Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO. _____ 
Introduced by REP. JOSE FRANCISCO “KIKO” B. BENITEZ, Ph.D. 
EXPLANATORY NOTE 
The COVID-19 pandemic highlighted the need to accelerate the digital transformation 
of our economy, bureaucracy and education system. On the other hand, the pandemic also 
exposed the wide digital divide in the country. 
The Philippines is ranked 14th among 22 Asian countries, and 53rd globally among 100 
countries, in the 2022 Inclusive Internet Index. The Index assesses countries based on four 
elements: availability, affordability, relevance and readiness. In terms of affordability, the 
country is placed 59th and 48th in indicators with respect to price and competitive environment, 
respectively. Meanwhile, a study by the Philippine Competition Commission (PCC) identified 
inadequate ICT infrastructure as one factor that impedes growth of e-commerce in the country. 
The PCC study notes barriers to expansion of e-commerce enterprises “include restrictive 
forms of regulation or broad technological delays. The quality of connectivity infrastructure 
may also be considered a barrier to the growth and development of e-commerce.”1 
To address these, we need a comprehensive set of government interventions including 
higher public investment in ICT infrastructure and building an enabling regulatory framework 
for free and fair competition in the telecom industry to enhance access to fast, affordable and 
secure Internet, and promote digital innovation in the market, and state and social institutions. 
Republic Act No. 7925, or the Public Telecommunications Policy Act, which opened up 
the telecom market in the country in the 1990s, did not contemplate the expansion of the 
Internet, its commercial applications and impact on daily life. Rapid technological change, 
particularly in digital technologies, in the past 25 years has supervened the law and now 
requires a new regulatory system. While, under Republic Act No. 7925, Internet service 
providers (ISPs) are classified as value-added service (VAS) providers that do not need a 
congressional franchise to operate, an ISP cannot put up its own network and is constrained to 
connect to a telco facility.  
A study by Mirandilla-Santos, et al. (2018) illuminates on this barrier to entry in the 
Internet services market. It notes:  
“There   needs   to   be   policy   that   specifically   addresses   Internet   connectivity   and  
distinguish  it  from  telecommunications  services  for  the  simple  reason  that  they  are  two  
different   services.   While   Internet   connection   may   be   established   through   a  
telecommunications  network,  the  former  is  not  entirely  dependent  on  the  latter.  Their  
1  Serafica,  Ramonette,  et  al.  “Issues  Paper  on  the  Philippine  Digital  Commerce  Market.”  Philippine  
Competition  Commission  (2020).    
September 22, 2022
9:31 am
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ecosystems  are  also  different  from  each  other,  although  they  might  deliver  the  same  
functions  at  times.  Traditional  telecommunications  is  anchored  on  a  centralized  system.  
The  Internet,  on  the  other  hand,  thrives  on  redundancy  and  decentralization,  where  the  
network  becomes  more  resilient  as  more  networks  are  connected.  The  policy  framework  
should   allow   non-­telcos,   including   VAS   providers,   to   build   and   operate   their   own  
networks  in  order  to  offer  Internet  connectivity.”2  
 
This bill establishes a regulatory system that will address this problem. The bill removes 
the requirement for a legislative franchise and a certificate of public convenience and necessity 
from the National Telecommunications Commission for an ISP to build and operate a network. 
The bill also mandates interconnection and greater transparency in rates and spectrum 
assignment.  
 
This bill, championed by Rep. Victor Yap, had been approved on third reading by the 
House of Representatives in the 17th and 18th Congresses. If finally enacted into law, this will 
lower cost of operating an Internet service network, and enable smaller ISPs to compete with 
large telecom companies. With more market players providing Internet connection at varying 
qualities and prices, consumers have more options that satisfy the different needs of an 
increasingly digital world. 
    
In view of the foregoing, the approval of this bill is earnestly requested.   
 
 
 
JOSE FRANCISCO “KIKO” B. BENITEZ 
 
  
 
  
 
    
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  
2  Mirandilla-­Santos,  Mary  Grace,  et  al.  “From  Analog  to  Digital,  Philippine  Policy  and  Emerging  Internet  
Technologies.”  The  Asia  Foundation  and  Better  Broadband  Policy  (2018).  


Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO. _____ 
Introduced by REP. JOSE FRANCISCO “KIKO” B. BENITEZ, Ph.D. 
AN ACT 
PROMOTING OPEN ACCESS IN DATA TRANSMISSION AND PROVIDING 
ADDITIONAL 
POWERS 
TO 
THE 
NATIONAL 
TELECOMMUNICATIONS 
COMMISSION 
Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
assembled: 
CHAPTER I 
INTRODUCTORY PROVISIONS 
SECTION 1. Short Title. – This Act shall be known as the "Open Access in Data 
Transmission Act". 
SEC. 2. Declaration of Policy. – It is the policy of the State to narrow the digital divide 
in the country by encouraging the development of data transmission infrastructure and 
removing any barrier to competition in data transmission services. Moreover, the State shall 
implement measures to require data transmission service providers to adhere to 
telecommunications standards suitable to the needs and aspirations of the nation and ensure 
that internet users enjoy the best quality of data transmission service. The State shall: 
(a) Promote the construction and development of reliable, affordable, open and
accessible data networks that transmit information at speed and quality
comparable to the best in the world;
(b) Create an entrepreneurial ecosystem where persons who wish to engage in the
data transmission industry can compete openly and freely in the spirit of fair
competition and permission-less innovation;
(c) Encourage investments in the digital infrastructure development in the country;
(d) Adopt and ensure open access in the regulation of the data transmission industry;
(e) Protect the public interest as it is affected by its ability to access data networks;
(f) Establish a strong and independent regulatory body and system to ensure and
enhance fair competition in the data transmission industry;
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(g)  Protect and promote the internet as an open platform enabling consumer choice, 
freedom of expression, end-user control, competition and the freedom to innovate 
without permission, and thereby encouraging the development of advanced 
telecommunications capabilities and the removal of barriers to infrastructure 
investment; 
 
(h)  Encourage infrastructure sharing and co-location in order to promote network 
investment, eliminate the uneconomic duplication of infrastructure facilities, and 
strengthen competition; and 
 
(i)   Ensure efficient and transparent management of the radio frequency spectrum, 
especially those utilized in the delivery of data transmission services. 
 
SEC. 3. Definition of Terms. – As used in this Act: 
 
(a)  Basic telephone service refers to the local exchange telephone service for residence and 
business establishments provided via the circuit switched telephone network; 
 
(b)  Cellular Mobile Telephone Service (CMTS) refers to the wide area mobile radio 
telephone system with its own switch, base stations and transmission facilities capable 
of providing high capacity mobile telecommunications by utilizing radio frequencies; 
 
(c)  Content refers to, among others, texts, images, audios, videos, and animations that are 
carried over the broadband/internet network; 
 
(d)  Core or Backbone Network refers to the main line including international connection, 
that ties networks, delivers routes to exchange information among various subnetworks, 
connects regional distribution networks and, in some instances, provides connectivity 
to other peer networks; 
 
(e)  Data transmission refers to the process of sending digital or digitized analog signal over 
a communication medium to one or more computing networks, communication or 
electronic devices. It enables the transfer and communication of devices in a point-to-
point, point-to-multipoint and multipoint-to-multipoint environments. The term data 
transmission includes the provision of Voice over Internet Protocol (VoIP) services but 
does not include the provision of basic telephone services; 
 
(f)   Data transmission industry participant refers to any person, firm, partnership or 
corporation, government or private, engaged in the provision of data transmission 
services to the public. This includes public telecommunications entities (PTEs) that 
offer data transmission services as defined under Republic Act No.7925, otherwise 
known as the “Public Telecommunications Policy Act of the Philippines”; 
 
(g)  International gateway or landing refers to a segment of data transmission that consists 
of any facility that provides an interface to send and receive data traffic between one 
country's domestic network facilities and those in another country; 
 
(h)  Last mile refers to the segment of data transmission network that connects end users; 
 


(i)   Middle mile refers to the segment of data transmission network that links the last mile 
network to the core or backbone network; 
 
(j)   Open access refers to the system of allowing the use of data transmission or distribution 
systems and associated facilities subject to fair, reasonable, and nondiscriminatory 
terms in a transparent market; 
 
(k)  Paid prioritization refers to the management of a data transmission network to directly 
or indirectly favor some traffic over other traffic, through the use of techniques such as 
traffic shaping, prioritization, resource reservation, zero-rating, or other forms of 
preferential traffic management, either in exchange for consideration (monetary or 
otherwise) from a third party, or to benefit an affiliated entity; 
(l)   Voice over Internet Protocol (VoIP) service refers to the provision of voice 
communication using Internet Protocol (IP) technology; and 
 
(m)  Passive infrastructure collectively refers to telecommunication towers, poles, cable 
entrances, ducts, utility corridors, and any other non-electronic infrastructure and 
facilities, either existing or to be deployed in the future, that may be used to support 
data transmission. 
 
CHAPTER II 
ORGANIZATION AND OPERATION OF THE DATA TRANSMISSION INDUSTRY 
 
SEC. 4. Scope. – This Act applies to all persons who participate in the data transmission 
industry. Any person or entity whose business deals substantially with the transmission of data, 
including VoIP service provider, internet service providers (ISPs), and data center service 
providers, shall be governed by the provisions of this Act. PTEs that are principally engaged 
in the provision of basic telephone services, such as an international carrier, inter exchange 
carrier, local exchange operator, and mobile radio services provider, as defined in Republic 
Act No. 7925, and which also provide data transmission services, shall likewise be subject to 
the provisions of this Act with respect to the data transmission services they provide and the 
interconnection to their networks that they extend to data transmission industry participants. 
 
SEC. 5. Registration and Certification. – All segments of the data transmission network 
shall be competitive and open. Notwithstanding the provisions of this Act or any other law, the 
following registration and certification shall apply to data transmission: 
 
(a)  All data transmission industry participants shall be required to register with the National 
Telecommunications Commission (NTC). The NTC shall promulgate a speedy and 
expeditious administrative process for registration and shall, in coordination with the 
Department of Information and Communications Technology (DICT) for policy and 
standard-setting in the Information and Communications Technology (MT) sector, and 
Philippine Competition Commission (PCC) for the promotion of market competition, 
develop a set of criteria for qualifying data transmission industry participants that will 
encourage the widest possible participation of as many industry players as possible who 
will offer data transmission services in all segments of the network and to end users in 
different parts of the country. The qualification requirements for data transmission 
industry participants shall also take national security concerns into consideration 
particularly for facilities that interface directly with another country's domestic 
network. 


 
(b)  Those who will operate an international cable landing station shall secure a legislative 
franchise. Those who will operate a nationwide backbone network shall secure a permit 
from the NTC and submit its proposed route or rollout plan, as well as the manner of 
construction of the backbone network, subject to the approval of the NTC. 
 
All other industry participants shall not be required to secure a legislative franchise or 
a certificate of public convenience and necessity (CPCN) but must meet the criteria set 
by the NTC and the DICT in registering as industry participants in order to construct, 
operate, lease or own networks or facilities except if it owns and operates an 
international cable landing station: Provided, That an owner or operator of a cable 
landing station, not considered a public utility, shall no longer be required to secure a 
CPCN. All, industry participants intending to be spectrum holders shall need to secure 
a permit from the NTC and shall be allocated such spectrum in accordance with the 
provisions under Section 7 of this Act. 
 
(c)  Data transmission industry participants shall likewise be required to comply with 
national and global best practices and standards on cybersecurity and shall be subject 
to a network audit by the Cybersecurity Bureau of the DICT. Data transmission industry 
participants shall, after three (3) years of operation, be required to secure a 
cybersecurity certification from a third-party organization based on the prevailing 
International Organization for Standardization (ISO) standards on information security 
management. 
 
CHAPTER III 
REGULATION OF THE DATA TRANSMISSION INDUSTRY 
 
SEC. 6. Open Access Approach to Regulation of the Data Transmission Industry. – The 
NTC shall ensure that the data transmission sector remains open and accessible to all qualified 
participants. Specifically, it shall: 
 
(a)  Implement an efficient and speedy administrative process in the authorization and 
registration of data transmission sector participants; 
 
(b)  Adopt a technology-neutral framework that allows data transmission industry 
participants to use any available technology to provide service; 
 
(c)  Promote fair and open competition in accordance with the principles and policies under 
the Philippine Competition Act and its implementing rules in all segments of the data 
transmission network, allowing a wide variety of physical networks and applications to 
interact in an open architecture; 
 
(d)  Mandate transparency in pricing and the publication of pricing information to ensure 
fair trading within and between each data transmission segment so as to allow clear, 
comparative information on market prices and services; 
 
(e)  Mandate interconnection so that data transmission industry participants can connect to 
each other at the various segments and interfaces, such that entities of any size may 
freely enter and exit the market, and dominance by any single player or group of players 
is avoided; 


 
(f)   Promulgate policies that will encourage distributed local solutions rather than 
centralized ones, encouraging services that are closer to the user; 
 
(g)  Publish the list of registered data transmission industry participants at least once a year; 
 
(h)  Promulgate, together with the PCC, rules defining and regulating entities with 
substantial market power; 
 
(i)   Publish a Spectrum Management Framework to be developed together with the DICT 
and the PCC; and 
 
(j)   Collect the necessary Supervision and Regulation Fee (SRF) and Spectrum User Fee 
(SLTF), and other relevant fees as provided by law. 
 
SEC. 7. Spectrum Allocation, Recall, and Reallocation. – The NTC shall maximize the 
allocation and assignment of finite radio spectrum resources used in the transmission of data 
by ensuring that the spectrum is made available for the use of all registered data transmission 
industry participants. To this end: 
 
(a)  The procedure for radio spectrum assignment, joint use and recall shall be made 
transparent to the public. All applications, including letter requests, spectrum 
assignment, joint use, recall, and reallocation shall be posted in the NTC website and 
in a conspicuous place in the offices of the NTC for at least three (3) consecutive 
months. The notice shall specifically indicate the names of the applicants for spectrum 
assignment, joint use and recall, including where the NTC itself is the proponent of any 
such action, the affected spectrum, and the applicant's or NTC's reasons for the 
proposed spectrum assignment, joint use and recall. The NTC shall not assign, recall or 
allow co-use or joint use of any radio frequency band or bands without conducting at 
least one (1) public hearing and allowing public comment for a period of fifteen (15) 
days from the date of the public hearing, prior to approval and/or disapproval of the 
same. This shall apply to all spectrum, whether used for data transmission or not; 
 
(b)  All radio spectrums, radio frequency assignments, recalls, and joint use decisions of the 
NTC shall be published in the NTC website and in a conspicuous place in the offices 
of the NTC for at least three (3) consecutive months. The recall of frequency for 
purposes of free public use shall be given priority. The immediately preceding 
paragraphs (a) and (b) herein shall not apply to applications for frequency assignments 
for fixed point-to-point radio links, wifi, and satellite networks; 
 
(c)  The NTC shall avoid the concentration of spectrum resources in the hands of a few 
players and shall not assign, or allow joint use of radio spectrum in a manner that 
establishes, promotes or perpetuates the dominance of PTEs. Any entity who believes 
that any one or more of the NTC's decisions for the assignment of radio spectrum, 
whether past or present, which will promote the dominance of any entity and hinder 
competition, may file a complaint before the PCC to determine the dominance of a data 
transmission industry participant and deal with anti-competitive conduct in accordance 
with its mandate under Republic Act No.10667, otherwise known as the “Philippine 
Competition Act”; 
 


(d)  The NTC shall promptly act on applications of data transmission industry participants 
for permits to import equipment. Any application for a permit to import equipment that 
is not acted on by the NTC within seven (7) days shall be deemed approved; 
 
(e)  If the NTC finds, on its own initiative or upon complaint, that any right, license or radio 
spectrum assignment to any data transmission industry participant or PTE is not being 
used, or is not being maximized by the user thereof, or that the grantee has violated the 
provisions of this Act, it may, motu proprio or upon petition by any person, subject to 
due process, recall the radio spectrum assignment of the data transmission industry 
participant or PTE. The NTC shall, where required and appropriate, work with the data 
transmission industry participant or PTE concerned to take appropriate measures to 
minimize the impact of such recall on active users of services utilizing the recalled 
spectrum. The foregoing notwithstanding, no frequency shall be recalled within 
eighteen (18) months of the awarding of a provisional authority or license or 
registration; and 
 
(f)   The NTC shall ensure that the allocation, reallocation, assignment, reassignment, 
reclassification, joint use or co-use, and recall of spectrum does not result in the 
concentration of spectrum resources which promote, establish, or perpetuate the 
significant market power of PTEs or of only a limited number of participants. In 
instances where the resulting assignment of spectrum for mobile and point-to-
multipoint networks will give an assignee or entities it controls, jointly or singly, or 
under common control, either by virtue of that request or in combination with other 
previous requests by that party or its affiliates, fifteen percent (15%) or above of 
assignable spectrum in the same band, the party requesting for an assignment of 
spectrum or a joint use of spectrum shall be required to serve notice to the FCC and 
secure a no-objection notice from the PCC, The PCC shall issue a no-objection notice 
within thirty (30) working days upon its receipt of pertinent information necessary for 
the review and issuance of the notice: Provided, That the PCC may once extend such 
period for an additional fifteen (15) working days upon their notification of the NTC 
and the concerned party or parties to a spectrum allocation, reallocation, assignment, 
reassignment, reclassification, joint use or co-use, and recall. 
 
SEC. 8. Setting Performance Standards. – The NTC shall: 
 
(a)  Mandate that, within one (1) year from the effectivity of this Act, all last mile providers 
shall provide a minimum download speed of 2 megabits per second or as mandated by 
the National Broadband, whichever is higher, for mobile broadband and for fixed 
wireless/broadband access; 
 
(b)  Prescribe performance standards after public consultation and hearings within six (6) 
months from the effectivity of this Act; 
 
(c)  Regularly upgrade performance standards imposed on the data transmission industry to 
ensure that performance standards shall., at a minimum, be at par with service levels 
established in regional data network performance indices and aligned with international 
best practices. Such standards shall take into account speed, packet loss, jitter, and 
latency; 
 


(d)  Regularly review performance standards at least once a year and publish new 
performance standards at least thirty (30) days before they take effect. The publication 
of the results of the performance measurements shall be done in an open data format 
and made accessible to the general public; 
 
(e)  Any person, or the NTC itself, may, motu proprio, file a petition to penalize any data 
transmission industry participant for failure to deliver service according to the NTC's 
published performance standard and to require rectification of such noncompliance; 
and 
 
(f)   Measure the performance of the data industry participants quarterly and publish the 
results of its assessment in its website. 
 
SEC. 9. Arms-length Transactions and Transparency. – The NTC shall: 
 
(a)  Publish and make available in print and online formats all aspects of spectrum 
use information, including the National Radio Frequency Allocation Table 
(NRFAT), indicating therein the purpose or use to which each frequency band is 
allocated, and, for frequency bands allocated for public use, the persons and/or 
entities to whom each particular frequency is assigned. The NRFAT and updated 
radio spectrum use information shall be made available on the NTC's website and 
to any person who requests the same, upon written request; and 
 
(b)  Promulgate rules requiring all data transmission industry participants to file an 
annual report and include therein a fair and accurate statement regarding their 
market prices and their services. The annual report shall include all costs and 
charges relevant to the data transmission network segment where the participants 
operate. The rates shall be made available online, in print, and in any other viable 
venue to the public. Any person can file a complaint pertaining to these rates 
within thirty (30) days of posting. Each player at each segment shall submit a 
copy of their rates to the NTC and the PCC. The rates shall be published, 
including a historical record, in a consolidated manner. The data transmission 
industry participants shall keep a publicly accessible archive of their rates. 
 
SEC. 10. Fair Competition. – The PCC and the NTC shall ensure that the principles and 
policies enshrined under the Philippine Competition Act are strictly adhered to in the data 
transmission industry. The PCC and the NTC shall ensure that all industry players observe fair, 
reasonable, and nondiscriminatory treatment in all their dealings, and that barriers to entry are 
eliminated to make the industry highly competitive. To this end, within thirty (30) days from 
the effectivity of this Act, the FCC and the NTC shall enter into an agreement to foster and 
develop interagency cooperation mechanisms, including information-sharing tools, that will 
guide them in the performance of their respective mandates, and in the promotion of fair 
competition in the data transmission industry. 
 
SEC. 11. Technological Neutrality. – The NTC shall ensure that the provisions of this 
Act apply, mutatis mutandis, to future technologies in data transmission. 
 
SEC. 12. Infrastructure Sharing and Co-location. – The DICT and the NTC shall 
promulgate policies, rules, and regulations to ensure that passive infrastructure, whether 


existing or built in the future, necessary or capable of supporting data transmission networks 
or services are: 
 
(a)  made mandatory for open access and made available for co-location and co-use 
by the owner of network facilities, equipment, and infrastructure on an open, fair, 
and nondiscriminatory basis to any access seeker's network facilities, in any 
segment, subject to the technical feasibility of the access seekd's request and the 
network facility and infrastructure owner's standard published offer terms, 
conditions, and rates: Provided, That the provision of access to government-
owned and -operated facilities and support infrastructure to access seekers for the 
purpose of offering data transmission services shall be mandatory, unless special 
circumstances, such as but not limited to national security concerns, exist; 
(b)  built not only in the city centers, but most especially in the remote, unserved, and 
underserved areas in order to extend data transmission services by both the 
existing and new players throughout the country; 
 
(c)  as far as possible, deployed together with roadworks, pipe-laying, and other 
infrastructure development by both government and private entities; and 
 
(d)  proliferated in the most cost-efficient and timely manner through various means, 
including, encouraging the operation of independent entities that build and 
operate towers, dark fiber, and utility corridors, among other passive 
infrastructure that help facilitate data transmission network deployment, 
 
The DICT shall coordinate and issue a policy with other relevant government agencies 
upon consultation with stakeholders to implement this provision. For purposes of data 
transmission, the NTC shall, in case of a dispute arising from an infrastructure sharing 
agreement: (1) mediate between a data transmission industry participant and an infrastructure 
owner, and (2) serve as the primary enforcer of this provision. 
 
The DICT and the NTC shall promulgate policies, rules, and regulations to ensure that 
buildings, condominiums, villages, towns, and subdivisions are all built with facilities, such as 
cable entrances, ducts, and risers, that allow nondiscriminatory access to multiple data 
transmission industry players in order for them to provide service. They shall also promulgate 
policies, rules, and guidelines that will ensure a level-playing field and price nondiscrimination 
among data transmission industry participants and network facility and infrastructure owners. 
 
The DICT and the NTC, in coordination with relevant government agencies, shall also 
ensure the disaster resiliency and ease of recovery and restoration of passive infrastructure, 
such as towers, poles, and utility corridors, from the effects of disasters by strictly enforcing 
compliance with internationally-accepted engineering standards and best practices, and 
relevant engineering codes and codes of practice. 
 
The DICT and the NTC shall maintain an updated database of data transmission 
infrastructure, including passive infrastructure used to support data transmission. The database, 
to be updated annually, shall include the exact location, ownership, technical specifications, 
and other relevant information about the facility. 
 
CHAPTER IV 
PROHIBITED ACTS 


 
SEC. 13. Prohibited Acts. – The following acts are prohibited: 
 
(a)  Refusal to Plug and Play. – Any data transmission industry participant, insofar as such 
person is so engaged, shall not refuse access to infrastructure to any other data 
transmission industry participant, except for failure to pay open market fees for the 
access to the service. 
 
Data transmission industry participants shall not impede the end-user's right to access 
and distribute information and content, use and provide applications and services and 
use terminal equipment of their choice, regardless of the end user's or provider's 
location or the location, origin or destination of the information, content, application or 
service via their data transmission service. 
 
Agreements between data transmission providers of data services and end users on 
commercial and technical conditions and the characteristics of data access services such 
as price, data volume or speed, and any commercial practices conducted by providers 
of internet access services shall not limit the exercise of the rights of end users laid 
down in the preceding paragraph; 
 
(b)  Paid Prioritization. – A data transmission industry participant shall not engage in paid 
prioritization for monetary or other consideration except when allowed by the NTC 
after such participant demonstrates that the practice will provide significant public 
interest benefit and will not disadvantage content and applications that are not 
prioritized or harm the open nature of the internet; 
 
(c)  Throttling. – A data transmission industry participant shall treat all traffic equally when 
providing data access services without discrimination, restriction or interference, 
regardless of the sender and receiver, the content accessed or distributed, the 
applications or services used or provided, or the terminal equipment used. 
 
It shall be prohibited for a data transmission industry participant to hinder or slow down 
services or applications or access to specific sites in the internet except where (1) access 
to such sites, services or applications are prohibited by law; (2) it is necessary to 
preserve the integrity and security of the network and service of the provider or the 
equipment of the end user: Provided, That if the breach of integrity or security is caused 
by the equipment of the end user, the provider has to notify the end user first and give 
the former sufficient time to rectify the situation; and (3) it is necessary to block the 
transmission of unwanted communications such as Spam and child pornographic 
materials upon the complaint of the end user or the data transmission industry 
participant; 
 
(d)  Refusal to Give Information. – It shall be prohibited for any data transmission industry 
participant, including PTEs with regard to its network and facilities, to refuse or fail to 
make available to suppliers of data transmission services, on a timely basis, the 
technical information about its essential facilities or network facilities and 
commercially relevant information that are necessary for the efficient provision of their 
services; and 
 


(e)  Anti-competitive cross-subsidization. – The NTC shall require separate books of 
accounts between different data transmission segments in order to allow identification 
of costs and revenues for each segment. Any violation of this provision shall give rise 
to a presumption of anti-competitive cross-subsidization, which shall then be referred 
to the Philippine Competition Commission for proper determination and action, in 
accordance with the provisions of Republic Act No. 10667. Nothing herein shall 
prevent interconnecting networks from charging the appropriate cost-based 
compensation for the use of interconnection facilities. 
 
SEC. 14. Administrative Penalties. – The NTC shall require data transmission industry 
participants and PTEs providing data transmission services to comply with prescribed 
performance standards and shall impose penalties for failure to comply with such performance 
standards. 
 
(a)  Any date transmission industry participant who fails to comply with the minimum 
service standards set by the NTC shall be imposed a minimum penalty of a fine of not 
less than One hundred thousand pesos (P100,000.00) but not more than Five million 
pesos (P5,000,000.00) per day for every day during which such default or violation 
continues, until the participant fully complies: Provided, That if the data transmission 
industry participant has a gross annual income not exceeding Ten million pesos 
(P10,000,000.00), the penalty that may be imposed shall be equivalent to one percent 
(1%) to two percent (2%) of its gross annual income. The NTC is hereby authorized 
and empowered to impose such fine, after due notice and hearing. 
 
(b)  An entity who fails to substantially comply with the NTC’s performance standards for 
three (3) consecutive years shall, subject to due process, be removed from the registry 
of registered data transmission industry participants and shall be prohibited from 
rendering data transmission services. 
 
(c)  Any data transmission industry participant who engages in the prohibited acts under 
Section 12 of this Act or fails to comply with the performance standards set by the NTC 
shall suffer a minimum penalty of a fine of not less than Three hundred thousand pesos 
(P300,000.00) but not more than Five million pesos (P5,000,000.00) for every day that 
the violation continues until the participant fully complies: Provided, That if the data 
transmission industry participant has a gross annual income not exceeding Ten million 
pesos (P10,000,000.00), the penalty that may be imposed shall be equivalent to one 
percent (1%) to two percent (2%) of its gross annual income. In cases of anti-
competitive cross-subsidization, the imposable penalties are those provided under 
Republic Act No. 10667. 
 
(d)  A data transmission industry participant violating any provision of this Act shall forfeit 
all certificates, licenses, authorizations, rights, and awards issued to it in relation to its 
participation in the data transmission industry. 
 
(e)  Any other violations not specifically penalized under the relevant provisions of this Act 
shall be penalized by a fine not less than Fifty thousand pesos (P50,000.00) and not 
more than Two million pesos (P2,000,000.00). 
 


SEC. 16. Adjustment for Inflation. – The fines imposed under this Act shall be adjusted 
by the NTC, year-on-year, considering the prevailing cost of money based on the current 
consumer price index, and subject to publication of such adjustments. 
 
CHAPTER V 
RIGHTS OF DATA TRANSMISSION SERVICE USERS AND RESPONSIBILITIES 
OF DATA TRANSMISSION SERVICE PROVIDERS 
 
SEC. 16. Rights of End Users. – The user of data transmission services shall have the 
following basic rights: 
 
(a)  To be entitled to data transmission services which is nondiscriminatory, reliable, and 
confirming with minimum standards set by the NTC; 
(b)  To be rendered data transmission services within two (2) months from application for 
service; 
 
(c)  Regular, timely and accurate billing, courteous and efficient service at business offices 
and by company personnel; 
 
(d)  Timely correction of errors in billing and the immediate provision of rebates or refunds 
by the data transmission service provider without the need for demand by the user; and, 
 
(e)  Through and prompt investigation of, and action upon complaints. The data 
transmission service provider shall endeavor to allow complaints to be received by any 
means convenient to the end user, including voice calls, post, short messaging service 
(SMS), multi-media messages (MMS) and online communication, and shall keep a 
record of all complaints received and the action taken of to address the complaints. 
 
Subject to the filing of a formal request to the data service provider, a user may request 
the immediate termination of service without the imposition of fees or penalties, and 
with the refund of any fee or charge already paid by the user, should a data service 
provider not consistently comply with paragraphs (a), (d), and (e) of this section or any 
other minimum performance standards set by the NTC. 
 
CHAPTER VI 
FINAL PROVISIONS 
 
SEC. 17. Expedited Processing. – in all instances where a participant in the data 
transmission industry shall require a form, certificate, or request from any government agency 
or local government unit (LGU), there should be no more than two (2) public officers involved 
in processing the form, certificate, or request. 
 
Processing fees and certifications required for the deployment of any segment of data 
transmission networks shall be limited to those identified by the DICT. The DICT shall 
coordinate with the concerned national government agencies and LGUs, and conduct the 
necessary consultations with civil society organizations and other stakeholder groups, for the 
development of the implementing rules and policies to minimize the administrative burden of 
permitting and certification processes. 
 


SEC. 18. Implementing Rules and Regulations. – Within sixty (60) days from the 
effectivity of this Act, the NTC shall promulgate the necessary rules and regulations for its 
effective implementation. 
 
SEC. 19. Joint Congressional Oversight Committee on Open Access in Data 
Transmission. – There shall be created a Joint Congressional Oversight Committee on Open 
Access in Data Transmission (JCOCOADT) which shall monitor and ensure the effective 
implementation of this Act. It shall determine weaknesses and loopholes in the law, 
recommend the necessary remedial legislation or administrative measures and perform such 
other duties and functions as may be necessary to attain the objectives of this Act. 
 
The JCOCOADT shall be composed of five (5) members from the Senate and five (5) 
members from the House of Representatives, in addition to the Chairperson of the Senate 
Committee on Science and Technology and the Chairperson of the House of Representatives 
Committee on Information and Communications Technology; Provided, That two (2) members 
of each chamber’s nominees shall come from the ranks of the minority party/bloc. 
 
The Chairperson of the Senate Committee on Science and Technology and the 
Chairperson of the House of the Representatives Committee on Information and 
Communications Technology shall act as Cochairperson s of the JCOCOADT. The ranking 
minority members nominated by both the Senate and the House of Representatives shall act as 
Co-Vice Chairpersons. The Secretariat of the JCOCOADT shall come from the existing 
Secretariat personnel of the Committee on Science and Technology of the Senate and the 
Committee on Information and Communications Technology of the House of Representatives. 
The JCOCOADT shall have its own independent counsel. 
 
The JCOCOADT shall exist for a period not exceeding five (5) years from the effectivity 
of this Act. Thereafter, its oversight functions shall be exercised by the Senate Committee on 
Science and Technology and the House of Representatives Committee on Information and 
Communications Technology, acting separately. 
 
SEC. 20. Separability Clause. – Should any provision herein be declared 
unconstitutional, the other provisions not affected shall remain in full force and effect. 
 
SEC. 21. Repealing Clause. – All laws, decrees, orders, rules and regulations or other 
issuances or parts inconsistent with the provisions of this Act are hereby repealed, amended or 
modified accordingly. 
 
SEC. 22. Effectivity. – This Act shall take effect fifteen (15) days after its publication in 
the Official Gazette or in a newspaper of general circulation.