1
Republic of the Philippines 
House of Representatives 
Quezon City, Metro Manila 
Nineteenth Congress 
First Regular Session 
HOUSE BILL NO. _____ 
Introduced by Representative Rudys Caesar G. Fariñas I 
EXPLANATORY NOTE 
This bill establishes Information and Communications Technology (ICT) hubs all 
over the country under a National ICT Plan to be prepared by the Department of 
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. 
Further, under this measure, the DICT shall formulate the National ICT Plan 
based on the National ICT Roadmap, which shall include the development of a 
national broadband network, providing incentives to encourage private sector 
participation and promoting competition. Furthermore, the Cybercrime 
Investigation and Coordinating Center of the DICT shall formulate, oversee and 
validate the ICT cyber plan of the ICT hubs. 
Overall, one of the salient provisions of this bill is to establish a digital network 
infrastructure to connect the local ICT hubs to the National Broadband Program 
through a core backbone network of the DICT, funded from the spectrum users’ 
fees. 
Hence, this representation seeks the passage of this measure.      
RUDYS CAESAR G. FARIÑAS I 
February 21, 2023
1:50 pm
7249


 2
Republic of the Philippines 
House of Representatives 
Quezon City, Metro Manila 
Nineteenth Congress 
First Regular Session 
HOUSE BILL NO. _____ 
Introduced by Representative Rudys Caesar G. Fariñas I 
AN ACT 
ESTABLISHING INFORMATION AND COMMUNICATIONS TECHNOLOGY 
HUBS NATIONWIDE 
   Be it enacted by the Senate and House of Representatives of the Philippines in 
session assembled: 
SECTION 1. Short Title. – This Act shall be known as the “Online Network
1 
Philippines Act”. 
2 
SEC. 2. 
 Declaration of Policy – The State recognizes the vital role of 
3 
information and communication in the development and in promoting growth in 
4 
the countryside. To this end, the State shall encourage the expansion of 
5 
information 
and 
communications 
technology 
(ICT) 
and 
infrastructure 
6 
throughout the country to facilitate the access of the citizenry to goods and 
7 
services. Pursuant thereto, the State shall establish ICT hubs throughout the 
8 
country in accordance with the National ICT Roadmap and National ICT Plan.  
9 
SEC. 3  Definition of Terms. — As used in this Act: 
10 
a)
Bandwidth refers to the amount of data that can be transmitted over
11 
a network connection over a period of time;
12 
b)
Broadband refers to a high capacity transmission technique using a
13 
wide range of frequencies which enables a large number of messages
14 
to be communicated simultaneously. In the context of internet access,
15 
7249


 
 
 
 
3
it refers to access that is continuing and unhindered, and faster than 
1 
the traditional dial-up mode; 
2 
c) 
Broadband network refers to a network able to transmit signals with 
3 
a high bit rate and a transmission channel being equal to or greater 
4 
than two megabits per second (2 mbps); 
5 
d) 
Committed information rate refers to the information rate guaranteed 
6 
by a public telecommunications entity (PTE). The bandwidth cannot 
7 
fall below the committed rate of ninety-eight point five percent (98.5%) 
8 
of the time; 
9 
e) 
Cyber skills learning hub or Digital transformation center refers to a 
10 
facility specifically designed for cyber-education and digital literacy, 
11 
and that provides knowledge, skills, theoretical and practical 
12 
experiences, and access to technologies for all learners to become 
13 
information and technology proficient; 
14 
f) 
         Data farm refers to a physical facility that houses servers, 
15 
network equipment, personnel like information technology specialists 
16 
and network technicians for business-critical support such as online 
17 
data storage, data processing, core computing services, data and 
18 
application backup services, and distributing large amounts of data 
19 
from remote data facilities. The operation and management thereof 
20 
shall be subject to pertinent laws and policies on data security to 
21 
prevent, detect and intercept unauthorized access of data, specially 
22 
on matters of national security; 
23 
g) 
Digital innovation hub refers to a specialized business incubation and 
24 
acceleration facility offering physical workspace, mentoring and 
25 
coaching, 
and 
devices 
for 
technical 
application 
testing 
or 
26 
experimenting, and training. It is a one-stop-shop, usually but not 
27 
always affiliated with educational institutions, that helps companies 
28 
including start-ups to become more competitive with regard to their 
29 
business production processes, products or services using digital 
30 
technologies by providing access to the latest knowledge, expertise 
31 
and technology to support them; 
32 
h) 
Information and communications technology (ICT) refers to the totality 
33 
of electronic means to access, create, collect, store, process, receive, 
34 
transmit, present, and disseminate information; 
35 
i) 
         Information and communications technology hub (ICT hub) refers 
36 
to a location where ICT services may be provided by a PTE with at 
37 


 
 
 
 
4
least the minimum internet speed required by the National 
1 
Telecommunications Commission (NTC). Such services may include 
2 
telecommunications services, broadband and convergence services, 
3 
business processing and data management;  
4 
j) 
         Information technology and business processing management 
5 
hub refers to a location that caters to and offers support mechanisms 
6 
for companies and enterprises engaged in IT services and business 
7 
process management and operations; 
8 
k) 
Public telecommunications entity (PTE) refers to any person, natural or    
9 
juridical, government or private engaged in the provision of 
10 
telecommunications services to the public for compensation. 
11 
SEC. 4 Establishment of Information and Communications Technology 
12 
Hubs. — There shall be established ICT hubs all over the country in accordance 
13 
with a National ICT Plan to be prepared by the Department Information and 
14 
Communications Technology (DICT).  
15 
The ICT Plan shall assess the needs of every province in the country and 
16 
identify the appropriate types and the number of ICT hubs to be developed 
17 
therein. Every province shall have at least one (1) of the following classifications 
18 
of ICT hubs based on the type of activity that it hosts:  
19 
a) 
Data Farms; 
20 
b) 
Information Technology (IT) and Business Processing Management 
21 
  (BPM) Hub; 
22 
c) 
Cyber Skills Learning Hub and Digital Transformation Center (DTC); 
23 
d) 
Digital Innovation Hub; and   
24 
e) 
any other ICT hub that may arise in the future.  
25 
Pursuant to the ICT Plan and the national, provincial, city, or municipal 
26 
spatial development plans, the DICT and the local government units (LGU) shall 
27 
identify the areas where the ICT hubs shall be established based on geographical 
28 
area and population: Provided, That ICT hubs shall be developed in 
29 
geographically equitable and accessible locations throughout the province: 
30 
Provided, further, That the area or site of an ICT hub shall be on a property owned 
31 
by an LGU.   
32 
The private sector shall be encouraged to establish ICT hubs in accordance 
33 
with the standards set forth by the DICT. The DICT shall employ the latest and 
34 
emerging technologies available to serve commercially unviable areas. 
35 


 
 
 
 
5
SEC. 5.  Role of the Department of Information and Communications 
1 
Technology (DICT). —The DICT shall formulate a National ICT Plan, based on 
2 
the National ICT Roadmap, which shall include the development of a national 
3 
broadband network, provision of incentives to encourage private sector 
4 
participation and promotion of competition. The Cybercrime Investigation and 
5 
Coordinating Center of the DICT shall formulate, oversee and validate the ICT 
6 
cyber plan of the ICT hubs. 
7 
The DICT shall update the National ICT Plan and shall submit the same on 
8 
or before the 15th of April of every year to the Office of President of the Republic 
9 
of the Philippines, the National Economic and Development Authority (NEDA), 
10 
and the ICT Joint Congressional Oversight Committee established under this 
11 
Act. 
12 
SEC. 6. Advisory Committee. — There is hereby created an Advisory 
13 
Committee that shall solicit inputs towards the shaping of policy directions of 
14 
the National ICT Plan, including the supervision of ICT hubs and the 
15 
coordination to be undertaken with the private sector and other agencies and 
16 
instrumentalities of the government. The DICT shall determine the composition 
17 
of the Advisory Committee and ensure the equal representation of the (a) 
18 
government, (b) the service providers, (c) the end users, and (d) other industry 
19 
stakeholders. 
20 
SEC. 7. Role of the National Telecommunication Commission (NTC). — 
21 
The NTC, through the exercise of its quasi-legislative and quasi-judicial powers, 
22 
shall be the primary infrastructure regulator to ensure the monitoring and 
23 
implementation of this Act. The NTC shall approve proposed ICT hub 
24 
telecommunications projects through an administrative process prescribed for 
25 
the purpose and shall ensure the compliance of PTEs with the required and 
26 
committed information rate and quality of service. All PTEs shall regularly 
27 
submit the necessary data and reports as required by the NTC. 
28 
SEC. 8. Incentives. — Any registered business enterprise in the ICT hub 
29 
may be granted incentives provided under Title XIII of the National Internal 
30 
Revenue Code of 1997, as amended: Provided That, these incentives shall be 
31 
granted in addition to the incentives given by the LGU where such ICT hubs are 
32 
located.  
33 
The eligibility of the ICT hubs for the incentives provided herein should be 
34 
within the boundaries of a performance-based, time-bound, and transparent 
35 


 
 
 
 
6
system of incentives tailor-fit for highly desirable ICT investments and shall be 
1 
subject to compliance monitoring by the Fiscal Incentives and Review Board and 
2 
the LGU where such ICT hubs are located. 
3 
SEC.  9. Digital Skills Development. – The DICT, together with the 
4 
Department of Education, Commission on Higher Education, and the Technical 
5 
Education and Skills Development Authority, shall establish a program on 
6 
digital skills development for all learners to enhance their competitiveness, 
7 
adaptability and employability in the emerging digital economy, which shall be 
8 
integrated into the pertinent programs of the ICT hubs. 
9 
SEC. 10. Digital Network Infrastructure. - A digital network 
10 
infrastructure  shall be established to connect the local ICT hubs to the National 
11 
Broadband Program through a core backbone network of the DICT, to be funded 
12 
from the spectrum users’ fees. 
13 
The DICT is hereby authorized to classify the said funds for capital outlay, 
14 
which classification shall be furnished to and duly reflected by the Department 
15 
of Budget and Management in its records. The release of funds shall be subject 
16 
to applicable laws and existing budgeting, accounting and auditing rules and 
17 
regulations. 
18 
SEC. 11. Local Government Responsibility. – The issuance of licenses 
19 
and permits for ICT-related activities and infrastructure construction projects 
20 
shall not be delayed and hampered, and shall further be prioritized, subject to 
21 
the provisions of Republic Act No. 11032, otherwise known as the Ease of Doing 
22 
Business and Efficient Government Service Delivery Act of 2018. 
23 
The Department of the Interior and Local Government (DILG) shall include 
24 
ICT competitiveness and ICT integration as a criterion of governance under the 
25 
Seal of Good Local Governance program.   
26 
SEC. 12.  Private Sector Support and Public-Private Partnership. – The 
27 
LGUs may engage the private sector through PPP agreements targeted towards 
28 
financing, designing, implementing and operating infrastructure facilities and 
29 
services for the ICT hub to maximize costs and allow for sharing of revenue, 
30 
subject to the provisions of Republic Act No. 6957, otherwise known as “An Act 
31 
Authorizing the Financing, Construction, Operation and Maintenance of 
32 
Infrastructure Projects by the Private Sector and for Other Purposes”, as 
33 
amended. 
34 


 
 
 
 
7
SEC. 13. Prohibition Against Exclusivity. - All ICT hubs established 
1 
under this Act are hereby declared free zones within which any PTE may operate. 
2 
Any agreement or arrangement designating a PTE, or any of its subsidiaries or 
3 
affiliates as an exclusive PTE within an ICT hub shall be void and unenforceable. 
4 
The domestic internet exchanges shall be interconnected. The interconnection 
5 
agreement between the PTEs shall be submitted to the NTC for its approval. If 
6 
the parties fail to reach an agreement within ninety (90) days from the start of 
7 
negotiation, the NTC shall intervene and prescribe the terms and conditions of 
8 
the interconnection. 
9 
SEC. 14. Penalties. — In the exercise of its quasi-judicial power, the NTC 
10 
shall impose a fine of Five hundred thousand pesos (Php500,000.00) for (a) non-
11 
disclosure, (b) non-interconnection, or (c) non-compliance with the committed 
12 
information rate and quality of service. 
13 
The NTC shall increase the amount of fine every five (5) years subject to a 
14 
certification from the NEDA on the computation of the cost of money based on 
15 
the current consumer price index.  
16 
SEC. 15. Implementing Rules and Regulations. — Within sixty (60) days 
17 
from the effectivity of this Act, the DICT as the lead agency, together with NEDA, 
18 
DILG, the League of Provinces and the Leagues of LGUs, the Board of 
19 
Investments, the Philippine Economic Zone Authority, and the Advisory 
20 
Committee, shall issue the necessary rules and regulations for the effective 
21 
implementation of this Act.  
22 
SEC. 16. ICT Joint Congressional Oversight Committee. — An ICT Joint 
23 
Congressional Oversight Committee (ICTJCOC) is hereby created to monitor the 
24 
effective implementation of this Act, recommend the necessary remedial 
25 
legislative or administrative measures and perform such other duties and 
26 
functions as may be necessary to attain the objectives of this Act. It shall be 
27 
composed of the Chairpersons of the House Committee on Information and 
28 
Communications Technology and Senate Committee on Science and Technology 
29 
and two (2) members from each of the Senate and the House of Representatives 
30 
who shall be designated by the Senate President and the Speaker of the House 
31 
of Representatives, respectively: Provided, That one (1) member from each House 
32 
shall be nominated by their respective Minority Leaders. 
33 
The Chairpersons of the House Committee on Information and 
34 
Communications Technology and the Senate Committee on Science and 
35 


 
 
 
 
8
Technology shall serve as Chairperson and Vice Chairperson or vice versa of the 
1 
ICTJCOC on a rotational basis every six (6) months. The Secretariat of the 
2 
ICTJCOC shall be the existing secretariat personnel of the concerned 
3 
Committees of the House of Representatives and the Senate. 
4 
SEC. 17. Separability Clause. – If any provision of this Act shall be 
5 
declared unconstitutional or invalid, the other provisions not affected shall 
6 
remain in full force and effect. 
7 
SEC. 18. Repealing Clause. – All laws, presidential decrees, executive 
8 
orders, rules and regulations or parts thereof which are inconsistent with or 
9 
contrary to the provisions of this Act are hereby amended, repealed or modified 
10 
accordingly.   
11 
SEC. 19. Effectivity. – This Act shall take effect fifteen (15) days after it 
12 
publication in the Official Gazette or in a newspaper of general circulation. 
13 
Approved.