1 
Republic of the Philippines 
House of Representatives 
Quezon City, Metro Manila 
Twentieth Congress 
First Regular Session 
HOUSE BILL NO. 2977 
Introduced by Representatives Ferdinand Martin G. Romualdez, Yedda 
Marie K. Romualdez, Andrew Julian K. Romualdez and Jude A. Acidre 
AN ACT 
PROMOTING 
OPEN 
ACCESS 
IN 
DATA 
TRANSMISSION 
AND 
PROVIDING 
ADDITIONAL 
POWERS 
TO 
THE 
NATIONAL 
TELECOMMUNICATIONS COMMISSION 
EXPLANATORY NOTE 
In today's world, the reliance on information and communication technology 
(ICT) services, such as the internet, is growing increasingly. Unfortunately, it is no 
secret that our country suffers from slow internet speeds. Compounded by the fact 
that, aside from its snail-paced speeds, the Philippines is among the most expensive 
countries in the world. 
Underdeveloped ICT infrastructure, coupled with the growing demand for 
more data and higher bandwidth, results in inefficient services that cost people's time 
and money. In the latest World Digital Competitiveness Ranking, the Philippines 
has shown a significant drop in position, and one of the factors linked to this is the 
country's supposedly poor competitiveness in its ICT infrastructures.1 
This bill seeks to lay the foundation for a framework that will promulgate rules 
and standards to promote the construction and development of reliable, affordable, 
1 https://www.gmanetwork.com/news/topstories/nation/927071/ph-slides-two-spots-in-world-digital-
competitiveness-ranking/story/ 
August 4, 2025
5:00 pm


2 
open, and accessible data networks that transmit information at speeds and quality 
comparable to the best in the world. 
Likewise, the bill proposes to establish a strong and independent regulatory 
system and body to create an environment within the data transmission industry that 
is conducive to open, fair, and innovation-driven competition, and to encourage 
investments in the country's digital infrastructure development. Moreover, the 
proposed bill mandates interconnection among data transmission participants to 
avoid dominance by a single player or by a group of data providers. 
Further, the bill clarifies the role of the National Telecommunications 
Commission to maximize the utilization of radio spectrum resources in the allocation 
and assignment of such finite resources in the transmission of data, by ensuring that 
spectrum is made available for the use of all registered data transmission industry 
participants and gives NTC additional power to promote a more conducive 
environment for data networks. 
This measure was filed during the 17th, 18th, and 19th Congresses; it was 
already approved by the House of Representatives on Third Reading and was 
transmitted to the Senate during the last three Congresses. 
In view of the foregoing, immediate approval of this bill is earnestly sought. 
FERDINAND MARTIN G. ROMUALDEZ 
YEDDA MARIE K. ROMUALDEZ 
ANDREW JULIAN K.  ROMUALDEZ 
JUDE A. ACIDRE 


1 
Republic of the Philippines 
House of Representatives 
Quezon City, Metro Manila 
Twentieth Congress 
First Regular Session 
HOUSE BILL NO. 2977 
Introduced by Representatives Ferdinand Martin G. Romualdez, Yedda 
Marie K. Romualdez, Andrew Julian K. Romualdez and Jude A. Acidre 
AN ACT 
PROMOTING 
OPEN 
ACCESS 
IN 
DATA 
TRANSMISSION 
AND 
PROVIDING 
ADDITIONAL 
POWERS 
TO 
THE 
NATIONAL 
TELECOMMUNICATIONS COMMISSION 
Be it enacted by the Senate and House of Representatives of the Philippines 
in Congress assembled: 
CHAPTER I 
INTRODUCTORY PROVISIONS 
SECTION 1. Short Title. – This Act shall be known as the “Open Access in 
Data Transmission Act”. 
SEC.  2. Declaration of Policy. – It is the policy of the State to narrow the 
digital divide in the country by encouraging the development of data transmission 


2 
 
infrastructure and removing any barrier to competition in data transmission services. 
Moreover, the State shall implement measures to require data transmission service 
providers to adhere to telecommunications standards suitable to the needs and 
aspirations of the nation and ensure that internet users enjoy the best quality of data 
transmission service. The State shall: 
 
(a) Promote the construction and development of reliable, affordable, open and 
accessible data networks that transmit information at speed and quality comparable 
to the best in the world; 
 
(b) Create an entrepreneurial ecosystem where persons who wish to engage in 
the data transmission industry can compete openly and freely in the spirit of 
fair competition and permission-less innovation; 
 
(c) Encourage investments in the digital infrastructure development in the 
country; 
 
(d) Adopt and ensure open access in the regulation of the data transmission 
industry; 
 
(e) Protect the public interest as it is affected by its ability to access data 
networks; 
 
(f) Establish a strong and independent regulatory body and system to ensure 
and enhance fair competition in the data transmission industry;  
 


3 
 
(g) Protect and promote the internet as an open platform enabling consumer 
choice, freedom of expression, end user control, competition and the freedom to 
innovate without permission, and thereby encouraging the development of advanced 
telecommunications capabilities and the removal of barriers to infrastructure 
investment;  
 
(h) Encourage infrastructure sharing and co-location in order to promote 
network investment, eliminate the uneconomic duplication of infrastructure 
facilities, and strengthen competition; and  
 
(i) Ensure efficient and transparent management of the radio frequency 
spectrum, especially those utilized in the delivery of data transmission services. 
 
SEC. 3. Definition of Terms. – As used in this Act: 
 
(a) Basic telephone service refers to the local exchange telephone service for 
residence and business establishments provided via the circuit switched telephone 
network; 
 
(b) Cellular Mobile Telephone Service (CMTS) refers to the wide area mobile 
radio telephone system with its own switch, base stations and transmission facilities 
capable of providing high-capacity mobile telecommunications by utilizing radio 
frequencies; 
 
         (c) Content refers to, among others, texts, images, audios, videos, and 
animations that are carried over the broadband/internet network; 


4 
 
 
         (d) Core or Backbone Network refers to the main line, including international 
connection, that ties networks, delivers routes to exchange information among 
various subnetworks, connects regional distribution networks and, in some 
instances, provides connectivity to other peer networks; 
 
         (e) Data transmission refers to the process of sending digital or digitized 
analog signal over a communication medium to one or more computing networks, 
communication or electronic devices. It enables the transfer and communication of 
devices in a point-to-point, point-to-multipoint and multipoint-to-multipoint 
environments. The term data transmission includes the provision of Voice over 
Internet Protocol (VoIP) services but does not include the provision of basic 
telephone services; 
 
          (f) Data transmission industry participant refers to any person, firm, 
partnership or corporation, government or private, engaged in the provision of data 
transmission services to the public. This includes public telecommunications entities 
(PTEs) that offer data transmission services as defined under Republic Act (RA) 
No.7925, otherwise known as the “Public Telecommunications Policy Act of the 
Philippines”; 
 
         (g) International gateway or landing refers to a segment of data transmission 
that consists of any facility that provides an interface to send and receive data traffic 
between one country’s domestic network facilities and those in another country; 
 
(h) Last mile refers to the segment of data transmission network that connects 


5 
 
end users; 
 
         (i) Middle mile refers to the segment of data transmission network that links 
the last mile network to the core or backbone network; 
 
         (j) Open access refers to the system of allowing the use of data transmission or 
distribution systems and associated facilities subject to fair, reasonable, and non-
discriminatory terms in a transparent market; 
 
        (k) Paid prioritization refers to the management of a data transmission network 
to directly or indirectly favor some traffic over other traffic, through the use of 
techniques such as traffic shaping, prioritization, resource reservation, zero-rating, 
or other forms of preferential traffic management, either in exchange for 
consideration (monetary or otherwise) from a third party, or to benefit an affiliated 
entity; 
 
        (l)  Voice over Internet Protocol (VoIP) service refers to the provision of voice 
communication using Internet Protocol (IP) technology; and 
 
       (m) Passive infrastructure collectively refers to telecommunication towers, 
poles, cable entrances, ducts, utility corridors, and any other non-electronic 
infrastructure and facilities, either existing or to be deployed in the future, that may 
be used to support data transmission. 
 
CHAPTER II 


6 
 
ORGANIZATION AND OPERATION OF THE DATA TRANSMISSION 
INDUSTRY 
 
SEC. 4. Scope. – This Act applies to all persons who participate in the data 
transmission industry. Any person or entity whose business deals substantially with 
the transmission of data, including VoIP service provider, internet service providers 
(ISPs), and data center service providers, shall be governed by the provisions of this 
Act. PTEs that are principally engaged in the provision of basic telephone services, 
such as an international carrier, interexchange carrier, local exchange operator, and 
mobile radio services provider, as defined in Republic Act No. 7925, and which also 
provide data transmission services, shall likewise be subject to the provisions of this 
Act with respect to the data transmission services they provide and the 
interconnection to their networks that they extend to data transmission industry 
participants. 
 
SEC. 5. Registration and Certification. – All segments of the data transmission 
network shall be competitive and open. Notwithstanding the provisions of this Act 
or any other law, the following registration and certification shall apply to data 
transmission: 
 
(a) All data transmission industry participants shall be required to register with 
the National Telecommunications Commission (NTC). The NTC shall promulgate a 
speedy and expeditious administrative process for registration and shall, in 
coordination with the Department of Information and Communications Technology 
(DICT), for policy and standard-setting in the Information and Communications 
Technology (ICT) sector, and Philippine Competition Commission (PCC) for the 


7 
 
promotion of market competition, develop a set of criteria for qualifying data 
transmission industry participants that will encourage the widest possible 
participation of as many industry players as possible who will offer data transmission 
services in all segments of the network and to end users in different parts of the 
country. The qualification requirements for data transmission industry participants 
shall also take national security concerns into consideration, particularly for facilities 
that interface directly with another country’s domestic network; 
 
(b) Those who will operate an international cable landing station shall secure 
a legislative franchise. Those who will operate a nationwide backbone network shall 
secure a permit from the NTC and submit its proposed route or rollout plan, as well 
as the manner of construction of the backbone network, subject to the approval of 
the NTC.  
 
All other industry participants shall not be required to secure a legislative 
franchise or a certificate of public convenience and necessity (CPCN) but must meet 
the criteria set by the NTC and the DICT in registering as industry participants in 
order to construct, operate, lease or own networks or facilities except if it owns and 
operates an international cable landing station: Provided, That an owner or operator 
of a cable landing station, not considered a public utility, shall no longer be required 
to secure a CPCN.  All industry participants intending to be spectrum holders shall 
need to secure a permit from the NTC and shall be allocated such spectrum in 
accordance with the provisions under Section 7 of this Act; 
 
(c) 
Data transmission industry participants shall likewise be required to 
comply with national and global best practices and standards on cybersecurity and 


8 
 
shall be subject to a network audit by the Cybersecurity Bureau of the DICT. Data 
transmission industry participants shall, after three (3) years of operation, be 
required to secure a cybersecurity certification from a third-party organization based 
on the prevailing International Organization for Standardization (ISO) standards on 
information security management; and 
 
(d) Provisional authorities (PA), certificate of public convenience and 
necessity (CPCN), or certificates of registration issued by the NTC prior to the 
effectivity of this Act shall be deemed valid without necessity of revalidation or 
reissuance until the date of expiration as stated in such certificates or other 
documents, and until the expiration of such certificates shall be deemed compliant 
with the qualification requirements for data transmission industry participants under 
this Section and other regulations issued pursuant hereto.  
 
CHAPTER III 
REGULATION OF THE DATA TRANSMISSION INDUSTRY 
 
SEC. 6. Open Access Approach to Regulation of the Data Transmission 
Industry. – The NTC shall ensure that the data transmission sector remains open and 
accessible to all qualified participants. Specifically, it shall: 
 
(a) Implement an efficient and speedy administrative process in the 
authorization and registration of data transmission sector participants; 
 
(b) Adopt a technology-neutral framework that allows data transmission 


9 
 
industry participants to use any available technology to provide service; 
 
(c) Promote fair and open competition in accordance with the principles and 
policies under the Philippine Competition Act and its implementing rules in all 
segments of the data transmission network, allowing a wide variety of physical 
networks and applications to interact in an open architecture; 
 
(d) Mandate transparency in pricing and the publication of pricing information 
to ensure fair trading within and between each data transmission segment so as to 
allow clear, comparative information on market prices and services; 
 
(e) Mandate interconnection so that data transmission industry participants can 
connect to each other at the various segments and interfaces, such that entities of any 
size may freely enter and exit the market, and dominance by any single player or 
group of players is avoided; 
 
(f) 
Promulgate policies that will encourage distributed local solutions 
rather than centralized ones, encouraging services that are closer to the user; 
 
(g) Publish the list of registered data transmission industry participants at least 
once a year;  
 
(h) Promulgate, together with the PCC, rules defining and regulating entities 
with substantial market power; 
 
          (i) Publish a Spectrum Management Framework to be developed together with 


10 
 
DICT and PCC; and  
 
          (j)  Collect the necessary Supervision and Regulation Fee (SRF) and Spectrum 
User Fee (SUF), and other relevant fees as provided by law. 
 
         SEC. 7. Spectrum Allocation, Recall, and Reallocation. – The NTC shall 
maximize the allocation and assignment of finite radio spectrum resources used in 
the transmission of data by ensuring that the spectrum is made available for the use 
of all registered data transmission industry participants. To this end: 
 
(a) The procedure for radio spectrum assignment, joint use and recall shall be 
made transparent to the public. All applications, including letter requests, spectrum 
assignment, joint use, recall, and reallocation shall be posted in the NTC website and 
in a conspicuous place in the offices of the NTC for at least three (3) consecutive 
months. The notice shall specifically indicate the names of the applicants for 
spectrum assignment, joint use and recall, including where the NTC itself is the 
proponent of any such action, the affected spectrum, and the applicant’s or NTC’s 
reasons for the proposed spectrum assignment, joint use and recall. The NTC shall 
not assign, recall or allow co-use or joint use of any radio frequency band or bands 
without conducting at least one (1) public hearing and allowing public comment for 
a period of fifteen (15) days from the date of the public hearing, prior to approval 
and/or disapproval of the same. This shall apply to all spectrum, whether used for 
data transmission or not; 
 
(b) All radio spectrums, radio frequency assignments, recalls, and joint use 
decisions of the NTC shall be published in the NTC website and in a conspicuous 


11 
 
place in the offices of the NTC for at least three (3) consecutive months. The recall 
of frequency for purposes of free public use shall be given priority. 
 
The immediately preceding paragraphs (a) and (b) herein shall not apply to 
applications for frequency assignments for fixed point-to-point radio links, wifi, and 
satellite networks; 
 
(c) The NTC shall avoid the concentration of spectrum resources in the hands 
of a few players and shall not assign, or allow joint use of radio spectrum in a manner 
that establishes, promotes or perpetuates the dominance of PTEs. Any entity who 
believes that any one or more of the NTC’s decisions for the assignment of radio 
spectrum, whether past or present, which will promote the dominance of any entity 
and hinder competition, may file a complaint before the PCC to determine the 
dominance of a data transmission industry participant and deal with anti-competitive 
conduct in accordance with its mandate under Republic Act No.10667, otherwise 
known as the “Philippine Competition Act”; 
 
(d) The NTC shall promptly act on applications of data transmission industry 
participants for permits to import equipment. Any application for a permit to import 
equipment that is not acted on by the NTC within seven (7) days shall be deemed 
approved; 
 
 
(e) If the NTC finds, on its own initiative or upon complaint, that any right, 
license or radio spectrum assignment to any data transmission industry participant 
or PTE is not being used, or is not being maximized by the user thereof, or that the 
grantee has violated the provisions of this Act, it may, motu proprio or upon petition 


12 
 
by any, subject to due process, recall the radio spectrum assignment of the data 
transmission industry participant or PTE. The NTC shall, where required and 
appropriate, work with the data transmission industry participant or   PTE   
concerned to take appropriate measures to minimize the impact of such recall on 
active users of services utilizing the recalled spectrum. The foregoing 
notwithstanding, no frequency shall be recalled within eighteen (18) months of the 
awarding of a provisional authority, license or registration; and 
 
 
(f) The NTC shall ensure that the allocation, reallocation, assignment, 
reassignment, reclassification, joint use or co-use, and recall of spectrum does not 
result in the concentration of spectrum resources which promote, establish, or 
perpetuate the significant market power of PTEs or of only a limited number of 
participants. In instances where the resulting assignment of spectrum for mobile and 
point-to-multipoint networks will give an assignee or entities it controls, jointly or 
singly, or under common control, either by virtue of that request or in combination 
with other previous requests by that party or its affiliates, fifteen percent (15%) or 
above of assignable spectrum in the same band, the party requesting for an 
assignment of spectrum or a joint use of spectrum shall be required to serve notice 
to the PCC and secure a no-objection notice from the PCC. The PCC shall issue a 
no-objection notice within thirty (30) working-days upon its receipt of pertinent 
information necessary for the review and issuance of the notice: Provided, That the 
PCC may once extend such period for an additional fifteen (15) working-days upon 
their notification of the NTC and the concerned party or parties to a spectrum 
allocation, reallocation, assignment, reassignment, reclassification, joint use or co-
use, and recall. 
 


13 
 
SEC. 8. Setting Performance Standards. –  The NTC shall: 
 
 
(a) Mandate that, within one (1) year from the effectivity of this Act, all last 
mile providers shall provide a minimum download speed of two (2) megabits per 
second or as mandated by the National Broadband, whichever is higher, for mobile 
broadband and for fixed wireless/broadband access; 
 
          (b) Prescribe performance standards after public consultation and hearings 
within six (6) months from the effectivity of this Act; 
 
          (c) Regularly upgrade performance standards imposed on the data 
transmission industry to ensure that performance standards shall, at a minimum, be 
at par with service levels established in regional data network performance indices 
and aligned with international best practices. Such standards shall take into account 
speed, packet loss, jitter, and latency; 
 
          (d) Regularly review performance standards at least once a year and publish 
new performance standards at least thirty (30) days before they take effect. The 
publication of the results of the performance measurements shall be done in an open 
data format and made accessible to the general public; 
 
(e) Any person, or the NTC itself, may, motu proprio, file a petition to penalize 
any data transmission industry participant for failure to deliver service according to 
the NTC’s published performance standard and to require rectification of such 
noncompliance; and 
 


14 
 
(f)  Measure the performance of the data industry participants quarterly and 
publish the results of its assessment in its website. 
 
SEC. 9.  Arms-length Transactions and Transparency. –  The NTC shall: 
 
(a) Publish and make available in print and online formats all aspects of 
spectrum use information, including the National Radio Frequency Allocation Table 
(NRFAT), indicating therein the purpose or use to which each frequency band is 
allocated, and, for frequency bands allocated for public use, the persons and/or 
entities to whom each particular frequency is assigned. The NRFAT and updated 
radio spectrum use information shall be made available on the NTC’s website and 
to any person who requests the same, upon written request; and 
 
(b) Promulgate rules requiring all data transmission industry participants to file 
an annual report and include therein a fair and accurate statement regarding their 
market prices and their services. The annual report shall include all costs and charges 
relevant to the data transmission network segment where the participants operate. 
The rates shall be made available online, in print, and in any other viable venue to 
the public. Any person can file a complaint pertaining to these rates within thirty 
(30) days of posting. Each player at each segment shall submit a copy of their rates 
to the NTC and the PCC. The rates shall be published, including a historical record, 
in a consolidated manner. The data transmission industry participants shall keep a 
publicly accessible archive of their rates. 
 
SEC. 10. Fair Competition.  –  The PCC and the NTC shall ensure that the 
principles and policies enshrined under the Philippine Competition Act are strictly 


15 
 
adhered to in the data transmission industry. The PCC and the NTC shall ensure that 
all industry players observe fair, reasonable, and nondiscriminatory treatment in all 
their dealings, and that barriers to entry are eliminated to make the industry highly 
competitive. To this end, within thirty (30) days from the effectivity of this Act, the 
PCC and the NTC shall enter into an agreement to foster and develop interagency 
cooperation mechanisms, including information-sharing tools, that will guide them 
in the performance of their respective mandates, and in the promotion of fair 
competition in the data transmission industry. 
 
SEC.  11. Technological Neutrality.  –  The NTC shall ensure that the 
provisions of this law apply, mutatis mutandis, to future technologies in data 
transmission. 
 
SEC. 12. Infrastructure Sharing and Co-location. – The DICT and the NTC 
shall promulgate policies, rules, and regulations to ensure that passive infrastructure, 
whether existing or built in the future, necessary or capable of supporting data 
transmission networks or services are:  
 
          (a) made mandatory for open access and made available for co-location and 
co-use by the owner of network facilities, equipment, and infrastructure on an open, 
fair, and nondiscriminatory basis to any access seeker’s network facilities, in any 
segment, subject to the technical feasibility of the access seeker’s request and the 
network facility and infrastructure owner’s standard published offer terms, 
conditions, and rates: Provided, That the provision of access to government-owned 
and -operated facilities and support infrastructure to access seekers for the purpose 


16 
 
of offering data transmission services shall be mandatory, unless special 
circumstances, such as but not limited to national security concerns, exist;  
 
          (b) built not only in the city centers, but most especially in the remote, 
unserved, and underserved areas in order to extend data transmission services by 
both the existing and new players throughout the country;  
 
          (c) as far as possible, deployed together with roadworks, pipe-laying, and 
other infrastructure development by both government and private entities; and  
 
         (d) proliferated in the most cost-efficient and timely manner through various 
means, including, encouraging the operation of independent entities that build and 
operate towers, dark fiber, and utility corridors, among other passive infrastructure 
that help facilitate data transmission network deployment. 
 
The DICT shall coordinate and issue a policy with other relevant government 
agencies upon consultation with stakeholders to implement this provision. For 
purposes of data transmission, the NTC shall, in case of a dispute arising from an 
infrastructure sharing agreement: (1) mediate between a data transmission industry 
participant and an infrastructure owner, and (2) serve as the primary enforcer of this 
provision. 
 
The DICT and the NTC shall promulgate policies, rules, and regulations to 
ensure that buildings, condominiums, villages, towns, and subdivisions are all built 
with facilities, such as cable entrances, ducts, and risers, that allow 
nondiscriminatory access to multiple data transmission industry players in order for 


17 
 
them to provide service. They shall also promulgate policies, rules, and guidelines 
that will ensure a level-playing field and price nondiscrimination among data 
transmission industry participants and network facility and infrastructure owners.  
 
The DICT and the NTC, in coordination with relevant government agencies, 
shall also ensure the disaster resiliency and ease of recovery and restoration of 
passive infrastructure, such as towers, poles, and utility corridors, from the effects 
of disasters by strictly enforcing compliance with internationally-accepted 
engineering standards and best practices, and relevant engineering codes and codes 
of practice. 
 
The DICT and the NTC shall maintain an updated database of data 
transmission infrastructure, including passive infrastructure used to support data 
transmission. The database, to be updated annually, shall include the exact location, 
ownership, technical specifications, and other relevant information about the facility.   
 
CHAPTER IV 
PROHIBITED ACTS 
 
SEC. 13. Prohibited Acts.  –  The following acts are prohibited: 
 
(a) Refusal to Plug and Play. – Any data transmission industry participant, 
insofar as such person is so engaged, shall not refuse access to infrastructure to any 
other data transmission industry participant, except for failure to pay open market 
fees for the access to the service. 


18 
 
 
Data transmission industry participants shall not impede the end user’s right to 
access and distribute information and content, use and provide applications and 
services and use terminal equipment of their choice, regardless of the end user’s or 
provider’s location or the location, origin or destination of the information, content, 
application or service via their data transmission service. 
 
Agreements between data transmission providers of data services and end users 
on commercial and technical conditions and the characteristics of data access 
services such as price, data volume or speed, and any commercial practices 
conducted by providers of internet access services shall not limit the exercise of the 
rights of end users laid down in the preceding paragraph; 
 
(b) Paid Prioritization. – A data transmission industry participant shall not 
engage in paid prioritization for monetary or other consideration except when 
allowed by the NTC after such participant demonstrates that the practice will provide 
significant public interest benefit and will not disadvantage content and applications 
that are not prioritized or harm the open nature of the internet; 
 
(c) Throttling. – A data transmission industry participant shall treat all traffic 
equally when providing data access services without discrimination, restriction or 
interference, regardless of the sender and receiver, the content accessed or 
distributed, the applications or services used or provided, or the terminal equipment 
used. 
 
It shall be prohibited for a data transmission industry participant to hinder or 


19 
 
slow down services or applications or access to specific sites in the internet except 
where (1) access to such sites, services or applications are prohibited by law; (2) it 
is necessary to preserve the integrity and security of the network and service of the 
provider or the equipment of the end user: Provided, That if the breach of integrity 
or security is caused by the equipment of the end user, the provider has to notify the 
end user first and give the former sufficient time to rectify the situation; and (3) it is 
necessary to block the transmission of unwanted communications such as spam and 
child pornographic materials upon the complaint of the end user or the data 
transmission industry participant; 
 
(d) 
Refusal to Give Information. – It shall be prohibited for any data 
transmission industry participant, including PTEs with regard to its network and 
facilities, to refuse or fail to make available to suppliers of data transmission 
services, on a timely basis, the technical information about its essential facilities or 
network facilities and commercially relevant information that are necessary for the 
efficient provision of their services; and 
 
(e) Anti-competitive Cross-subsidization. – The NTC shall require separate 
books of accounts between different data transmission segments in order to allow 
identification of costs and revenues for each segment. Any violation of this provision 
shall give rise to a presumption of anti-competitive cross-subsidization, which shall 
then be referred to the Philippine Competition Commission for proper determination 
and action, in accordance with the provisions of Republic Act No. 10667. Nothing 
herein shall prevent interconnecting networks from charging the appropriate cost-
based compensation for the use of interconnection facilities.  
 


20 
 
 SEC. 14. Administrative Penalties. – The NTC shall require data 
transmission industry participants and PTEs providing data transmission services to 
comply with prescribed performance standards and shall impose penalties for failure 
to comply with such performance standards. 
 
(a) Any data transmission industry participant who fails to comply with the 
minimum service standards set by the NTC shall be imposed a minimum penalty of 
a fine of not less than One hundred thousand pesos (P100,000.00) but not more than 
Five million pesos (P5,000,000.00) per day for every day during which such default 
or violation continues, until the participant fully complies: Provided, That if the data 
transmission industry participant 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. The NTC is 
hereby authorized and empowered to impose such fine, after due notice and hearing. 
 
(b) An entity who fails to substantially comply with the NTC’s performance 
standards for three (3) consecutive years shall, subject to due process, be removed 
from the registry of registered data transmission industry participants and shall be 
prohibited from rendering data transmission services. 
 
(c) Any data transmission industry participant who engages in the prohibited acts 
under Section 12 of this Act or fails to comply with the performance standards set 
by the NTC shall suffer a minimum penalty of a fine of not less than Three hundred 
thousand pesos (P300,000.00) but not more than Five million pesos (P5,000,000.00) 
for every day that the violation continues until the participant fully complies: 
Provided, That if the data transmission industry participant has a gross annual 


21 
 
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. In cases of anti-competitive cross-subsidization, the imposable 
penalties are those provided under Republic Act No. 10667. 
 
(d) A data transmission industry participant violating any provision of this Act 
shall forfeit all certificates, licenses, authorizations, rights, and awards issued to it in 
relation to its participation in the data transmission industry. 
 
(e) Any other violations not specifically penalized under the relevant provisions 
of this Act shall be penalized by a fine of not less than Fifty thousand pesos 
(P50,000.00) and not more than Two million pesos (P2,000,000.00). 
 
SEC. 15. Adjustment for Inflation.  –  The fines imposed under this Act shall 
be adjusted by the NTC, year-on-year, considering the prevailing cost of money 
based on the current consumer price index, and subject to publication of such 
adjustments. 
 
CHAPTER V 
RIGHTS OF DATA TRANSMISSION SERVICE USERS AND 
RESPONSIBILITIES OF DATA TRANSMISSION SERVICE PROVIDERS 
 
SEC. 16. Rights of End Users. – The user of data transmission services shall 
have the following basic rights: 
 


22 
 
(a) To be entitled to data transmission services which is nondiscriminatory, 
reliable, and conforming with minimum standards set by the NTC; 
 
(b) To be rendered data transmission services within two (2) months from 
application for service; 
 
(c) Regular, timely and accurate billing, courteous and efficient service at 
business offices and by company personnel; 
 
(d)  Timely correction of errors in billing and the immediate provision of 
rebates or refunds by the data transmission service provider without the need for 
demand by the user; and 
 
(e) Thorough and prompt investigation of, and action upon complaints. The 
data transmission service provider shall endeavor to allow complaints to be received 
by any means convenient to the end user, including voice calls, post, short messaging 
service (SMS), multi-media messages (MMS) and online communication, and shall 
keep a record of all complaints received and the action taken to address the 
complaints. 
 
Subject to the filing of a formal request to the data service provider, a user may 
request the immediate termination of service without the imposition of fees or 
penalties, and with the refund of any fee or charge already paid by the user, should 
a data service provider not consistently comply with paragraphs (a), (d), and (e) of 
this Section or any other minimum performance standards set by the NTC. 
 


23 
 
CHAPTER VI 
FINAL PROVISIONS 
 
SEC. 17. Expedited Processing. – In all instances where a participant in the 
data transmission industry shall require a form, certificate, or request from any 
government agency or local government unit (LGU), there should be no more than 
two (2) public officers involved in processing the form, certificate, or request. 
 
Processing fees and certifications required for the deployment of any segment 
of data transmission networks shall be limited to those identified by the DICT. The 
DICT shall coordinate with the concerned national government agencies and LGUs, 
and conduct the necessary consultations with civil society organizations and other 
stakeholder groups, for the development of the implementing rules and policies to 
minimize the administrative burden of permitting and certification processes. 
 
SEC. 18. Implementing Rules and Regulations. –  Within sixty (60) days from 
the effectivity of this Act, the NTC shall promulgate the necessary rules and 
regulations for its effective implementation. 
 
SEC. 19.    Joint Congressional Oversight   Committee on Open Access   in 
Data Transmission. – There shall be created a Joint Congressional Oversight 
Committee on Open Access in Data Transmission (JCOCOADT) which shall 
monitor and ensure the effective implementation of this Act. It shall determine 
weaknesses and loopholes in the law, recommend the necessary remedial legislation 
or administrative measures and perform such other duties and functions as may be 
necessary to attain the objectives of this Act. 


24 
 
 
The JCOCOADT shall be composed of five (5) members from the Senate and 
five (5) members from the House of Representatives, in addition to the Chairperson 
of the Senate Committee on Science and Technology and the Chairperson of the 
House of Representatives Committee on Information and Communications 
Technology: Provided, That two (2) members of each chamber’s nominees shall 
come from the ranks of the minority party/bloc. 
 
The Chairperson of the Senate Committee on Science and Technology and the 
Chairperson of the House of Representatives Committee on Information and 
Communications Technology shall act as co-Chairpersons of the JCOCOADT. The 
ranking minority members nominated by both the Senate and the House of 
Representatives shall act as co-Vice Chairpersons. The Secretariat of the 
JCOCOADT shall come from the existing Secretariat personnel of the Committee 
on Science and Technology of the Senate and the Committee on Information and 
Communications Technology of the House of Representatives. The JCOCOADT 
shall have its own independent counsel. 
 
The JCOCOADT shall exist for a period not exceeding five (5) years from the 
effectivity of this Act. Thereafter, its oversight functions shall be exercised by the 
Senate Committee on Science and Technology and the House of Representatives 
Committee on Information and Communications Technology, acting separately. 
 
SEC. 20. Separability Clause. – Should any provision herein be declared 
unconstitutional, the other provisions not affected shall remain in full force and 
effect. 


25 
 
 
SEC. 21. Repealing Clause. – All laws, decrees, orders, rules and regulations 
or other issuances or parts inconsistent with the provisions of this Act are hereby 
repealed, amended or modified accordingly. 
 
SEC. 22.  Effectivity. – This Act shall take effect fifteen (15) days after its 
publication in the Official Gazette or in a newspaper of general circulation. 
 
Approved,