Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

TWENTIETH CONGRESS
First Regular Session

HOUSE BILL NO. 649

Introduced by: REP. TOBIAS “TOBY” M. TIANGCO-
EXPLANATORY NOTE

To curb the effects of the Covid-19 pandemic, Filipinos stayed mostly indoors
resulting in an increase in reliance in internet connectivity. This made internet connection
an essential commodity. In fact, based on an article by the Manila Times, in 2021, the
Philippines is the second “heaviest internet user in the world.” However, the country is
still faced with the issue of frequent internet service interruptions. A twenty-four (24}-hour
internet service interruption may result in a loss of profit for an online shop, a salary for a
laborer, and a loss of learning opportunity for a student attending his or her online class

In September 2020, major telecommunication companies announced a five (5)-
day internet service interruption due to the maintenance of an international cable system
called Asia-America Gateway (AAG). Due to this, a lot of schools have called off regular
classes to prevent missed quizzes and interrupted lectures and regular work has also
been suspended,

Despite this poor internet service, Philippines’ internet service is among the
costliest in the world, ranking 82°¢ in terms of internet affordability out of 85 countries
based on 2020 Digital Quality of Life Index.

In a news report by Agonoy (2015), it was explained that the Philippines has very
outdated laws and policies in relation to the internet. Hence, this bill will serve as a
protection for consumers and a challenge for Intemet Service Providers to improve their
services. In fact, according to the Organization for Economic Co-operation and
Development (OECD), less developing economies could increase household income by
as much as $800 a year with a broadband connection of at least 0.5Mbps. Specifically,
the economy will grow by 1.13% if there were a 10% increase in "broadband penetration”
in the Philippines according to the World Bank.

This bill seeks to ensure that Internet Service Providers will improve their services
by requiring them to provide on a pro-rated basis to refund to a customer who has
experienced an internet service outage of at least twenty-four (24) hours within a month.


In light of the foregoing, the passage of this bill is earnestly sought.

.
BIAS “TOBY” M. TIANGCO
Representative
Lone District, Navotas City


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

TWENTIETH CONGRESS
First Regular Session

House BiLL No, 649

Introduced by: REP. TOBIAS “TOBY” M. TIANGCO

AN ACT
AMENDING REPUBLIC ACT NO. 7925, OTHERWISE KNOWN AS THE “PUBLIC
TELECOMMUNICATIONS POLICY ACT OF THE PHILIPPINES”, BY REQUIRING
PUBLIC TELECOMMUNICATION ENTITIES AND INTERNET SERVICE PROVIDERS
TO INSTITUTE A REFUND MECHANISM FOR SERVICE OUTAGES AND
DISRUPTIONS AND PROVIDING PENALTIES FOR VIOLATIONS THEREOF.

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

Section 1. Short Title. - This Act shall be known as “Refund for Internet and
Telecommunications Services Outages and Disruptions Act.”
Section 2. Definition of Terms. — For the purpose of this act, the term
(A) xxx
(B) xxx
(C) FORTUITOUS EVENT MAY EITHER BE AN “ACT OF GOD,” OR NATURAL
OCCURRENCES SUCH AS FLOODS OR TYPHOONS, STORMS, EARTHQUAKES OR

OTHER CATACLYSMIC EVENTS; OR AN “ACT OF MAN,” SUCH AS RIOTS,
STRIKES, WARS, GOVERNMENTAL PROHIBITIONS, ROBBERY, ETC.

(D) xxx

(E)INTERNET SERVICE OUTAGE IS THE COMPLETE OR PARTIAL FAILURE OF
INTERNET SERVICES.


(F) 0%
(G)xxx
(H) xxx
(I) xxx
(J) xxx
(K) xxx

(L) xxx

Section 3. A new Section 20-A in Article VII, is hereby added to Republic Act No.
7925, otherwise known as the “Public Telecommunications Policy Act of the Philippines”,
to read as follows:

SECTION 20-A. REFUNDS FOR’ INTERNET AND
TELECOMMUNICATIONS SERVICE OUTAGES AND
INTERRUPTIONS. - (A) PUBLIC TELECOMMUNICATION
ENTITIES, INCLUDING INTERNET SERVICE PROVIDERS
(ISPS), SHALL, ON A PRO-RATED BASIS, PROVIDE A REFUND
CREDIT TO A CUSTOMER, OR ADJUST A CUSTOMER'S BILL,
WHO HAS EXPERIENCED AN INTERNET SERVICE OUTAGE
OR DISRUPTION FOR AN AGGREGATE PERIOD OF TWENTY-
FOUR (24) HOURS OR MORE WITHIN A MONTH EXCEPT
WHEN THE REASON FOR SUCH OUTAGE IS DUE TO
FORTUTIOUS EVENT.

THE ISPS AND PTES CONCERNED SHALL NOT REQUIRE THE
CUSTOMER TO TAKE ANY ACTION IN ORDER TO RECEIVE A
REFUND CREDIT OR BILL ADJUSTMENT BUT SHALL NOT
PRECLUDE THE CONSUMER FROM FILING A COMPLAINT TO
THE APPROPRIATE ADMINISTRATIVE AND/OR QUASI-
JUDICIAL AGENCY FOR DISPUTES REGARDING REFUND OR
BILL ADJUSTMENT AMOUNT.

(B) THE REFUND CREDIT GRANTED UNDER THE
CIRCUMSTANCES MENTIONED ABOVE SHALL LIKEWISE BE
GRANTED TO CUSTOMERS SUBSCRIBING TO A SERVICE ON
A PRE-PAID BASIS.


(C) | PENALTIES- THE NATIONAL TELECOMMUNICATIONS
COMMISSION MAY, MOTU PROPRIO OR UPON COMPLAINT
OF ANY INTERESTED PARTY, IN THE APPROPRIATE
ADMINISTRATIVE AND/OR QUASI-JUDICIAL PROCESS, AND
IN ACCORDANCE WITH DUE PROCESS, SHALL:

1. IMPOSE A FINE OF NOT LESS THAN TWO HUNDRED
THOUSAND PESOS (PHP 200,000.00) BUT NOT MORE
THAN TWO MILLION PESOS (PHP 2,000,000.00) FOR EACH
COUNT OF VIOLATION. PROVIDED, THAT IF THE SERVICE
PROVIDER HAS A GROSS ANNUAL INCOME NOT
EXCEEDING TEN MILLION PESOS (PHP 10,000,000.00),
THE PENALTY SHALL BE EQUIVALENT TO ONE PERCENT
(1%) TO TWO PERCENT (2%) OF ITS GROSS ANNUAL
INCOME; AND

2. FOR REPEATED VIOLATIONS, REVOKE THE PTES
PROVISIONAL AUTHORITY OR CERTIFICATE OF PUBLIC
CONVENIENCE AND NECCESITY, OR CANCEL THE
REGISTRATION OF AN ISP, WHICHEVER APPLIES,
INCLUDING THE WAVING OF ANY PRE-TERMINATION
FEES OF AFFECTED SUBSCRIBERS AND TIMELY
DISBURSEMENT OF ANY REMAINING CREDITS FROM
EXCESSIVE DOWNTIME.

Section 4. 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.

Section 5. 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.

Section 6. Effectivity Clause. - This Act shall take effect fifteen (15) days from
its publications in the Official Gazette or in at least two (2) newspapers of general
circulation.

Approved,