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THIRTEENTH CONGRESS OF TH 
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REPUBLIC OF THE PHILIPPINE 
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First Regular Session 
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S E N A T E  
s. No. 
lntroduced by Senator S. R. Osmeiia Ill 
EXPLANATORY NOTE 
Telecommunications is one of the industries that have benefited the most 
from rapid advances in information technology. In less than a decade, the use of 
cellular phones has been so successfully popularized, that a cellular phone has 
come to be seen as an indispensable personal accessory, especially among 
members of middle and high-income families. 
As part of its exponential growth, the telecommunications industry has not 
been spared from growing pains. Among these are problems of interconnection, 
adaptability to new technology, lumpy capital requirements, pricing and cross- 
subsidy, frequency allocation, and telecommunications fraud and the destruction 
of faci I i ties. 
Of the several types of telecommunications fraud, cellular phone cloning 
and subscription fraud have affected the most number of individuals and 
companies, resulting in huge financial losses to these victims. 
This bill defines, and enumerates certain schemes of telecommunications 
fraud and destruction of telecommunications facilities, and prescribes sanctions 
and penalties as deterrents to these offenses. 
In view of the foregoing, the immediate passage of this proposed measure 
is earnestly sought. 
k 
SERGIO OSMENA 111 
Senator 


THIRTEENTH CONGRESS OF THE 
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REPUBLIC OF THE PHILIPPINE 
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First Regular Session 
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Introduced by Senator S. R. OsmeAa 111 
AN ACT 
TO PROHIBIT AND PENALIZE TELECOMMUNICATIONS FRAUD AND THE 
DESTRUCTION OF TELECOMMUNICATIONS FACILITIES, AND FOR OTHER 
PURPOSES 
Be it enacted by the Senate and House of Representatives of the 
Philippines in Congress assembled: 
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SECTION 1. Short Title - This Act shall be known as “The Anti- 
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Telecommunications Fraud Act of 2004.”. 
Sec. 2. Declaration of Policy - It is hereby declared the policy of the 
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State to protect the general public from: 
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a) fraudulent acts involving cellular phone cloning, subscription fraud 
illegal use of radio spectrum or frequency and other illegal schemes of 
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acquiring telecommunications service; 
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a) the use of telecommunications unit, device and equipment unauthorized 
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by the National Telecommunications Commission; and 
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b) the wanton and malicious destruction of telecommunications facilities. 
Sec. 3. Definition of Terms - As used herein, the term: 
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a) 
Commission - shall refer to the National Telecommunications 
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Commission or its successor agency. 


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b) Public Telecommunications Entity (PTE) - shall refer to any person, 
firm, partnership or corporation, lawfully engaged in the provision of 
telecommunications services to the public for compensation. 
c) Telecommunications Unit - shall refer to any fixed wire, wireless 
radio, cellular telephone, pager, fax machine, computer 
or other 
device capable of providing telecommunications through transmission, 
emission or reception of any sign, signal, writing, image, picture, video, 
sound, data, voice, music or intelligence of any nature. 
d) Electronic Serial Number (ESN)/Capcode/ Mobile Identification 
Number (MIN)/ Electronic/lnternational Mobile Equipment Identify 
(€MEl/”M€/)/ Subscriber Identify Module (SlMr) - shall mean a unique 
identification number, electronically programmed into or attached to a 
telecommunications u nit. 
e) Electronic Serial Number Reader - shall refer to any device or 
instrument 
capable 
of 
recognizing 
the 
ESN/Capcode/MIN/EMEl/lMEI/SIM of a telecommunications unit. 
0 Illegal 
Telecommunications 
Unit 
- 
shall 
refer 
to 
a 
telecommunications unit, with a part or accessory altered, modified, 
reprogrammed through cloning or any other similar process. The term 
includes, clone phones, stolen cellular phones, wireless radio units or 
other similar cellular phones, wireless 
radio units and other 
telecommunication units capable of gaining unauthorized or illegal 
access to a communications system operated by a PTE. 
g) Cloning Device - shall refer to any type of instrument, device, 
machine or equipment which is capable of being used and employed 
for cloning as defined herein. An ESN reader not registered with the 
Commission shall also be considered a cloning device. 
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Telecommunicafions Card - shall mean an instrument to access 
and/or use a telecommunications system, network or service, such as 
pre-paid cards, credit cards, calling cards or such other similar cards. 
Subscriber - shall refer to a person, natural or juridical, who has 
legitimately acquired telecommunications service with the authorization 
and permission of a PTE. 
Type 
Approval - shall 
refer 
to 
a 
process 
wherein 
a 
telecommunications unit, device or equipment is tested by the 
Commission or by the PTE pursuant to a prior authorization from the 
Commission, for conformance to applicable standards, at its or an 
authorized agency’s Equipment Standards Laboratory. 
Type Acceptance 
- shall refer to a process wherein a 
telecommunications unit, device or equipment is evaluated on the 
basis of technical tests and certifications issued by reputable foreign 
approval or certification agencies; 
Sec. 4. Prohibited Acts and Penalfies - The following acts are hereby 
declared prohibited and unlawful: 
Cloning - Any person found guilty of tampering or manipulating any 
part or device of any telecommunications unit, a card or accessory 
thereof, 
by using, utilizing or employing any electronic device, 
computer, its combination or any other equipment of similar nature in 
order to access and program and/or duplicate the Electronic Serial 
Number 
(ESN)/Capcode, 
Mobile 
Identification 
Number 
(MIN), 
Electronic/lnternational Mobile Equipment Identity (EMEMMEI) or 
Subscriber Identity Module (SIM) or otherwise duplicate subscriber 
data of a duly registered telecommunications unit into another 
telecommunications unit without the written authorization or approval of 
a PTE shall suffer the penalty of imprisonment of not less than four (4) 
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2s 
years and one (1) day to six (6) years and a fine of Five hundred 
thousand pesos (P500,000.00). 
b) Operation of Illegal Telecommunications Unit - 
1) Any person found guilty of knowingly or willfully manufacturing, 
selling and/or distributing illegal telecommunications units shall 
suffer the penalty of imprisonment of not less than two (2) years and 
one (I) 
day to four (4) years and a fine of Three hundred thousand 
pesos (P300,OOO.OO). 
2) Any person found guilty of knowingly or willfully operating, utilizing 
or employing illegal telecommunications unit shall suffer the penalty 
of imprisonment of not less than one (1) year and one (1) day to 
two (2) years and a fine of One hundred 
thousand pesos 
(PI 00,000.00). 
c) Megal Use of Radio Spectrum or Frequency - Any person found 
guilty of using a radio spectrum or frequency without the written 
authority of the Commission, the 
PTE or any other authorized entity 
shall suffer the penalty of imprisonment of not less than four (4) years 
and one (I) day to six (6) years and a fine of Three hundred thousand 
pesos (P300,OOO.OO). 
d) //legal Connection to a Landline Telephone - Any person found guilty 
of connecting to or linking with a landline telephone without the written 
consent of the subscriber and having the calls charged therein shall 
suffer the penalty of imprisonment of not less than two (2) years and 
one (1) day to four (4) years and a fine of Three hundred thousand 
pesos (P300,OOO. 00). 
e) Payphone Fraud - Any person found guilty of tampering or 
manipulating a public pay telephone to gain access to the PTE’s 
network or for services which are not normally available through the 
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payphone without authority from the PTE shall suffer the penalty of 
imprisonment of not less than six (6) months and one (1) day to one 
(1) year and a fine of One hundred thousand pesos (P100,OOO.OO). 
f) Third Number Fraud - Any person found guilty of placing a call to a 
specific number but having the call charged to neither the caller nor the 
called number without the consent of the subscriber of the third 
number or by securing the consent of the subscriber of the third 
number through deceitful means shall suffer the penalty of 
imprisonment of not less than six (6) months and one (1) day to one 
(1) year and a fine of One hundred thousand pesos (PlOO,OOO.OO). 
g) Telecommunications Card Fraud - 
I )  Any person found guilty of manufacturing, distributing or selling fake, 
stolen, tampered or unauthorized telecommunications cards which can 
access or be used for accessing and/or using the telecommunications 
system, network or service of the PTE shall suffer the penalty of 
imprisonment of not less than four (4) years and one (1) day to six (6) 
years and a fine of Five hundred thousand pesos (PS00,000.00). 
2) Any person found guilty of manufacturing, distributing or selling 
telecommunications card which cannot access or be used for 
accessing and/or using the telecommunications system, network or 
service of a PTE shall suffer the penalty of imprisonment of not less 
than two (2) years and one (1) day to four (4) years and a fine of 
Three hundred thousand pesos (P300,OOO.OO). 
3) Any person found guilty of using fake, stolen, tampered or 
unauthorized telecommunications cards for the purpose of accessing 
andlor using the telecommunications system, network or service of a 
PTE shall suffer the penalty of imprisonment of not less than six (6) 
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months and one (I) 
to one (I) 
year and a fine of One hundred 
thousand pesos (PI 00,000.00). 
h) Subscription Fraud - 
I) Any person found guilty of obtaining telecommunications service 
in one's own favor under false identity and/or false statements 
or pretenses of employment, 
occupation, income, financial 
capacity, residential or billing address; or using false, forged, 
altered or intercalated service agreements and supporting 
subscription 
requirements 
shall 
suffer 
the 
penalty 
of 
imprisonment of not less than one (1) year and one ( I )  day to 
two (2) years and a fine of One hundred thousand pesos 
(PI 00,000.00). 
2) Any person found guilty of deceiving a PTE to grant service to 
another person, under any of the circumstances in the 
preceding number or when such another person does not exist, 
is no longer living, does not reside within the Philippines or 
never applied for telecommunications service with the PTE to 
whom such submission was made, or having applied, did not 
apply under the terms and conditions stated in false, forged, 
altered or intercalated submissions, or who otherwise would not 
have been qualified to obtain such service under the standards 
and requirements of the PTE shall suffer the penalty of 
imprisonment of not less than two (2) years and one (I) 
day to 
four (4) years and a fine of Three hundred thousand pesos 
(P 300 , 000.00). 
3) Any person found guilty of deceiving a PTE to activate service or 
release telecommunications units by submitting or procuring the 
submission of authentic documents when such submissions 
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have not, however, been authorized by the person subject of 
such submissions, and where the person subject of such 
submission shall not have received and accepted the service 
applied for despite its activation by the PTE shall suffer the 
penalty of imprisonment of not less than two (2) years and one 
(I) 
day to four (4) years and a fine of Three hundred thousand 
pesos (P 3 0 0,O 0 0.00). 
4) Any person, dealer, sub-dealer or agent of a PTE found guilty 
of maliciously or intentionally failing to deliver to the subscriber- 
on-record service units, devices and/or accessories, delivering it 
to a person other than the subscriber-on-record shall suffer the 
penalty of imprisonment of not less than two (2) years and one 
(I) day to four (4) years and a fine of Five hundred thousand 
pesos (P500,OOO. 00). 
0 
Solicitation 
Fraud 
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Any 
person, 
telecommunications 
equipment/service dealer or agent of telecommunications services 
found. guilty of misrepresenting the rates, fees, subscription plans, 
equipment costs, and/or other terms and conditions of subscription to a 
telecommunication service, to the prejudice of the subscriber and/or 
the PTE shall suffer the penalty of imprisonment of not less than one 
(1) year and one (1) day to two (2) years and a fine of One hundred 
thousand pesos (PI 00,000.00). 
j) Illegal Installation of a Telecommunications Unit - Any person found 
guilty of installing or causing to be installed a telecommunications unit, 
device or equipment which 
is without a type approval or type 
acceptance, into a telecommunications network without the permission 
of the Commission or the PTE who owns the network shall suffer the 
penalty of imprisonment of not less than one (I) 
year and one (1) day 
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to two (2) years and a fine of One hundred thousand pesos 
(PI 00,000.00). 
k) 
Other Similar Fraudulenf Schemes. - Any person, not otherwise 
authorized by a PTE, who is found guilty of abandoning a 
telecommunications service 
or transferring the 
possession or 
ownership of a telecommunications unit with the intent of evading 
payment of charges, or employing any means, scheme, process or 
device to defraud the government, the public, or the PTE of fees or 
charges for services rendered or equipment owned by the PTE shall 
suffer the penalty of imprisonment of not less than one (I) 
year and 
one (1) day to two (2) years and a fine of One hundred thousand 
pesos (PI 00,000.00). 
I )  illegal Operation of a Public Telecommunications Service - Any 
person 
found 
guilty 
of 
operating 
or 
providing 
a 
public 
telecommunications service without any valid authority under the law or 
license or any proper authorization from the Commission shall suffer the 
penalty of imprisonment of not less than four (4) years and one (I) 
day 
to six (6) years and a fine of Five 
hundred thousand pesos 
(P500,OOO. 00). 
rn) Destruction of Telecommunications Facilities - Any person found 
guilty of want only and maliciously damaging, destroying or removing 
telecommunications facilities and accessories of authorized PTE's 
resulting to system disruption or network degradation shall suffer the 
penalty of imprisonment of not less than four (4) years and one (1) day 
to six (6) years and a fine of Five 
hundred thousand pesos 
(P500,OOO. 00). 
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Sec. 5. Persons Liable in Case the Offender is a Juridical Person - I f  
the offense is committed by a corporation, partnership, association or any other 
juridical person, the penalty shall be imposed against the officerk, memberls 
and/or 
employee/s who took part in the commission of the offense, 
who 
consented thereto or who is/are otherwise responsible. This is without prejudice to 
the filing of civil and administrative action against said corporation, partnership, 
association or other juridical person. 
Sec. 6. Qualifying Circumsfances - An additional penalty of two (2) years 
imprisonment shall be imposed, when any of the acts prohibited as defined in this 
Act is committed: 
a) by a syndicate. of 
three 
(3) 
or more persons conspiring and 
confederating with one another in the commission of the offense; 
b) in conspiracy with an employee of the PTE; 
c) by a foreigner, who shall likewise be deported immediately after service 
of sentence and forever barred from entry to the country; or 
d) by a public officer or employee, who shall likewise suffer perpetual 
absolute disqualification from public office. 
Sec. 7 .  Evidence of Cloning and Other Frauds - For purposes of 
criminal prosecution, the following shall be sufficient to establish prima facie 
evidence of: 
a) Cloning - Mere possession of a cloning device or an illegal 
telecommunications unit. 
b) lllegai Use of Frequency - Mere possession of a radio transmitter or 
transceiver without authority from the Commission. 
c) 
Telecommunications Card Fraud - Mere possession of an 
unauthorized, tampered, stolen or manipulated telecommunications 
card. 
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Illegal Operation of a Public Telecommunications Service - The 
absence of a Certificate of Public Convenience and Necessity, 
provisional or permanent license and/or authorization from the 
Commission prior to operation. 
Subscription Fraud - The mere submission of forged or fraudulent, 
intercalated and/or altered subscription documents by the applicant for 
service and/or any person,'dealer or agent whether of not the PTE 
shall have in fact granted or activated the service. 
Sec. 8. Confiscation and Forfeiture of the Proceeds or Instruments of 
the Crime - Every penalty imposed for the commission of any of the acts 
punishable in this Act shall carry with it the forfeiture of the proceeds of the crime 
and the instruments or tools with which it was committed. Those items which 
are not the subject of lawful commerce shall be destroyed by the Government. 
Sec. 9. Prosecution of Offenses - The prosecution of offenses under 
this Act may be initiated by any affected person, subscriber, 
PTE or the 
Comrnission. 
Sec. I O .  Registration o f  Electronic Serial Number Reader - Upon the 
effectivity of this Act, no person or entity who is not an authorized PTE shall 
import into the Philippines any ESN reader. For this purpose, the Bureau of 
Customs shall require the presentation of the certificate of authorization to import 
issued by the Commission and in the absence thereof, to confiscate and cause 
the forfeiture of such equipment in favor of the Government. 
Electronic serial number readers already in the Philippines shall be 
registered with the Commission within six (6) months from the date of effectivity 
of this Act. Otherwise, mere possession thereof shall be considered illegal and 
shall subject the possessor to the penalties provided in Section 4-a hereof. 
Sec. 1 1. Non-Disconnection of Telecommunications Service - A PTE 
shall not disconnect the telecommunications service of a subscriber who has a 
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verified written complaint for erroneous billings, pending resolution of said 
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complaint by the PTE and/or the Commission. The subscriber shall, however 
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pay the uncontested items of the bill and agree to the PTE's implementation of 
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measures to immediately prevent any possible further erroneous billing. 
If the subscriber refuses to pay the contested bill despite a resolution of 
the Commission adverse to the subscriber then the PTE shall disconnect the 
service unless directed otherwise. 
Sec. 12. Liability Under Other Laws - Prosecution under this act shall be 
without prejudice to any liability for violation of any provision of the Revised Penal 
Code and other laws, rules and regulations. 
Sec. 13. Non-entitlement to the Benefits of the Probation Law - Any 
provision of law to the contrary notwithstanding, a person convicted under this Act 
shall not be entitled to the benefits of Presidential Decree No. 968, as amended, 
otherwise known as the Probation Law of 1976. 
Sec. 14. Prescription of Offenses - Offenses penalized under this Act and 
the rules and regulations issued pursuant thereto shall prescribe in twenty (20) 
years. 
Sec. 15. Promulgation oflmplemenfing Rules - Within ninety (90) days 
from the effectivity of this Act, the Commission shall promulgate the rules and 
regulations necessary to implement the provisions of this Act. 
Sec. 16. Repealing Clause - Any provision of law, decree, executive 
order or issuance inconsistent herewith is hereby repealed and/or modified 
accordingly . 
Sec. 17. Separability Clause - If any section or provision of this Act is 
held invalid, all the other provisions not affected thereby shall remain valid. 
Sec. 18. Effectivity Clause - This Act shall take effect fifteen (1 5) days 
after the completion of its publication in the Official Gazette or in at least two (2) 
newspapers of general circulation. 
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