THIRTEENTH CONGRESS OF THE REPUBLIC ) 
1 
5 RUE 23 P 2 4 8  
OF THE PHILIPPINES 
Second Regular Session 
1 
Introduced by Senator Miriam Defensor Santiago 
EXPLANATORY NOTE 
This bill was originally drafted by the interns of the Summer sa Senado 2005 
internship program, namely: Bernice V. Francisco; Andrew I. Ruanto; Eugen Aison T. 
Soriano; and Reynard Kayne R. Ycasiano. 
The Constitution provides that: 
Article 2, Section 24. The State recognizes the vital role of 
communication and information in nation-building; and 
Article 16, Section 9. The State shall protect the consumers 
from trade malpractices and from substandard or hazardous 
products ; 
Republic Act No. 7394, also known as the "Consumer Act of the Philippines," 
provides that: 
The State shall promote and encourage fair, honest and 
equitable relations among parties in consumer transactions and 
protect 
fhe consumer 
against 
deceptive, 
unfair 
and 
unconscionable sales acts or practices. (Article 48) (Italics 
supplied.) 
The use of cellular mobile phones has influenced the Filipino lifestyle and has become 
a necessity even among the young. For better or worse, keeping in touch with family, friends, 
and business oolleaguea has bacome inore convenient as cellular mobile phone technology 
improves and becomes cheaper. 
Along with the rapid increase in cellular mobile phone subscribers, however, there are 
increasing complaints about certain unwanted services which include ringing tones, 
polyphonic tones, video and picture messages, etc. Specifically, prepaid credit has been 
deducted involuntarily due to these unsought services that the cellular mobile phone providers 
extend to their subscribers. Evidently, these networks force subscribers to enter into an 
excessively one-sided transactions or contracts of adhesion. 


The right of subscribers to decide how they may waiit to spend their credits should be 
affirmed; only they can decide how to get value out of their hard-earned money. 
This bill seeks to prohibit cellular mobile phone service providers from conveying or 
transmitting unsought services that are automatically and involuntarily charged against the 
account of subscribers by imposing penalties on unlawful acts of the said providers. 
* 
I 


THIRTEENTH CONGRESS OF THE REPUBLIC ) 
1 
IJ 
AUli 23 P 2 3 8  
OF THE PHILIPPINES 
Second Regular Session 
) 
d 
SENATE 
G 
S.B. No. +J).&8 
. , 
IIECEIVED BY : ,..--..-.-.-- 
“ 
Introduced by Senator Miriam Defensor Santiago 
AN ACT 
PROHIBITING CELLULAR MOBILE PHONE PROVIDERS FROM 
CONVEYINO UNSOUOHT SERVICES THAT ARE AUTOMATICALLY AND 
INVOLUNTARILY CHARGED AGAINST THE ACCOUNT OF SUBSCRIBERS, 
IMPOSING PENALTIES ON UNLAWFUL ACTS OF THE PROVIDERS 
Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled: 
c. 
SECTION 1. Short Title. - 
This Act shall be known as the “Unsought Cellular 
Mobile Phone Services Act of 2005.” 
SECTION 2. Declaration of Policy. - The State recognizes the vital role of 
telecommunications in economic growth and development. Towards this end, the state shall 
implement measures to achieve the following objectives: 
a) safeguarding against deceptive, unfair and unconscionable trade acts and 
practices; 
b) provision for information and education to facilitate sound choice and the 
proper exercise of rights by the consumer; 
c) provision for adequate rights and means of redress; and 
d) provision for sanctions and penalties for the offenders. 
SECTION 3. Defkition of Terms. - 
a) “Account” -refers to the financial credit of a subscriber; 
b) “Cellular mobile phone” - refers to any wireless telephone that 
communicates with a local transmitter using a short-wave analog or digital 
transmission. This definition includes units that are capable of relaying and receiving 
visible and/or audible electronic messages; 


c) “NTC” - refers to the National Telecommunicatioiis Commission; 
d) “Postpaid Credit” - refers to a conventional method of payment for wireless 
service where a subscriber pays for a significant portion of services and usage in 
arrears, subsequent to consuming the services; 
e) “Prepaid Credit” - refers to a method of payment for wireless service that 
allows a subscriber to prepay for a set amount of airtime in advance of actual usage; 
f )  “Provider” - refers to every cellular mobile phone service provider or any 
profit-oriented entity or company that provides wireless telecommunications to its 
subscribers; 
g) “Subscriber” - refers to a user of wireless service bought from a provider or 
a person who avails the cellular mobile phone services offered by a provider; and 
h) “Unsought services’’ - refers to the services which include ringing tones, 
polyphonic tones, video and picture messages, etc., that a subscriber did not purchase 
under his postpaid or prepaid account but is nonetheless sent or transmitted to him 
without permission. 
SECTION 4. Unlmfuiful Acts. - 
It shall be unlawful for any provider to automatically 
. m 
and involuntarily charge its subscribers for unsought services that in effect: 
a) reduce the prepaid credit of a subscriber; or 
b) increase the postpaid credit of a subscriber. 
The prohibition of this section shall not apply to unsought yet free-of-charge services 
used by any provider to induce its subscribers for purposes of advertisement, campaign, and 
promotion. 
SECTION 5. Information Campaign. - The NTC shall undertake to implement an 
education and awareness campaign to inform the public of the provisions of this Act. It shall 
regularly publish a list of the offenders found to have violated any provision ofthis Act. 
SECTION 6. Penalties for Unlawful Acts. - 


(a) In General. - 
Not later than three (3) months after the date of enactment 
of this Act, the NTC, in coordination with the Department of Trade and Industry 
(DTI), shall issue rules and regulations that - 
i) prohibit any automatic and involuntary charge for unsought services; 
ii) impose appropriate sanctions such as suspension of the operation 
andlor revocation of the permit to operate of the guilty provider; 
iii) impose a penalty of not less than Five Hundred Thousand Pesos 
(P500,OOO.OO) but not more than One Million Pesos (P1,000,000.00); and 
iv) carry out the provisions of this Act. 
(b) Determination of Unlawful Acts. - 
The NTC, in coordination with the 
DTI, shall develop a system that will determine whether any cellular mobile phone 
service provider commits any unlawful acts provided in Section 4. 
SECTION 7. Disposition of Penalties. - All penalties under this Act shall be 
earmarked solely and used exclusively for the following: 
a) the development and maintenance of a long-term strategic national 
development plan for telecommunications; and 
b) the provision of adequate and efficient telecommunications facilities in 
unserved and underserved areas. 
SECTION 8. Separability Clause. - 
If any provision, or part hereof, is held invalid or 
unconstitutional, the remainder of the law or the provision not otherwise affected shall remain 
valid and subsisting. 
SECTION 9. Repealing Clause. - 
Any law, presidential decree or issuance, executive 
order, letter of instruction, administrative order, rule or regulation contrary to or inconsistent 
with the provisions of this Act is hereby repealed, modified, or amended accordingly. 
.? 
SECTION 10. Efectivity Clause. - This Act shall take effect fifteen (15) days after 
its publication in at least two (2) newspapers of general circulation. 
Approved,