SEVENTEENTH CONGRESS ) Ka Y REC EIVED <A
REPUBLIC OF THE PHILIPPINES ) FE are, MAY ,0 8 2018
Second Regular Session )

HOUSE OF REPRESENTATIVES

Introduced by Representative Maximo B. Rodriguez, JI
House Bill No. 7 6 0 2

EXPLANATORY NOTE

This bill seeks to regulate the use of utility poles, related support structures and rights
of way for the transmission of TV or telecommunications signals, as well as the rates, terms
and conditions for pole attachments under a just and reasonable framework, and hereby
authorizing the National Telecommunications Commission as the implementing body.

The 1987 Constitution enshrines the state policy that recognizes the vital role of
communication and information in nation-building. This policy can only be realized by
providing the consuming public with wider and more affordable access to an improved
variety of communication and information services. However, despite an impressive array of
technologies and innovations, the cable television and telecommunications industries have
been and continue to be handicapped by the unavailability of utility poles and the lack of pole
attachment regulations.

The cable television and telecommunications industries have been for several
decades employing cables and related transmission equipment to reach the consuming
public, thus necessitating utility poles, related support structures and rights of way to
facilitate signal distribution. Unfortunately, these require significant financial investments
which only a few can afford, such as pole-owning power utilities which in turn pass on the
costs to the consuming public. As such, the cable TV operators and telecommunications
‘companies have often been constrained to pay arbitrary and exorbitant pole attachment fees
to pole owners. This has ultimately led to unjust enrichment on the part of the pole owner,
curtailed service for the attaching entity, and doubled payments by the consuming public.

There is a need, therefore, to regulate the use of utility poles, related support
structures and rights of way for the transmission of TV or telecommunications signals, as
well as the rates, terms and conditions for pole attachments in order to promote and protect
the growth of the cable television and telecommunications industries, and for the ultimate
purpose of providing the consuming public with wider and more affordable access to an
improved variety of services. The State shall guarantee the right of cable TV operators and
telecommunications companies to secure and use their own or to have and maintain access
to utility poles, related support structures and rights of way used or useful, in whole or in
part, in the transmission of TV or telecommunications signals under a just and reasonable
framework.

Hence, the immediate passage of this bill is earnestly sought.

MAXIMO B. RODRIGUEZ, JR.



‘SEVENTEENTH CONGRESS )
REPUBLIC OF THE PHILIPPINES )
‘Second Regular Session )

HOUSE OF REPRESENTATIVES

Introduced by Representative Maximo B. Rodriguez, Jr.

House Bill No, 7802

‘AN ACT
REGULATING POLES, POLE ATTACHMENTS AND FOR OTHER PURPOSES

Be 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 “Pole Attachments Act

Section 2. Declaration of Policy - It is the deciared policy of the State to regulate the use of
utility poles, related support structures and rights of way for the transmission of TV or
telecommunications signals, as well as the rates, terms and conditions for pole attachments
in order to promote and protect the growth of the cable television and telecommunications
industries, and for the ultimate purpose of providing the consuming public with wider and
more affordable access to an improved variety of services. The State shall guarantee the
right of cable TV operators and telecommunications companies to secure and use their own
or to have and maintain access to utility poles, related support structures and rights of way
used or useful, in whole or in part, in the transmission of TV or telecommunications signals
under a just and reasonable framework.

Section 3. Construction and Interpretation - The provisions of this Act shall be liberally
construed in order to carry out the declared policy of the State. Accordingly, reference may
be made to the recognized standards of safety, industry practices and generally accepted
engineering principles.

Section 4, Definition of Terms

a. “Pole Owner” refers to an entity, that may be a power or other public utility, a
telecommunications company, a cable TV operator, a local cooperative, a municipal
corporation or a property developer, that owns utility poles, related support structures
and/or controls rights of way used or useful, in whole or in part, in the transmission of
TV or telecommunications signals to subscribers.

b. “Attaching Entity” refers to an entity, that may be a cable TV operator or a
telecommunications company that makes or maintains a pole attachment.

c. “Pole Attachment” refers to the attachment made by an attaching entity to a pole
‘owner's utility pole, related support structure or right of way used or useful, in whole
or in part, in the transmission of TV or telecommunications signals to subscribers.

d. “Pole Attachment Fee” refers to the amount to be paid by the attaching entity to
the pole owner in exchange for the pole attachment, payable at the end of every
quarter of a year on a per pole basis.

e. “Additional Maintenance Expense” refers to the necessary quarterly cost
directly and exclusively pertaining to preserving the integrity and proper functioning of
the pole attachment. It forms part of the pole attachment fee.


f. “Pole Premium” refers to the amount, equivalent to Twelve percent (12%) of the
additional maintenance expense, payable to the pole owner as premium for the pole
attachment. It forms the other part of the pole attachment fee.

g. “Commission” refers to the National Telecommunications Commission as the
implementing body of this Act.

Section 5. Formula for the Pole Attachment Fee — The pole attachment fee shall be equal
to the sum of the additional maintenance expense and the pole premium, wherein:

a. For the purposes of this Act, the additional maintenance expense shall be
disputably presumed to be equal to Twenty-Five Pesos (Php 25.00).

Provided, that the foregoing disputable presumption may be adjusted by the
Commission Five (5) years after the passage of this Act and every Five (5) years
thereafter, as warranted by the arguments and proofs submitted by the parties. In no
case shall the adjustment be more than Twenty percent (20%) of the previous
amount of the disputable presumption.

Provided further, that the foregoing disputable presumption may be disputed on a
case to case basis by the pole owner or the attaching entity, by way of submission to
the Commission of proof of the necessary quarterly cost directly and exclusively
pertaining to preserving the integrity and proper functioning of the pole attachment.
During the said dispute, any payments made would utilize the foregoing disputable
presumption subject to refund or additional payment, as and after determined by the
Commission

b. For the purposes of this Act, the pole premium shall be equal to Twelve percent
(12%) of the additional maintenance expense.

c. For the purposes of this Act, the number of utility poles for which pole attachment
fees are payable shall be equal to the number of utility poles applied for pole
attachment by the attaching entity minus the number of pole attachments validly
denied by the pole owner.

Provided, that the foregoing number of utility poles for which pole attachment fees
are payable may be disputed on a case to case basis by the pole owner or the
attaching entity, by way of submission to the Commission of proof pertaining to the
actual number of utility poles subject to pole attachments. During the said dispute,
any payments made would utilize the previous number of utility poles for which pole
attachment fees were paid subject to refund or additional payment, as and after
determined by the Commission.

Section 6. Nondiscriminatory Access - A pole owner shall provide and maintain
nondiscriminatory access to all utility poles and related support structures it owns and rights
of way it controls in exchange for the payment of the pole attachment fee, on terms and
conditions uniform to all attaching entities, including its own affiliates or subsidiaries. For this
purpose the pole owner shall submit to the Commission a copy of all pole attachment
contracts it has entered into.

Provided, that a pole owner may validly deny in writing a pole attachment to a utility pole or
related support structure it owns or a right of way it controls by reason of recognized
standards of safety, industry practices or generally accepted engineering principles.


Provided further, that in case a pole owner validly denies a pole attachment, or removes the
same due to an emergency, and thereafter the reason for such denial or removal ceases or
additional capacity becomes available for a pole attachment, the pole owner shall be bound
to offer the capacity for a pole attachment to the denied or previous attaching entity first,
before occupying the same or offering it to other potential attaching entities, including its own
affiliates or subsidiaries. Any removal not due to an emergency shall require prior written
notice to the attaching entity.

Section 7. Rights and Responsibilities of the Parties — In addition to those provided for
by the other provisions of this Act and by other relevant laws, the pole owner and the
attaching entity shall have the following rights and responsibilities:

a. The actual pole attachments shall be made, modified and removed at the cost and
responsibilty of the attaching entity whereas the maintenance and replacement of
the utility poles, related support structures and rights of way shall be at the cost and
responsibilty of the pole owner.

b. As far as practicable, the attaching entity shall make, modify and remove the pole
attachments in a manner that preserves the integrity and proper functioning of the
pole owner's utility poles, related support structures and rights of way, and likewise
the pole owner shall conduct the maintenance and replacement of the utility poles,
related support structures and rights of way in a manner that also preserves the
integrity and proper functioning of the pole attachments.

c. In case of disputes between the parties to a proposed, pre-existing or previous
pole attachment, the same shall be submitted to the Commission's determination
subject to the relevant procedural and evidentiary rules.

Section 8. Non-availability of Utility Poles, Related Support Structures and Rights of
Way ~ In case utility poles, related support structures and/or rights of way used or useful, in
whole or in part, in the transmission of TV or telecommunications signals are not available
for pole attachment, legitimate cable TV operators and telecommunications companies shall
have the option to secure and use their own provided the following requirements are
complied with

a. That the said utility poles, related support structures and rights of way shall be
secured and used by legitimate cable TV operators and telecommunications
‘companies at their own cost and responsibility

b. That the said utility poles, related support structures and rights of way shall be
secured and used with due reference to the recognized standards of safety, industry
practices and generally accepted engineering principles.

c. That the said utility poles, related support structures and rights of way shall be
subject to the same pole attachment rules and regulations imposed by this Act.

Section 9. Penalty for Violation - Whenever a party is found to have violated any provision
of this Act or of any obligation or contract covered by it, upon the complaint of the violated
party and as determined by the Commission, the violating party shall be compelled to rectify
the violation at its own cost without prejudice to the applicable civil or criminal liabilities
provided for by other relevant laws.

Section 10. Implementing Rules and Regulations - The Commission as the implementing
body of this Act shall perform the functions and duties necessary to carry out its purposes,
including the resolution of disputes and complaints and the promulgation of the appropriate
implementing rules and regulations.


Provided, that the implementing rules and regulations shall, as far as practicable, be similar
to the current procedural and evidentiary rules that the Commission follows and that the
same should be promulgated within Two (2) months after the effectivity of this Act.

Section 11. Appropriations — The amount necessary to carry out the provisions of this Act
shall be provided in a supplemental budget or included in the General Appropriations Act of
the year of its enactment into law. Thereafter, the expenses for its continued implementation
shall be included in the subsequent General Appropriations Act.

Section 12. Transitory Provision - Acts and contracts of parties executed before the
effectivity of this Act shall be govemed by the laws in force at the time of their execution,
except that any revocation, modification or novation made affter the effectivity of this Act shall
be subject to the provisions of this law.

Section 13. Separability Clause - If any provision of this Act is held invalid, all other
provisions not affected thereby shall remain valid.

Section 14. Repealing Clause - All laws, presidential decrees, executive orders, rules and
regulations or any other issuances or parts thereof inconsistent with this Act are hereby
repealed or amended accordingly.

Section 15. Effectivity - This Act shall take effect Fifteen (15) days after publication in Two
(2) newspapers of general circulation.

Approved,