HOUSE OF REPRESENTATIVES,
Quezon City

NINETEENTH CONGRESS
First Regular Session

HOUSE BILL NO. 433 2

Introduced by HON. LINABELLE RUTH R. VILLARICA
4™ DISTRICT, BULACAN

EXPLANATORY NOTE

The Philippine State has to transition to the new normal due to the COVID-19 pandemic
and the Enhanced Community Quarantine (ECQ) that has ravaged its economy and its populace.
It must now regain the improved economic performance it has made to uplift the lives of our
people. Establishing a broadband internet infrastructure is an effective tool for this purpose, more
so in a globalized setting.

However, the broadband technological services in the Philippines has since remained poor.

This proposed bill seeks to address this concern by establishing Information and
Communications Technology (ICT) Hubs nationwide. It will put in place a framework to facilitate
a viable program that can develop ICT Hubs in identified locations outside Metro Manila within a
given period. This can generate more jobs and develop the many untapped potentials of the
countryside. This can further expand to more opportunities and sustained growth for the various
industries and sectors.

This bill was filed during the 17" and 18" Congresses but due to time constraints no further
action was taken on it. It is re-filed for the consideration of the 19" Congress.

Support for the enactment of this measure is earnestly requested.

Ga

REP. LINABELLE RUTH R. VILLARICA




Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

NINETEENTH CONGRESS
First Regular Session

4332

HOUSE BILL NO.

Introduced by HON. LINABELLE RUTH R. VILLARICA.
4™ DISTRICT, BULACAN

AN ACT
ESTABLISHING INFORMATION AND COMMUNICATIONS TECHNOLOGY HUBS
NATIONWIDE AND FOR OTHER PURPOSES.

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 the “Online Network Philippines
Act”.

SEC. 2. Declaration of Policy. ~ It is the declared policy of the State to recognize the
vital role of information and communication in nation building and encourage investment in
the countryside by providing the infrastructure necessary for the growth of information and
communications technology (ICT). Toward this end, the State shall provide for the creation
and establishment of ICT Hubs across the country.

SEC. 3. The Information and Communications Technology Hubs. — There shall be
established ICT Hubs all over the country. It shall adopt a national information and
Communications Technology (ICT) Plan as prepared by the Department of Information and
Communications Technology Office (DICT), in coordination with the National
Telecommunications Commission (NTC).

Pursuant to the ICT Plan and the national, provincial, city, or municipal spatial
development plans, the DICT shall identify the area where the ICT Hubs shall be established
based on geographical area and number of population. The private sector shall be encouraged
to establish ICT Hubs in accordance with the standards set by the DICT. The DICT shall
address the unviable areas, using the latest and emerging technologies available.

SEC. 4. Advisory Committee. ~ There is hereby created an Advisory Committee to be
convened by the DICT that shall solicit inputs for the policy, direction, coordination and
supervision of the ICT Hubs. The composition of the Advisory Committee shall be determined
by the DICT which shall include equal representation from (a) the government, (b) the service
providers, and (c) the end users.


SEC. 5. Definition of Terms. ~ For purposes of this Act these terms are defined as as
follows:

(a) Bandwidth refers to the amount of data that can be transmitted over a network
connection over a period of time;

(b) Broadband refers to a high speed, high capacity internet and data connection. It is a
communications medium that uses wide bandwidth channels for sending and
receiving large amounts of data, video or voice, or voice information;

(c) Committed Information Rate refers to the average bandwidth for a virtual circuit
guaranteed by a public telecommunications entity to work under normal conditions.
‘At any given time, the bandwidth cannot fall below this committed figure;

(@) Information and Communications Technology refers to the totality of electronic
means to collect, process, and present information to end-users in support of their
activities. It consists, among others, of computer system, office systems and
consumer electronics as well as networked information structure, the components
of which include the telephone system, the internet, fax machines and computers;

(@) Information and Communications Technology Hub refers to a location where
services may be provided through the use of ICT with an average minimum internet
speed eighty percent (80%) of that offered by the Public Telecommunications Entity
(PTE). Such services may include telecommunications services, broadband and
convergence services, business processing and data management; and

(£) Public Telecommunications Entity (PTE) refers to any person, natural or juridical,
government or private engaged in the provision of telecommunications services to
the public for compensation.

SEC. 6. Role of the Department of Information and Communications Technology. ~
The DICT shall, in coordination with the NTC, formulate and approve a national ICT Plan,
based on a national ICT Roadmap, which shall include among others, the development of a
national broadband network, provide for incentives to encourage private sector participation
and competition.

SEC. 7. Role of the National Telecommunications Commission. - The NTC, through
the exercise of its quasi-legislative and quasi-judicial powers, shall be the primary
infrastructure regulator to ensure the monitoring and the implementation of this Act. The NTC
shall approve the proposed ICT Hub projects and shall ensure the compliance of public
telecommunications entities with the required committed information rate and quality of
service as prescribed by it. The public telecommunications entity shall regularly submit all
necessary data and reports as required by NTC.

SEC. 8. Incentives. — Any locator enterprise in the ICT Hub may be granted incentives
provided under Executive Order No. 226 (1987), otherwise known as the “Omnibus Investment
Code of 1987” or Republic Act No. 8748 or an “Act Amending R.A. No. 7916, otherwise
known as the “Special Economic Zone Act of 1995”, and other relevant law; Provided, That
such locator enterprise in ICT Hubs are qualified under the said laws. Provided, further, That
no locator enterprise may avail of the incentives mandated in both laws at the same time;


Provided, finally, That, these incentives shall be granted in addition to the incentives given by
the local government unit where such ICT Hubs are located.

SEC. 9. Digital Infrastructure Fund. — A Digital Infrastructure Fund (Fund) in the
amount of Fifty Billion Pesos (Php50,000,000,000.00) is hereby appropriated as seed capital
and national counterpart from the national government for the establishment of the ICT Hubs;
Provided, That the Fund shall be disbursed pro-rata based on the following criteria: telephone
density, degree of digital divide, ICT penetration ratio, presence of new alternative backbone
networks, science and technology parks and industrial estates with an ICT focus among others;
Provided, finally, that a public-private partnership may be entered into should the Fund
provided under this Section be insufficient or the same is in the best interest of attaining the
objective and programs of this Act. Subsequent appropriations shall be annually provided for
in the General Appropriations Act.

SEC. 10. Prohibition against Exclusivity. — All \CT Hubs established under this Act are
hereby declared free zones within which any public communications technology may operate.
Any agreement of arrangement designating a public telecommunications entity, or any of its
subsidiaries, affiliates or dummy entities as an exclusive public telecommunications entity
within an ICT Hub shall be void and unenforceable. The domestic internet exchanges shall be
interconnection. The interconnection agreement between the public telecommunication entities
shall be submitted for the approval of the NTC. If the parties fail to reach an agreement within
ninety (90) days from the start of negotiation, the NTC shall intervene and prescribe the terms
and conditions of the interconnection.

SEC. 11. Penalties. — In the exercise of its quasi-judicial power, the NTC shall impose
a fine of Five Hundred Thousand Pesos (Php500,000.00) for: (a) non-disclosure; (b) non-
interconnection; or (c) non-compliance with the committed information rate and quality of
service.

The NTC shall increase the amount of time every five (5) years subject to a certification
from the National Economic Development Authority (NEDA) on the computation of money
based on the current consumer price index.

SEC. 12. Implementing Rules and Regulations. ~ Within sixty (60) days from the
effectivity of this Act, the DICT, in coordination with the NTC, NEDA, the Department of the
Interior and Local Government, the Board of Investments, the Philippine Economic Zone
Authority and the Advisory Committee, shall issue the necessary rules and regulations to
implement the provisions of this Act.

SEC. 13. ICT Joint Congressional Oversight Committee. — An ICT Joint Oversight
Committee is hereby created to be composed of the Chairperson of the House Committee on
Information and Communications Technology and Senate Committee on Science and
Technology and two (2) members from each of the Senate and the House of Representatives
who shall be designated by the Senate President and the Speaker of the House of
Representatives, respectively, Provided, That one (1) member from each House shall be
nominated by their respective Minority Leaders.


The Chairperson of the House Committee on Information and Communications
Technology and the Senate Committee on Science and Technology shall serve as Chairperson
of the ICT Joint Congressional Committee on rotational basis every six (6) months. In every
case, the other member of the Committee belonging to the majority in the House or in the
Senate shall be the Vice Chairperson. The Secretariat of the Congressional Oversight
Committee shall be the existing secretariat personnel of the concerned Committees of the
House of Representatives and the Senate.

SEC 14. Separability Clause. — If any provisions of this Act shall be declared
unconstitutional or invalid, such declaration shall not invalidate other parts thereof which shall
remain in full force and effect.

SEC. 15. Repealing Clause. — All laws, presidential decreed, executive orders, rules
and regulations or parts thereof which are inconsistent with or contrary to the provisions of this
Act are hereby amended or modified accordingly.

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

Approved,