EPRE:

Republic of the Philippines

RECEIVE.

HOUSE OF REPRESENTATIVES (
Quezon City _ DATES
\ ae E
TWENTIETH CONGRESS ay
First Regular Session NO ‘

HOUSE BILL NO. 661

__ Introduced by: Hon. Keith Micah “Atty. Mike” D.L. Tan

AN ACT
ESTABLISHING INFORMATION AND COMMUNICATIONS TECHNOLOGY
HUBS NATIONWIDE

EXPLANATORY NOTE

Telecommunications and Information and Communications Technology (ICT) plays a
vital role in nation building and development. By leveraging digital technologies,
government, businesses, and citizens can realize its widespread benefits and positive
socioeconomic effects. The importance of ICT has become more apparent during the COVID-
19 pandemic especially when social distancing and lockdowns have been enforced
throughout the country. Over the past years, ICT has been widely used which profoundly
altered the way the world has worked, learned, carried on with basic daily tasks and
connected with people.

According to Ookla Speedtest Global Index Reports, the Philippines ranked 6 with
mobile internet download speed of 36.36 Mbps for December 2024 among ASEAN Countries,
and 77 globally among 103 countries. Improvements are shown for the Quarter 1 of 2025
as the Philippines ranked 63 out of 102 countries under the Global Category of Mobile
Ranking.! Due to the Philippines’ archipelagic geography, development of a robust ICT
infrastructure poses a huge challenge. Connectivity remains higher in urban centers, weak
digital infrastructures persist in more rural areas and ICT materials remain to be costly. The
digital landscape has made productivity a privilege and those without sufficient access and
means are left behind, losing out on opportunities from basic amenities and quality
education, to decent work and reskilling.

To close the widening digital divide, this bill seeks to establish ICT hubs in
geographical and accessible locations in the provinces, to provide for a facility offering
physical workspace, venue for ICT skills development, and ICT materials for use in order to
help students, start-up companies, and or any individual needing such services by
providing access to the latest knowledge, expertise and technology to support them.

This bill shall further increase access to internet, strengthen the information literacy
of Filipinos, and drive nation-building in the digital age, expand information and
communications technology (ICT) and infrastructure throughout the country to facilitate
the access of the citizenry to goods and services.

In view of the foregoing, the immediate passage of this measure is earnestly sought.

WED
Kei h “AttyMike” D.L. Tan

4th District, Quezon

* huups: ‘ietstatisties dict zov.ph wp-contentuploads/2025/05 Internet-Speed-o'-the-Philippines-ao-March-2025.pdf


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

TWENTIETH CONGRESS
First Regular Session

HOUSE BILL NO. 661

_ Introduced by: Hon. Keith Micah “Atty. Mike” D.L.Tan_
AN ACT
ESTABLISHING INFORMATION AND COMMUNICATIONS TECHNOLOGY
HUBS NATIONWIDE

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

SECTION 1. Short Title. - This Act shall be known as the “Online Network Philippines

Act or OnNetPh”.

SEC. 2. Declaration of Policy. - The State recognizes the vital role of information and

communication in the development and in promoting growth in the countryside. To this end,
the State shall encourage the expansion of information and communications technology
(ICT) and infrastructure throughout the country to facilitate the access of the citizenry to
goods and services

Pursuant thereto, the State shall establish ICT hubs throughout the country in

accordance with the National ICT Roadmap and National ICT Plan.

3. Definition of Terms. — As used in this Act:

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

Broadband refers to a high capacity transmission technique using a wide range of
frequencies which enables a large number of messages to be communicated
simultaneously. In the context of internet access, it refers to access that is continuing
and unhindered, and faster than the traditional dial-up mode;

Broadband network refers to a network able to transmit signals with a high bit rate
and a transmission channel being equal to or greater than two megabits per second
(2 mbps);

Committed information rate refers to the information rate guaranteed by a public
telecommunications entity (PTE). The bandwidth cannot fall below the committed
rate of ninety-eight point five percent (98.5%) of the time;

Cyber skills learning hub or Digital transformation center refers to a facility specifically
designed for cyber-education and digital literacy, and that provides knowledge, skills,
theoretical and practical experiences, and access to technologies for all learners to
become information and technology proficient;

Data farm refers to a physical facility that houses servers, network equipment,
personnel like information technology specialists and network technicians for
business-critical support such as online data storage, data processing, core
computing services, data and application backup services, and distributing large


amounts of data from remote data facilities. The operation and management thereof
shall be subject to pertinent laws and policies on data security to prevent, detect and
intercept unauthorized access of data, especially on matters of national security;

g. Digital innovation hub refers to a specialized business incubation and acceleration
facility offering physical workspace, mentoring and coaching, and devices for
technical application testing or experimenting, and training. It is a one-stop-shop,
usually but not always affiliated with educational institutions, that helps companies
including start-ups to become more competitive with regard to their business
production processes, products or services using digital technologies by providing
access to the latest knowledge, expertise and technology to support them;

h. Information and communications technology (ICT) refers to the totality of electronic
means to access, create, collect, store, process, receive, transmit, present, and
disseminate information;

i, Information and communications technology hub (ICT hub) refers to a location where
ICT services may be provided by a PTE with at least the minimum internet speed
required by the National Telecommunications Commission (NTC). Such services may
include telecommunications services, broadband and convergence services, business
processing and data management;

j. Information technology and business processing management hub refers to a location
that caters to and offers support mechanisms for companies and enterprises engaged
in IT services and business process management and operations;

k. 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. 4, Establishment of Information and Communications Technology Hubs. — There
shall be established ICT hubs all over the country in accordance with a National ICT Plan to
be prepared by the Department Information and Communications Technology (DICT). The
ICT Plan shall assess the needs of every province in the country and identify the appropriate
types and the number of ICT hubs to be developed therein. Every province shall have at least
one (1) of the following classifications of ICT hubs based on the type of activity that it hosts:

a. Data Farms;

b. Information Technology (IT) and Business Processing Management (BPM)
Hub;

c. Cyber Skills Learning Hub and Digital Transformation Center (DTC);

d. Digital Innovation Hub; and

e. Any other ICT hub that may arise in the future.

Pursuant to the ICT Plan and the national, provincial, city, or municipal spatial
development plans, the DICT and the local government units (LGU) shall identify the areas
where the ICT hubs shall be established based on geographical area and population:
Provided, That ICT hubs shall be developed in geographically equitable and accessible
locations throughout the province: Provided, further, That the area or site of an ICT hub shall
be on a property owned by an LGU.

SEC. 5. Role of the Department of Information and Communications Technology (DICT).
— The DICT shall formulate a National ICT Plan, based on the National ICT Roadmap, which
shall include the development of a national broadband network, provision of incentives to
encourage private sector participation and promotion of competition. The Cybercrime
Investigation and Coordinating Center of the DICT shall formulate, oversee and validate the
ICT cyber plan of the ICT hubs.


‘The DICT shall update the National ICT Plan and shall submit the same on or before
the 15th of April of every year to the Office of President of the Republic of the Philippines,
the National Economic and Development Authority (NEDA), and the ICT Joint Congressional
Oversight Committee established under this Act.

SEC. 6. Role of the National Telecommunications Commission (NTC). — The NTC,
through the exercise of its quasi-legislative and quasi-judicial powers, shall be the primary
infrastructure regulator to ensure the monitoring and implementation of this Act. The NTC
shall approve proposed ICT hub telecommunications projects through an administrative
process prescribed for the purpose and shall ensure the compliance of Public
‘Telecommunications Entities (PTEs) with the required and committed information rate and
quality of service. All PTEs shall regularly submit the necessary data and reports as required
by the NTC.

SEC. 7. Private Sector Participation - The private sector shall be encouraged to
establish ICT hubs in accordance with the standards set forth by the DICT. The DICT shall
promulgate rules on the accreditation of fully-operational ICT hubs operated by registered
business enterprise or service provider participating in the ICT hub prior to availment of tax
incentives provided under Section 8 of this Act.

The DICT shall employ the latest and emerging technologies available to serve
commercially unviable areas and assist the accredited enterprises in the improvement of the
ICT hubs.

SEC. 8. Incentives. — Any registered business enterprise operating or participating in
the ICT hub may be granted incentives provided under Title XIII of the National Internal
Revenue Code of 1997, as amended: Provided, That, these incentives shall be granted in
addition to the incentives given by the LGU where such ICT hubs are located.

The eligibility of the ICT hubs or registered business for the incentives provided
herein should be within the boundaries of a performance-based, time-bound, and
transparent system of incentives tailor-fit for highly desirable ICT investments and shall be
subject to compliance monitoring by the Fiscal Incentives and Review Board and the LGU
where such ICT hubs are located.

SEC, 9. Advisory Committee. — There is hereby created an Advisory Committee that
shall solicit inputs towards the shaping of policy directions of the National ICT Plan, including
the supervision of ICT hubs and the coordination to be undertaken with the private sector
and other agencies and instrumentalities of the government. The DICT shall determine the
composition of the Advisory Committee and ensure the equal representation of the (a)
government, (b) the service providers, (c) the end users, and (d) other industry stakeholders.

SEC. 10. Digital Skills Development. — The DICT, together with the Department of
Education, Commission on Higher Education, and the Technical Education and Skills
Development Authority, shall establish a program on digital skills development for all
learners to enhance their competitiveness, adaptability and employability in the emerging
digital economy, which shall be integrated into the pertinent programs of the ICT hubs.

SEC. 11. Digital Network Infrastructure. — A digital network infrastructure shall be
established to connect the local ICT hubs to the National Broadband Program through a core
backbone network of the DICT, to be funded from the spectrum users’ fees.

The DICT is hereby authorized to classify the said funds for capital outlay, which
classification shall be furnished to and duly reflected by the Department of Budget and


Management in its records. The release of funds shall be subject to applicable laws and
existing budgeting, accounting and auditing rules and regulations.

SEC. 12. Local Government Responsibility. — The issuance of licenses and permits for
ICT-related activities and infrastructure construction projects shall not be delayed and
hampered, and shall further be prioritized, subject to the provisions of Republic Act No.
11032, otherwise known as the Ease of Doing Business and Ffficient Government Service
Delivery Act of 2018.

The Department of the Interior and Local Government (DILG) shall include ICT
competitiveness and ICT integration as a criterion of governance under the Seal of Good
Local Governance program.

SEC. 13. Private Sector Support and Public-Private Partnership (PPP)— The LGUs may
engage the private sector through PPP agreements targeted towards financing, designing,
implementing and operating infrastructure facilities and services for the ICT hub to
maximize costs and allow for sharing of revenue, subject to the provisions of Republic Act
No. 6957, otherwise known as “An Act Authorizing the Financing, Construction, Operation
and Maintenance of Infrastructure Projects by the Private Sector and for Other Purposes”, as
amended

SEC. 14. Prohibition Against Exclusivity. — All ICT hubs established under this Act are
hereby declared free zones within which any PTE may operate. Any agreement or
arrangement designating a PTE, or any of its subsidiaries or affiliates as an exclusive PTE
within an ICT hub shall be void and unenforceable. The domestic internet exchanges shall be
interconnected. The interconnection agreement between the PTEs shall be submitted to the
NTC for its approval. 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. 15. Non-compliance with Committed Information Rate. - PTEs shall comply with
the committed information rate as required by the DICT according to its promulgated ICT
cyber plan for ICT hubs. Non-compliance therewith shall cause the termination of existing
agreement and shall be without prejudice to the filing of appropriate civil action for breach
of contract under the New Civil Code of the Philippines.

SEC. 16. Implementing Rules and Regulations. — Within sixty (60) days from the
effectivity of this Act, the DICT as the lead agency, together with NEDA, DILG, the League of
Provinces and the Leagues of LGUs, the Board of Investments, the Philippine Economic Zone
Authority, and the Advisory Committee, shall issue the necessary rules and regulations for
the effective implementation of this Act.

SEC. 17. ICT Joint Congressional Oversight Committee. — An ICT Joint Congressional
Oversight Committee (ICTJCOC) is hereby created to monitor the effective implementation
of this Act, recommend the necessary remedial legislative or administrative measures and
perform such other duties and functions as may be necessary to attain the objectives of this
Act. It shall be composed of the Chairpersons 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 Chairpersons of the House Committee on Information and Communications
Technology and the Senate Committee on Science and Technology shall serve as Chairperson
and Vice Chairperson or vice versa of the ICT|COC on a rotational basis every six (6) months.


‘The Secretariat of the ICTJCOC shall be the existing secretariat personnel of the concerned
Committees of the House of Representatives and the Senate.

SEC. 18. Separability Clause. - If any provision or part of this Act is declared
unconstitutional, the remaining parts or provisions not affected shall remain in full force and
effect.

SEC. 19. Repealing Clause. - All other laws, decrees, executive orders, proclamations,
and other executive issuances which are not consistent with or contrary to the provisions of
this Act are hereby repealed or amended accordingly.

SEC. 20. Effectivity. - This Act shall take effect fifteen (15) days after its publication in
the Official Gazette or in a newspaper of general circulation.

Approved,