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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

Eighteenth Congress
Second Regular Session

HOUSE BILL NO. _‘~ 7081

Introduced by Representative JOEY SARTE SALCEDA

AN ACT ENCOURAGING SATELLITE-BASED TECHNOLOGIES, MANDATING
RELEVANT AGENCIES TO PROMOTE THE DEVELOPMENT OF SATELLITE-
BASED TECHNOLOGIES DEDICATED TO EDUCATION AND OTHER CIVIC
CAUSES, AND FOR OTHER PURPOSES

EXPLANATORY NOTE

A quarter of a century after the Internet was introduced to the Philippines, 40% of Filipinos,
52% of public schools, and 57% of households still do not have access to the internet. This is
an alarming number, as the country relies heavily on internet-heavy industries such as the
Business Process Outsourcing (BPO) sector and its affiliate industries for growth and high-
quality employment.

Furthermore, the country’s average intemet speed is one of the slowest in Asia and is the
slowest in Southeast Asia, While the average ASEAN internet speed is 12.4 mbps, Philippine
average speed is at 3.6 mbps'.

Problems of developing traditional fiber-optics-based technologies are compounded by the fact
that the country’s terrain is rugged in many regions, and that the country itself is divided into
numerous islands, which makes the financial incentives for building internet facilities, which
tend to be expensive and require long periods of use before returns are achieved, markedly less
attractive in remote areas.

In fact, much of the country’s underserved areas are in regions off Luzon island. In the Visayas,
where major island groups may not be large enough to attract investment in internet
infrastructure, internet use is at the lowest level in the country, at 34%,

+ "monthly Comparisons of Internet Speeds from around the World” (Speedtest Global Index)
<https://www speedtest.net/global-index> accessed July 8, 2020

alia
” RECEIVED 2

mm



Total Internet Use
46%

Source: Social Weather Station. 2019. First Quarter 2019 Internet usage steady at 46% of
adult Filipinos; DICT. 2017. National Broadband Plan

Clearly, there is a need for alternatives to land-based internet infrastructure, given the country’s
geographic characteristics

Satellite as a cheap, viable alternative

Satellite-based broadband as one of the country’s modes for making Internet access more
inclusive and more diffuse is an alternative that can be quickly and easily deployed. Because
they do not rely on wire-based systems, satellite-based internet can service rural areas and even
the most far-flung islands the country.

Satellite-based internet is also becoming more capable of delivering bandwidth similar to that
of traditional, fiber-based systems. The specific requirements for connecting to satellite —
setting up a hub and a network of so-called very small aperture terminals (VSATs), which
could then be used to distribute bandwidth across end-users through cable or Wi-Fi — is ideal
for public schools and community centers in remote or rural areas.

In countries with similar geographic and socioeconomic issues around internet access
inclusivity, satellite technology is already being used. In Japan, an archipelago like the
Philippines, with its own rural areas far from usual metropolitan regions, mobile service
provider SoftBank has deployed 460,000 Wi-Fi hotspots nationwide connected via satellite
broadband.

In Indonesia, a country with almost exactly the same geographic and socioeconomic concerns
as ours, Bank Rakyat Indonesia has a nationwide deployment of 51,000 VSATs to connect its
regional bank branches and ATMs. The bank launched its own satellite worth $200 million in
2016


In India, GSAT-3, known as EDUSAT, was launched as a satellite meant for distant classroom
instruction, and is a dedicated "Educational Satellite" that enables two-way communication
between the classroom and the hub that provides differentiated content (in as many as 400
dialects and languages).

‘The role of satellite technology in developing the digital economy, and satellite-based
learning

COVID-19 has made intemet connectivity almost an essential part of the country’s economic
continuity and recovery strategy. Without internet connectivity, the country’s work-from-home
programs would fall flat.

Even with internet connection, however, the country’s slow internet speeds and expensive
internet costs are making work-from-home and distant-learning strategies difficult and costly
to execute. Ina country where enrollment is far from universal in many areas, despite public
education being entirely free, the costs associated with connecting to the internet are an added
burden to already-struggling families and can further dissuade students from enrolling during
COVID-19.

Although a vaccine will probably come before the country is able to develop satellite-based
systems that could be rolled-out in schools and homes, COVID-19 has served as something of
a stress test for the country’s internet connectivity and how the lack of it will impact our
economic and developmental outcomes. We urgently need improvements in internet
connectivity if we are to compete in a more digital world economy.

Current policy

According to the Department of Information and Communication Technology (DICT), there
are are 48 satellites ready to deliver bandwidth to the Philippines. However, current policy on
the use of satellites, as codified in Executive Order No. 467 (1998), restricts the Access to
International Fixed Satellite Systems to “enfranchised telecommunications entities duly authorized by
the National Telecommunications Commission (NTC) to provide international telecommunications
services,” and broadcast service providers.

‘Although intended to break the monopoly of PHILCOMSAT in the 1990s, it has since become
a barrier to other players, like Internet service providers, from accessing alternative
connectivity solutions.

Proposed changes

Under this bill, access to satellite-based technology will be made more inclusive, and the
regulatory framework will be made clearer.

The Department of Information and Communication Technology (DICT) is more explicitly
mandated to be the agency in-charge of regulating the use of satellite-based technologies


outside commercial telecommunications. This broadened mandate seeks to ensure that
satellite-based systems are viewed from a lens broader than the understandably telco-centric
view of the National Telecommunications Commission (NTC). It also allows a more
developmental perspective to satellite-based systems.

The bill also allows Internet service providers and value-added services (VAS) providers to
build and operate their own network using satellite technology. This will broaden competition
among ISPs, and eventually lower costs and improve benefits for the consumer.

It also encourages government organizations, public and non-profit private educational
institutions, volunteer organizations engaged in education, environmental management,
climate change management, disaster preparedness and crisis response to own and operate
satellite-based technology in order to aid and augment their activities. This will democratize
internet access, and allow it to be used more broadly for civic causes, especially education.

This bill also complements this author’s proposals for faster intemet (HB 312), Schools of the
Future (HB 311), Comprehensive Education Reform (HB 6247), and skills-based education
(HB 6287).

In view of the foregoing, the approval of this bill is urgently sought.

JOEY SARTE SALCEDA


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

Eighteenth Congress
First Regular Session

HOUSE BILL NO. _7081

Introduced by Representative JOEY SARTE SALCEDA

AN ACT ENCOURAGING SATELLITE-BASED TECHNOLOGIES, MANDATING
RELEVANT AGENCIES TO PROMOTE THE DEVELOPMENT OF SATELLITE-
BASED TECHNOLOGIES DEDICATED TO EDUCATION AND OTHER CIVIC
CAUSES, AND FOR OTHER PURPOSES

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

SECTION 1. Short title. - This Act shall be known as the “Satellite-Based
Technologies Promotion Act of 2020.”

SEC. 2. Declaration of policy. — It shall be declared the policy of the State to promote
broad and inclusive access to the internet and the availability of high-speed internet services,
as well as the accessibility of affordable satellite-based technologies, as crucial for encouraging
economic growth, opportunities for decent employment in the countryside, and improvements
in educational outcomes.

Towards these ends, the State shall liberalize access to satellite-based services and
encourage their use in the countryside and by educational institutions and cause-oriented civic
organizations.

SEC. 3. Definition of terms. - As used in this Act,

a) “Broadband Global Area Network (BGAN)” shall refer to a global satellite network
with telephony employing portable terminals;

b) “Internet Service Providers (ISPs)” shall refer to organizations that provide services
for accessing, using, or participating in the Intemet, whether as
commercial, community-owned, non-profit, or private-owned organizations;

¢) “Satellite-based technologies” shall refer to technologies that employ infrastructure
and/or mechanisms related to artificial satellites;

d) “Value-Added Service (VAS) providers” shall refer to providers of non-core
services, ot, in general, all services beyond standard voice calls and fax
transmissions; and


©) “Very-small-aperture terminal (VSAT)” shall refer to a two-way satellite ground
station with a dish antenna, typically not more than four (4) meters, and whose
technical specifications the Department of Information and Communication
Technology (DICT) may further define.

SEC. 4, Additional mandate to the Department of Information and Communication
Technology. ~ To expand access to satellite-based technologies as an alternative connectivity
solution for making distance-based learning more inclusive, the Department of Information
and Communication Technology (DICT) shall:

a) Pursue policies to secure necessary orbital slots for prospective Philippine
satellite(s), especially those dedicated to education and missionary internet
connectivity in the countryside;

b) Work with relevant agencies to encourage the commercial development of
technologies complementary to satellites-based technologies, especially those
dedicated to education;

©) Issue rules and regulations on the development, use, and maintenance of satellite-
based technology;

4) Perform such other functions as may be relevant to its work as the principal
regulatory and development agency for satellite technology.

SEC. 5. Policies on the Use of Satellite Technology. ~ The government shall promote
the use of satellite services as a means of making education more inclusive and more
technologically-ready. Specifically:

a) To promote the expansion of satellite-based networks, particularly in rural areas,

and in areas with limited fixed or cellular mobile network connectivity, Value-
‘Added Service (VAS) providers and Internet Service Providers (ISPs) shall be
allowed to own and operate networks utilizing satellite technologies such as Very
Small Aperture Terminals (VSATs), Broadband Global Area Network (BGAN) and
other similar technologies without need of a franchise and a provisional authority
or Certificate of Public Convenience and Necessity (CPCN) from the National
Telecommunications Commission (NTC). VAS providers and ISPs shall, however,
comply with existing policies requiring registration of VAS and ISP offerings and
submission of their schedule of rates.

b) The NTC shall comply with international regulations on the allocation and use of
frequency for satellite services, and shall not re-allocate them to the detriment of
users of VSAT, BGAN or other satellite technologies. The NTC shall ensure the
availability of satellite frequencies for the use of VAS providers and ISPs. The NTC
shall, within thirty (30) days upon the effectivity of this Act, issue the rules and
regulations necessary for the implementation of portions of this paragraph that
require administrative and regulatory oversight.

Provided that Section 6 of this Act shall be executory immediately upon the effectivity
of this Act.

SEC. 6. Promotion of satellite-based technologies among education and cause-oriented
civic organizations. - Government organizations, public and non-profit private educational


institutions, volunteer organizations engaged in education, environmental management,
climate change management, disaster preparedness and crisis response shall be allowed to own
and operate satellite-based technology in order to aid and augment their activities. The NTC
shall, within thirty (30) days upon the effectivity of this Act, establish an expeditious
administrative process to allow such entities to apply for permits to import and or own such
technology. The Anti-Red Tap Authority (ARTA) shall ensure that the procedures set forth by
the NTC pursuant to this Section complies with Republic Act No. 9485, or the Anti-Red Tape
Act of 2007.

SEC. 7. Implementing Rules and Regulations. Unless otherwise stated, the DICT, in
coordination with the NTC, and in consultation with relevant groups and sectors, shall issue
the rules and regulations necessary for the implementation of this Act.

SEC. 8. Repealing Clause. — Provisions of Executive Order No. 467 (s. 1998) that are
inconsistent with this Act are hereby repealed or modified accordingly. All other laws, decrees,
rules and regulations inconsistent with the provisions of this Act are hereby repealed or
amended accordingly.

SEC. 9. Separability Clause. - If, for any reason, any part or provision of this Act is
declared invalid or unconstitutional, any part or provision not affected thereby shall remain in
full force and effect.

SEC. 10. Effectivity.— This Act shall take effect fifteen (15) days after its complete
publication in at least two (2) newspapers of general circulation,

Approved,