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

SEVENTEENTH CONGRESS
First Regular Session

404

House Bill No,

Introduced by Honorable CARMELO B. LAZATIN IT

EXPLANATORY NOTE,

As of 2016, there are 119 million mobile phones in the Philippines, With the current population at 101
n, that is equivalent to 118 mobile phones per 100 Filipinos.

mil

‘The proliferation of mobile phone subscriptions, most of them prepaid, is by tums a boon and a bane for
the country, On the one hand, the easy procurement of a mobile phone subscription is a convenient way of
availing of telecommunication services along with other related products and services, including mobile
Internet, mobile banking, and mobile shopping, among others. On the other hand, the same presents a number of
tumyeleome and unintended consequences. Chief among these is the increase in the number of spam messages
received and scams hatched via SMS or MMS.

‘On numerous occasions, mobile phones with unregistered SIMs have also been utilized as detonators in
terrorist acts. Most often, SIM cards are used to commit crimes such as robbery, theft, and even worse, drug
dealing and kidnapping. Also, various scams have been propagating through the use of mobile phones such as
false lottery wins, “pasa-load” schemes and “budol-budol”, The ease with which Subscriber Identity Module or
SIM cards can be bought, either in street side stalls or convenience stores without the need to present any
identification card, makes the perpetration of these scams and erimes easy to carry out,

Because SIM cards are not registered, itis difficult for the authorities to ascertain the identities of people
behind these dastardly acts, The anonymity afforded by unregistered SIM cards enables criminals, terrorists, and
spammers to carry out their unlawful acts with relative impunity,

‘This Bill seeks to require the registration of SIM cards before they are activated and used, This measure
will not only lend adequate protection to subscribers from being bombarded with SMS and MMS messages that
they did not consent to, it will also promote greater security by facilitating the easy identification and
apprehension of individuals behind mobile-based scams and crimes.

In view of the foregoing, the approval of this Bill is earnestly sought.

Catal

CARMELO B, LAZATIN IL

First District, Pampanga


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

SEVENTEENTH CONGRESS
First Regular Session

4404

House Bill No.

Introduced by Honorable CARMELO B, LAZATIN II

AN ACT REQUIRING THE REGISTRATION OF ALL USERS OF PRE-PAID SUBSCRIBER
IDENTITY MODULE (SIM) CARDS OF MOBILE PHONES AND PROVIDING PENALTIES FOR
VIOLATION THEREOF

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

SECTION 1. Short Title. ~ This Act shall be known as the “Subscriber Identity Module (SIM) Card
Registration Act.”

SEC. 2. Declaration of Policy. ~ The State recognizes the vital role of information and communications
technology in nation building. Corollary to this, the State shall promote the responsible use of modern
telecommunications technology and install mechanisms to protect the public against unscrupulous individuals or
groups who perpetuate crime by taking advantage of the benefits of modern technology.

Towards this end, the State shall require the registration of all users of pre-paid subscriber identity module
(SIM) cards.

3. Definition of Terms.—As used in this Act:

3.1 Direct seller refers to a person or entity, whether natural or juridical, which directly dispenses or
sells a SIM card to an end user;

3.2. Postpaid mobile phone refers to a mobile phone, the service of which is provided by a prior
arrangement with a public telecommunications entity, the user thereof is billed at the end of the
‘mouthly billing cycle according to the use of mobile service;

3.3. Pre-paid mobile phone refers to services provided by a public telecommunications company where
credit is purchased in udvance of servive use at the point the service is accessed or consumed. If
there is no available credit, then access to the requested service is denied;

3.4, Public Telecommunications Entity or PTE eek
telecommunica

to any duly enfranchised and authorized public
‘ons entity that offers voiee, short messaging system (SMS/text), mobile data,
value-added service (VAS) ot any other wireless telecommunications services to the public for a
fe;

3.6, SIM card registration refers to the process of recording and verifying the mobile phone number
and personal information ofa subscriber, by a PTE or other direct seller, including but not limited
to the subscriber's photograph, name, date of birth, gender, and address.


37

wubseriber refers to any individual who directly purchases a pre-pald SIM card from a public
telecommunications entity or a direct seller for personal or business purpose;

3.8 Subseriber Idemity Module (SIM) card refers to an integrated circuit that securely stores the
mobile subscriber identity, encrypts voice and data transmissions and is the related key used to
identify and authenticate subscribers on mobile telephone devices, such as mobile phones and
computers, A SIM is a removable plastic card into which a circuit is embedded, and can be
transferred between different mobile services,

SEC.4, Registration of SIM Cards, ~ Every PTE or direct seller shall require the subscriber of a SIM card to
present valid identification with photo to ascertain his or her identity before the purchase is made, The PTE or
direct seller shall further require the subscriber to accomplish and sign a control-numbered registration form
issued by the respective PTE of the SIM card purchased. The registration form shall include an attestation by the
subscriber which states that the subscriber personally appeared before the PTE or direct seller and the
identification documents presented are true and correct. The confidentiality clause in the SIM card registration
under Section 8 hereof shall start to apply at the point of sale.

Any subscriber who does not produce valid identification with photo and fails to accomplish a registration form
in accordance with the requirements mentioned above and in the succeeding sections shall be denied purchase of
the SIM card.

SEC. 5. Representative Registration of SIM Cards, ~ Any person who wants to purchase a SIM card but cannot
personally register with the ditect seller may, for valid reason, authorize another as his representative to register
in his behalf, subject to the following conditions: (I) that the representative is authorized through a duly
notarized Special Power of Attomey; and (2) that the principal and hiis representative should present an original
and a true and clear copy of any of the valid identification cards with photo listed under Section 6 (a) hereof

{In case the person intending to purchase is a minor, the parent or guardian shall be required to give their express
consent in writing, and submit the same with the registration form and valid identification cards with photo of
both the minor and the parent or guardian,

The direct seller may deny the request for representative registration after an assessment finding that the reason
given thereof is not valid, or that the identification cards or their true copies are not authentic or sufficient

SEC. 6. Coverage of Registration. ~ All PTEs and direct sellers are hereby mandated to register pertinent data
in a registration form devised for the purpose, to include the following information and requirements

) Full name and complete address of the subscriber appearing in a valid government-issued identification
document with photo. In view thereof, SIM card subscribers shall be required to present the original
and submit a true and faithful reproduction or photocopy of any two (2) of the following government
identification documents with photo:

1, Driver's license;

2, Social Security Service/Government Service Insurance System (SSS/GSIS)
3, Passport;

4, Senior Citizen's card;

5, Person with disabilities card;

6

1

8

National Bureau of Investigation (NBI) clearance;
Police clearance;
Pirearms license;
9. Voter's identification card;
10. Professional Regulation Commission (PRC) identifi
1. Schoo! identification card (in case ofa minor);
12. Postal identification card; and

tion card;


13. Other government issued identification cards,

b) Assigned cell phone number of S
©) Date of purchase of the SIM card

IM card(s) and its serial number; and

SEC, 7, Verified List of Direct Sellers, Dealers or Agents, ~ All PTEs shall submit to the National
Telecommunications Commission (NTC), within thirty (30) days from the date of effectivity of this Act, a
verified list of their current direct sellers, authorized dealers or agents nationwide. Thereafter, the PTEs shall
submit to the NTC updated list ofits authorized dealers, direct sellers or agents every quarter of each year,

SEC. 8. Confldentiality Clause. ~ Any information in the SIM card registration shall be treated as absolutely
confidential, except upon prior written consent of the subscriber or when public safety or order requires its
disclosure to law enforcement authorities. Provided, that the waiver of absolute confidentiality shall not be
made as a condition for the approval of subscription agreements with the PTEs,

SEC. 9, Disclosure of Information. ~ ‘The PTEs shall be required to provide information contained in the SIM
card registration only upon order of a competent court upon findings of probable cause that a particular number
is used in the commission of a crime or that i¢ was utilized as a means to commit an unlawful act

SEC.10. SIM Card Register. ~ The registration form mentioned in Section 6 of this Act shall be accomplished
in triplicate, and shall be forwarded by the direct seller to the appropriate PTE within fifteen (15) days from the
date of sale, The required registration form and the copies thereof shall be certified by either the President,
General Manager, Treasurer, Secretary, or any other duly appointed officer of the PTE or direct seller, as the
case may be.

All PTEs are required to submit a SIM Card Register of both their postpaid and prepaid mobile phone users to
the NTC every two (2) months, and maintain a record containing information mentioned under Section 6 of this
Act.

In case of loss or any change in the information after the acquisition of the SIM card, the subscriber must notify
the PTEs within seven (7) days from such loss or change. The concerned PTE in return must notify the NTC of
such loss or change in the information within seven (7) days from receipt of notification from the subscriber.

All PTE are required to keep the data of their subscribers and the NTC shall see to it that this data is being kept
with utmost confidentiality as provided for under Section 8 of this Act and in accordance with existing laws.

SEC. 11, Registration of Existing Prepaid Mobile Phone Subscribers, ~ All existing mobile phone subscribers
with active prepaid SIM cards are required to register with their respective PTE within thirty (30) day's from the
effectivity of this Act, Failure to register within the prescribed period shall authorize the PTE to automatically
s to the specific existing prepaid SIM eard subscriber.

deactivate its servic

‘The PTE is directed to keep an updated database or record of all their pre-paid subscribers and submit the same
to the NTC within sixty (60) days after the period of registration as prescribed in this Act

SEC. 12, Penalties, - The following penalties shall be imposed for violation of any provision of this Act;

a) If the offense is committed by a PTE, the President and other executive officers shall be held liable and
the following penalties shall be imposed:
1, First offense: A fine of Pifly thousand pesos (P50,000);
2. Second offense: A fine of One hundred thousand pesos (P100,000); and
3. Third and subsequent offenses: A fine of Three hundred thousand pesos (P300,000)

b) Any responsible officer of the PTE who shall refuse (o disclose the identity and personal
of the prepaid SIM card subscriber or shall refuse to cooperate with law enforcement agency after the
latter shows proof that the pre-paid SIM catd was used in the commission of a crime or illegal purpose,
shall be liable to pay a fine of Five hundred thousand pesos (500,000.00).

umstances


©) Any PTE found to have been continuously violating any provision of this Act, shall suffer the penalty
of revocation of its franchise, upon the recommendation of the NTC to Congress;
Any direct seller who is found violating any of Sections 4,6, 8 or 10 of this Act shall be punished with
the following penalti
1, First Offense -- A fine of Five thousand pesos (P5,000.00)
2, Second Offense ~ A fine of Ten thousand pesos (P10,000.00)
3. ‘Third Offense ~ A fine of Fifteen thousand pesos (P15,000.00)
©) Any direct seller who is found guilty of violating any of Sections 4,6,8 or 10 of this Act for the third
‘ime shall, in addition to the fine, be prohibited from being a direct seller of uny PTE.

SEC, 14, Subscriber's Criminal Liability —Any subscriber who knowingly provides false or misleading

information as mandated in Section 6 of this Act shall be subject to criminal prosecution under Ar
Article 172 of the Revised Penal Code.

171 or

SEC, 15, Implementing Rules and Regulations. ~ Within sixty (GD) days from the effectivity of this Act, the
NTC, shall promulgate the rules and regulations for the effective implementation of this Act.

SEC. 16, Separability Clause. ~ If any provision or part of this Act is declared unconstitutiona
remaining parts or provisions not affected shall remain in full force and effect.

or invalid, the

SEC, 16, Repealing Clause. ~All laws, decrees, orders, rules and regulations, and other issuances, or parts
thereof which are inconsistent with the provisions of this Act, are hereby deemed amended or repealed.

SEC. 17. Effectivity.— This Act shall take effect fifteen (15) days afler its publication in the Official Gazette or
in two (2) national newspapers of general circulation,

Approved,