Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City
TWENTIETH CONGRESS
First Regular Session

House BiL.No. 1652

Introduced by REPRESENTATIVE CHEENO MIGUEL D. ALMARIO

EXPLANATORY NOTE

In this modern age where being connected on the internet is the norm, it is
important for the State to ensure that its citizens will have a reliable and affordable
internet service. To access the internet, a user must choose between a prepaid or a
postpaid service. However, it has become common here in the Philippines for the users
to experience connectivity issues. Connectivity issues, although may not be prevented
altogether, shall be minimized by the Internet Service Providers (ISP). One of the ways to
do this is by instituting a system mandating mandatory refund for proportional to the
time when ISPs cannot deliver on their contractual obligations to the users.

Recently, on June 20, 2025, internet users of a popular ISP experienced
connectivity issues around 3:56 p.m. The issue was supposedly fixed only around 6:30
p.m. of the same day.! While there are laws which protects the consumers from this kind
of problem, the consumers would rather not pursue a legal action because it will be a
tremendous hassle on their part.

This bill seeks to protect the consumers by giving them an automatic refund for
the time when they could not access the internet. This bill also seeks to institute justice
against ISPs by preventing them from profiting over their incompetence or negligence.

Hence, the passage of this bill is earnestly sought.

CHEENO ). ALMARIO
Represéntative
2” District, Davao Oriental

* PLOT, Smart subscribers report issues with internet service. 20 June 2025, }ps://www.abs-
chn.com/news/technology/2025/6/20/pldt-smart-subscribers-report-issues-with-internet-service-1726



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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City
TWENTIETH CONGRESS
First Regular Session

House BILL No, 1652

Introduced by REPRESENTATIVE CHEENO MIGUEL D. ALMARIO

AN ACT
MANDATING PUBLIC TELECOMMUNICATIONS ENTITIES AND INTERNET
SERVICE PROVIDERS TO INSTITUTE A REFUND MECHANISM FOR SERVICE
OUTAGES AND DISRUPTIONS, PROVIDING PENALTIES FOR VIOLATIONS THEREOF

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

SECTION 1. Short Title. - This Act shall be known as “Refund for Internet and
Telecommunications Services Outages and Disruptions Act.”

SEC. 2. Declaration of Policy. - The State recognizes the vital role of information
and communications technology in nation building. The State shall implement measures
to provide for regulations on internet and telecommunications services offered by public
telecommunications entities (PTEs) and internet service providers (ISPs) and ensure that
the interest and welfare of its people and the consuming public are protected and upheld.

SEC. 3. Definition of Terms. - As used in this Act:

a. Fortuitous event refers to either an “act of God” or natural occurrences, such
as floods, typhoons, storms, earthquakes and the likes; or an “act of man”, such
as riots, strikes, wars, governmental prohibitions, robbery, theft, sabotage,
cyberattacks, deliberate destructions, or accidental damage to
telecommunications facilities by third parties and likes;

b. Internet refers to the biggest global computer network providing a wide
variety of information and communication facilities, consisting of
interconnected networks using standardized communication protocols;

c. Internet Access refers to the process of connecting to the internet using
personal computers, laptops, or mobile devices by users;

d. Internet Service Provider (ISP) refers to a public telecommunications entity
(PTE) or value-added service (VAS) provider duly authorized by or registered
with the National Telecommunications Commission (NTC) that provides users
or other entities with data connection allowing internet access through



physical transport infrastructure, and such access is necessary for internet
users to access content and service on the internet, and for content providers
to publish or distribute materials online;

e. Network maintenance refers to any process, whether minor or major, that is
deemed necessary to sustain or update the services. This is further categorized
as “scheduled” and “emergency”. The services provided may not be available
during periods of maintenance, thus:

i) Scheduled network maintenance refers to planned repairs and
improvements carried out from time to time by PTEs and ISPs and
shall not be deemed as service outage or disruption; and

ii) Emergency network maintenance refers to unscheduled
maintenance where a repair is needed to an internet equipment or
facility that suffered from unexpected breakdown or change in
condition.

f. Public Telecommunications Entity or PTE refers to any person, firm,
partnership or corporation, government or private, engaged in the provision
of telecommunications services to the public for a fee; and

g. Scheduled network maintenance refers to planned repairs and improvements,
carried out from time to time by PTEs and ISPs, which are notified at least 48
hours in advance and which shall not exceed a cumulative duration of 48 hours
per month, shall not be deemed as service outage;

SEC. 4. Coverage. - All Public Telecommunication Entities (PTEs), including
internet service providers (ISPs) in the Philippines shall be covered by this Act.

SEC. 5. Refunds for Internet and Telecommunications Service Outages and
Interruptions. - PTEs, including ISPs, shall, on a pro-rated basis, provide a refund credit
to a customer, or adjust a customer's bill, who was adversely affected by an internet
service outage or interruption for an aggregate period of twenty-four (24) hours or more,
within a month, except when the reason for such outage is due to scheduled maintenance
which should be notified 48 hours prior to the scheduled maintenance and should not
exceed 48 hours in a month, a fortuitous event, or acts of third party or subscriber.

The PTEs and ISPs concerned shall apply a bill adjustment, automatically, without
need of demand from the subscriber, after a standard process but shall not preclude the
consumer from filing a complaint to the appropriate administrative or quasi-judicial
agency for disputes regarding refund or bill adjustment amount.

The refund credit granted under the circumstances mentioned supra, shall
likewise be 8 granted to customers subscribing to a service on a pre-paid basis.

SEC. 6. Penalties. - The NTC may, motu proprio or upon complaint of any
interested party, in the appropriate administrative or quasi-judicial process, and in
accordance with due process:

a) Impose a fine of not less than Fifty thousand pesos (P50,000.00) but not more
than Two hundred thousand pesos (P200,000.00) for each count of violation;
and


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b) For repeated violations, aside from fine, revocation or cancellation of the
license, registration or franchise of the PTEs or ISPs, whichever applies,
including then waving of any pre-termination fees of affected subscribers and
timely disbursement of any remaining credits from excessive downtime.

SEC. 7. Implementing Rules and Regulations. - Within sixty (60) days from the
effectivity of this Act, the NTC shall, in coordination with the Department of Information
and Communications Technology, and other concerned agencies, promulgate the rules
and regulations necessary to ensure the effective implementation of this Act.

SEC. 8. Repealing Clause. - All laws, presidential decrees, executive orders,
proclamations, rules and regulations, or any part thereof, which are inconsistent with the
provisions of this Act are hereby repealed or modified accordingly.

SEC. 9. Separability Clause. - If any provisions or part of this Act, or the
application thereof to any person or circumstance, is held unconstitutional or invalid, the
remainder of this Act shall not be affected thereby.

SEC. 10. Effectivity Clause. - This Act shall take effect fifteen (15) days from its
publications in the Official Gazette or in a newspaper of general circulation.

Approved,