.; 
clH" ,; if 
FIFTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
\ ",'" 
QIFI"ICt: ('if' "n' <; "CRI:!T AAV 
SENATE 
Senate Bill No.12 3 3 
INTRODUCED BY SEN. MANNY VILLAR 
EXPLANATORY NOTE 
10 
JllL 12 P2 :U1 
The bill provides for the definition of the different telecommunication fraud, 
their gravity as special offenses with the penal sanctions, the implementing body 
to achieve its desired ends, among others. The bill is highlighted by the following 
important provisions: 
1. The explicit enumeration of the different species of telecommunication 
fraud: 
• 
Cloning 
• 
Operation of Illegal Telecommunications Unit 
• 
Illegal Use of Radio Spectrum or Frequency 
• 
Illegal Connection to a Landline Telephone 
• 
Payphone Fraud 
• 
Third Number Fraud 
• 
Telecommunications Card Fraud 
• 
Subscription Fraud 
• 
Solicitation Fraud . 
• 
Illegal Installation pf a Telecommunications Unit 
2. It provides the penal sanction for each category of special crimes. 
3. It provides an assurance to citizens who are telecommunications 
subscribers the assurance to citizens who are telecommunications service or 
their telephones disconnected simply because of erroneous billings and similar 
telecommunications defects. 
Both the telecommunications company and the subscribers are set in the 
crossroads where each one at one time suffers the stigma of violation. The 
existence of criminal syndicates and unscrupulous individuals victimizing both the 
telecommunication entities and subscribers are anathema to information 
technology development. But for the subscribers, their greatest dilemma is the 
prevailing practice of telecommunications companies to bill their subscribers with 
services that has not been utilized by them. 
Premises stated, this legislation is submitted for early enactment. 


FIFTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
SENATE 
Senate Bill No.12 33 
INTRODUCED BY SEN. MANNY VILLAR 
AN ACT 
III JUl12 P2:07 
PROHIBITING TELECOMMUNICATIONS FRAUD AND DESTRUCTION OF 
TELECOMMUNICATIONS 
FACILITIES, 
PROVIDING 
PENALTIES 
THEREFORE AND FOR OTHER PURPOSES 
Be it enacted by the Senate and the House of Representatives of the 
Philippines in Congress assembled: 
SECTION 1. Title -
This Act shall be known 
as "The Anti-
Telecommunication Fraud Act of 2010." 
SEC. 2. Declaration of' Policy - It is hereby declared the policy of the 
State to protect the general public from phone cloning, illegal use of radio 
spectrum or frequency, and other forms of telecommunications fraud; the use of 
telecommunications unit, device and equipment not authorized by the National 
Telecommunication Commission and the wanton and malicious destruction of 
telecommunication facilities. 
SEC. 3. Definition of Terms - The following terms, as used herein, shall 
mean: 
a) Telecommunication Unit - Any fixed wire, wireless radio, cellular 
telephone, pager, fax' machine, computer or other device capable of 
providing telecommunications through transmission, emission or 
reception of any sign, signal, writing, image, picture, video, sound, 
data, voice, music or intelligence of any picture; 
b) Electronic Serial Number (ESN)/Capcode/Mobile Identification Number 
(MIN)/Electronicllnternational Mobile Equipment Identity (EME/OMEI) 
Subscriber 
Identify 
Module 
(81M). 
Identification 
numbers, 
electronically programmed into or attached to a telecommunications 
unit; 
c) Electronic Serial Num~er Reader - Any device or instrument capable of 
recognizing 
the· E8N/Capcode/MIN/EMEIIMMEII81M 
of 
a 
telecommunications unit; 
d) Cloning Device - Any type of instrument, device, machine or equipment 
capable of being used and employed for cloning. An ESN reader not 
2 


registered with the Commission shall also be considered an illegal 
cloning device; 
e) Illegal Telecommunications Unit - A telecommunications unit, with a 
part or accessory altered, modified, reprogrammed through or any 
other similar process. The terms wireless radio units or other similar 
cellular phones, wireless radio units and other telecommunication units 
capable of gaining unauthorized or illegal access to a communications 
system operated by a PTE; 
f) Telecommunications Card - An instrument to access and/or use a 
telecommunications system, network or service, such as pre-paid 
cards, credit cards, calling cards or such other similar cards; 
g) Subscriber - A person, natural or juridical, who has legitimately acquired 
telecommunications service with the authorization and permission of a 
PTE; 
h) Commission - Refers to the National Telecommunications Commission 
or its successor agency; 
i) Type of approval - Refers to a process wherein a telecommunications 
unit, device or equipment is tested by the Commission or by the PTE 
pursuant to 
a 
prior authorization 
form 
the 
Commission, 
for 
conformance to applicable standards, as its or an authorized agency's 
Equipment; 
j) Type Acceptance - Refers to a process wherein a telecommunications 
unit device or equiprtlent is evaluated on the basis of technical tests 
and certification agencies; and 
k) Public Telecommunications Entity (PTE) - Any public or private person, 
firm, partnership or corporation, lawfully engaged in the business of 
providing telecommunications services to the public for compensation. 
SEC. 4. Prohibited Entity (PTE) - The following acts are hereby declared 
prohibited and unlawful: 
• 
Cloning - The act or technical process of tampering or manipulating any 
part or device of any telecommunications unit, a card accessory thereof, 
using utilizing or employing any electronic device, computer, its 
combination or any other equipment of similar nature in order to access 
and 
program 
and/or 
duplicate 
the 
Electronic 
Serial 
Number 
(ESN)/Capcode, 
Mobile 
Identification 
Number 
(MIN), 
Electronicl/nternational . Mobile 
Equipment 
Identify 
(EMEIIMEI) 
or 
Subscriber Identify Module (SIM) or otherwise duplicate subscriber data of 
a duly registered telecommunications unit without authorization or 
approval of a PTE; 
• 
Operation of Illegal Telecommunications Unit - The act of knowingly or 
willfully; 
1. Manufacturing, selling and/or distributing illegal telecommunications 
units; or 
2. Operating, utilizing or employing illegal telecommunications unit. 
3 


• 
Illegal Use of Radio Spectrum or Frequency - The act of using a radio 
spectrum or frequency without the written authority of the Commission, 
the PTE or any other autnorized entity; 
• 
Illegal Connection to a Landline Telephone - The act by a person of 
connecting to or linking with a land line telephone without the written 
consent of the subscriber and having the calls charged therein; 
• 
Payphone Fraud - The act of tampering or manipulating a public pay 
telephone to gain access to the PTEs network or for services which are 
not normally available through the payphone without authority from the 
PTE; 
• Third Number Fraud - The act by a person of placing a call to a specific 
number but having the call charged to neither the caller nor the called 
number without the consent of the subscriber of the third number or by 
securing the consent of the subscriber of the third number through 
deceitful means; 
• Telecommunication Card Fraud - The act of: 
1. manufacturing, distributing or selling 
• 
Subscription Fraud - Theact of: 
1. any person who shall obtain telecommunications service in one's own 
favor on any of the following circumstances: 
a. under false identity and/or false statements; 
b. under pretenses of employment, occupation, income, financial 
capacity, residential or billing address; or 
c. using false, forged, altered or intercalated service agreements 
and supporting'subscription requirements; 
2. 
any person who shall deceive the PTE ,to grant service to another 
person, under any of the circumstances enumerated in the preceding number or 
when such another person does not exist, is no longer living, does not reside 
within the Philippines or never applied for telecommunications service with the 
PTE to whom such submission was ,made, or having applied, did not apply 
under the terms and conditions stated in false, forged, altered or intercalated 
submission, or who otherwise would not have been qualified to obtain such 
service under the standards and' requirements of the PTE; 
3. 
any person who 'shall deceive the PTE to activate service 
telecommunications units by supmitting or procuring the submission of authentic 
documents when such submissions, and where the subject of such submission 
shall not have received and accepted the service applied for despite its activation 
by the PTE; or 
4. any dealer, sub-dealer or agent of a PTE who maliciously or 
intentionally falls or deliver to the subscriber-on-record service units, devices 
and/or accessories, or shall del.iver it to a person other than the subscriber-on-
record; 
4 


• 
Solicitation Fraud - The act of any person or entity, telecommunications 
equipmenUservice dealer or agent of telecommunications services who to 
the prejudice of the subscriber: and/or the PTE, misrepresent the rates, 
fees, subscription plans, equipment cost, and/or other terms and 
conditions of subscription to a telecommunication service; 
• 
Illegal Installation of a Telecommunications Unit - The act of installing or 
causing to be installed a telecommunications unit, device or equipment 
which 
is without a type 
approval or type acceptance, 
into a 
telecommunications network without the permission of the Commission or 
the PTE who owns the nt?twork; 
• 
Other Fraudulent Schemes - The act of any person, not otherwise 
authorized by a PTE, of: 
1. Abandoning 
a telecommunications service or transferring the 
possession or ownership of telecommunications unit with the intent of evading 
payment of charges; or 
2. Employing any means, scheme, process or device to defraud the 
government the public, or the PTE of fees or charges for services rendered or 
equipment owned by the PTE. . 
• 
Illegal Operation of a Pi.Jblic Telecommunications Service - The act of 
operating or providing' a public telecommunications facilities and 
accessories of authorized a PTE's resulting to system disruption or 
network degradation. 
SEC. 5. Penalties - The following penalties are hereby imposed against any 
person found guilty or violation of the prohibited acts enumerated in the 
preceding section: 
a. Cloning - Imprisonment of not less than four (4) years and one (1) day 
to six (6) years and a fine of Five Hundred Thousand Pesos 
(~500,OOO.OO) or three (3) times the amount of damages suffered by 
the PTE, as determined by the Court, whichever is higher; 
b. Operation of Illegal Telecommunications Unit - For subsection; 
1. Imprisonment of not less than two (2) years and one (1) .day to four 
(4) 
years and 
a fine of three 
hundred thousand 
pesos 
(~300,OOO.OO) or three (3) times the amount of damages suffered 
by the PTE, as determined by the Court, whichever is higher; 
2. Imprisonment of not less than one (1) year and one (1) day to four 
(4) years and a fine of One hundred thousand pesos (~100,OOO.OO) 
or three (3) times the amount of damages suffered by the PTE, as 
determined by the Court, whichever is higher; 
c. 
Illegal Use of Radio Spectrum or Frequency - Imprisonment of not 
less than four (4) years and one (1) day to six (6) years and a fine 
of Three Hundred Thousand Pesos (~300,OOO.OO); 
d. 
Illegal Connection' to a Landline Telephone - Imprisonment of not 
less than two (2) years and one (1) day to six (6) years and a fine of 
5 


Three Thousand. Pesos 
(~300,000.00) or three (3) times the 
amount of damages suffered by the PTE, as determined by the 
Court, whichever is higher; 
e. 
Payphone Fraud - Imprisonment of not less than six (6) months and 
one (1) day to orie (1) year and a fine of One hundred thousand 
pesos (~1 00,000.00) or three (3) times the amount of damages 
suffered by the PTE, as determined by the Court, whichever higher; 
f. 
Third Number Fraud - Imprisonment of not less than six (6) months 
and one (1) day to one (1) year and a fine of One hundred 
thousand pesos (~100,000.00) or three (3) times the amount of 
damages suffered by the PTE, as determined by the Court, 
whichever is higher; 
g. 
Telecommunication Card Fraud - Fraud subsection: 
h. 
Subscription Fraud -For subsection: 
1. Imprisonment of not less than four (4) years and one (1) day to 
six (6) years and a fine of One hundred thousand pesos 
(~100,000.00) or three (3) times the amount of damages 
suffered by the PTE, as determine by the Court, whichever is 
higher; 
2. Imprisonment of not less than two (2) years and one (1) day to 
four (4) years and a fine of Three hundred thousand pesos 
(~300,000.00)· or three (3) times the amount of damages 
suffered by the PTE, as determined by the Court, whichever is 
higher; 
3. Imprisonment of not less than two (2) years and one (1) to four 
(4) years and a fine of Three hundred thousand pesos 
(~300,000.00),or three (3) times the amount of damages 
suffered by the PTE, as determined by the Court, whichever is 
higher; and 
4. Imprisonment of not less than two (2) years and one (1) day to 
four (4) years and a fine of Five hundred thousand pesos 
(~500,000.00)·.or three (3) times the amount damages suffered 
by the PTE, as:determined by the Court, whichever is higher. 
i. 
Solicitation Fraud - Imprisonment of not less than one (1) year and 
one (1) day to two (2) years and a fine of One hundred thousand 
pesos (~100,000.00) or three (3) times the amount of damages 
suffered by the PTE, as determined by the Court, whichever is 
higher; 
j. 
Illegal Installation of a Telecommunications Unit - Imprisonment of 
not less than one (1) year and one (1) day to two (2) years and a 
fine of One hundred thousand pesos (~100,000.00) or three (3) 
times the amount of damages suffered by the PTE, as determined 
by the Court, whichever is higher; 
k. 
Other Fraudulent Schemes - Imprisonment of not less than one (1) 
year and one (1)day to two (2) years and a fine of One hundred 
6 


, 
thousand pesos (R100,OOO.OO) or three (3) times the amount of 
damages suffered by the PTE, as determined by the Court, 
whichever is higher; 
I. 
Illegal Operation of a Public Telecommunications Service 
Imprisonment of not less than four (4) years and one (1) day to six 
(6) years and a fin'e of Five hundred thousand pesos (R500,OOO.OO) 
or three (3) times the amount damages suffered by the PTE, as 
determined by the Court, whichever is higher. 
SEC. 6. Qualified Offenses - When any of the acts prohibited under 
Section 4 of this Act is committed by or conspiracy with an employee of the PTE 
or by a syndicate of two or more persons in conspiracy with one another, an 
additional penalty of two (2) years imprisonment and a fine of double the amount 
originally imposed shall be suffered by each offender. 
SEC. 7. Confiscation and Forfeiture of the Proceeds or Instruments 
of the Crime - Every penalty ·.imposed for the commission of any of the acts 
punishable in this act shall carry with it the forfeiture of the proceeds of the crime 
and the instruments or tools with which it was committed. Those items which are 
not the subject of lawful commerce shall be destroyed by the Government. 
SEC. 8. Evidence of Cloning and Other Frauds - For purposes of 
criminal prosecution, the following shall be sufficient to establish prima facie 
evidence of: 
1. Cloning 
-
Mere possession of a cloning 
device or an 
illegal 
telecommunications unit; 
2. Illegal Use of Frequency - Mere possession of a radio transmitter or 
transceiver without authority from the Commission; 
3. Telecommunications Card Fraud - Mere possession of an unauthorized, 
tampered, stolen or manipulated telecommunication card; 
4. Illegal Operation of a Public Telecommunications Service - The absence 
of a Certificate of Puhlic Convenience and Necessity, provisional or 
permanent license and/or authorization from the Commission prior to 
operation; and 
5. Subscription Fraud - The mere submission of forged or fraudulent, 
intercalated and/or altered subscription documents by the applicant for 
service and/or any person, dealer or agent whether or not the PTE shall 
have in fact granted or activated the service. 
SEC. 9. Complaining Parties and Prosecution Under Other Laws - Any 
complaint for violation of this Act may be initiated by an affected person, 
subscriber, a PTE, or the COf\imission. Moreover, prosecution under this Act 
shall not bar any prosecution under other administrative or penal laws! and vice 
versa. 
SEC. 10. Registration of Electronic Serial Number Reader - Upon the 
effectivity of this Act, no person or entity who is not an authorized PTE shall 
import into the Philippines any electronic serial number reader. For this Purpose, 
the Bureau of Customs shall require the presentation of the certificate of 
authorization to import issued by the Commission and in the absence thereof, to 
confiscate and cause the forfeiture of such equipment in favor of the 
Government. 
7 


, 
Electronic serial number readers already in the Philippines shall be registered 
with the Commission within six (6) months from the date of effectivity of this Act. 
Otherwise, mere possession thereof shall be illegal and shall subject the 
possessor to penalties provided,in Section 5-A hereof. 
SEC. 11. Non-Disconnection of Telecommunications Service - A PTE 
shall not disconnect the telecommunications service of a subscriber who has 
verified written complaint for erroneous billings, pending resolution of said 
complaint by the PTE and/or the Commission. The subscriber shall, however pay 
the uncontested items of the bill and agree to the PTE's implementation of 
measures to immediately prevent any possible further erroneous billing. 
If the subscriber refuses to pay the contested bill despite a resolution of 
the Commission adverse to the subscriber then the PTE shall disconnect the 
service unless directed otherwise. 
SEC. 12. Promulgated of Implementing Rules - Within ninety (90) days 
from the effectivity of this Act, the Commission shall promulgate the rules, 
measures, guidelines and other standards with the appropriate sanctions thereof, 
to: 
a. promote efficiency and adequacy of service; 
b, prescribe solutions to drop calls, billings, any of the above frauds and the 
disruption of telecommunIcation service; and 
c. protect subscriber's right and interest. 
SEC. 13. Repealing Clause - Any provision of law, decree, executive order 
or issuance inconsistent herewith 
is 
hereby repealed 
and/or modified 
accordingly. 
SEC. 14. Separability Clause - If for any reason, any section or provision of 
this Act is declared to be unconstitutional or invalid, the other sections or 
provisions hereof which are not affected shall continue to be in full force and 
effect. 
SEC. 15. Effectivity - This Act shall take effect thirty (30) days after approval 
and publication in the Official Gazette. 
Approved, 
8