Republic of the Philippines
Quezon City

SEVENTI EENTH CONGRESS
st Regular Session

ms 4
HOUSE BILL NO 4014

Introduced by Representative Federico §. Sandoval II

EXPLANATORY NOTE
In line with the Administration’s campaign against crime and terrorism, this proposed
measure seeks to require the registration of pre-paid subscriber identity module (SIM) cards
for mobile phones and providing stricter penalties for non-compliance thereof.

Section 24, Article II of the 1987 Constitution provides that:

“Sec. 24. The State recognizes the vital role of communication and information in
nation-building.”

‘An article entitled, “Consumers and Operators in the Philippines Benefit from ICT
Structural Changes” posted in the website of the Oxford Business Group states that "SMS
Texting is one of the most popular communication methods and the country was once dubbed
the ‘texting capital of the world,’ with an estimated 10% of global SMS volume being
generated in the Philippines.”

‘This technological advancement in wireless communication technology has rendered
everyday living and business transactions more convenient, comfortable, effective and
efficient. However, a great number of unscrupulous individuals have taken advantage of the
growing popularity of pre-paid SIM cards usage by misusing the virtually untraceable mobile
phone numbers to perpetrate their nefarious activities.

Criminals who are determined to remain anonymous and avoid easy detection use pre-paid
SIM cards to aid them in committing their crimes. The prevalent use of pre-paid cards in
crimes has presented a challenge for law enforcement authorities to improve their over-all
security efficiency through the internationally and nationally accepted mechanism in tracking
down individuals engaged in illegal activities

To effectively trace illegal activities being committed by criminals and other dubious
individuals or groups by the law enforcement agencies for the security and well-being of the
public, i is imperative to require the registration of pre-paid SIM cards by the public
telecommunications entities and their authorized resellers and provide penalties for their
non-compliance.



The positive outcomes of compulsory registration of pre-paid SIM cards cannot be
overemphasized, It will enable the relevant government security forces to accurately identify
and trace deceitful individuals as a means of containing, if not totally eliminating, crimes
committed using pre-paid SIM cards, Moreover, it will enable public telecommunications
entities to have a comprehensive and facts-based profile of the mobile pre-paid subscribers in
their telecommunications service networks, with emphasis on a more accurate statistical
analysis of mobile phone usage.

In view of the foregoing, approval of this bill is earnestly sought

EDERICO S.



Republic of the Philippines
HOUS OF REPRESENTATIVES

Quezon City

:NTH CONGRE
irst Regular Session

HOUSE BILL, no,__4014

Introduced by Representative Federico S, Sandoval II

AN ACT
REQUIRING THE REGISTRATION OF PRE-PAID SUBSCRIBER
IDENTITY MODULE (SIM) CARDS FOR MOBILE PHONES AND
PROVIDING PENALTIES FOR VIOLATION THEREOF

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

SECTION 1. Short Title. — This Act shall be known as the “Pre-paid SIM Card
Registration Act.”

C. 2. Objectives. ~ The objectives of this Act are as follows:
a.) Ensure the security of pre-paid card subseribers,

b,) Ensure the proper use of mobile phones as one of the most efficient modern
technologies systems for economic development;

c.) Curb the prevalent use of pre-paid SIM cards in crimes by enabling law
enforcement personnel to track down unscrupulous individuals in the pursuit of
their illegal activities, and

.) Enable public telecommunications entities to have a comprehensive and facts-
based profile of the mobile pre-paid subscribers in their telecommunications
service networks, with emphasis on a more accurate statistical analysis of mobile
phone usage.

SE

3. Definition of Terms, ~ As used in this Act

a.) Authorized reseller refers to any person or entity, whether natural or juridical,
authorized by a public telecommunications entity to directly dispense or sell a
SIM card to a subscriber;


b.) Pre-paid mobile phone services refer to services provided by a public
telecommunications entity where credit is purchased in advance to pay for mobile
phone services at the point the services are accessed or consumed and in case
there is no available credit then access to the requested service is denied;

©.) Public telecommunications entity refers to any duly enfranchised entity that
offers voice, short messaging system, mobile data, value added services and any
other wireless telecommunications services to the public for a fee;

d.) SIM card registration refers to the process of recording and verifying by the
public telecommunications entity or authorized reseller of the personal
information of the subscriber which includes the complete name and complete
home address as well as the date of sale, mobile phone number and serial number
of the pre-paid SIM card;

©.) Subscriber refers to any individual who directly purchases a pre-paid SIM card
from a public telecommunications entity or an authorized reseller for personal or
business purposes; and

f.) Subscriber Identity Module (SIM) card refers to an integrated circuit inside a
mobile phone, usually a removable plastic card, which encrypts voice and data
transmissions and stores data about the specific user so that the user can be
properly identified and authenticated to the network of the public
telecommunications entity supplying the phone service.

EC. 4. Scope. — This Act shall provide a framework for the registration of all pre-paid

SIM cards and provide penalties for non-compliance,

SEC. 5. SIM Card Registration, ~ It shall be the duty of the public telecommunications
entity and authorized reseller to require the pre-paid subscriber of the SIM card to duly
accomplish a registration form with a corresponding control number in triplicate, which shail
indicate the required information and an attestation which states that the purchaser personally
appeared before the public telecommunications entity or authorized reseller and that the
original copy of the personal identification documents were presented.

‘The registration form shall contain the following information:

a.) Full name of the subscriber;

b.) Complete residential address;

c.) Assigned mobile phone number of SIM card and serial number; and

d.) Date of purchase of the SIM card.


SEC. 6. Identification and Verification. ~ The identification and verification processes
can be effectively done through the presentation of any valid government-issued
photographical identification cards, which may be any of the following:

a.) Passport;

b,) Driver's license;
c.) National Bureau of Investigation (NBI) clearance;
4.) Police clearance;

©.) Senior citi

en’s card;

£) Voter’s identification card;

£,) Postal identification card;

h,) Solo parent’s ID; and

i.) Other government issued identification cards,

A purchaser who does not produce a valid government-issued photographical
identification card and accomplish a registration form in accordance with the preceding
section shall be refused the sale of a pre-paid SIM card by the public telecommunications
entity or authorized reseller.

SEC. 7. Purchase and Registration Through a Representative. ~ A purchaser who
cannot personally appear before the public telecommunications entity or authorized reseller
may, for valid reason, authorize another to purchase and register for and in behalf of the
subscriber. The representative must have a duly notarized special power of attorney (S.P.A.)
from the purchaser/principal and both the principal and the representative must present the
original and photocopy of any valid identification cards enumerated under Section 6 hereof,

SEC. 8. Maintenance of Records, — ‘The public telecommunications entity shall
maintain a record of all the registered and activated pre-paid SIM cards which shall include
the information required under Section 5 of this Act

SEC. 9. Submission of Accomplished Registration Form. ~The authorized resellers
shall submit the registration form accomplished by the subscriber to the public
telecommunications entity within ten (10) days after the close of the month when the sale of
the pre-paid SIM card was made


‘The public telecommunications entity shall submit a copy of the registration form
accomplished by the subscriber, including those submitted by the authorized resellers, to the
National ‘Telecommunications Commission (NTC) within (30) days after the close of the
month when the sale of the pre-paid SIM card was made,

SEC. 10. Verified List of Authorized Resellers, — Within six (6) months from the
effectivity of this Act, the public telecommunications entity shall submit to the NTC, the
verified list of all its authorized resellers, Thereafter, the public telecommunications entity
shall submit to the NTC an updated list of its authorized resellers every quarter of cach year.

SEC. Il. Nonedisclosure of the Information and Exemption. ~ All information
gathered from the mandatory pre-paid SIM card registration shall be treated with absolute
confidentiality, except upon prior written consent from the subscriber or when public safety
or order requires its disclosure to law enforcement authorities

SEC. 12. Mandatory Registration of Existing Pre-paid Mobile Phone Number.
Existing pre-paid mobile phone subscribers have a period of two (2) months from the date of
the effectivity of this Act within which to register the pre-paid SIM card with the public
telecommunications entity. Failure to register within said period will authorize the public
telecommunications entity to automatically deactivate the subject pre-paid SIM card.

The public telecommunications entity is directed to keep an updated data base or record of
all their pre-paid subscribers and submit the same to the NTC within sixty (60) days after the
period of registration as prescribed in this Act

SEC. 13. Loss of the SIM Card or Change of Information of the Subscriber. ~ In case
of loss of the pre-paid SIM card or change in the information of the pre-paid subscriber, for
example the complete residential address or the assigned mobile phone number of SIM card
and serial number, said subscriber must duly notify the public telecommunieations entity
within thirty (30) days from the loss of the SIM card or change in information, The public
telecommunications entity must notify the NTC within a period of thirty (30) days from date
of such notification from the subscriber.

SEC. 14, Penalties.
violating any of Sections 5
following penalties:

a.) Any public telecommunications entity found guilty of
. 6, 8, 9, 10, 11, 12 and 13 of this Act shall be punished with the

1.) First Offense — A fine of Two Hundred Thousand Pesos (P200,000.00);
2.) Second Offense ~ A fine of Three Hundred Thousand Pesos (P300,000.00); and

3.) Third and subsequent Offense ~ A fine of One Million Pesos (1,000,000,00).

b.) Any responsible employee or officer of the public telecommunications entity
who shall refuse to disclose the identity and personal circumstances of the pre-paid SIM card
subscriber or shall refuse to cooperate with the law enforcement agency after the latter shows.
proof that the pre-paid SIM card was used in the commission of a crime or illegal purpose,
shall be liable to pay a fine of Five Hundred ‘Thousand Pesos (P500,000.00)


c.) Any public telecommunications entity found to have been continuously
violating any provisions of this Act, shall suffer the penalty of revocation of its franchise,
upon the recommendation of the NIC to Congress.

4d.) Any authorized reseller who is found guilty of violating any of Sections 5, 6, 9
and 11 of this Act shall be punished with the following penalties:

1.) First Offense ~ A fine of Five Thousand Pesos (P5,000,00),

2.) Second Offense — A fine of Ten Thousand Pes

P 10,000.00), and

3.) Third Offense — A fine of Fifteen Thousand Pesos (P15,000.00).

©.) An authorized reseller who is found guilty of violating any of Sections 5, 6, 9
and 11 of this Act for the third time, shall also be prohibited from being an authorized reseller
of any public telecommunications entity

. 15. Subscriber's Criminal Liability. ~ Any subscriber who knowingly provides
false or misleading information as mandated by Section 5 of this Act shall be subject to
criminal prosecution under Article 171 or Article 172 of the Revised Penal Code

SEC. 16. Implementing Rules and Regulations. ~ Within sixty (60) days after the
approval of this Act, the NTC shall issue the rules and regulations for the effective
implementation of this Act.

SEC. 17. Reportorial Requirement. - The NTC shall submit to Congress an annual
report on the status of the implementation of the mandatory pre-paid SIM card registration
including the challenges encountered by stakeholders and the recommendations of NTC to
ensure compliance and the attainment of the objectives of this Act

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

SEC, 19. Repealing Clause. ~ All laws, decrees, orders, rules and regulations, and other
issuances, or parts thereof which are inconsistent with the provisions of this Act are hereby
deemed amended or repealed.

. Effectivity. - This Act shall take effect fifteen (15) days after its publication in
1e or ina newspaper of general circulation.

Approved,