SIXTEENTH CONGRESS OF THE REPUBLIC ) 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
'14 
MAY 19 P3 :34 
SENATE 
Introduced by Senator Ralph G. Recto 
AN ACT 
PROHIBITING TELECOMMUNICATION COMPANIES FROM IMPOSING AN 
EXPIRATION PERIOD ON THE VALIDITY OF PREPAID CALL AND TEXT CARDS 
AND THE FORFEITURE OF LOAD CREDITS THEREOF 
Explanatory Note l 
In 2013, the National Telecommunications Commission (NTC) reported that there are 
approximately 100 million mobile phone subscriptions iu the country; around 80% or 80 million 
of which are prepaid2• Moreover, fixed telephone line, better known as landline, can now come 
in prepaid. The large number of prepaid subscriptions has earned the Philippines the top spot on 
the world-wide list of countries with the most prepaid users. 
Indeed, the prepaid call and text industry in the country has evolved tremendously. From 
an era when prepaid load credit can only be purchased through large-denomination prepaid 
cards, there came the small-value prepaid cards and electronic loads. Anyone can now purchase 
load credit that suits ones' budget at any given time. This development in the prepaid industry 
has certainly benefited millions of Filipinos. By making prepaid load credits affordable, our 
fellowmen are able to connect easily with their loved ones here and abroad. 
Recently, however, there have been rampant complaints that prepaid subscribers do not 
get the full value of the load credits that they paid for because of the expiration of prepaid call 
and text cards and forfeiture of un utilized load credits. Currently, the expiration period of prepaid 
call and text cards is two years while load credit's expiry ranges from 15 days to 120 days 
depending on the denomination. This means that unused prepaid cards will no longer work after 
two years and that unutilized load credits will be forfeited after their corresponding expiration 
period; hence, a waste of prepaid subscriber's money and additional income for the 
telecommunication company. 
It is therefore the intent of this bill entitled the "Prepaid Load Protection Act 0/2014" to 
make the imposition of expiration period on the validity of prepaid call and text cards and 
forfeiture ofload credits prohibited acts with corresponding penalties. This will ensure that every 
peso spent to purchase load credits are saved and usable until the day the credits are fully 
consumed. 
In the light of the foregoing, immediate passage of the bill is earnestly sought. 
1 SBN 3322 filed by Sen. Miriam Defensor-Santiago during the 14th Congress was us 
as reference for this bill. 
, The total number of prepaid subscribers was approximated from the reports of two (2) leading telecommunication 
companies: Smart and Globe, published at www.abs-cbn.com. 


SIXTEENTH CONGRESS OF THE REPUBLIC ) 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
'14 I'lfiY 19 P3 :34 
SENATE 
S.No. 2231 
Introduced by Senator Ralph G. Recto 
AN ACT 
PROHIBITING TELECOMMUNICATION COMPANIES FROM IMPOSING AN 
EXPIRATION PERIOD ON THE VALIDITY OF PREPAID CALL AND TEXT CARDS 
AND THE FORFEITURE OF LOAD CREDITS THEREOF 
Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled: 
1 
SECTION 1. Title. - This Act shall be known as the "Prepaid Load Protection Act of 
2 
2014". 
3 
Sec. 2. Declaration (if Policy. - It is hereby declared the policy of the State to protect 
4 
the interest of the consumer, promote his general welfare and to establish standards of conduct 
5 
for business and industry. Towards this end, the state shall implement measures to achieve 
6 
among others, the protection of consumers against deceptive, unfair and unconscionable sales act 
7 
and practices. 
8 
Sec. 3. Definition of Terms. - For the purpose of this Act, the term: 
9 
a) Load credits shall refer to the monetary value or the consumable amount loaded to a 
10 
mobile or landline phone via prepaid cards or electronic transfers that enable a 
11 
consumer to use telecommunication services. 
12 
b) Prepaid shall refer to the type of mobile or landline phone account that requires its 
13 
owners to purchase load credits before services are used. 
14 
c) Prepaid call and text card shall refer to a card with corresponding peso value that has 
15 
to be purchased to enable a subscriber to use telecommunication services. 
16 
Sec. 4. Prohibited Acts. -
The following shall constitute prohibited acts of any 
17 
telecommunication company providing prepaid services and are hereby declared to be unlawful: 
18 
a) Imposition of an expiration period on the validity of unused prepaid call and text 
19 
cards; 
20 
b) Forfeiture of load credits stored on an active prepaid phone account via prepaid call 
21 
and text card or electronic transfer; and 
22 
c) Refusal to give a refund to any prepaid subscriber whose load credits were forfeited 
23 
without any valid cause. 


1 
Sec. 5. 
Penal Provision. -
Any director, officer, employee or agent of a 
2 
telecommunication company providing prepaid services who shall violate any of the acts 
3 
mentioned under Section 4 hereof, shall, upon conviction, be subject to the penalty of a fine of 
4 
not less than One hundred thousand pesos (PIOO,OOO.OO) but not to exceed One million pesos 
5 
(PI ,000,000.00) or imprisonment of not less than two (2) years but not more than six (6) years, 
6 
or both, upon the discretion of the court. 
7 
If the violation was committed by or in the interest of a juridical person duly licensed to 
8 
engage in business in the Philippines, the following penalty shall be imposed: 
9 
a) First offense - a fine of Five hundred thousand pesos (P500,OOO.OOj: 
10 
b) Second offense - suspension of license to engage in business for a period of thirty (30) 
11 
days; and 
12 
c) Third offense - immediate revocation of license to engage in business. 
13 
Sec. 6. Information Dissemination. -
The Philippine Information Agency (PIA) in 
14 
coordination with the National Telecommunications Commission (NTC) shall ensure the proper 
15 
and adequate information dissemination of the contents and benefits of this Act to the general 
16 
public especially to its intended beneficiaries. 
17 
Sec. 7. Implementing Rules and Regulation. - The NTC shall formulate the necessary 
18 
rules and regulations to implement the provisions of this Act within ninety (90) days after its 
19 
effectivity. The rules and regulations issued pursuant to this Act shall take effect fifteen (15) 
20 
days after its publication in a newspaper of general circulation. 
21 
Sec. 8. Separability Clause. - If any provision of this Act shall be held unconstitutional, 
22 
the remainder ofthe Act not otherwise affected shall remain in full force and effect. 
23 
Sec. 9. Repealing Clause. -
Any law, presidential decrees, executive orders, 
24 
proclamations or administrative regulations that are inconsistent with the provisions of this Act 
25 
are hereby amended, modified, superseded, or repealed accordingly. 
26 
Sec. 10. Effectivity. - This Act shall take effect fifteen (15) days after its publication in 
27 
the Official Gazette or in at least two (2) newspapers of general circulation. 
Approved, 
!!mksbc