Republic of the Philippines
HOUSE OF REPRESENTATIVES.
Quezon City, Metro Manila

Twentieth Congress
First Regular Session

4
House Bill No,_&2

Introduced by Representative NIKO RAUL S.J. DAZA

EXPLANATORY NOTE

To say that access to the internet plays a crucial role in driving innovation, promoting social
development, and supporting economic growth now borders on the cliché. The stability and availability of
internet services are undeniably essential for enhancing both government operations and private sector
efficiency, contributing significantly to the effective delivery of services. This was most evident during the
COVID-19 pandemic, when the nation became heavily reliant on internet connectivity for daily activities.
Even in 2022, many sectors, particularly education and the workforce, continue to rely on work-from-home
arrangements, underscoring the need for reliable and uninterrupted internet access.

Despite this, several obstacles continue to hinder the average Filipino’s access to affordable and
dependable internet services. Chief among these challenges is the limited number of intemet service
providers in the country, resulting in demand surpassing supply. Consequently, internet subscription plans
remain costly and often offer subpar speeds. Although certain policy and institutional measures have already
been implemented to address these issues, there remains a pressing need to further enhance such efforts to
‘ensure that all Filipinos—especially those in unserved and underserved areas—can access affordable internet
services.

At present, however, the government imposes substantial spectrum user fees (SUF) on
telecommunications companies utilizing Wi-Fi technologies, despite the principle that SUFs should only
apply to operators using exclusively licensed frequencies granted by the govemment. This regulatory
approach hampers telcos from offering more competitive rates or reducing the cost of intemet subscriptions.
While the National Telecommunications Commission (NTC) has attempted to address the matter through
the issuance of Memorandum Circular No. 002-09-2021 on September 22, 2021—which lowered SUFs for
certain radio frequency bands—current market realities suggest that the complete removal of SUFs for Wi-
Fi is necessary to further liberalize internet access in the country.

‘The proposed measure seeks to align Philippine regulatory policy with international best practices,
particularly those recommended by the International Telecommunication Union (ITU) of the United Nations,
which advocates for a zero SUF policy on Notably, countries such as the United States, Australia,
Singapore, South Korea, and Indonesia have already adopted this approach. Enacting this measure into law
‘would thus position the Philippines alongside global leaders in fostering equitable and expansive internet
connectivity.

NIKO RAUL S.J. DAZA
Representative, 1" District of Northern Samar


Republic of the Phi
HOUSE OF REPRESENTATIVES
Quezon City

Twentieth Congress
First Regular Session

House Bill No. _22

Introduced by Representative NIKO RAUL S.J. DAZA.

“AN ACT.
PROVIDING FOR CHEAPER AND MORE ACCESSIBLE INTERNET FOR ALL”

SECTION 1. Short Title. — This Act shall be known as the "Sanu All May Internet Act".
SEC. 2. Declaration of Policy. ~ The State recognizes the vital role of telecommunication in

nation building and as such, it shall implement measures to provide communication standards suitable
to the needs and aspirations of the nation.

Asa scarce public resource, the State shall manage the use of the radio frequency spectrum in
the interest of the public and in accordance with international agreements and conventions to which the
Philippines is a signatory. Towards this end, the government shall allocate the radio frequency spectrum
to promote the adoption of appropriate technologies and best practices, an_interference-free
environment, and the highest service standards and shall assign the radio frequency spectrum to service
providers capable of efficiently and effectively using it to meet public demand for telecommunications
and data transmission services.

SEC. 3. Objectives. — This Act aims to:

a) Establish a policy and regulation that will reduce to zero the spectrum user fee (SUF) paid
by telecommunications entities to the national government, to enable the proliferation of the2 Wi
technology usage and infrastructure development, and eventually lower the cost of delivering
telecommunications services to end users;

b) Promote the acceleration of internet use in the country and the expansion of Wi-Fi technology
and infrastructure in unserved and underserved areas so the poor and underprivileged will have access
to reliable, accessible and affordable connectivity;

©) Encourage and empower the small players in the industry to provide affordable internet
services especially in the unserved and underserved areas; and.

4) Adopt a license-free, zero SUF policy in accordance with best international practices, and
protect public interest by limiting the use of outdoor Wi-Fi frequency access points or base stations and
links to the government and duly enfranchised public telecommunications entities.



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SEC. 4. Definition of Terms. — As used in this Act:

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

'b) Internet service provider or ISP refers to an entity with or without a franchise, re
asa value-added service provider with the National Telecommunications Commi
(NTC) and authorized to build, install, operate and maintain a network in order to offer
internet access services to the public for a fee;

c) Open and unprotected frequency refers to the frequencies at 2.4-2.4835 GHz, 5.150-
5.350 GHz, and 5.470-5.850 GHz. of the radio spectrum. Any frequency outside of
these frequencies is a licensed frequency especially if itis included in the frequencies
listed in the Department of Information and Communications Technology (DICT)

jes and NTC Memorandum Circulars and issuances which are part of the National

Radio Frequency Allocation Table (NRFAT);

4) 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;

©) Radio frequency spectrum refers to the part of the electromagnetic spectrum with
frequencies from 30Hz to 300GHz, used for communications which includes
frequencies for wireless telecommunications technologies such as radio, television, and
radar;

f) Spectrum user fee (SUF) refers to the fee imposed by the government regulator in the
use of a particular frequency; and

8) Wi-Fi or Wireless fidelity refers to a type of wireless local access network technology
that is based on the Institute of Electrical and Electronics Engineers’ (IEEE) wireless.
‘communication standard 802.11 family and uses the 2.4 GHz and 5 GHz frequency
band.3

SEC. 5. Coverage. — This Act shall cover Wi-Fi frequencies at 2.4-2.4835 GHz, 5.150-5.350
GHz, and 5.470-5.850 GHz, and any other frequency band that the NTC may deem open and
unprotected after due notice and hearing. This Act shall in no way amend or repeal Republic Act No.
10929, otherwise known as “The Free Internet Access in Public Places Act”.

SEC. 6. Establishing a Zero Spectrum User Fee. — The State through the DICT and the NTC
shall not impose a levy, charge, or collect fees from PTEs and other users for their use of frequencies
as specified in this Act: Provided, That PTEs shall not interfere with each other's Wi-Fi airwaves or
with any licensed radio stations in the course of their operations, thereby effectively establishing a zero
SUF.

SEC. 7. Implementing Rules and Regulations (IRR). ~ Within sixty (60) days from the
effectivity of this Act, the DICT as the lead agency, together with the NTC and representatives from
the telecommunications sector shall promulgate the necessary rules and regulations for the effective
implementation of the provisions of this Act.

SEC. 8. Joint Congressional Oversight Committee (JCOC). ~ There is hereby created a Joint
Congressional Oversight Committee to monitor the effective implementation of this Act, recommend
the necessary remedial or administrative measures and perform such other duties and functions as may
be necessary to attain the objectives of this Act.

‘The oversight committee shall be composed of eight (8) members, with the Chairpersons of the
Senate Committee on Public Services and the House of Representatives’ Committee on Information
and Communications Technology as Co-Chairpersons. The three (3) members from each House, shall


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be designated by the Senate President and the Speaker of the House of Representatives. respectively:
Provided, That at least one (1) member from each House shall be nominated by their respective Minority
Leaders. The secretariat of the COC shall be the existing secretariat personnel of the concemed
Committees of both Houses of Congress.

SEC. 9. Suppletory Application. ~ The provisions of Republic Act No. 10844 also known as
the “Department of Information and Communications Technology Act of 2015” and other laws
consistent with this Act shall have suppletory application.

SEC. 10. Separability Clause. — If any provision of this Act is declared unconstitutional or
invalid, other parts or provisions hereof not affected thereby shall continue to be in full force and effect.

SEC. 11. Repealing Clause. — All laws, presidential decrees, executive orders, presidential
proclamations, rules and regulations or parts thereof contrary to or inconsistent with this Act are hereby
repealed, superseded or modified accordingly.

SEC. 12, Effectivity. - This Act shall take effect fifteen (15) days after its publication in the
Official Gazette or in a newspaper of general circulation.

Approved,