EIGII l EEM 11 COiNCRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES 
)
First Regular Session 
)
S. No.
SENATE
45
.i# € 'n ic f of tijr sercu iarp
■19 JUL -1 All :38
Introduced by Senator Ralph G. Recto 
RECh;'.'.-.L'I
AN ACT
PROMOTING OPEN ACCESS IN DATA TRANSMISSION, PROMDING ADDII IONAL 
POWERS TO THE NATIONAL TELECOMMUNICATIONS COMMISSION (NTC), 
AND FOR OTHER PURPOSES
Explanatory Note
Philippine telecommunication services have been besieged with persistent issues of poor 
quality and high priees attributed to a weak regulatory environment and a lack of real competition 
among the few players in the industry. The recent mergers and acquisitions consummated without 
the proper review of a duly established competition authority has allowed current and large 
players to strengthen their market share and encouraged vertical integration or the ownership or 
operation in all segments of the telecommunications value chain over the years.
Another major concern is that our existing policies and regulations were designed only for 
basic telecommunication services. Our current telecommunications regime is still governed by an 
outdated law, Republic Act No. 7925 or the Public Telecommunications Policy Act of 1995, 
passed at a time when the Internet and data services are not yet commereially available. As the 
Age of Internet and data services progressed at present, operations in all segments in the 
telecommunications industry still necessitate a number of requirements that was originally 
intended for basic telecommunication services. Even when entering the data transmission 
industry, seeuring a Certificate of Public Convenience and Necessity (CPCN), Provisional 
Authority (PA), and the Congressional grant of a franchise are still obligatory.
As this age transitions to a more decentralized, distributed and redundant data transmission 
regime, it is necessary to create a more relevant regulatory environment that will govern and focus 
on the Internet and data transmission services. This wilt further lower ban iers and costs to entry of 
new players especially in certain segments which do not need stringent requirements. In particular, 
this bill removes the requirement for a Congressional franchise and CPCN/PA, except for 
international cable landing stations and national backbone network operators. The franchise and 
CPCN/PA will still apply to a network operator that installs and operates infrastructure on a 
nationwide scale, such as landing stations and backbone networks, which are considered 
“nationally significant” such that when these networks are eompromised, the whole country is 
affected and may lose connectivity with the rest of the world.
Amid the removal of a Congressional franchise and CPCN/PA for certain segments, 
regulatory oversight remains as data transmission industry participants need to register with the 
NTC, stating the services offered and providing their schedule of rates. The NTC shall put in place 
a set of criteria for the qualification of data transmission industry participants, which arc in 
accordance with the provisions of the bill, and which shall take into consideration national security 
concerns, especially for facilities handling data traffic direct from another country’s domestic 
network, such as a cable landing station.


This bill also aims to adopt an open access model for regulating the data transmission 
industry, which promotes the following:
Efficient and speedy authorization and registration of industry players;
Technology-ncutral framework;
Fair and open competition;
Mandated interconnection;
Mandated transparency in pricing;
Transparent and equitable spectrum management framework; and 
Infrastructure sharing and co-location.
In view of the foregoing, immediate approval of this bill is earnestly sought.
/ejev
Note; This version of the bill is essentially the Committee Report version reported out by the Committee on Science 
and Teclmology in the 17'h Congress, which was authored and sponsored by Sen. Benigno “Bam” Aquino IV, and 
including some proposed additions to the measure by this representation.


ElCll 1 ELM 11 CO.NCRESS OE THE 
) 
REPUBLIC OF THE PHILIPPINES 
)
First Regular Session 
)
SENATE
s. fio. 
45
v 
i ' i ’ H cf of tijf !E '.'rrrt.irj>
•19 
JUL -1 
All 38
Introduced by Senator Ralph G. Recto
RECfci'/.i- L)
AN AC I
PROMOTING OPEN ACCESS IN DATA TRANSMISSION, PROVIDING ADDITIONAL 
POWERS TO THE NATIONAL TELECOMMUNICATIONS COMMISSION (NTC), 
AND FOR OTHER PURPOSES
Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:
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CHAPTER I
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INTRODUCTORY PROVISIONS
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SECTION 1. Short Title. -  This Act shall be known as the '’"Open Access in Data
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Transmission Act”.
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SEC. 2. Declaration of Policy. -  It is the policy of the state to narrow the digital divide in
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the country by encouraging the development of data transmission infrastructure and removing any
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barrier to competition in data transmission services.
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Moreover, the State shall implement measures to require data transmission serviee providers
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to adhere to telecommunications standards suitable to the needs and aspirations of the nation and
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ensure that internet users enjoy the best quality of data transmission service. The state shall:
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a. Promote the construction and development of reliable, affordable, open and accessible data
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networks that transmit information at speed and quality comparable to the best in the world;
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b. Create an entrepreneurial ecosystem where persons who wish to engage in the data
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transmission industry can compete openly and freely in the spirit of fair competition and
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pennission-less innovation;
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c. Encourage investment in the digital infrastructure of the country;
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d. Adopt and ensure open access in the regulation of the data transmission industry;
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e. Protect the public interest as it is affected by its ability to access data networks;
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f. Establish a strong and independent regulatory body and system to ensure and enhance fair
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competition in the data transmission industry;
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g. Protect and promote the internet as an open platform enabling consumer choice, freedom
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of expression, end-user control, competition and the freedom to innovate without


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permission, and thereby encouraging the development of advanced telecommunications
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capabilities and the removal of barriers to infrastructure investment; and
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h. Encourage infrastructure sharing and co-location in order to promote network investment,
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eliminate the uneconomic duplication of infrastructure facilities, and strengthen
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competition.
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SEC. 3. Definition of Terms. -  As used in this Act, the following tenns shall mean;
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a. Basic Telephone Service refers to the local exchange telephone service for residence and
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business establishments provided via the circuit switched telephone network;
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b. Cellular Mobile Telephone Senice (CMTS) refers to the wide area mobile radio telephone
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system with its own switch, base stations and transmission facilities capable of providing
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high capacity mobile telecommunications by utilizing radio frequencies;
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c. Content refers to, among others, texts, images, audios, videos, and animations that are
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carried over the broadband or internet network;
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d. Core/Backbone Network refers to the main line or connection including international
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connection that ties networks, delivers routes to exchange infonnation among various sub-
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networks, connects regional distribution networks, and in some instances, provides
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connectivity to other peer networks;
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e. Data Transmission refers to the process of sending digital or digitized analog signal over
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a communication medium to one or more computing networks, communication or
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electronic device. It enables the transfer and communication of devices in a point-to-point,
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point-to-multipoint and multipoint-to-multipoint environment. The tenn data transmission
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includes the provision of Voice over Internet Protocol (VoIP) services but does not include
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the provision of Basic Telephone Services;
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f Data Transmission Industry Participant refers to any person, finn, partnership or
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corporation, government or private, engaged in the provision of data transmission services
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to the public. This includes public telecommunications entities (PTEs) as defined under
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Republic Act No. 7925, otherwise known as the Public Telecommunications Policy Act of
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the Philippines, that offer data transmission services;
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g. International Cable Landing Station refers to a segment of data transmission that consists
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of any facility that tenninates an international submarine cable, and whieh provides an
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interface to send and receive data traffic between one country’s domestic network facilities
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and those in another country;
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h. Open Access refers to the system of allowing the use of data transmission and/or
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distribution systems and assoeiated facilities subject to fair, reasonable, and non-
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discriminatory tenns in a transparent market;
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i. Paid Prioritization refers to the management of a data transmission network to directly or
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indirectly favor some traffie over other traffic, through the use of techniques such as, traffic


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shaping, prioritization, resource reservation, zero-rating, or other forms of preferential
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traffic management, either:
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1. in excliangc for consideration, monetary or otherwise, from a third party, or
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2. to benefit an affiliated entity;
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j. 
Voice over Internet Protocol (VoIP) Service refers to the provision of voice communication
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using Internet Protocol (IP) technology.
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CHAPTER II
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ORGANIZATION AND OPERATION OF THE DATA TRANSMISSION INDUS FRY
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Sec. 4. Scope. -  This Act applies to all duly qualified persons who participate in the data
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transmission industry subject to domestic regulations and existing laws. For this purpose, any
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person or entity whose business deals substantially with the transmission of data, including VoIP
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service provider, Internet Service Providers (ISPs), and Data Center service providers, shall be
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governed by the provisions of this Act. PTEs principally engaged in the provision of basic
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telephone services, such as international carrier, inter-exchange canier, local exchange operator,
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and mobile radio services provider, as these entities are defined in Republic Act No. 7925, which
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also provide data transmission seiwices, shall likewise be subject to the provisions of this Act with
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respect to the data transmission services they provide and the interconnection to their networks
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that they extend to data transmission industry participants.
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SEC, 5. Registration and Certification. -  All segments of the data transmission network
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shall be competitive and open. Notwithstanding the provisions of this Act or any other law, the
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following registration and certification shall apply to data transmission:
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a. All data transmission industry participants shall be required to register with the National
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Telecommunications Commission (NTC). The NIC shall promulgate a speedy
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and expeditious administrative process for registration and shall, in coordination with
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Department of Infonnation and Communications Technology (DICT), develop a set of
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criteria for qualifying data transmission industry participants that will encourage the widest
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possible participation of as many industry players as possible who will offer data
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transmission services to end users in different parts of the country. The qualification
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requirements for data transmission industry participants shall also take national security
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concerns into consideration, particularly for facilities that interface directly with another
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country’s domestic network;
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b. A data transmission industry participant shall not be required to secure a Congressional
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franchise and/or a Certificate of Public Convenience and Necessity (CPCN) in order to
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construct, install, operate, lease, or own networks and facilities except if (a) it owns and
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operates an international cable landing station; or (b) it provides a nationwide backbone
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network, offering services as a carrier's carrier. For purposes of this law, the term


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nationwide means that the backbone network provides coverage for 80% of all
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municipalities and 100% of chartered cities in the Philippines;
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c. Data transmission industry participants shall likewise be required to comply with national
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and global best practices and standards on cybersecurity and shall be subject to a network
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audit by the Cybersecurity bureau of the DICT. Data transmission industry participants
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shall, after three (3) years of operation, be required to secure a cybersecurity certification
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from a third-party organization based on the prevailing ISO standards on information
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security management.
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CHAPTER 111
10 
REGULATION OF THE DATA TRANSMISSION INDUSTRY
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SEC. 6. Open Access Approach to Regulation of the Data Transmission Industry. -  The
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NTC shall adopt and ensure that the data transmission industry remains open and accessible to all
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qualified participants. Specifically, it shall:
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a. Implement an efficient and speedy administrative process in the authorization and
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registration of data transmission sector participants;
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b. Adopt a technology-neutral framework that allows data transmission industry participants
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to use any available technology to provide service;
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c. Promote fair and open competition in all the segments of the data transmission network,
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allowing a wide variety of physical networks and applications to interact in an open
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architecture;
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d. Mandate transparency in pricing and the publication of pricing infonnation to ensure fair
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trading within and between each data transmission segment so as to allow clear,
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comparative infonnation on market prices and services;
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e. Mandate interconnection so that data transmission industry participants can connect to each
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other at the various segments and interfaces, such that, entities of any size may freely enter
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and exit the market, and dominance by any single player or group of players is avoided;
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f Promulgate policies that will encourage distributed local solutions rather than centralized
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ones, encouraging services that are closer to the user;
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g. Publish the list of registered data transmission industry participants at least once a year;
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h. Promulgate, together with the Philippine Competition Commission (PCC), rules defining
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and regulating entities with substantial market power; and
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i. 
Publish a spectrum management framework to be developed together with the DICT and
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the PCC.
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SEC. 7. Spectrum Allocation and Assignment. -  The NTC shall maximize the allocation and
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assignment of finite radio spectrum resources used in the transmission of data by ensuring that
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spectrum is made available for the use of all registered data transmission industry participants. To
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this end:


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a. The piocedure for radio spectrum allocation, re-allocation, assignment, re-assignment, re­
classification, joint use or co-use, and recall shall be made transparent to the public. All 
applications, 
including letter-requests, allocation, re-allocation, 
assignment, 
re­
assignment, re-classification, joint use or co-use, and recall shall be posted in the NTC’s 
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 allocation, re-allocation, assignment, re-assignment, rc-classification, joint use 
or co-use, and recall including where the NTC itselt is the proponent of any such action, 
the attected spectrum, and the applicant’s or NTC’s reasons for the proposed spectrum 
allocation, re-allocation, assignment, re-assignment, re-classification, joint use or co-use, 
and recall. The NTC shall not allocate, reallocate, assign, reassign, reclassify, allow joint 
use or co-use, or recall 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 applies 
to all spectrum, whether used for data transmission or not;
b. All radio spectrum, radio trequency allocation, re-allocation, assignment, re-assignment, 
re-classification, joint use or co-use, and recall decisions of the NTC shall be published in 
the NTC’s 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) shall not apply to applications 
for frequency assignments for fixed point-to-point radio links, Wi-Fi and satellite 
networks;
c. The NTC shall ensure that the allocation, re-allocation, assignment, re-assignment, re­
classification, joint use or co-use, and recall of spectrum docs 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 PCC 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 infonnation 
necessary for the review and issuance of the notice: ProviilcJ, That PCC may once extend 
such period for an additional fifteen (15) working-days upon their notification of the NTC 
and the party or parties concerned to a spectrum allocation, re-allocation, assignment, re­
assignment, re-classification, joint use or co-use, and recall. Any person or entity who


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believes that any one or more of the NTC’s decisions for the assignment of radio spectrum, 
whether past or present, will promote the dominance of any entity and hinder competition 
may fde a complaint before the PCC to detemiine the dominance of a data transmission 
industry participant and act on 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 
pen-nits to import equipment. Any application for permit to import equipment that is not 
acted on by the NTC within seven (7) days shall be deemed approved; and
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, motii 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, make provisions for substitute frequency 
to address the needs of active users of the spectrum recalled from the data transmission 
industry participant or PTE.
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SEC. 8. Setting Performance Standards. -  The NTC shall:
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a. Mandate that, within one (1) year from the effectivity of this Act, all last mile providers
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shall provide a minimum download speed of two megabits per second (2 Mbps) or as
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mandated by the National Broadband Plan, whichever is higher, for mobile broadband and
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for fixed and fixed wireless/broadband access;
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b. In coordination with the DICT, prescribe perfonnance standards after publie consultation
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and hearings within six (6) months from the effectivity of this Act;
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c. Upgrade perfonnance standards imposed on the data transmission industry regularly to
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ensure that perfonnance standards shall, at a minimum, be at par with service levels
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established in regional data network perfonnance indices and aligned with international
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best practices. Such standards shall take into account speed, packet loss, jitter, and latency;
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d. Regularly review performance standards at least once a year and publish new performance
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standards at least thirty (30) days before they take effect. The publication of the results of
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the perfonnance measurements shall be done in an open data format accessible to the
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general public;
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e. Any person, or the NTC itself may, motii proprio, file a petition to penalize any data
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transmission industry participant for failure to deliver service according to the NTC’s
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published perfonnance standard and to require rectification of such non-compliance; and
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f. Measure the perfonnance of the data industry participants, furnish a copy of the raw data
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of the measurements to the DICT, and publish the results of its measurements in its website.
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SEC 9. Arms-length Transactions and Transparency. - The NTC shall:


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a. Publish and make available in print and online formats all aspects of spectrum use 
infonnation, including the National Radio Frequency Allocation Table (NRFAT), 
indicating therein the purpose or use to which each frequency band is allocated, and, for 
trequency 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 venues 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 will be 
published, including a historical record, in a consolidated manner. The data transmission 
industry participants are required to 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 Republic Act No. 10667, are strictly adhered to in the data transmission 
industry. The PCC and NTC shall ensure that all industry players shall observe fair, reasonable 
and non-discriminatory treatment in all their dealings, and that bairiers to entry are eliminated to 
make the industry highly competitive. To this end, the PCC and NTC shall foster and develop 
interagency cooperation mechanisms, including infomiation-sharing tools, that will guide them in 
the perfonnance of their respective mandates, and in the promotion of fair competition in the data 
transmission industry.
SEC 11. Technological Neutrality. -  The NTC shall promulgate the necessary rules and 
regulations to ensure that the provisions of this law apply, miitatis imitamlis, to future technologies 
in data transmission.
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SEC. 12. Expedited Processing. -  In all instances where a participant in the data transmission 
industry shall require a fonn, 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 fonn, 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 LG Us and national government agencies concerned 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.


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SEC. 13. Infrastructure Sharing and Co-Location. — The DICT and NTC shall promulgate 
policies, rules, and regulations to ensure that a data transmission network’s active facilities and 
support infrastructure available through data transmission networks or networks of public utilities, 
such as, but not limited to, towers, poles, ducts, entrance cables, risers, dark fiber, and utility 
corridors are:
(a) 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 non- 
discriminatory basis to any access seeker’s network facilities, in any segment, subject to 
the technical feasibility of the access seeker’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) 
Propagated in the most cost-etficient and timely manner through various means, 
including, among others, encouraging the operation of independent entities that build and 
operate towers, dark fiber, and utility corridors, among other infrastructure that help 
facilitate data transmission network deployment.
The DICT and 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 non-discriminatory access to multiple data transmission 
industry players in order for them to provide service.
The DICT and NTC shall also promulgate policies, mles, and guidelines that will ensure a 
level-playing field and price non-discrimination among data transmission industry participants and 
network facility and infrastructure owners.
The DICT and NTC shall coordinate and issue a policy with other government agencies, as 
necessary, including but not limited to the Department of Public Works and Highways (DPWH), 
Metropolitan Waterworks and Sewerage System (MWSS), the Metropolitan Manila Development 
Authority (MMDA), the National Electrification Administration (NEA), and the Housing and 
Land Use Regulatory Board (HLURB), and private entities concerned to implement this provision.
The DICT and NTC shall also ensure the disaster resiliency and ease of recovery and 
restoration of support infrastructure, such as towers, poles, and utility corridors, from the effects


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of disasters by strictly enforcing compliance with internationally-accepted engineering standards
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and best practices, and relevant engineering codes and codes of practice.
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CHAPTER IV 
PROHIBITED ACTS
SEC. 14. Prohibited Acts. -  The following acts shall be prohibited:
a. 
Refusal to Plug and Play -  Any data transmission industry participant, insofar as such 
person is so engaged, shall not refiise access to infrastructure to any other data transmission 
industry participant, except for failure to pay open market fees for the access to the sei-vice.
Data transmission industry participant shall not impede the end-user’s right to 
access and distribute infonnation 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 ot the infonnation, content, application or 
seiwice, 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 seiwices, shall not limit the 
exercise ot the rights ot 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 would provide significant public interest 
benefit and will not disadvantage content and applications that are not prioritized nor hann 
the open nature of the Internet;
c. 
Throttling -  Data transmission industry participants shall treat all traffic equally when 
providing data aecess serviees 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 tenninal 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 on the internet except where (a) 
access to such sites, services or applications are prohibited by law; (b) it is necessary to 
preserve the integrity and security of the provider and 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 provide the end-user sufficient time 
to rectify the situation; or (c) it is necessary to block the transmission of unwanted 
communications to an end-user, on the application or complaint of the end-user or the data 
transmission industry participant, and upon lawful order of the court;
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


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make available, on a timely basis, to suppliers of data transmission services, technical 
infonnation about its essential facilities or network facilities and commercially relevant 
information that are necessary for them to provide seiwices; and
Anti-competitive cross-subsidization - The NTC shall require separate books of account 
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 PCC for proper 
detennination 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 interconnecting facilities.
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CHAPTER V 
PENALTIES
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SEC. 15. Administrative Penalties. — The NTC shall require data transmission industry 
participants and PTEs providing data transmission seiwices to comply with the prescribed 
perfomiance standards and shall impose penalties for failure to comply with such performance 
standards.
a. Any data transmission industry participant that engages in the prohibited acts under Section 
14 of this Act or fails to comply with the obligations under Section 8 of this Act 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, which is prohibited under Section 14 (e) of this Act, the imposable penalties 
are those provided for under Republic Act No. 10667. 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. 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.
d. Any other violations of this Act shall be sanctioned with a fine of not less than Fifty 
Thousand Pesos (P50,000.00) but not more than Two Million Pesos (P2,000,000.00).
10


1 
SEC. 16. Adjustment for Inflation. -  The fines imposed under this Aet shall be adjusted by
2 
the NTC, year-on-year, considering the prevailing cost of money based on the current consumer
3 
price index, and subject to publication of such adjustments.
4 
CHAPTER VI
5 
RIGHTS OF DATA TRANSMISSION SERVICE USERS AND RESPONSIBIUTIES OF
6 
DATA TRANSMISSION SERVICE PRO\ IDERS
7 
SEC. 17. Rights of End-Users. — The user of data transmission services shall have the
8 
following basic rights:
9 
a. Entitlement of data transmission service which is non-discriminatory, reliable, and
10 
confonning with minimum standards as provided by the appropriate national government
11 
agencies;
12 
b. To be given data transmission services within two (2) months from application for service;
13 
c. Regular, timely and accurate billing, courteous and efficient service at business offices and
14 
by company personnel;
15 
d. Timely correction of errors in billing and the immediate provision of rebates or refunds by
16 
the data transmission service provider without the need for demand by the user; and
17 
e. 
Thorough and prompt investigation of, and action upon complaints. The data transmission
18 
service provider shall endeavor to allow complaints to be received by any means
19 
convenient to the end-user, including voice calls, post, short messaging service (SMS),
20 
multi-media messages (MMS) and online communication, and shall keep a record of all
21 
complaints received and the action taken to address the complaints.
22 
Subject to the filing of a fonnal request to the data service provider, a user may request the
23 
immediate termination of seiwice without the imposition of fees or penalties, and with the refund
24 
of any fees or eharges already paid by the user, should a data service provider not consistently
25 
comply with preceding paragraphs (a), (d), (e), or any other minimum perfomiance standards set
26 
by the NTC.
27 
CHAPTER VII
28 
FINAL PRO\ ISIONS
29 
SEC. 18. Joint Congressional Oversight Committee on Open Aecess in Data
30 
Transmission. - There is hereby created a Joint Congressional Oversight Committee on Open
31 
Access in Data Transmission (JCOCOADT) which shall monitor and ensure the effective
32 
implementation of this Act. It shall determine weaknesses and loopholes in the law, reeommend
33 
the necessary remedial legislation or administrative measures and perform such other duties and
34 
functions as may be necessary to attain the objectives of this Act.
35 
The JCOCOADT shall be composed of five (5) members from the Senate and five (5)
36 
members from the House of Representatives in addition to the Chairperson of the Senate
11


1 
Committee on Science and Technology and the Chaiiperson of the House of Representatives
2 
Committee on Infonnation and Communications Technology, who shall Chair the Oversight
3 
Committee in the order specified herein: Provided, That, two (2) members of each chambers’
4 
nominees shall come from the ranks of the minority party or bloc.
5 
The Chairperson of the Senate Committee on Science and Technology and the Chairperson
6 
of the House of Representatives Committee on Information and Communications Technology shall
7 
act as co-Chairpersons of the JCOCOADT. The ranking minority members nominated by both the
8 
Senate and the House of Representatives shall act as Vice Co-Chairpersons.
9 
The Secretariat of the JCOCOADT shall come from the existing Secretariat personnel of
10 
the Senate Committee on Science and Technology and the House of Representatives Committee
11 
on Infonnation and Communications Technology. The JCOCOADT shall have its own
12 
independent counsel.
13 
The JCOCOADT shall exist for the period not exceeding five (5) years from the effectivity
14 
of this Aet. Thereafter, its oversight functions shall be exercised by the Senate Committee on
15 
Science and Technology and the House of Representatives Committee on Information and
16 
Communications Technology, acting separately.
17 
SEC. 19. Implementing Rules and Regulations. — Within sixty (60) days from the
18 
effectivity of this Act, the DICT, in coordination with the NTC and the PCC, shall promulgate the
19 
necessary rules and regulations for the effective implementation of this Act.
20 
SEC. 20. Separability Clause. — Should any provision herein be declared
21 
unconstitutional, the same shall not affect the validity of the other provisions of this Act.
22 
SEC. 21. Repealing Clause. — All laws, decrees, orders, rules, and regulations or other
23 
issuances or parts inconsistent with the provisions of this Act are hereby repealed or modified
24 
accordingly.
25 
SEC. 22. Effectivity. — This Act shall take effect fifteen (15) days after its publication in
26 
the Official Gazette or in at least two (2) national newspapers of general circulation.
Approved,
12