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TWENTIETH CONGRESS
First Regular Session

House Bill No.7 8

Introduced by Representative MARLESA “DOC MARLY” HOFER-HASIM

EXPLANATORY NOTE

Based on data from Statista, the number of internet users in the Philippines was estimated

at 104.5 million in the year 2024,

In the digital age, access to stable, high-quality internet and telecommunications services
indispensable to the economic, educational, and social well-being of every Filipino. As more
\dividuals, businesses, and institutions shift to online platforms, the demand for reliable and
uninterrupted connectivity has become a national imperative.

Despite this, consumers continue to experience frequent and prolonged service outages and
disruptions, often without warning, and with no corresponding adjustments in their billing. This
results in financial loss, inconvenience, and unfair charging practices, especially among remote
workers, online students, and prepaid subscribers.

This measure secks to institutionalize a consumer redress mechanism for such service
failures by mandating Public Telecommunications Entities (PTEs), including Internet Service
Providers (ISPs), to provide automatic bill adjustments or refund credits to customers who
experience service interruptions or outage.

Under this Act, PTEs and ISPs are required to automatically apply pro-rated refunds or bill
adjustments to affected accounts without the need for demand from the subscriber, following a
standard verification process to be overseen by the appropriate regulatory body. Subscribers re
the right to file a complaint with the proper administrative or quasi-judicial agency in case of
disputes regarding the computation or application of the refund.

The proposed measure ensures equity for prepaid subscribers, who are often excluded from
such redress mechanisms. The same refund credit shall be granted to prepaid users whose service
was adversely affected, ensuring all customers are protected regardless of their payment model.
By enacting this bill, the State affirms its commitment to consumer protection, service
accountability, and digital faimess.

This proposal is still pending in the Senate after being approved on third and final reading
in the House of Representatives during the previous 19th Congress.

In view of the foregoing, the immediate and favorable passage of this measure is eamestly

sought.
har “

MARLESA “DOC MARLY” HOFER-HASIM
Representative, 2 District of Zamboanga Sibugay



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

TWENTIETH CONGRESS
First Regular Session

178

House Bill No. ~

Introduced by Representative MARLESA “DOC MARLY” HOFER-HASIM

AN ACT
MANDATING PUBLIC TELECOMMUNICATIONS ENTITIES AND INTERNET
SERVICE PROVIDERS TO INSTITUTE AN AUTOMATIC REFUND MECHANISM
FOR SERVICE OUTAGES AND DISRUPTIONS, PROVIDING PENALTIES FOR
VIOLATIONS THEREOF

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

SECTION 1. Short Title. - This Act shall be known as “Automatic Refund for Internet and

Telecommunications Services Outages and Disruptions Act.”

SEC. 2. Declaration of Policy. ~ The State recognizes the vital role of information and
communications technology in nation building. The State shall implement measures to provide
for regulations on  intemet and  telecommunications services offered by public
telecommunications entities (PTEs) and internet service providers (ISPs) and ensure that the

interest and welfare of its people and the consuming public are protected and upheld

SEC. 3. Definition of Terms. - As used in this Act:

a.Fortuitous event tefers to either an “act of God” or natural occurrences, such as floods,

typhoons, storms, earthquakes and the likes; or an “act of man”, such as riots, strikes,
wars, governmental prohibitions, robbery, theft, sabotage, cyberattacks, deliberate
destruction, or accidental damage to telecommunications facilities by third parties and
the likes;

b.internet refers to the biggest global computer network providing a wide variety of
information and communication facilities, consisting of interconnected networks using

standardized communication protocols;


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b.lnternet refers to the biggest global computer network providing a wide variety of
information and communication facilities, consisting of interconnected networks using
standardized communication protocols;

c.internet Access refers to the process of connecting to the internet using personal
computers, laptops, or mobile devices by users;

d.mternet Service Provider (ISP) refers to a public telecommunications entity (PTE) or
value-added service (VAS) provider duly authorized by or registered with the National

Telecommunications Commission (NTC) that provides users or other entities with data

connection allowing internet access through physical transport infrastructure, and such

access is necessary for internet users to access content and service on the internet, and
for content providers to publish or distribute materials online;

e.Network maintenance refers to any process, whether minor or major, that is deemed
necessary to sustain or update the services. This is further categorized as “scheduled”
and “emergency”. The services provided may not be available during periods of
maintenance, thus:

i) Scheduled network maintenance refers to planned repairs and improvements
carried out from time to time by PTEs and ISPs and shall not be deemed as
service outage or disruption; and

ii) Emergency network maintenance refers to unscheduled maintenance where a
repair is needed to an internet equipment or facility that suffered from

unexpected breakdown or change in condition

fPublic Telecommunications Entity or PTE refers to any person, firm, partnership or
corporation, government or private, engaged in the provision of telecommunications
services to the public for a fee; and

8. Scheduled network maintenance refers to planned repairs and improvements, carried out
from time to time by PTEs and ISPs, which are notified at least 48 hours in advance and
which shall not exceed a cumulative duration of 48 hours per month, shall not be deemed

as service outage;

SEC. 4, Coverage. — All Public Telecommunication Entities (PTEs), including internet
service providers (ISPs) in the Philippines shall be covered by this Act.

SEC. 5. Automatic Refunds for Internet and Telecommunications Service Outages and
Interruptions. - PEs, including ISPs, shall, on a pro-rated basis, provide a refund credit to a
customer, or adjust a customer's bill, who was adversely affected by an internet service outage
or interruption for an aggregate period of twenty-four (24) hours or more, within a month, except
when the reason for such outage is due to scheduled maintenance which should be notified 48
hours prior to the scheduled maintenance and should not exceed 48 hours in a month, a fortuitous

event, or acts of third party or subscriber.


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‘The PTEs and ISPs concerned shall apply a bill adjustment, automatically, without need of
demand from the subscriber, after a standard process but shall not preclude the consumer from
filing a complaint to the appropriate administrative or quasi-judicial agency for disputes regarding

refund or bill adjustment amount.

‘The refund credit granted under the circumstances mentioned supra, shall likewise be granted

to customers subscribing to a service on a pre-paid basis.

SEC. 6. Penalties. ‘The NTC may, motu proprio or upon complaint of any interested party,

in the appropriate administrative or quasi-judicial process, and in accordance with due proces

)Impose a fine of not less than Fifty thousand pesos (P50,000.00) but not more than Two
hundred thousand pesos (P200,000.00) for each count of violation; and

b)For repeated violations, aside from fine, revocation or cancellation of the license,

registration or franchise of the PTEs or ISPs, whichever applies, including the waving

of any pre-termination fees of affected subscribers and timely disbursement of any

remaining credits from excessive downtime.

SEC. 7. Implementing Rules and Regulations. — Within sixty (60) days from the
effectivity of this Act, the NTC shall, in coordination with the Department of Information and
Communications Technology, and other concerned agencies, promulgate the rules and
regulations necessary to ensure the effective implementation of this Act.

SEC. 8 Repealing Clause, — All laws, presidential decrees, executive orders,
proclamations, rules and regulations, or any part thereof, which are inconsistent with the

provisions of this Act are hereby repealed or modified accordingly.
SEC. 9. Separability Clause. ~ If any provisions or part of this Act, or the application
thereof to any person or circumstance, is held unconstitutional or invalid, the remainder of this

Act shall not be affected thereby.

SEC. 10. Effectivity Clause. - This Act shall take effect fifteen (15) days from its
publications in the Official Gazette or in a newspaper of general circulation.

Approved,