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Republic of the Philippines
HOUSE OF REPRESENTATIVES

Quezon City, Metro Manila DATE,

Seventeenth Congress
Session

H.B.No,__8134

Introduced by Rep. Dakila Carlo E. Cua

AN ACT SYSTEMIZING SPECTRUM USER FEES
IMPOSED AGAINST RADIO FREQUENCY BANDS,
AMENDING REPUBLIC ACT NO. 7925, AND FOR
OTHER PURPOSES

EXPLANATORY NOTE
This bill seeks to systematize spectrum user fees imposed on radio frequency bands.

Spectrum user fees have long been imposed and collected by the National
Telecommunications Communication [NTC] on all allocated and assigned National Radio
Frequency Bands. However, to date, there is still no definite system on its imposition.

As a result, the Government failed to maintain a leveled playing field for all
telecommunication companies. As borne by the records, bigger telecommunication
companies are hoarding most of the available frequency bands without even utilizing them.
As a result, a duopoly exists as new telecommunication companies are prevented from
entering the industry, or competing with the larger and more established telecommunication
companies.

In order to correct this injustice, this representation sincerely proposes to systemize
the spectrum user fees imposed on allocated and assigned national radio frequency bands

DAKIL, ,O ENRIQUEZ CUA


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

Seventeenth Congress
Session

HB. No. 8134

Introduced by Rep. Dakila Carlo E. Cua

AN ACT SYSTEMIZING SPECTRUM USER FEES
IMPOSED AGAINST RADIO FREQUENCY BANDS,
AMENDING REPUBLIC ACT NO. 7925, AND FOR
OTHER PURPOSES

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

Section 1. The provisions of Section 3 Article I of Republic Act No. 7925, otherwise known
as the “Public Telecommunications Policy Act of the Philippines” [“RA7925”], are hereby
amended to include the following definitions:

()) Licensed frequency — is a band of radio frequency spectrum that is licensed
through auction or grant, and subsequently assigned to a public telecommunication
entity; and which frequency spectrum can only be used by the public
telecommunication entity authorized by the relevant regulatory agency to operate the
assigned frequencies.

(m) Unlicensed frequency ~ or technically referred to as “Open and Unprotected
Frequencies”, are frequencies open to all public telecommunications entities, which
frequencies’ right of use is determined by the assignment or grant, after paying the
prescribed Spectrum User Fee; and the use by a telecommunication entity granted
with such paid unlicensed frequency shall not be interfered.

Section 2. The provisions of Section 5 Article III of Republic Act No. 7925, otherwise
known as the “Public Telecommunications Policy Act of the Philippines” [“RA7925”], are
hereby amended to include the following responsibilities:

(h) Monitor the use and utilization of frequencies granted or licensed to public
telecommunication entities; and



(i Submit annual reports on the grant, use, utilization, and recall of frequencies to
both Houses of Congress.

Section 3. The provisions of Section 15 Article V of Republic Act No. 7925, otherwise
known as the “Public Telecommunications Policy Act of the Philippines” [“RA7925”], are
hereby amended to read:

“Section 15. Radio Frequency Spectrum. - The radio frequency spectrum
allocation and assignment shall be subject to periodic review. The use thereof
shall be subject to reasonable spectrum user fees AS COMPUTED IN
SECTION 15(A) OF THIS ACT. [ Where demand for specific frequencies
exceed availability, the Commission shall hold open tenders for the same and
ensure wider access to this limited resource. ]

THE COMMISSION SHALL INITIATE CALL BACK OR RECALL
PROCEEDINGS AGAINST ALL ASSIGNED SPECTRUM THAT
REMAINS UNUSED, UNUTILIZED, AND/OR UNDERUTILIZED
AFTER THE EXPIRATION OF THE PROVISIONAL AUTHORITY
GRANTED BY THE COMMISSION.

FOR PURPOSES OF THIS ACT, ASSIGNMENT, LEASING OR
RENTING, AND/OR ANY ANTI-COMPETITIVE ACT, INCLUDING
COLLUSSION, FOR NON-USE OR UNDERUTILIZATION OF
FREQUENCIES SHALL NOT BE CONSIDERED AS USE OR
UTILIZATION OF LICENSED FREQUENCIES.”

Section 4. The provisions of Article V of Republic Act No. 7925, otherwise known as the
“Public Telecommunications Policy Act of the Philippines” [“RA7925”], are hereby
amended to include the following:

Section 15(A). Computation of Spectrum User Fees. ~ The Commission shall
impose Spectrum User Fees (“SUF”) based on the following:

1. No SUF shall be collected from public telecommunication entities
exclusively providing services to urban and rural communities with no
connection; Provided, that: all telecommunication entities falling under this
subsection shall meet all the qualifications and conditions set forth by the
Commission.


2. The Commission shall prescribe, and periodically increase, reasonable
SUF for the use of licensed frequencies.

3. Telecommunication entities holding more than one licensed frequency
shall, per category of licensed frequency as identified by the Commission, be
charged Twenty (20) times the prescribed rate of SUF on the second and
succeeding licensed frequencies.

4, Telecommunication entities holding licensed frequencies shall, per
category of licensed frequency as identified by the Commission, be charged
Two (2) times the rate of imposed SUF on all their assigned frequencies that
remains unused, unutilized and/or underutilized.

As used in this subsection, imposed SUF shall include the prescribed SUF, and
the times Twenty (x20) rate imposed on the second and succeeding licensed
frequencies as prescribed in the preceding subsection.

5. Telecommunication entities holding unlicensed (or “Open and
Unprotected”) frequencies shall be charged SUF at the rate of Two Percent
(2%) computed based on the SUF imposed against the licensed frequencies as
prescribed by the Commission under Section 15(A) (2) hereof.

6. Under no circumstance shall the use of licensed frequencies be charged
SUF at the rate imposed against unlicensed frequencies (or “Open and
Unprotected”), and the use of unlicensed frequencies (or “Open and
Unprotected”) be charged SUF at the rate imposed against licensed
frequencies.

Section 5. Applicability. ~ The provisions of this Act shall apply to all spectrum frequencies,
whether assigned or unassigned as of the date of the effectivity of this Act.

Section 6. Appropriation. — In order to equip and modernize, and improve the capability of
the Commission, the amount of Two Billion Pesos (Php2,000,000,000.00) is hereby
appropriated out of the National Treasury.

Section 7. Separability Clause. — If any of the sections or provisions of this Act is held
invalid, all other provisions not affected thereby shall remain valid.

Section 8. Implementing Rules and Regulations. The NTC shall promulgate the rules and
regulations to effectively implement this Act.

Section 9. Repealing Clause. ~ All laws, decrees, executive orders, rules and regulations or
parts or provisions thereof which are not consistent with this Act are hereby repealed,
amended, or modified accordingly.


Section 10. Effectivity. — This Act shall take effect fifteen (15) days after its publication in
the Official Gazette or in a newspaper of general circulation.

Approved,