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Republic of the Philippines pave: _99 JUN garg
HOUSE OF REPRESENTATIVES 5... 70:20
Quezon City, Metro Manila v7
SEVENTEENTH CONGRES! vo

First Regular Session

633

House Bill No.

INTRODUCED BY REPRESENTATIVE XAVIER JESUS D. ROMUALDO-

EXPLANATORY NOTE

Cable television (“TV”) and telecommunications companies mainly employ cables and related
transmission equipment to deliver their services to their customers. These companies thus make
attachments to utility poles and make use of related support structures and rights of way to
transmit cable television or telecommunications signals, as the case may be

Because the establishment and maintenance of utility poles and related support structures and the
acquisition of rights of way require significant financial investments, only a few can afford to do
so. Hence, cable TV and telecommunications companies make use of pole attachments and pay
fees to pole owners for such attachments. This arrangement, however, has allegedly led to pole
‘owners charging excessive amounts for cable TV and telecommunications pole attachments. The
huge cost of making and maintaining pole attachments are then passed on to consumers

Congress must thus step in and regulate the use of utility poles, related support structures, and.
rights of way and the rates, terms, and conditions for making pole attachments in order to
promote the growth and expansion of the Philippine cable TV and telecommunications industries
and to enable the public to enjoy a more affordable and a wider array of cable TV and
telecommunication services. Indeed, our Constitution provides for the state policy recognizing
the vital role of communication and information in nation-building

In view of all the foregoing, the kind and favorable support of the Members of Congress for the
prompt and timely passage of this measure is earnestly sought.

kPa

XAVIER JESUS D. ROMUALDO


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila
SEVENTEENTH CONGRESS
First Regular Session

2
House Bill No. 633

INTRODUCED BY REPRESENTATIVE XAVIER JESUS D. ROMUALDO

AN ACT
REGULATING THE USE OF UTILITY POLES, RELATED SUPPORT STRUCTURES,
AND RIGHTS OF WAY FOR THE TRANSMISSION OF CABLE TELEVISION OR
TELECOMMUNICATION SIGNALS, INCLUDING THE RATES AND TERMS FOR
POLE ATTACHMENTS, 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 the Pole Attachments Act.

SEC. 2. Declaration of Policy ~ It is hereby declared the policy of the State to regulate
the use of utility poles, related support structures, and rights of way for the transmission of cable
television or telecommunications signals, as well as the rates, terms, and conditions for Pole
Attachments in order to promote the growth of the cable television and telecommunications
industries in the country and for the purpose of providing the public with wider access to and
reasonable rates for cable television and telecommunications services
The State shall guarantee that cable television operators and telecommunications companies may
secure and use their own or have and maintain access to utility poles, related support structures,
and rights of way used or usefull, in whole or in part, in the transmission of television or

telecommunications signals under a just and reasonable framework.

SEC. 3. Construction of this Act. — When there is any doubt or ambiguity in the
interpretation or implementation of the provisions of this Act, the same shall be liberally

construed in order to carry out this Act’s purposes and intent. Likewise, reference may be made


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to recognized standards of safety, industry practice, and generally accepted engineering

principles.

SEC. 4. Definition of Terms. ~ As used in this Act, the following terms are hereby defined,

as follows:

a. Pole Owner — refers to any natural or juridical person that owns or controls utility poles,
related support structures, or rights of way used or useful, in whole or in part, in the

transmission of cable television or telecommunications signals,

b. Pole Attachment — refers to an attachment made by an Attaching Company to a utility
pole, including its related support structure/s or right of way, used or useful, in whole or

in part, in the transmission of cable television or telecommunications signals,

c. Attaching Company ~ refers to any natural or juridical person that makes or maintains a
Pole Attachment for the purpose of transmitting cable television or telecommunications

signals

d. Pole Attachment Fee ~ refers to the total amount to be paid by an Attaching Company to
a Pole Owner at the end of every quarter of every calendar year on a per-utility pole

basis.

€. Additional Maintenance Expense ~ refers to the necessary quarterly expense directly and
exclusively pertaining to the preservation of the integrity and proper functioning of a Pole

Attachment.

f. Pole Premium — refers to the remuneration payable to a Pole Owner for allowing a Pole

Attachment on its utility pole


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SEC. 5. Formula for Computing the Pole Attachment Fee. — The Pole Attachment Fee shall

be equal to the sum of the Additional Maintenance Expense and the Pole Premium, wherein:

a. Unless proven otherwise by the Pole Owner or the Attaching Company, the Additional
Maintenance Expense shall be presumed to be P25.00; Provided, that such presumed
amount shall be adjusted by the National Telecommunications Commission (NTC) five
(5) years after the effectivity of this Act and every five (5) years thereafter, after due
public hearing. Nevertheless, any increase shall not be more than 20% of the present

presumed amount

The Pole Owner or the Attaching Company may dispute the presumed amount of Additional
Maintenance Expense and prove the actual amount of Additional Maintenance Expense
incurred before the NTC by presenting substantial evidence on the necessary quarterly costs
directly and exclusively pertaining to the preservation of the integrity and proper functioning
of the Pole Attachment. Prior to a determination by the NTC of the actual amount of
Additional Maintenance Expense, the presumed amount of Additional Maintenance Expense
shall be used as basis for any and all payments to be made, subject to an order for refund or

additional payment, as may later be determined by the NTC

b. The Pole Premium shall be equivalent to 12% of the Additional Maintenance Expense.

c. The number of utility poles for which Pole Attachment Fees shall be payable shall be
equal to the number of utility poles applied for attachment by the Attaching Company
less the number of attachments validly denied by the Pole Owner; Provided, that the
number of utility poles for which Pole Attachment Fees are payable may be disputed by
the Pole Owner or the Attaching Company before the NTC by presenting substantial
evidence on the actual number of utility poles utilized for Pole Attachments. Prior to a
determination by the NTC of the actual number of utility poles for which Pole
Attachment Fees shall be payable, the present number of utility poles for which Pole

Attachment Fees shall be payable shall be used as basis for any and all payments to be


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made, subject to an order for refuund or additional payment, as may later be determined by

the NTC.

SEC. 6, Non-Discriminatory Access. - A Pole Owner shall provide and maintain non-
discriminatory access for all utility poles and related support structures it owns, including rights
of way it controls, on terms and conditions uniform to all Attaching Companies, including its
own subsidiaries and affiliates; Provided, that a Pole Owner may deny, in writing, an application
for Pole Attachment due to safety or engineering hazards, Provided, further, that in the event a
Pole Owner validly denies an application for Pole Attachment or removes a Pole Attachment due
to an emergency and, thereafter, the reason for such denial or removal ceases or an additional
capacity for a Pole Attachment becomes available, the Pole Owner shall first offer the available
slot for Pole Attachment to the Attaching Company whose application was denied or whose Pole
Attachment was removed before utilizing the same or offering or allowing the same to be
utilized by another Attaching Company, including the Pole Owner's subsidiaries or affiliates
‘Any removal of a Pole Attachment that is not due to an emergency shall require the furnishing of
a prior written notice to the Attaching Company, within a reasonable period of time sufficient to

prevent disruption of service to the latter’s clients

All Pole Owners shall submit to the NTC a copy of all contracts entered into with
Attaching Companies for the use of Pole Attachments, utility poles, related support structures,

and rights of way.

SEC. 7. Rights and Obligations of the Parties. ~ In addition to those provided by the other
provisions of this Act and existing law, Pole Owners and the Attaching Companies shall have the
following rights and obligations:

a. Pole Attachments shall be made, modified, or removed at the cost of and under the

responsibility of the Attaching Company while the maintenance and replacement of
utility poles, related support structures, and rights of way shall be at the cost of and under

the responsibility of the Pole Owner.


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b. As far as practicable, the Attaching Company shall make, modify, or remove Pole
Attachments in a manner that preserves the integrity and proper functioning of utility
poles, related support structures, and rights of way; likewise the Pole Owner shall

conduct the maintenance and replacement of the utility poles, related support structures,

and rights of way. It shall be the responsibility of the Pole Owner to conduct regular
maintenance and replacement of defective, dilapidated, and hazardous utility poles and
such other related structures to preserve the integrity and proper functioning of the utility

pole and Pole Attachments.

c. In case of any dispute between the parties regarding a proposed, existing, or previous

Pole Attachment, the same shall be brought before the NTC for resolution.

SEC. 8. Unavailability of Utility Poles, Related Support Structures, and Rights of Ways. ~ In
case utility poles, related support structures, or rights of way used or usefull, in whole or in part,
in the transmission of cable television or telecommunications signals are not available for Pole
Attachment installation, licensed or legitimate cable television operators and telecommunications
companies may set up, secure, and use their own utility poles subject to the following conditions:

a. Utility poles, related support structures, and rights of way shall be set up, secured, and

used by licensed or legitimate cable television operators and telecommunications
companies at their own cost and responsibility

b. Utility poles, related support structures, and rights of way shall be set up, secured, and

used in accordance with recognized standards of safety, industry practice, and generally
accepted engineering principles.

c. Utility poles, related support structures, and rights of way set up, secured, and used by

licensed or legitimate cable television operators and telecommunications companies shall

be subject to the provisions of this Act.

SEC. 9. Penalty for Violation. ~ A Pole Owner or Attaching Company that is found by the
NTC to have violated any provision of this Act shall be compelled to rectify the violation at its

own cost, without prejudice to other applicable civil or criminal liabilities under existing law.


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SEC. 10. Jurisdiction of the National Telecommunications Commission. ~ The NTC shall
have primary and exclusive jurisdiction to determine and resolve all disputes arising from the
implementation of this Act, the rights and obligations of Pole Owners and Attaching Companies
under this Act, as well as those arising from contracts entered into by Pole Owners and Attaching
Companies for the use of Pole Attachments, utility poles, related support structures, and rights of

way.

SEC.11. Implementing Rules and Regulations. ~ The NTC shall, within sixty (60) days from
the effectivity of this Act, promulgate the necessary rules and regulations for the effective

implementation of this Act

SEC. 12. Appropriations. - The amounts necessary to carry out the provisions of this Act
shall be charged against any appropriate and available item or items in the budget of the NTC for

the current fiscal year and shall thereafter be included in the annual General Appropriations Act.

SEC. 13. Transitory Clause. ~ Pertinent acts and contracts entered into prior to the effectivity
of this shall be governed by the law in force at the time of their execution or perfection, as the
case may be; Provided that any revocation, modification, or novation made after the effectivity

of this Act shall be subject to the provisions of this Act.

SEC. 14. Separability Clause. — If any provision of this Act is declared invalid or

unconstitutional, the other provisions not affected thereby shall remain in full force and effect.

SEC. 15. Repealing Clause. - All laws, decrees, executive orders and issuances,
proclamations, rules and regulations, and other issuances or parts thereof that are inconsistent

with the provisions of this Act are hereby repealed or modified accordingly.

SEC. 16. Effectivity Clause, - This Act shall take effect fifteen (15) days after its publication
in the Official Gazette or a newspaper of general circulation.

Approved,