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12

SEVENTEENTH CONGRESS OF THE) i © r
REPUBLIC OF THE PHILIPPINES )
Second Regular Session ) 18 mR 19

REC

Senate Bill No. 1.755 az

Prepared by the Committee on Public Services with Senators Ralph G. Recto, Joel Villanueva,
and Grace Poe as authors thereof

AN ACT
STRENGTHENING THE POWERS OF THE NATIONAL TELECOMMUNICATIONS
COMMISSION (NTC), AMENDING FOR THE PURPOSE REPUBLIC ACT NO.
7925, OTHERWISE KNOWN AS THE “PUBLIC TELECOMMUNICATIONS
POLICY ACT OF THE PHILIPPINES”

5e it enacted by the Senate and House of Representatives of the Philippines in
Congress assembled:

Section 1. - Section 3 of the Republic Act No. 7925, otherwise known as the
“Public Telecommunications Policy Act of the Philippines”, is hereby amended to read
as follows:

“SEC.3. Definitions and Interpretations. — For purposes of this Act, the
following terms shall be used:

00x

“L) SIGNIFICANT MARKET POWER — THE ABILITY OFA
PUBLIC TELECOMMUNICATIONS ENTITY TO AFFECT PRICE,
SUPPLY OR INNOVATION IN THE TELECOMMUNICATIONS.
INDUSTRY OR ANY PART THEROF, AS A RESULT OF EITHER ITS
CONTROL OVER ESSENTIAL FACILITIES OR THE USE OF ITS
POSITION IN ANY MARKET IN THE TELECOMMUNICATIONS
INDUSTRY OR ANY MARKET RELATED THERETO.

“FURTHER, THE COMMISSION IS MANDATED TO. ADOPT
STANDARDIZED DEFINITIONS OF THE INTERNATIONAL



TELECOMMUNICATIONS UNION (ITU), THE INTERNET
ENGINEERING TASK FORCE (IETF), THE WORLD WIDE WEB
CONSORTIUM (WWWC), AND THE INTERNET CORPORATION
FOR ASSIGNED NUMBERS AND NAMES (ICANN) AND OTHER
INTERNATIONAL AND TRANSNATIONAL AGENCIES
GOVERNING THE DEVELOPMENT, STANDARDIZATION, AND
UTILIZATION OF THE INTERNET AND INFORMATION AND
COMMUNICATIONS TECHNOLOGY, SUBJECT To
REFINEMENTS OF THESE INTERNATIONAL STANDARDS AS
MAY BE PRESCRIBED BY REGIONAL TELECOMMUNICATIONS
BODIES TAKING INTO CONSIDERATION THE SPECIAL
CIRCUMSTANCES APPLICABLE ONLY TO THE REGION.”

Sec. 2. Section of the same Act is hereby amended to read as follows:

“SEC. 5. Responsibilities of the National Telecommunications
Commission. — The National Telecommunications Commission
(Commission) shall be the principal administrator of this Act and as such
shall take the necessary measures to implement the policies and
objectives set forth in this Act. Accordingly, in addition to its existing
functions, the Commission shall be responsible for the following:
“Xx

“c) Mandate a fair and reasonable interconnection of facilities
of authorized public ne6twork operators and other providers of
telecommunications services through appropriate modalities of
interconnection and at a reasonable and fair level charges Lwhich
make provision for the cross subsidy to unprofitable local exchange
service areas so as to promote telephone density and provide the
most extensive access to basic telecommunications services
available at affordable rates to the public];

xxx



“f) Protect consumer against misuse of a
telecommunications —_ entity's monopoly or quasi-monopolistic
powers by, but not limited to, the investigation of complaints
and exacting compliance with service standards from such entity;
[and]

“g) In the exercise of its regulatory powers, continue to
impose such fees and charges as may be necessary to cover
reasonable costs and expenses for the regulation and supervision of
the operations of telecommunications Entities [.]; AND

“H) IN THE EXERCISE OF ITS REGULATORY POWERS,
IMPOSE FINES AGAINST PUBLIC TELECOMMUNICATIONS
ENTITIES WITHIN THE SCOPE OF ITS REGULATION, WHICH
ARE FOUND TO HAVE VIOLATED, VIOLATING, OR THOSE
WHICH HAVE FAILED OR ARE FAILING TO COMPLY WITH THE
TERMS AND CONDITIONS OF THIS ACT, ANY CERTIFICATE,
OR ANY ORDER, DECISION OR REGULATION OF THE
COMMISSION.

“THE ERRING PUBLIC TELECOMMUNICATIONS ENTITY
SHALL BE SUBJECT TO A FINE AMOUNTING TO THE TOTAL
ACTUAL LOSS OR OVERCHARGING AS DETERMINED BY THE
COMMISSION FOR EVERY DAY DURING WHICH SUCH
DEFAULT OR VIOLATION CONTINUES, OR IF IT IS NOT
FEASIBLE TO QUANTIFY THE OFFENSE, TO A FINE
AMOUNTING TO ONE MILLION PESOS (P1,000,000.00) FOR
EVERY DAY DURING WHICH SUCH DEFAULT OR VIOLATION
CONTINUES UNTIL THE AMOUNT IS FULLY PAID:
PROVIDED, THAT, IF THE PUBLIC TELECOMMUNICATIONS
ENTITY 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%)



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TO TWO PERCENT (2%) OF ITS GROSS ANNUAL INCOME. THE
COMMISSION IS HEREBY AUTHORIZED AND EMPOWERED TO
IMPOSE SUCH FINE, AFTER DUE NOTICE AND HEARING. THE
ERRING PUBLIC TELECOMMUNICATIONS ENTITY IS ALSO
MANDATED TO REFUND TO CONSUMERS THE CHARGES IT
ERRONEOUSLY IMPOSED TO ITS SUBSCRIBERS.

“THE COMMISSION IS FURTHER AUTHORIZED To
IMPOSE A FINE OF ONE MILLION PESOS (1,000,000.00) FOR
EVERY DAY THAT A VIOLATION OF SECTIONS 18 AND 19
HEREOF IS COMMITTED, AND UNTIL SUCH TIME THAT THE
ERRING PUBLIC TELECOMMUNICATIONS ENTITY FULLY
COMPLIES WITH THE TERM S AND CONDITIONS OF THIS
ACT, ANY CERTIFICATE, OR ANY ORDER, DECISION, OR
REGULATION OF THE COMMISSION: PROVIDED, THAT, IF THE
PUBLIC TELECOMMUNICATIONS ENTITY 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.

“I) THE COMMISSION SHALL REQUIRE PUBLIC
TELECOMMUNICATIONS ENTITIES WITH SIGNIFICANT
MARKET POWER AS DETERMINED BY THE PHILIPPINE
COMPETITION COMMISSION (PCC) TO PROVIDE TIMELY
ACCESS TO ITS NETWORK, FACILITIES OR EQUIPMENT TO
ACCESS SEEKERS ON A FAIR, REASONABLE AND
NONDISCRIMINATORY TERMS AND CONDITIONS.”

Sec. 3. - Section 10 of the same Act is hereby amended to read as

follows:

“SEC. 10. International Carrier. - Only entities which [will

Provide local exchange service and] can demonstrably show technical



1 and financial capability to install and operate an international gateway

2 facility shall be allowed to operate as an international carrier.”

3

4 [The entity so allowed shall x x x grant of the authority.]

5 [The international carrier shall x x x complies therewith.]

6 [Failure to comply with x x x international carrier.]

7

8 Sec. 4. - Section 12 of the same Act is hereby amended to read as follows:

9
10 “SEC. 12. Mobile Radio Services. - [In a local telephone
1 exchange area, m]More than one duly enfranchised provider of mobile
12 radio services, distinct and separate from the local exchange carrier,
13 may be allowed to operate. However, such entities shall secure prior
14 authority from the Commission and, in addition, comply with the
15 [conditions imposed on VAS and with the] norms on radio frequency
16 ‘spectrum utilization.”

17
18 [The operator of a x x x a mobile radio telephone system.]
19
20 Sec. 5. - Section 15 of Republic Act No. 7925 is hereby amended to read as
21° follows:
22
23 “SEC. 15. [Radio Frequency Spectrum. USE OF AVAILABLE
24 OR UNASSIGNED SPECTRUM. ~ The radio frequency spectrum
25 allocation and assignment shall be subject to AN ANNUAL [periodic]
26 review. The use thereof shall be subject to reasonable spectrum user
27 fees. Where demand for specific frequencies exceed availability, the
28 commission shall hold open tenders for the same and ensure wider
29 access to this limited resource.
30
3 “WITHIN ONE (1) YEAR FROM THE EFFECTIVITY OF THIS

32 ACT, THE DEPARTMENT OF INFORMATION AND



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27
28
29
30
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COMMUNICATIONS TECHNOLOGY (DICT), IN
CONSULTATION WITH THE COMMSSION AND THE PCC,
SHALL ISSUE THE GUIDING PRINCIPLES AND POLICY
DIRECTION FOR THE USE OF THE SPECTRUM.”

Sec. 6. - Section 8 of the same Act is hereby amended to read as

follows:

Act to

“SEC. 18. Access Charge / Revenue Sharing. - The access
charge/revenue sharing arrangements between all interconnecting
carriers shall be negotiated between the parties and the agreement
between the parties shall be submitted to the Commission FOR
REVIEW AND APPROVAL. In_ the event the Parties fail to agree
thereon within a reasonable period of time, the dispute shall be
submitted to the Commission for resolution.

“In adopting or approving an access charge formula or
revenue sharing agreement, between two or more carriers,
Particularly, but not limited to a local exchange, interconnecting with
@ mobile radio, inter-exchange long distance carrier, or international
cattier, the Commission shall ensure equity, reciprocity and fairness
among the parties concerned.” [In so approving the rates for x x x
interconnecting with them.]

Sec. 7. - A new Section shall be inserted after Section 18 of the same
read as follows:

“SEC. 18. (4) TRANSPARENCY. - ALL
INTERCONNECTING CARRIERS SHALL PROVIDE TO THE
COMMISSION ALL TERMS AND CONDITIONS, INCLUDING
RATES, OF ACCESS CHARGE/REVENUE SHARING
ARRANGEMENTS SUCH CARRIERS HAVE ENTERED INTO.



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“ALL TELECOMMUNICATIONS SERVICE
PROVIDERSSHALL OPEN THEIR BOOKS OF ACCOUNT TO THE
COMMISION, WHICH IS EMPOWERED TO DEMAND COPIES
THEREOF.”

Sec. 8. - A new Section 24 is hereby inserted and the same shall

read as follows:

“SEC. 24. IMMUNITY FROM SUIT. — THE
COMMISSIONER, THE DEPUTY COMMISSIONERS, OFFICERS,
AND EMPLOYEES OF THE COMMISSION, SHALL NOT BE
SUBJECT TO ANY ACTION, CLAIM OR DEMAND IN CONECTION
WITH ANY ACT DONE OR OMITTED BY THEM IN THE
PERFORMANCE OF THEIR DUTIES AND EXERCISE OF THEIR
POWERS EXCEPT FOR THOSE ACTIONS AND OMISSIONS
DONE IN EVIDENT BAD FAITH OR GROSS NEGLIGENCE.”

Sec. 9. - A new Section 25 is hereby introduced and the same

shall read as follows:

“SEC. 25. INDEMNITY. — UNLESS THE ACTIONS OF THE
COMMISSION, OR ITS COMMISSIONER, OR ANY OF ITS
DEPUTY COMMISSIONERS, OFFICERS, AND EMPLOYEES ARE
FOUND TO BE IN WILLFUL VIOLATION OF THIS ACT,
PERFORMED WITH EVIDENT BAD FAITH OR GROSS
NEGLIGENCE, THE COMMISSION, ITS COMMISSIONER, ITS
DEPUTY COMMISSIONERS, OFFICERS, AND EMPLOYEES ARE
HELD FREE AND HARMLESS TO THE FULLEST EXTENT
PERMITTED BY LAW FROM ANY LIABILITY, AND THEY SHALL
BE INDEMNIFIED FOR ANY AND ALL LIABILITIES, LOSSES,
CLAIMS, DEMANDS, DAMAGES, DEFICIENCIES, COSTS AND
EXPENSES OF WHATSOEVER KIND AND NATURE THAT MAY



ARISE IN CONNECTION WITH THE EXERCISE OF THEIR
POWERS AND PERFORMANCE OF THEIR DUTIES AND
FUNCTIONS.

THE COMMISSION SHALL UNDERWRITE OR ADVANCE
LITIGATION COSTS AND EXPENSES, INCLUDING LEGAL FEES
AND OTHER EXPENSES OF EXTERNAL COUNSEL, OR PROVIDE
LEGAL ASSISTANCE TO ITS COMMISSIONER, DEPUTY
COMMISSIONERS, OFFICERS, AND EMPLOYEES IN
CONNECTION WITH ANY CIVIL, CRIMINAL, ADMINISTRATIVE
OR ANY OTHER ACTION OR PROCEEDING, TO WHICH THEY
ARE MADE A PARTY BY REASON OF, OR IN CONNECTION
WITH, THE EXERCISE OF AUTHORITY OR PERFORMANCE OF
DUTIES AND FUNCTIONS UNDER THIS ACT: PROVIDED, THAT
SUCH LEGAL PROTECTION SHALL NOT APPLY TO ANY CIVIL,
CRIMINAL, ADMINISTRATIVE, OR ANY ACTION OR
PROCEEDING THAT MAY BE INITIATED BY THE COMMISSION,
AGAINST SUCH COMMISSIONER, DEPUTY COMMISSIONERS,
OFFICERS, AND EMPLOYEES: PROVIDED, FURTHER, THAT THE
COMMISSIONER, ITS DEPUTY COMMISSIONERS AND
OFFICERS WITH DISCRETION AND SPECIFIC DUTIES TO
DECIDE AND ENFORCE THIS ACT WHO SHALL RESIGN,
RETIRE, TRANSFER TO ANOTHER AGENCY OR BE SEPARATED
FROM THE SERVICE, SHALL CONTINUE TO BE PROVIDED WITH
SUCH LEGAL PROTECTION IN CONNECTION WITH ANY ACT
DONE OR OMITTED TO BE DONE BY THEM IN GOOD FAITH
DURING THEIR TENURE OR EMPLOYMENT WITH THE
COMMISSION: PROVIDED, FINALLY, THAT IN THE EVENT OF A
SETTLEMENT OR COMPROMISE INDEMNIFICATION SHALL BE
PROVIDED ONLY IN CONNECTION WITH SUCH MATTERS
COVERED BY THE SETTLEMENT AS TO WHICH THE
COMMISSION IS ADVISED BY COUNSEL THAT THE PERSONS



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TO BE INDEMNIFIED DID NOT COMMIT ANY NEGLIGENCE OR
MISCONDUCT.

THE COSTS AND EXPENSES INCURRED IN DEFENDING
THE AFOREMENTIONED ACTION, SUIT OR PROCEEDING MAY
BE PAID BY THE COMMISSION IN ADVANCE OF THE FINAL
DISPOSITION OF SUCH ACTION, SUIT OR PROCEEDING UPON
RECEIPT OF AN UNDERTAKING BY ON BEHALF OF THE
COMMISSIONER, ITS DEPUTY COMMISSIONERS AND
OFFICERS WITH DISCRETION AND SPECIFIC DUTIES TO
DECIDE AND ENFORCE THIS ACT TO REPAY THE AMOUNT
ADVANCED SHOULD IT ULTIMATELY BE DETERMINED BY THE
COMMISSION THAT ONE IS NOT ENTITLED TO BE
INDEMNIFIED AS PROVIDED IN THIS SECTION.

Sec. 10. - Renumbering of Provisions. With the introduction of new Sections, a
renumbering of the present Public Telecommunications Policy Act of the Philippines is
hereby mandated.

Sec. 11. Separability Clause. - Should any provision herein be declared
unconstitutional, the other provisions not affected shall remain in full force and effect.

Sec. 12. Repealing Clause. - Section 23 of Republic Act No. 7925 (Equality of
treatment in the Telecommunications Industry) is hereby repealed. All laws, orders,
issuances, rules, and regulations or parts thereof inconsistent with the provisions of
this Act are hereby repealed, amended, or modified accordingly.

Sec. 13. Effectivity. - This Act shall take effect fifteen (15) days after its
Publication in the Official Gazette or in any newspaper of general circulation.

Approved,