15th CONGRESS OF THE REPUBLIC 
) 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
SENATE 
S.B.'N'o. 
30 
SF ;. 
'~, 
OFFI\~i!: 0,' Th ,;itCH!? iM'" 
Introduced by Senator Ramon Bong Revilla, Jr. 
Recent studies have found the breakthroughs in the speed, communications capability and 
storage capacity of information devices have far-reaching and unforeseen effects on families, 
communities, institutions and democratic processes of a nation. A major obstacle to the general 
advancement in technology of a developing country is the formulation and creation of optimal 
preconditions for a successful management and administrative structure through which the people 
will gain and at the same be cosseted from the new technology. 
Section 10, Article XIV ofthe 1987 Constitution provides that, "Science and technology 
are essential for national development and progress. The State shall give priority to research and 
development, invention, innovation, and their utilization; and to science and technology 
education, training, and services. It shall support indigenous, appropriate, and self-reliant 
scientific and technological capabilities, and their application to the country's productive systems 
and national life. " 
In consonant to this constitutional mandate and due to the fast development of new 
technologies, it has become essential for the govermnent to provide a regulatory enviromnent. 
This bill therefore seeks to reorganize the National Telecommunications Commission (NTC) 
and give the NTC powers and functions for the agency to deal with the improvements in information 
and communications technology. 
Immediate passage ofthis bill is highly needed. 


Fifteenth Congress of the Republic 
of the Philippines 
First Regnlar Session 
) 
) 
) 
SENATE 
( f ,. 
30 
S;B. No.,_-,,-
Introduced by Senator Ramon Bong Revilla, Jr. 
AN ACT 
REORGANIZING THE NATIONAL TELECOMMUNICATIONS COMMISSION, 
DEFINING ITS POWERS AND FUNCTIONS, APPROPRIATING FUNDS THEREFOR, 
AND FOR OTHER PURPOSES 
Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
assembled: 
SECTION 1. Title. - This Act shall be known as the "National Telecommunications 
Commission Reorganization Act of 20 10." 
SECTION 2. Declaration of Policy. - The State shall promote the development of high 
quality information and communications infrastructures and services as vital tools for economic 
development, nation building and global competitiveness. Towards this end, it is hereby a 
declared policy of the State to develop a regulatory environment for a viable, adequate, efficient, 
and universal information and communications sector using the best available and affordable 
technologies; foster a competitive business environment, and fair and efficient market conduct 
among industry players; ensure universal access to reliable and affordable services; and protect 
the interests and welfare of both of the industry players and the consuming public. 
SECTION 3. Definition of Terms. • For purposes of this Act, the following terms are 
hereby dermed: 
(a) "Authorization" refers to any certificate, permit, license, accreditation, registration, 
recognition or similar permission granted to a person or entity to lawfully engage in the 
activities falling under the jurisdiction of the Commission; 
(b) "Certificate of Public Convenience and/or Certificate of Authority" (CPCICA) and 
"Certificate of Public Convenience and Necessity" CCPCN) - both refer to a certificate 
issued by the Commission in the provision of services that fall within the jurisdiction of 
the Commission; 
(c) "CICT" refers to the Commission on the Information and Communications Technology 
created under Executive Order No. 269, series of2004, or its successor agency; 
(d) "Commission" refers to the National Telecommunications Commission; 
( e) "Frequency" refers to the number of cycles per unit time, usually expressed in Hertz; 
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(f) "Information and Communication Technology", herein referred to as "ICT", refers to the 
totality of electronic means to collect, store, process and present information to end-
users in support of their activities, It .consists, among others, of computer systems,' 
office systems and consumer electronics, as well as networked information 
infrastructure, the components of which include the telephone system, the internet, fax 
machines, computers, and other similar devices; 
(g) "Interconnection" refers to the linkage by any means of transmission such as by wire, 
radio, satellite, microwave channel of networks and services of two or more existing 
services providers with one another; 
(h) "Legislative Franchise" refers to the franchise issued by Congress authorizing the entity 
to engage in a certain type of telecommunications, broadcast, cable TV, multimedia and 
other information and communications infrastructures and services; 
(i) "Radio Spectrum" shall cover radio frequencies from 9 KHz or higher that can be used 
for broadcast services; and, 
G) "Universal Access" shall refer to the provision of affordable, accessible, and efficient 
information and communications infrastructures and services to the widest array of 
consumers possible. 
SECTION 4. Reorganization of the Commission. - The Commission is hereby 
reorganized to strengthen its existing organizational structure and capabilities to meet the .rapid 
developments of emerging technologies in the fields of information, communications, broadcast, 
cable TV and other multi-media infrastructure and services. 
The Commission shall be attached to the CICT for policy and program coordination, and 
shall be under the administrative supervision of the same. The Commission shall independently 
exercise its powers and functions and no other agency. s hall influence or effect a review or 
modification of its decisions as a quasi-judicial body. Provided, however, that the decisions of 
the Commission as a quasi-judicial entity shall be appealed only to the Court of Appeals and the 
Supreme Court, as provided for by law. 
SECTION 5. Jurisdiction. - The Commission shall have jurisdiction over all persons and 
entities engaged in the operation and/or provision of information and communications, 
telecommunications, broadcast, cable TV and other multi-media infrastructures and services. 
Pursuant thereto, the Commission shall exercise supervisory and regulatory powers over such 
persons and entities, including program, content and application providers in such infrastructures 
and services, radio stations and radio training schools, maritime point of service activation, 
networks or system services, franchise, equipment and other properties, and/or any person using 
the radio spectrum and other limited resources in communications and information e.g. 
numbering systems, domain name systems and other related concerns.: Provided, that 
telecommunication stations owned and operated by the Armed Forces of the Philippines (APP) 
shall be subject to the jurisdiction of the Committee only to the extent that the AFP shall first 
secure authorization from the Commission to use frequencies relative to the operation of such 
stations. 
SECTION 6. Powers and Functions. - In addition to the powers already provided for by 
existing laws, not inconsistent with this Act, the Commission shall have the following powers 
and functions: 
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(a) Establish standards, specifications, measures, guidelines, rules and regulations that 
will govern the operations of service providers in the areas of information and 
communications technology, broadcast, cable TV, and .other multi-media 
infrastructures/services; 
(b) Issue CPCs/CAs and/or CPCNs to qualified ICT companies, radio and televisions 
broadcast networks, cable TV operators and other multi-media service providers; 
(c) Recommend policies for the promotion of ICT, broadcast media or other 
technologies, as well as any other related fields thereto; 
(d) Administer and implement the Public Telecommunications Policy Act, as amended, 
and other relevant laws that the Commission is mandated to enforce, including those 
pursuant to international treaties, conventions and/or agreements which the Philippine 
government has entered or will enter into; 
(e) Adopt an administrative process to facilitate the entry of qualified service providers, 
taking into consideration the competition policies of the government thus enabling 
the public to gain access to information and communication services and, at the same 
time, enabling service providers to generate sufficient returns to promote and sustain 
industry growth 
(1) Formulate plans and implement programs to provide better access to ICT, broadcast 
and other similar services in un-served and/or underserved areas at affordable rates 
(g) Provide rules, regulations, guidelines, measures and specifications in accordance with 
acceptable standards to ensure quality, safety, liability, security, compatibility and 
interoperability of ICT companies, radio and television broadcast networks, and other 
multi-media systems and facilities in conformity with national standards and 
specifications and those set by international radio and telecommunications bodies 
which the Philippines is a party of; 
(h) Formulate and implement regulatory policies for the establishment, operation and 
maintenance ofICT facilities of new and converged services; 
(i) Prescribe rules, regulations, guidelines, measures and specifications for the following: 
• 
The setting and imposition of appropriate fees and charges over persons and 
entities within its jurisdiction, such as: 
1. Spectrum user fees for all assignees except those ,assigned to military 
and public safety services; 
2. Permits, certificates, registration and license fees; 
3. Supervision and regulations fees; and, 
4. Other administrative fees and charges fines and sanctions; 
• 
Determination and prescription of fair and reasonable charges or rates pertinent to 
the operation of public utility facilities and services, after conducting public 
hearings or hearings on applications, except when these rates and tariffs are 
deregulated or established by international bodies or associations where the 
Philippines is a participating member of, or by bodies recognized by the 
Philippine government as the proper arbiter of such rates and tariffs. 
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Subject to the provisions of R.A. No. 7925 and such other laws as may be 
promulgated, except where deregulation has been authorized, rates and other 
charges of public services shall be submitted to the Commission for its approval 
and the Commission shall, after public hearing, render a decision, ruling or order 
on said rates by: 
1) Approving the proposed rate and charges or any part thereof with our 
without alterations; 
2) Rejecting the proposed rates and charges or any part thereof without 
prejudice to the submission of a new proposal for new schedules of 
rates and charges; or, 
·3) In the interest of the public, prescribe rates after due notice and public 
hearing for the use of facilities/networks and services offered other 
than those proposed by the service providers: 
Provided, that the Commission shall have the original and exclusive 
jurisdiction over all cases contesting rates, fees, fines and penalties 
imposed by the Commission; 
• 
The accreditation and registration of radio and telecommunications equipment 
dealers, suppliers, manufacturers, repair shops, and the purchase, sale, lease, 
rental, possession and type approval/acceptance of radio and telecommunications 
equipment; 
• The fostering of fair and efficient market conduct through, but not limited to the 
protection of information, communication, radio, broadcast, cable TV and other 
multi-media facilities, systems of networks and services entities form unfair 
practices or other barriers; 
• 
The implementation of a responsive and more effective use of information and 
communications facilities and services taking into consideration existing and 
emerging technologies; and, 
• 
The protection of consumers against inadequate satisfactory service, any illegal 
activity and/or the misuse or abuse of any entity's monopolistic or quasi-
monopolistic powers and anti-competitive practices through, but not limited to, 
the conduct of investigations of complaints and the exaction of compliance from 
the providers to conform with service standards. 
G) Establish, prescribe and regulate areas of operation of public services/utilities, their 
equipment and other properties in accordance with their legislative franchise and their 
certificates, licenses, registration, accreditation and other authorizations; 
(k) Require, consistent with due process, any public service to provide access to and the 
use of its facilities and services, including the interconnection with or the attachment 
to its facilities or equipment, on such terms and conditions and the payment of 
compensation, as the Commission may determine and approve; 
(I) Allocate, sub-allocate and reallocate radio frequencies, and adopt frequency, plans 
and standards based on the International Telecommunications Union regulations to 
promote growth and development of the sector; 
(m) Assign radio frequencies, grant permits and licenses for the use of the radio spectrum 
or such other limited resources to authorized person or entity essential for the 
4 


efficient operation of any facility, station, networks and services: Provided, that any 
application under this subsection shall be acted upon by the Commission within 
ninety (90) days from the time of filing thereof; 
(n) Maintain a complete, and ensure the safety and integrity of, records of issued 
certificates, licenses, permits, registers, allocated and assigned frequencies and such 
other authorizations or activities of the Commission essential to ,planning, 
monitoring and enforcement of the powers of the Commission; 
(0) Ensure and monitor the compliance by persons and entities of their franchises, 
certificates, permits, accreditations, registrations, certifications, licenses and other 
existing laws, rules and regulations, technical programs and performance standards, 
or terms and 'conditions of their authorizations; 
(P) Impose fines and penalties on persons and entities that operate without authorization 
or violate the terms and conditions of any authorization issued by the Commission; 
Provided, that the fine may be in an amount as may be deemed appropriate by the 
Commission but shall not exceed Fifty Million Pesos (p50,000,000.00); 
(q) Upon the issuance of proper notice and the conduct of public hearings, suspend, 
cancel or revoke any authorization of service providers who violate the rules and 
regulations set by the Commission: Provided, that, when national security, public 
safety, welfare or interest so requires, the Commission may order immediate 
suspension of operations, and subsequently hold a hearing within five (5) days from 
the promulgation of the order of suspension; 
(r) Monitor and enforce rules and regulations including the investigation of all persons or 
entities under the jurisdiction of the Commission: Provided, that in the exercise of its 
police powers and in accordance with due process, the Commission may confiscate 
equipment and/or effect closure of any office, station or sub-station whose operations 
are found to be in violation of existing laws, rules and regulations or its franchises: 
Provided, further, that, in case of closure, the Commission may take remedial action 
to allow for temporary operations by a qualified service provider in the interest of 
public service; 
(s) Regulate radio training schools, the conduct of qualifying examinations and issue 
certification for qualified radio technicians and operators in accordance with laws, 
international conventions and treaties, or regulation where the Philippines is a 
signatory; 
(t) Establish and administer appropriate human resource programs, including the 
establishment of training centers to enhance human resources capacity building 
initiatives; 
(u) Direct, authorize or order another grantee of a certification or authorization to 
temporarily operate the business of a grantee those certificate has been suspended" 
cancelled or revoked for cause: Provided, that the certificate of a grantee who 
unjustifiably discontinues or abandons his service for whatever reason for a period 
longer than thirty (30) days, causing irreparable damage or serious inconvenience to 
the public shall be suspended: Provided, further, the Commission may take 
appropriate action to address such situation and, in accordance with due process, may 
approve or award new applications for certification or authorization: Provided, 
furthermore, that, in case of mere suspension, and the grantee has effected remedial 
measures within six (6) months from the suspension, the Commission may reverse its 
decision to suspend and thereafter reinstate its prior authorization to allow said 
grantee to operate the business again: Provided, furthermore, that if the period of six 
5 


(6) months has lapsed and no remedial measures have been effected, the certificate or 
authorization shall be permanently revoked: Provided, finally, that a grantee whose 
certificate has been revoked may re- apply but shall be treated as a new applicant; 
(v) Mandate a fair and reasonable interconnection of systems, stations, networks, 
facilities andlor services of authorized network operators and other providers through 
appropriate modalities of inter-connection that provides a reasonable and fair level of 
charges, so as to provide tile most extensive access, availability and affordability to 
the public, and ensure that no single player interest controls access to facilities and 
services; 
(w) Directly intervene, enjoin speedy settlement through alternative dispute resolution 
mechanisms and impose judgment On on-going and protracted disputes involving 
interconnection among service providers, including the fmal approval of any 
interconnection agreements; 
(x) Promulgate rules and procedures for the cOhduct of its proceedings and in arriving at 
decisions or orders; 
(y) Summarily punish for contempt by a fine not exceeding five thousand pesos 
(P5,000.00) or by imprisonment not exceeding thirty (30) days or both, any person 
guilty of misconduct in the presence of the Commission at seriously interrupting any 
hearing or session or any proceeding before it, including cases in which a person 
willfully fails or refuses, without just cause, to comply with summons, subpoena ad 
testificandum, subpoena duces tecum, injunctions, decisions or orders, rules and 
regulations legally issued or promulgated by the Commission, or being present at a 
hearing, session or investigation, refuses to be sworn as a witness or to answer 
questions when lawfully required to do so, or to furnish information required by the 
Commission. The police agencies of the place where the hearing or investigation is 
conducted shall, upon the 
request of the Commission, assist in enforcing the 
provisions of this section; 
(z) Require any public service or utility to produce before the Commission any and all 
records, data, statistics and documents deemed proper or necessary in the exercise of 
its powers and functions, and cite for contempt, direct or indirect, any person who 
fails or refuses to comply with any lawful order ofthe Commission; 
(aa) Enlist the aid and support of any and all enforcement agencies of the Government, 
as well as the private sector in the implementation of its powers and functions under 
this Act; 
(bb) 
Motu proprio inspect, or through duly authorized representatives, the operations, 
premises, books of accounts and records of any person or entity at any reasonable 
time, in the exercise of its quasi-judicial power for purposes of determining the 
existence of any anti-competitive behavior andlor market power abuse and any 
violation of rules and regulations issued by the Commission; 
(cc) Approve the application for relevant authorization or certification by all the 
operators of information and communications, radio, broadcast, cable TV and other 
multi-media facilities, stations, systems or networks and services including radio 
schools after the submission of the following: 
(i) The amount, terms and conditions of each proposed issue, sale or other disposition 
ofits capital stocks ifthe issuance, sale or disposition would result in: 
6 


I) A sale to any other public service or any corporation, domestic or foreign 
which vest in such one person or entity, more than forty percent (40%) of 
its subscribed capital stock; or, 
2) A sale or transfer to any alien which results to a reduction to less than 
sixty percent (60%) of the capital stock belonging to Philippine citizens. 
(ii) The terms and conditions of each proposed contract or agreement for the 
interconnection of systems, facilities, networks and services; 
(iii) 
Any contract or arrangement entered into between operators and 
program/content providers which tends or aims to exclude, inhibit and 
frustrate the ability to offer diverse programs for a wider variety of choices 
and diversity of programming to the subscribing public; and, 
(iv) 
Any contract, agreement, reports as may be prescribed by the Commission 
from time to time; 
(dd) 
Require public service time through broadcasting slatiOll'l, including cable TV, 
operators, to assist the government on public information and education; 
(ee) Perform such other powers and functions as may be prescribed by law, as well as 
those that which may be implied from or are incidental to the carrying out of the 
powers granted to the Commission; and, 
(ft) Issue orders, rules and regulations and other issuances as may be necessary (0 ensure 
the effective implementation of the provisions of this Act. 
SECTION 7. Composition. - The Commission shall be a collegial body of three (3) 
Commissioners, composed of a Chairperson and two (2), Commissioners, all of whom shall be 
appointed by the President of the Philippines upon the recommendation of the Chairman of the 
CICT. 
(a) Tenure of Commissioners. The Commissioners shall have a fixed term of five (5) years 
with an option to be reappointed for another term of five (5) years: Provided, that for the 
first set of appointees, the Chairperson shall hold office for five (5) years, one (1) 
Commissioner shall serve for three (3) years, and the other Commissioner for one (1) 
year: Provided, further, That any appointment to any future vacancy shall only be for the 
unexpired term of the predecessor: Provided, finally, that in no case shall any 
Commissioner serve for more than two (2) terms in the Commission. 
The Commissioner shall enjoy security of tenure and shall neither be suspended nor 
removed except for just cause in accordance with the law. 
(b) Remuneration a/Commissioners. The Commissioners shall be entitled to the same salary, 
allowance and benefits, including retirement, as those of the Justices of the Court of 
Appeals, except for the Chairperson who shall have the rank of the Presiding Justice of 
the Court of Appeals. 
( c) Qualifications of Commissioners. The Commissioners must be residents and citizens of 
the Philippines, at least 35 years of age, of good moral character, of known probity and 
unquestionable integrity, with recognized competence it the field of information and 
communications technology, and, with 'at least five (5) years of actual and distinguished 
experience in their respective fields of expertise: Provided, that one of the 
7 


Commissioners shall preferably be a member of the Philippine Bar, another' a licensed 
electronics and communications engineer (ECE), and the third an economist or a graduate 
of any relevant profession. 
(d) Powers o/the Commissioners. All powers vested upon the Commission shall be vested 
on the Commissioners sitting as collegial body. Hearings may be conducted by any of the 
Commissioners, individually or jointly, or by Hearing Officers duly authorized or 
delegated to hear such cases. A majority vote shall be required to reach a decision, ruling 
or order of the Commission. 
Notwithstanding the foregoing provision, the Chairperson may provisionally approve or 
decide on immediate cases involving the fixing of rates or charges: Provided that a 
hearing will be scheduled within thirty (30) days from the grant thereof. 
The Chairperson shall also be the Chief Executive Officer of the Commission and shall 
provide the general executive direction and supervision of the operations and activities of 
the Commission, its bodies, boards, offices, and personnel. 
SECTION 8. Regional Offices. -The Commission shall be authorized to establish, 
operate, and maintain Regional Offices as the need arises. The regional office shall be headed by 
a Regional Director, who shall be appointed by the President of the Philippines upon the 
recommendation of the CICT. 
Such regional offices shall function as line organization which shall be responsible for 
the following: 
(a) implementation of laws, policies, projects, plans, rules and regulations of the 
Commission; 
(b) supervision and inspection of the operation of radio, television, cable TV and 
telecommunications networks, station, systems, facilities and services; 
( c) Regulation and control of communications, CABLE TV and broadcast services; 
(d) Conduct of hearings on consumers' complaints and administrative cases; 
(e) Issuance of permits, licenses and certificates; including the conduct of examination 
and licensing of qualified operations; and, 
(t) Such other functions as may be assigned to them. 
SECTION 9. Fiscal autonomy. - The Commission shall enjoy fiscal autonomy. Its 
appropriations may not be reduced below the amount appropriated for the previous year and after 
approval, shall be automatically and regularly released. The Commission may re-align 
allocations to supplement any insufficient or inadequate appropriation as may be necessary to 
effectively discharge its duties. 
Thirty percent (30%) or the total supervisory and regulatory fees (SRF) collected by the 
Commission under Section 6(i) of this Act shall constitute receipts automatically appropriated 
for a period of five (5) years from the effectivity of this Act, to be used by the Commission to 
augment its resources to fund its operations and activities pursuant to its mandate. 
8 


Provided, that all moneys appropriated and earned by the Commission shall be utilized 
solely for its operations and shall be subject to DBM budget rules and regulations. 
SECTION to. Compensation and Emoluments of Personnel. - All positions of the 
Commission requiring technical proficiency and expertise shall be governed by compensation 
comparable to the private sector and position classification systems and qualification standards 
approved by the Commission, in consultation with the Civil Service Commission (CSC) and the 
Department of Budget and Management (DBM) based on a comprehensive job analysis and 
audit of actual duties and responsibilities. The compensation plan shall be subject to periodic 
review by the Commission, the CSC and the DBM no more than once every two (2) years 
without prejudice to merit reviews or increases based on productivity and efficiency:' 
The compensation and other emoluments for personnel with high level of expertise and 
proficiency shall he exempted from the coverage of R.A. No. 6758, otherwise known as the 
"Salary Standardization Act." For this purpose, the schedule of compensation of personnel with 
high level of expertise and proficiency as determined by the Commission, in consultation with 
the esc and the DBM, shall be submitted for approval by the President of the Philippines. The 
new schedule of compensation shall be implemented within six (6) months from the effectivity 
of this Act and may be upgraded by the President of the Philippines as the need arises: Provided, 
That in no case shall the rate be upgraded more than once a year. 
SECTION 11. Enhancement of Technical Competence. - The Commission shall 
establish a rigorous training program, to include the setting up of training center, for its 
personnel to enhance the technical and regulatory competence of the Commission in the 
monitoring and enforcement of laws, orders, rules and regulations of the Commission, and the 
compliance thereof. 
SECTION 12. Annual Report. - The Commission shall submit an annual report to both 
Houses of Congress not later than April 30 of each year, to include specific goals, objectives, 
accomplishments, plans and priorities of the Commission for the next five (5) years, as well as 
recommendations for legislative action to enable the Commission to achieve its objectives; and 
such other data as may be required from time to time. 
SECTION 13. Funding. - In addition to the sums to be appropriated for the Commission 
nnder the General Appropriations Act for the Fiscal Year following the approval of this Act, any 
savings in the appropriation of the Commission and fees collected by the Commission for the 
current fiscal year may also be used to implement the provisions of this Act. Thereafter, the 
amount needed for such purpose shall be included in the subsequent annual General 
Appropriations Acts, or through special appropriations. 
SECTION 14. Transitory Provisions. 
(a) Within ninety (90) days after the approval of this Act, the Commission shall draw the new 
structure and staffing pattern necessary to carry out the powers and functions of the newly 
organized Commission, in consultation with the CSC and the DBM, to be submitted to the 
CICT Secretary for approval. 
(b) The current Commissioners and existing personnel shall continue to hold office until 
approval of the staffing pattern and new appointments are issued. 
9 


( c) Any personnel, whose positions are not included in the new position structure and the duly 
approved staffing pattern shall be deemed separated from the service, The officials and 
employees who are or wish to be separated as a result of the implementation of this Act shall 
be entitled to one and a half month separation pay for every year of service: Provided, that 
they have rendered continuous service in the Commission for at least ten (10) years: 
Provided, further, that for officials and employees with the Commission for the last five (5) 
years, they shall be entitled to three (3) months separation pay for every year of service and 
all other benefits accruing to them under the laws of general application enforced at the time 
of their separation. 
(d) All regular or permanent employees who shall be affected by this Act shall not suffer any 
loss of seniority or rank or decrease in emoluments. 
SECTION 15. Repealing Clause. - All laws, decrees, executive orders, rules and 
regulations and other issuances or parts thereof which are inconsistent with this Act are hereby 
repealed, amended or modified accordingly. 
SECTION 16. Separability Clause. - If any of the provisions of this Act shall be 
declared unconstitutional or invalid, the other provisions not otherwise affected shall remain in 
full force and effect. 
SECTION 17. Effectivity Clause. - This Act shall take effect immediately upon its 
approval. 
Approved. 
10