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Republic of the Philippines

House of Representatives
Quezon City, Metro Manila

Nineteenth Congress
First Regular Session

HOUSE BILLNO, __ 4327

Introduced by Representative Jefferson F. Khonghun

AN ACT PRESCRIBING THE REGISTRATION OF ALL
PREPAID SUBSCRIBER IDENTITY MODULE (SIM)
RDS

EXPLANATORY NOTE

About 5.2 billion people worldwide have mobile phones, accounting for almost
70 percent of the entire global population. In the Philippines alone, the data
gathered by Statista as of 2019 showed that we have around 169 million
mobile subscribers.

‘There are already about 160 countries that require mandatory SIM-card
registration, requiring real name and personal details to sign up for phone
service. And over 30 of these countries also require biometrics, e.g.
fingerprints or a facial scan

The rapid digitalization since the global COVID-19 pandemic began
resulted in the Filipinos’ unprecedented participation in e-commerce
business, financial technology transactions, and other online services
utilizing different digital platforms. The data is overwhelming. It is a fact that
one of the purposes of the said breakthrough is for the easement of a burden
in the field of telecommunication and web access.

However, an advantage always comes with a disadvantage. Innovations are
susceptible to ebuse and exploitation by people who give in to the temptation,
and these actions affect the greater good of society which the State endeavors
to protect. Regulation is therefore imperative, taking into consideration factors


such as identity and accountability; prevention of crimes, and prosecution
thereof when committed.

In times like these, the need to “know-your-customer” or “know your caller”
becomes e not only to protect the purchasing pu
scams and frauds, but more importantly, to build consumer and business
confidence to engage productively in the digital economy

Senate Bill (SB) 2911, introduced by Senator Loren Legarda in 2020. is a
welcome legislation regarding this matter, but it was vetoed by Former
President Rodrigo Duterte due to the inclusion of mandatory social media
registration in the measure.

In refiling the said measure, this proposed act known as “Subscriber Identity
Module (SIM) Card Registration Act’, likewise aims for proper accountability
of mobile phone users, without touching on social media registration. The
proposed measure mandates every Public Telecommunications Entity (PTE)
or direct seller of SIM cards to require all individual or subscriber who will
buy a SIM card from a direct selier to present a government-issued
identification card with photo upon rurchase. End users will likewise be
required to accomplish and sign a cortrol-numbered registration issued by
the PTE of the purchased SIM card

Given the need to adapt to the changing times , the passage of this bill is
urgently sought



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3327

AN ACT REQUIRING THE REGISTRATION OF ALL
PRE-PAID SUBSCRIBER IDENTITY MODULE (SIM) CARDS

Re 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 “SIM Card

Registration Act.”

SECTION 2. Declaration of Policy. - While the State recognizes the

vital role of information a

ns technology in nation building,
there is alsc a duty to ensure a safer space online and combat crimes

mated and mobile devices.

facilitated by

Technology is embraced by the State such that the same is encouraged
to be utilized in order to alleviate the current living conditions of its citizens.
Despite such encouragement, it must remain checked by the State as it is

also its responsibility to protect its citizens from the abuses and exploits

arising therefrom.
SECTION 3. Definition of Terms. ~ This Act defines the following:
a. Registration Form refers to a control-numbered instrument, issued by

the National Telecommunications Commission (NTC), requiring the SIM

Card purchaser to fill the same with the information necessarily for the

proce of SIM Card Registration.

b, Direci seller refers to a person or entity, whether natural or juridical,

who directly dispenses or sells a SIM card to an end user and included
in the verified list of dealers or agents by the NTC.

c. Registered SIM Card Owner refers to any person who has successfully

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accomplished the registration of his/her SIM Card as his/her own;

d. SIM Card refers to is a removable plastic card where an embedded
integrated circuit securely stores the mobile subscriber identity and the
related key used to identify ané authenticate subscribers on mobile

phones and computers;

e. End user refers to any person or entity who directly purchases a

prepaid SIM card from a direct seller;

f. SIM Card Registration refers te the entire process by which the end
user must undergo in order for him/her to be considered by law as a
Register SIM Card Owner;

g. Public Telecommunications Entity or PTE refers to any duly
enfranchised and authorized public telecommunications entity that
offers voice, short messaging system (SMS/text), mobile data, value-
added services (VAS) or any other telecommunications services to the

public for a fee;

h. Post paid mobile phone refers to a mobile phone the service of which
is provided by a prior arrangement with a Public Telecommunications

Entity (PTE);

i. Prepaid mobile phone refers to a mobile phone for which credit is

purchased in advance of service use.

SECTION 4. Contents of the Registration Form. All direct seliers shall

register pertinent data in a control-numbered registration form devised for

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the purpose, and must include the following information and requirements:

a. Full name and complete address of the end user as appearing in any
of the government-issued identification document under Section 8
of this Act;

b. Assigned cell phone number of SIM card(s} and serial number/s.

SECTION 5. Process of Registration of SIM Cards. - PTEs are required
to print control-numbered registration forms, each of which should be
inserted in the folded material encasing the SIM Card, prior to their shipment

or delivery to the official place of business of the direct sellers.

Direct Sellers are required by this Act to: (a) craft a Drop-Box stamped
or stickered with an emblem of the National Telecommunications
Commission, where the end users may submit their form, signifying the

commencement of their SIM Card Registration; and whenever a sale of a SIM

0 (b} request the assistance of an employee of the PT!

the purchased SIM Cards to collect the said forms for preparation and

submission of the same to the NTC.

Prior to the sale, the end user must provide to the direct seller any of
the competent evidence of identity as enumerated under Section 8 of this Act.

The direct seller is allowed by this Act to examine the ID handed over by the

end user and has the discretion to determine whether the ID presented is

legitimate. After careful examination, a SIM Card of a PTE of his/her choosing

shall be given to the end user.

Thereafter, the registration forri attached to the SIM Card must be
filled-up and duly accomplished by the end user in the presence of the direct
seller. After which, the Form, together with a photocopy of the ID examined

by the direct se in the Drop-Box.


The registration form required under this Section shall be accomplished
ad shall be forwarded by the direct seller to the concerned PTE.

in triplicate,

The concerned PTE shall submit a copy of the duly accomplished
registration form to the NTC within fifteen (15) days from the date of sale or

receipt of such form from their respective direct sellers.

SECTION 6. Representative Registration of SIM Cards. - A person
intending to purchase a SIM card but cannot personally do so with the direct

seller, may, for valid reason, authorize another to register in that person's

behalf, subject to the following conditions: {a} that the representative is
authorized through a duly notarized Special Power of Attorney; and (b) that
the principal and the representative should present an original copy of any of

the valid identification cards listed in Section 8 hereof.

In case the person intending to purchese a SIM card is a minor, the parents
or guardian shall be required to give their express consent in writing, and
submit the seme with the registration form and valid identification cards of

both the minor and the parents or guasdian.

SECTION 7. End User is a tourist on a short-term stay in the Philippines.
— In case the end user is a tourist 01 a short and temporary stay in the
Philippines, he/she must bring with him/her a Passport duly issued by the
concerned government agency from his/her country of origin.

SECTION 8. Competent Evidence of Identity. — The following are

competent evidence of identity:

(a) Uriver’s License;

(b) Passport;

(c) Professional Regulation Commission Identification Card;

(a) Social Security Service (S3S) / Government Service Insurance
System (GSIS) / Unified Multi-purpose ID (UMID);


(c) Senior Citizen’s Card;
() Person with Disability Card;
(g) Firearms License;

(h) Vor

(i) National Bureau of Investigation (NBI) / Philippine National Police
(PNP) Clearance taken within the last six (6) months prior to the
sale/purchase

(i) Taxpayer's Identification Number;

(k) Any other government-issued ID;

() School ID with photo (in case of a minor);
by the Department of Labor and

Employment (DOLE) / Alien Certificate of Registration
Identification Card (ACRI-Card) issued by the Bureau of

Immigration (BI) (for non-tourist foreigners)

SECTION 9. Submission of Verified List of Dealers or Agents. - The PTEs
shall submit to the NTC, within thirty (30) days from the date of effectivity of
this Act, a verified list of their current authorized dealers or agents

NTC every quarter of

nationwide. 7 fter,

each year an updated list of the same.

SECTION 10. Confidentiality anc Disclosure. - Any information or data
collected in the SIM card registrat’on shall be treated as absolutely
confidential

Disclosure of any such information/data shall be prohibited, unless

upon subpoena or order from a from a law

enforcement agency about an investigation that a particular number is

used in the commission of a crime

SECTION 11. Unregistered SIM Card purchasers. - All persons who

have acquire¢ and are using their SIM Cards prior to the effectivity of this Act
are required within ninety (90) days from the effectivity hereof, to register their

link that shall be provided by the NTC through the

website



(ntc.gov.ph], PTCs are requested to guide their pre-existing subscribers in
through the process of registration as provided in this section by any means

lawfui, especially subscribers who are not computer literate.

SECTION 12. Penalties. - Any person found guilty of violating any of
the provisions of this Act shall be met with the following penalties:

A. if the offense is committed by a FTE, the President and other executive
officers shall be held liable and the following penalties shall be imposed:
1. First offense: A fine of one hundred thousand pesos
{P100,000.00)}:
2. Second offense: A fine of three hundred thousand pesos
(P300,000.00); and
3. Third and subsequent offenses, a fine of five hundred
thousand (P500,000.00) for every offense.

B. A penalty of suspension of operations and a fine ranging from five
pesos (P5,000.00) to fifty thousand pesos (P50,000.00) shall

be imposed on any direct seller who fails to comply with the provisions
of this Act.

C. Any officer or employee of an :mplementing agency found to be in
violation of the provisions of this Act shall suffer a penalty of suspension
or dismissal or service, without prejudice to the filing of appropriate

civil or eri

ninal case/s.

SECTION 13. Implementing Rules and Regulations (IRR). Within ninety
(90) days from the effectivity of this Act, the NTC together with the concerned
government agencies and instrumentalities, shail promuigate rules and
regulations as well as other issuances to effectively carry out the provisions

of this Act.

SECTION 14. Separability Clause. - Should any part of this Act be
declared unconstitutional or invalid, other provisions hereof that are not

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affected thereby shall continue to be ir: full force and effect.

SECTION 15. Repealing Clause. ~ All laws, decrees, executive orders,
proclamations, rules and regulations, and issuances, or parts thereof which
are inconsistent with the provisions of this Act, are hereby repealed, amended

or modified accordingly.
SECTION 16. Effectivity. - This Act shall take effect fifteen (15) days
following the completion of its publication in the Official Gazette or in

newspaper of general circulation.

Approved,