Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

NINETEENTH CONGRESS
First Regular Session

House Bill No. 43

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INTRODUCED BY REPRESENTATIVE PAUL RUIZ Daeg fue

EXPLANATORY NOTE

The importance of intemet access on innovation, societal development, and the economy is
undeniable. Indeed, the stability and accessibility of internet services in a country contributes to the
continued success and further development of government services and corporate practices, thereby
leading to a more efficient delivery of services from both the public and private sectors. This is made
even more apparent during the COVID-19 pandemic which forced the entire country to rely heavily on
internet access to perform our day-to-day activities. Even in 2022, a vast majority in the education sector
as well as the workforce are operating through work-from-home arrangements which necessitate reliable
and unimpeded internet access.

Unfortunately, certain barriers exist which restrict the ordinary Filipino’s access to the internet.
For instance, there are still very few service providers in the market, which translates to the demand for
internet access quickly outpacing the supply. This then leads to prices for intemet subscription plans
being exorbitantly high while providing coverage at very low speeds. While policy and institutional
interventions were already put in place to meet this high demand, there is still a need to improve these
interventions in order to ensure affordable internet access for all Filipinos in both unserved and
underserved areas.

Presently, however, the government is charging hefty spectrum user fees (SUF) to telcos using
only Wi-Fi connection. This is in spite of the fact that the government should only charge SUFs to telcos
using exclusively licensed frequencies or spectrums granted by the government. This is the reason why
telcos cannot offer competitive internet plans to its consumers or at least lower the subscription costs
for their internet plans. While the National Telecommunications Commission (NTC) has already taken
steps to resolve this issue by issuing Memorandum Circular No. 002-09-2021 (September 22, 2021)
which reduced spectrum user fees (SUF) for radio frequency (RF) bands, current market conditions
indicate that SUF should be eliminated in its entirety in order to further liberalize internet connectivity
in the country.

Should this bill pass into law, the Philippines would be aligned to global best practices in the
regulation of SUF for Wi-Fi as suggested by the International Telecommunications Union (ITU) of the
United Nations which charges zero SUF on Wi-Fi. In fact, the ITU reports that several countries
including the United States of America, Australia, Singapore, South Korea, and Indonesia are currently

charging zero SUF on Wi-Fi
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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

NINETEENTH CONGRESS
First Regular Session

House Bill No._ 43

INTRODUCED BY REPRESENTATIVE PAUL RUIZ DAZA

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

Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:
SECTION 1. Short Title. - This Act shall be known as the "Sana 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.

As a 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 the? Wi-Fi
technology usage and inftastructure 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
toreliable, accessible and affordable connectivity;

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

4) Adopt a license-free, zero SUF policy in accordance with best intemational 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.


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) Intemet service provider or ISP refers to an entity with or without a franchise, registered as a
value-added service provider with the National Telecommunications Commission (NTC) and
authorized to build, install, operate and maintain a network in order to offer internet access
services to the public for a fee;

©) 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 it is included in the frequencies listed in the Department of
Information and Communications Technology (DICT) policies and NTC Memorandum
Circulars and issuances which are part of the National Radio Frequency Allocation Table
(NRFAT);

d) 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 300GH2z, 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

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

8

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 Intemet 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 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 JCOC 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,