EIGHTEENTH CONGRESS )
OF THE REPUBLIC OF THE PHILIPPINES )
First Regular Session )

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HS yo 1 JUL 2019

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HOUSE OF REPRESENTATIVES

House Bill No) 36.0

Introduced by Representative Victor A. Yap

EXPLANATORY NOTE

In 2017, there are approximately 119 million mobile phone subscriptions in the
country—around 96% or 114 million of which are prepaid, according to a report by technology
site Yugatech.com, This shows that subscribers prefer the convenience and affordability of
prepaid subscription as it allows them to spend on credits suited to their actual needs.

‘There have been, however, rampant complaints from prepaid subscribers that they do not
get the full value of the load credits that they paid for because of the expiration of prepaid call
and text cards, an¢ forfeiture of unused load credits. A memorandum circular issued jointly by
the National Telecommunications Commission, Department of Information and Communications
Technology and the Department of Trade and Industry, which took effect starting 2018, has
required telecommunication companies to extend the validity period of any prepaid load
regardless of amount up to a year.

ill aims to put teeth into the memorandum circular by prohibiting and penalizing
the imposition of an expiration period on the validity of unused load credit and the forfeiture of
load credits. It likewise penalizes the enrollment and billing of subscribers, both prepaid and
postpaid, to unauthorized value-added services without the subscriber's consent. This will ensure
that all Filipino subscribers will get their money's worth.

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

Representative, 2nd District of Tarlac



EIGHTEENTH CONGRESS )
OF THE REPUBLIC OF THE PHILIPPINES )
First Regular Session )

HOUSE OF REPRESENTATIVES

House Bin N98

Introduced by Representative Victor A. Yap

AN ACT
PROTECTING TELECOMMUNICATION SUBSCRIBERS AGAINST
UNAUTHORIZED SERVICES AND CONSUMPTION OF LOAD CREDITS

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

SECTION 1. Short Title. - This Act shall be known as the “Jelecommunication

Subscriber's Protection Act”.

SEC. 2. Declaration of Policy. ~The State recognizes the vital role of telecommunication in
economic growth and development. Towards this end, the State shall implement measures to
achieve the following objectives:

a) Safeguard telecommunication subscribers 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; and

©) Provision for adequate rights and means of redress for subscribers.

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

a) Accoun refers to the financial credit of a subscriber;

b) Load credit refers to the monetary value or the consumable amount loaded to a mobile
or landline phone via pre-paid cards or electronic transfers that enable a consumer to use
telecommunication or value-added services;

©) Pre-paid refers to the type of mobile or landline phone account that requires its owners
to purchase load credit before services are used;

4) Pre-paid call and text card refers to a card with corresponding peso value that has to be
purchased to enable a subscriber to use telecommunication services;

©) Unauthorized service refers to a service for which a subscriber did not provide

expressed and informed consent; and


£) Unsought services refers to 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

SEC. 4. Obligation to Provide an Electronic Receipt. — Every telecommunication
company shall inform its subscribers via text message on the deduction to their load credit for

calls, data and value-added service usage.

SEC. 5. Prohibited Acts. - An entity issuing load credit in exchange for telecommunication
or value-added services shall be liable for any of the following acts
a) Imposition of an expiration period on the validity of unused load credit;
b) Forfeiture of load credit stored on an active pre-paid phone account via pre-paid call and
text card or electronic transfer;
©) Refusal to give a refund to any pre-paid subscriber whose load credit was forfeited
without any valid cause;

d) Enrolling subscribers to unauthorized value-added services without the subscriber's

consent;

€) Billing subscribers’ accounts for unauthorized value-added services which has the effect
of reducing the prepaid credit or increasing the postpaid amount due from a subscriber;
and

f) Failure to provide electronic receipt as provided under Section 4

SEC. 6. Penalties. - Any director, officer, employee or agent of a telecommunication
company providing telecommunication services who shall commit any of the acts under Section
5 hereof, shall, upon conviction, be subject to the penalty of a fine of not less than One hundred
thousand pesos (? 100,000.00) but not to exceed One million pesos (P1,000,000.00).

If the violation was committed by or in the interest of a juridical person duly licensed to
engage in business in the Philippines, the following penalty shall be imposed:
a) First Offense - Fine of Five hundred thousand pesos (P500,000.00);
b) Second Offense - Fine of One million pesos (P1,000,000.00) and suspension of license
to engage in business for a period of thirty (30) days; and
©) Third Offense - Fine of Two million pesos (P2,000,000.00) and immediate revocation

of license to engage in business.

SEC. 7. Disposition of Penalties. - All penalties under this Act shall be solely and
exclusively earmarked and used for the following.
a) Development and maintenance of a long-term strategic national development plan for

the telecommunication industry;

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b) Providing adequate and efficient telecommunication facilities in unserved and
underserved areas; and

©) Monitoring, reporting and enforcement of compliance with mobile service regulations.

SEC. 8. Information Dissemination. - Every telecommunication company, in coordination
with the National Telecommunications Commission (NTC), shall ensure the proper and adequate
information dissemination of the contents and benefits of this Act to the general public,

especially to its intended beneficiaries.

SEC. 9. Inplementing Rules and Regulations. ~ Within ninety (90) days from the
approval of this Act, the NTC shall issue the necessary rules and regulations for its effective

implementation

SEC. 10. Separability Clause. - Should any part of this Act be declared unconstitutional or
invalid, other provisions hereof that are not affected thereby shall continue to be in full force and

effect

SEC. 11. Repealing clause. - All laws, decrees, executive orders, proclamations, rules
and regulations, and issuances, or parts thereof which are inconsistent with the provisions of this
Act, are hereby repealed, amended or modified accordingly.

SEC. 12. Effectivity. -This Act shall take effect fifteen (15) days after its publication in

the Official Gazetie or in any newspaper of general circulation.

Approved,