j y, r c f I '
NINETEENTH CONGRESS OF THE 
)
REPUBLIC OF THE PHILIPPINES 
)
Third Regular Session 
)
SENATE BILL NO.
2867
Hh'
Introduced by SENATOR FRANCIS 'xTOL'f N. TOLENTINO
PROVIDING FOR 
COOPERATIVES
THE
AN ACT
ORGANIZATION
OF INTERNET SERVICES
EXPLANATORY NOTE
The relevance of internet access in today's interconnected world cannot be overstated. 
Reliable internet connectivity is a necessity considering the rise of remote work, online 
education, digital entertainment, facilitation of transactions between consumers and 
businessmen, information gathering, and communication among people. However, data 
from the DITC showed that 65% of the country's population is still not connected to the 
internet.1
Moreover, the access gap in broadband internet between the rich and the poor in the 
Philippines has been rapidly expanding, making digital opportunities out of reach for 
many.2 Recognizing this critical issue, the Cooperative Development Authority (CDA) 
issued Memorandum Circular No. 2023-09, Series of 2023,3 also known as the 
"Cooperative Development Authority Internet Connectivity Project." This initiative seeks
1 https://www.philstar.eom/nation/2024/05/27/2358299/government-urged-invest-boosting-internet- 
connection
2 https://www.philstar.eom/business/2024/05/01/2351596/philippines-internet-divide-expanding
3 https://cda.gov.ph/wp-content/uploads/2023/04/MC-2023-09-NPO.pdf
1


to provide a satellite internet connection to cooperatives in unserved and underserved 
areas in the country and to bridge the digital gap and provide them access to 
opportunities, information and the ability to participate in the digital economy.4
In light of this development, this bill seeks to promote the organization of Internet Service 
Providers Cooperatives and expand the Cooperative Development Authority Internet 
Connectivity Project to help further extend internet access to communities and local 
government units. This proposal to promote organization of internet services cooperative 
is timely and aligned with the government's goal of promoting inclusive digital 
transformation.5
In view of the foregoing, the immediate passage of this bill is earnestly sought.
!B^IS "TOL" N. TOLENTINO
Senator
4 https://cda.gov.ph/updates/58-cooperatives-beneficiaries-of-internet-connectivity-project-sign- 
agreement-with-the-cda/
5 https://www.bworldonline.eom/special-features/2024/06/21/603157/transforming-the-philippines-into-a- 
digital-nation/


rr O' '• t-
NINETEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
Third Regular Session
SENATE BILL NO.
2S67
RI.C'.
24 NOV -5
Introduced by SENATOR FRANCIS "TOL" N. TOLENTINO
PROVIDING FOR THE 
COOPERATIVES
AN ACT
ORGANIZATION
OF INTERNET SERVICES
Be it enacted by die Senate and the House of Representatives of the Philippines in 
Congress assembled:
1 
SECTION 1. Short Title. - This Act shall be known as the "Philippine Internet
2 
Service Provider Cooperative Act."
3 
SEC 2. Declaration of Policy - The State recognizes the vital role of
4 
communication and information in nation-building and declares its policy to promote an
5 
environment for the development of structures that would ensure the availability and
6 
accessibility to reliable and secure internet access suitable to the needs and aspirations
7 
of the nation. For this purpose, the State shall promote, encourage, and assist the
8 
organization of internet service provider cooperatives in supplying internet services to
9 
foster socio-economic development, enhance digital literacy, and promote inclusive
10 
growth across the country.
11 
SEC 3. Definition of Terms. - For the purposes of this Act, the following terms
12 
shall be defined as follows:
13 
a) Internet Service Provider Cooperative (ISP Cooperative) - refers to a cooperative
14 
that provides broadband internet access in the intended area of operation and/or
15 
the districts of the ISP Cooperative at the lowest possible cost.


1 
b) Intended area of operation - refers to the area where the cooperative members
2 
come from as provided for in their Articles of Cooperation and By-laws.
3 
c) Districts - refers to the territory served or to be served by an ISP Cooperative as
4 
provided in the ISP Cooperative By-laws.
5 
d) CDA - refers to the Cooperative Development Authority created under R.A. No.
6 
11364.
7 
SEC 4. Organization and Purpose. - An ISP Cooperative is one organized by at
8 
least fifteen (15) or more natural persons who are Filipino citizens, of legal age, and are
9 
actually residing or working in the intended area of operation, for the purpose of
10 
supplying internet access service in the intended area of operation and/or districts of the
11 
ISP Cooperative at lowest cost consistent with sound economy and the prudent
12 
management of the business of such cooperative.
13 
The ISP cooperatives shall be registered with the CDA and shall be subject to the
14 
existing organization and registration procedures of the CDA.
15 
An ISP Cooperative as defined shall be organized for any and all of the following
16 
purposes;
17 
a) To offer internet services, such as broadband access, fiber connections, wireless,
18 
and satellite internet services at the lowest possible cost to the intended area of
19 
operation and/or the districts of the ISP Cooperative.
20 
b) To invest in the development, installation, and maintenance of infrastructure such
21 
as fiber-optic cables, routers, data centers, and other equipment to ensure high-
22 
quality service provision.
23 
c) To offer educational programs and training on online safety, technology use, and
24 
emerging trends to enhance community digital literacy and participation in the
25 
digital economy.


1 
d) To assist persons to whom service is or will be supplied by the ISP cooperative in
2 
wiring their premises and in acquiring and installing internet service appliances,
3 
equipment, fixtures, and machinery, and in connection therewith to to wire, or
4 
cause to be wired, such premises, and to purchase, acquire, lease as lessor or
5 
lessee, sell, distribute, install and repair such internet service appliances,
6 
equipment, fixtures and machinery;
7 
e) To establish a dedicated support team to address technical issues and customer
8 
inquiries.
9 
f) To collaborate with the Department of Information and Communications
10 
Technology (DICT), Local Government Units (LGUs), Non-Government
11 
Organizations (NGOs), other telecommunication or electric cooperatives, and
12 
international organizations for technological advancements, funding, and
13 
expansion of internet services.
14 
SEC 5. Districts. - The by-laws of the ISP Cooperative may provide for the
15 
division for the territory served or to be served by an ISP Cooperative into two or more
16 
districts for any purpose. The by-laws shall prescribe the boundaries of such districts, or
17 
the manner of establishing such boundaries, the manner of changing such boundaries,
18 
and the manner in which districts shall function.
19 
SEC 6. Responsibilities, Benefits, and Privileges of ISP Cooperatives. - An
20 
ISP Cooperative shall have the following responsibilities and shall enjoy the following
21 
unrestricted benefits and privileges:
22 
a) Responsibilities, Taxes, Duties, and Liens:
23 
i) All responsibilities of cooperatives defined under Chapter V of R.A. No. 9520
24 
shall apply to ISP Cooperatives insofar as these responsibilities are
25 
consistent with the provisions of this Act;


1 
ii) All benefits and tax treatments of cooperatives defined under Chapter V of
2 
R.A. No. 9520 shall apply to ISP Cooperatives insofar as these benefits and
3 
tax treatments are consistent with the provisions of this Act.
4 
iii) ISP Cooperatives shall be exempt from customs duties, advance sales or
5 
compensating taxes on their importation of capital equipment, raw
6 
materials, spare parts or accessories.
7 
iv) All real properties owned, and those directly used for the operations,
8 
management, and maintenance of ISP Cooperatives shall be exempt from
9 
the payment of real property taxes imposed under existing laws.
10 
b) Loans and Grants:
11 
i) All loans applied for the infrastructure development and maintenance by
12 
Internet Services Cooperatives on any government owned or controlled
13 
banks or financial institutions shall enjoy preferential status and handling
14 
as to requirements, rates, securities, and collaterals.
15 
c) Benefit from the Local Government Units (LGUs):
16 
i) The LGU shall serve as a strategic partner who shall ensure that all permits
17 
and requirements needed by the registered ISP Cooperative for provision
18 
and enhancement of internet services shall be acted upon immediately.
19 
SEC 7. ISP Cooperative Programs. - The Department of Information and
20 
Communications Technology (DICT) and the CDA shall initiate and develop programs to
21 
promote, encourage, and assist the organization of such ISP Cooperatives.
22 
SEC 8. Applicability of R.A. No. 6938, as amended. - Insofar as not
23 
inconsistent with the provision of this Act, all other provisions of R.A. No. 6938, as
24 
amended by R.A No. 9520, and R.A. No. 11364 shall continue to apply to Internet Service
25 
Provider Cooperatives.


1 
The CDA shall liberally exercise its powers to implement the provisions of R.A. No.
2 
6938, as amended in favor of Internet Services Cooperatives.
3 
SEC 9. Appropriations. - The amount necessary to carry out the provisions of
4 
this Act shali be included in the annual General Appropriations Act.
5 
SEC 10. Implementing Rules and Regulations. - The CDA, in coordination
6 
with the DICT, shall issue the necessary rules and regulations to implement the provisions
7 
of this Act within sixty (60) days after its enactment.
8 
SEC 11. Separability Ciause. - If any provision of this Act is declared
9 
unconstitutional or invalid, the other provisions not affected thereby shall remain in full
10 
force and effect.
11 
SEC 12. Repealing Clause. - All laws, decrees, executive orders, rules, and
12 
regulations or parts thereof inconsistent with the provisions of this Act are hereby
13 
repealed or modified accordingly.
14 
SEC 13. Effectivity Clause. -This Act shall take effect fifteen (15) days after its
15 
publication in the Official Gazette or in at least two (2) newspapers of general circulation.
Approved,