE PHILIPPINES
First Regular Session

6S RECEIVED ”
B yr 03 FEB 2014

HOUSE OF REPRESENTATIVES oe

Introduced by Representative Rufus B. Rodriguez and
Representative Maximo B. Rodriguez, Jr.

"3804 —

EXPLANATORY

House Bill No.

Telecommunications facilities are indispensable to the economic development of the
Philippines. By making the cost of telecommunications services affordable of the public, a
greater number of people can avail of the advantages of modem technologies. For this
purpose, the National Telecommunications Commission is tasked to promote consumer's
welfare by facilitating access between telecommunications entities.

‘Access charge or interconnection charge ranges from fifteen (.15c) centavos to thirty
five (.35c) centavos for short messaging service (SMS). With the big volume of SMS sent
daily, removing the interconnection charges in every message sent will still allow the
telecommunications companies to eam substantial return on their investment. The same is
true with mobile voice services which approximately costs four pesos (P4.00) to six pesos
(P6.00) per minute as interconnection charge. With the removal of the interconnection
charge, a minute call will become very affordable to the public. Hence, this bill.

It is also a fact that by the billions of pesos eamed annually by the
telecommunications companies the expenses incurred in setting up the interconnection
facilities have already been fully recouped.

‘As view of the foregoing, approval of this bill is earnestly sought.

i,



SIXTEENTH CONGRESS )
REPUBLIC OF THE PHILIPPINES ‘
First Regular Session

HOUSE OF REPRESENTATIVES

Introduced by Representative Rufus B. Rodriguez and
Representative Maximo B. Rodriguez, Jr.

House Bill No, 3804

AN ACT
ABOLISHING THE INTERCONNECTION CHARGES IMPOSED BY
TELECOMMUNICATIONS COMPANIES, AMENDING FOR THE PURPOSE REPUBLIC
ACT NO, 7925, OTHERWISE KNOWN AS THE “PUBLIC TELECOMMUNICATIONS
POLICY ACT OF THE PHILIPPINES”

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

SECTION 1. Section 9 (a) of Republic Act No, 7925 is hereby amended to read as
follows:

"SEC. 9, Inter-Exchange Carrier. ~ The number of entities allowed to
provide inter-exchange national long distance services may be limited but as
a matter of policy, where it is economically viable, at least two (2) carriers,
shall be authorized: Provided, however, That a local exchange carrier shall
not be restricted from operating its own inter-exchange carrier service if its
Viability is dependent thereto, Such interexchange carrier shall have the
following obligations:

a) It shall interconnect with other networks in the same category and with local
‘exchange carriers or other telecommunications entities, upon application and
within a reasonable time period, in order that domestic and international long
distance services are made possible: Provided, That no interconnection charges
shall be imposed by any of the telecommunication entities; and

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SEC. 2. This Act shall take effect fifteen (15) days after its publication in at least two
(2) national newspapers of general circulation.

Approved,