4. 
e#" 
THIRTEENTH CONGRESS OF THE 
First Regular Session 
REPUBLIC OF THE PHILIPPINES * 
C 
SENATE 
S. No. 
.. , 
INTRODUCED BY HON. MANUEL B. VILLAR, JR. 
EXPLANATORY NOTE 
With the proliferation of modern communication gadgets and continuous 
advancing of telecommunications technology, there is a felt need to come up with 
measures that would protect the telecom industry. 
This proposed legislation aims to protect the public from phone cloning, telecom 
fraud, unauthorized use of radio spectrum or frequency, telecom unit, device or 
equipment, and the malicious destruction of telecom facilities. 
Violators of this Act will be penalized with imprisonment of not less than six 
months to six years and imposed with a fine of not less than P100,OOO to P500,OOO. 
To protect both consumers and the telecommunications industry, immediate 
passage of this bill is earnestly sought. 


THIRTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
SENATE 
S. No. 
INTRODUCED BY HON. MANUEL B. VILLAR, JR. 
AN ACT 
PROHIBITING TELECOMMUNICATIONS FRAUD AND DESTRUCTION OF 
TELECOMMUNICATIONS FACILITIES, PROVIDING, PENALTIES THEREFOR 
AND FOR, OTHER PURPOSES 
I' 
Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
assembled: 
SECTION 1. Title. - This Act shall be known as "The Anti-Telecommunications 
Fraud of 2004." 
SECTION 2. Declaration ofPolicy. - It is hereby declared the policy of the State 
to protect the general public from phone cloning, illegal use of radio spectrum or 
frequency, and other forms of telecommunications fraud; the use of the 
telecommunications unit, device and equipment unauthorized by the National 
Telecommunications Commission and the wanton and malicious destruction . of 
telecommunications facilities. 
SECTION 3. De;finition of Terns. - The following terms, as used herein, shall 
mean: 
a. 
Telecommunications Unit - Any fixed wire, wireless radio, cellular 
telephone, pager, fax machine, computer or other device capable of 
providing telecommunications through transmission, emission 
or 
reception of any sign, signal, writing, image, picture, video, sound, data, 
voice, music or intelligence of any nature; 
b. 
Electronic 
Serial Number 
(ESN) /Capcode/Mobile 
Identification 
Number 
(MIN) / Electronic/ International Mobile 
Equipment 
Identity 
(EMEI/IMEI) Subscriber Identity Module (SIM) - Identification numbers, 
electronically programmed into or attacked to a telecommunications unit; 
Electronic Serial Number Reader - Any device or instrument capable of 
recognizing the ESN/Capcode/MIN/EMEI/ SIM of a telecommunications 
unit; 
Cloning Device - Any type of instrument, device, machine or equipment 
capable of being used and employed for cloning. An ESN reader not 
c. 
d. 


2 
registered with the commission shall also be considered an illegal cloning 
device; 
Illegal Telecommunications Unit - A telecommunications unit, with a part 
or accessory altered, modified, reprogrammed through cloning or any 
other similar process. The term includes, cloned phones, stolen cellular 
phones, wireless radio units or other similar cellular phones, wireless 
radio units and other telecommunication units capable of gaining 
unauthorized or illegal access to a communications system operated by a 
PTE; 
Telecommunications Card - An instrument to access and/or use a 
telecommunications system network or service, such as pre-paid cards, 
credit cards, calling cards or such other similar cards; 
e. 
f. 
g. 
Subscriber - A person, natural or juridical, who has legitimately 
acquired telecommunications service with the authorization 
and 
permission of a PTE; 
Commission - Refers to the National Telecommunications Commission or 
its successor agency; 
Type Approval - Refers to process wherein a telecommunications unit, 
device or equipment is tested by the Commission or by the PTE pursuant 
to a prior authorization from the Commission, for conformance 
to 
applicable standards, as its or an authorized agency's Equipment; 
Type acceptance - Refers to a process wherein a telecommunications unit 
device or equipment is evaluated on the basis of 
technical tests and 
certifications issued by reputable foreign approval or certification 
agencies; and 
mtblic Telecommunications Entity (PTE). - Any public or private person, 
firm, partnership or corporation, lawfully engaged in the business of 
providing telecommunications services to the public for compensation. 
h. 
i. 
j. 
k. 
SECTION 4. Prohibited Acts. - The following acts are hereby declared prohibited 
and unlawful: 
a. 
Cloning - The act or technical process of tampering or manipulating any 
part or device of any telecommunications unit, a card or accessory 
thereof, by using, utilizing or employing any electronic device, computer, 
its combination or any other equipment of similar nature in order to 
access and program and/or duplicate the Electronic Serial Number 
(ESN)/Capcode, 
, Mobile 
Identification 
Number 
(MINI 7 
Electronic/International Mobile Equipment Identity (EMEI/IMEI) or 
Subscriber Identity Module (SIM) or otherwise duplicate subscriber data 
of 
a 
duly 
registered 
telecommunications 
unit 
into 
another 
telecommunications unit without the authorization or approval of a PTE; 


3 
b. 
Operation of Illegal Telecommunications Unit - The act of knowingly or 
willfully: 
1. Manufacturing, 
selling 
and/ or 
distributing 
illegal 
telecommunications units or; 
2. Operating, utilizing or employing illegal telecommunications unit; 
c. 
Illegal Use of Radio Spectrum or Frequency - The act of using a radio 
spectrum or frequency without the written authority of the Commission, 
the PTE or any other authorized entity; 
Illegal Connection to a Landline Telephone - The act by a person of 
connecting to or linking with a landline telephone without the written 
consent of the subscriber and having the calls charged therein; 
Payphone Fraud - The act of tampering or manipulating a public pay 
telephone to gain access to the PTE's network or for services which are 
not normally available through the payphone without authority from the 
PTE 
Third Number Fraud - The act by a person of placing a call to a specific 
number but having the call charged to neither the caller nor the called 
number without the consent of the subscriber of the third number or by 
securing the consent of the subscriber of the third number through 
deceitful means; 
d. 
e. 
f. 
g. 
Telecommunications Card Fraud - The following shall constitute 
Telecommunications card fraud: 
1. The act of manufacturing, distributing or selling fake, stolen, 
tampered or unauthorized telecommunications cards which can 
access or be used for accessing and/or using the telecommunications 
system, network or service of a PTE; 
or 
2. Selling telecommunications cards which cannot access or be used for 
accessing and/ or using the telecommunications system, network or 
service of a PTE; 
or 
3. Using fake, stolen, tampered or unauthorized telecommunications 
cards 
for 
the 
purpose 
of 
accessing 
and/or 
using 
the 
telecommunications system, network or service of a PTE; 
h. 
Subscription Fraud - The following shall constitute subscription fraud: 
1. The act ofany person who shall obtain telecommunications service in 
one's own favor on any of the following circumstances: 
a) 
Under false identity and/or false statements; 
b) 
Under pretenses 
of 
employment, 
occupation, income, 
financial capacity, residential or billing address; or 
c) 
Using false, forged, 
altered 
or 
intercalated 
service 
agreements and supporting subscription requirements; 


4 
2. 
Any person who shall deceive the PTE to grant service to another 
person, under any of the circumstances enumerated in the 
preceding number or when such another person does not exist, is 
no longer living, does not reside within the Philippines or never 
applied for telecommunications service with the PTE to whom such 
submission was made, or having applied, did not apply under the 
terms and conditions stated in false, forged, altered or intercalated 
submissions, or who otherwise would not have been qualified to 
obtain such service under the standards and requirements of the 
PTE; 
3. Any person who shall deceive the PTE to activate service or release 
telecommunications 
units 
by 
submitting or 
procuring 
the 
submission of authentic documents when such submissions have 
not, however, been 
authorized 
by the person subject of such 
submissions, and where the person subject of such submission 
shall not have received and accepted the service applied for despite 
its activation by the PTE; or 
4. Any dealers, sub-dealer or agent of a FTE 
who maliciously or 
intentionally fails to deliver to the subscriber-on-record service 
units, devices and/or accessories, or shall deliver it to a person 
other than the subscriber-on-record 
i. 
Solicitation Fraud-The act of any person or entity, telecommunications 
equipment / service dealer or agent of telecommunications service who to 
the prejudice of the subscriber and/or the PTE, misrepresent the rates, 
fees, subscription plans, equipment costs, and/or other terms and 
conditions of subscription to a telecommunications service; 
Illegal Installation of a Telecommunications 
Unit - The act of installing 
or causing to be installed a telecommunications unit, device or 
equipment which is without a type approval or type acceptance into a 
j- 
telecommunications network without the permission of the Commission 
or the PTE who owns the network; 
Other Fraudulent Schemes - Unless otherwise authorized by a PTE, the 
following shall be considered fraudulent schemes 
1. Abandoning a telecommunications service or transferring the 
possession or ownership of a telecommunications unit with the intent 
of evading payment of charges; or 
k. 
2. Employing any means, scheme, process or device to defraud the 
government, the public, or the PTE of fees or charges for services 
rendered or equipment owned by the PTE. 
1. 
Illegal Operation of a mtblic Telecommunications Service - The act of 
operating or providing a public telecommunications service without any 


5 
valid authority under the law or license or any proper authorization from 
the Commission; and 
m. 
Destruction of Telecommunications Facilities - The wanton and 
malicious 
act 
of 
damaging, 
destroying 
carve 
removing 
telecommunications facilities and accessories of authorized PTE's 
resulting to system disruption or network degradation 
SECTION 5. Penalties- The following penalties are hereby imposed against any 
person found guilty of violation of the prohibited acts enumerated in the preceding 
section as follows: 
a. 
Cloning - Imprisonment of not less than four (4) years and one (1) day to 
six (6) years and a fine of Five hundred thousand pesos (P500,OOO.OO) or 
three (3) times the amount of damages suffered by the PTE, as 
determined by the Court, whichever is higher; 
Operations of Illegal Telecommunications Unit - Violation of subsection 
(1) shall be punishable by imprisonment of not less than two (2) years 
and one (1) day to four ( 4) year and a fine of Three hundred thousand 
pesos (P300,OOO.OO) or three (3) times the amount of damages suffered 
by the PTE, as determined by the Court, whichever is higher. 
Violation of subsection (2) shall be punishable by imprisonment of not 
less than one (1) year and one (1) day to two (2) years and a fine of One 
hundred thousand pesos (P100,OOO.OO) or three (3) times the amount of 
damages suffered by the PTE, as determined by the Court, whichever is 
higher; 
Illegal Use of Radio Spectrum or Frequency - Imprisonment of not less 
than four (4) years and one (1 ) day to six years and a fine of Three 
hundred thousand pesos; 
Illegal Connection to Landline Telephone. - Imprisonment of not less 
than two (2) years and one (1) day to four (4) years and a fine of Three 
hundred thousand pesos (P300,OOO.OO) or three (3) times the amount of 
darnages suffered by the PTE, as determined by the Court, whichever is 
higher; 
Payphone Fraud. - Imprisonment of not less than six (6) months and one 
(1) day to one (1) year and a fine of One hundred thousand pesos 
(P100,OOO.OO) or three (3) times the amount of damages suffered by the 
PTE, as determined by the Court, whichever is higher; 
Third Number Fraud-Imprisonment of not less than six (6) months and 
one (1) day to one (1) year and a fine of One hundred thousand pesos 
(P100,OOO.OO) or three (3) times the amount of damages suffered by the 
PTE, as determined by the Court, whichever is higher; 
b. 
c. 
d. 
e. 
f. 


6 
g. 
Telecommunications Card Fraud. - Violation of subsection (1) shall be 
punishable by imprisonment of not less than four (4) years and one (1) 
day to six (6) years and a fine of Five hundred thousand pesos 
(P500,OOO.OO) or three (3) times the amount of damages suffered by the 
PTE, as determined by the Court, whichever is higher. 
Violation of subsection (2) shall be punishable by imprisonment of not 
less than two (2) years and one (1) day to four (4) years and a fine of 
Three hundred thousands pesos (300,000.00) or three (3) times the 
amount of damages suffered by the PTE, as determined by the Court, 
whichever is the higher. 
Violation of subsection (3) shall be punishable by imprisonment of not 
less than two (2) years and one (1) day to four (4) years and fine of Three 
hundred thousand pesos (P300,OOO.OO) or three times the amount of 
damages 
suffered by the PTE, as determined by the Court, whichever 
is higher. 
Violation of subsection (1) shall be punishable by imprisonment of not 
less than two (2) years and one (1) day to four (4) years and a fine of Five 
hundred thousand pesos (P500,OOO.OO) or three (3) times the amount of 
damages suffered by the PTE, as determined by the Court, whichever is 
higher. 
Solicitation Fraud. - Imprisonment of not less than one (1) year and one 
(1) day to two (2) years and a fine of 
One 
hundred thousand 
pesos 
(P100,OOO.OO) or three times, the amount of damages suffered by the 
PTE, as determined by the Court, whichever is higher; 
Illegal Installation of a Telecommunications Unit. - Imprisonment of not 
less than one ( 1 ) year and one (1) day to two (2) years and a fine of One 
hundred thousand pesos (P100,OOO.OO) or three (3) times the m o u n t  of 
damages suffered by the PTE, as deter-mined by the Court, whichever is 
higher; 
Other Fraudulent Schemes. - Imprisonment of not less than one (1) year 
and one (1) day to two (2) years and a fine of One hundred thousand 
pesos (P100,OOO.OO) or three (3) times the amount of damages suffered 
by the PTE, as determined by the Court, whichever is higher; 
Illegal Operation of a Public Telecommunications Service. -Imprisonment 
of not less than four (4) years and one (1) day to six (6) years and a fine 
of Five hundred thousand ( P500,OOO.OO) or three (3) times the amount 
of damages suffered by the PTE, as determined by the Court, whichever 
is higher; 
Destruction of Telecommunications Facilities.- Imprisonment of not less 
than four (4) years and one (1) day to six (6) years and a fine of Five 
hundred thousand pesos (P500,OOO.OO) or three (3) times the amount of 
h. 
i. 
j. 
k. 
1. 


7 
damages suffered by the PTE as determined by the Court, whichever 
higher; 
When the offender is a juridical person, the penalty shall be imposed 
against the Officer responsible for the Commission of the offense. 
SECTION 6. Qualified Offenses. - When any of the acts prohibited under section 
4 of this Act is committed by or in conspiracy with an employee of the PTE or by a 
syndicate of two or more persons in conspiracy with one another, an additional 
penalty of two (2) years imprisonment and a fine of double the amount originally 
imposable shall be suffered by each offender. 
SECTION 7. Conjiscation and Forfeiture of the Proceeds or Instruments of the 
Crime. - Every penalty imposed for the commission of any of the acts punishable in 
this Act shall carry with it the forfeiture of the proceeds of the crime and the 
instruments or tools with which it was committed. Those items which are not the 
subject of lawful commerce shall be destroyed by the Government. 
SECTION 8. Evidence of Cloning and Other Frauds. - The following shall be 
prima facie evidence of violation of this Act: 
a. 
b. 
Possession of a cloning device or and illegal telecommunications unit; 
Possession of a radio transmitter or transceiver without authority from 
the Commission; 
c. 
Possession of an unauthorized, tampered, stolen or manipulated 
telecommunications card; 
d. 
The absence of a Certificate of Public Convenience and Necessity, 
provisional or permanent license and/ or authorization from the 
Commission prior to operation of a Public Telecommunications Service; 
and 
e. 
Submission of forged or fraudulent, intercalated and/or altered 
subscription documents by the applicant for service. 
SECTION 9. Complaining Parties and Prosecution Under Other Law. - Any 
complaint for violation of this Act may be initiated by an affected person, subscriber, a 
PTE, or the Commissions. Moreover, prosecution under this Act shall not bar any 
prosecution under other administrative or penal laws, and vice versa. 
SECTION 10. Registration of Electronic Serial Number Reader.- Upon the 
effectivity of this Act, no person or entity who, unless otherwise authorized, shall 
import into the Philippines any electronic serial number reader. For this purpose, the 
Bureau of Customs shall require the presentation of the certificate of authorization to 


8 
' 
8 
I. 
import issued by the Commission and in the absence thereof, to confiscate and cause 
the forfeiture of such equipment in favor of the Government. 
Electronic serial number readers already in the Philippines shall be registered 
with the Commission within six (6) months from the date of effectivity of this Act. 
Otherwise, mere possession thereof shall be considered illegal and shall subject the 
possessor to the penalties provided in Section 5-A hereof. 
SECTION 1 1. Prohibition Against Disconnection of Telecommunications Service. - 
A FTE is prohibited from disconnecting the telecommunications service of a subscriber 
who has filed a verified written complaint for erroneous billings, pending resolution of 
said complaint by the PTE and/or the Commission. The subscriber shall, however pay 
the uncontested items of the bill. 
Should the subscriber refuses to pay the contested bill despite a resolution by 
the Commission in favor of the PTE, 
then the latter may disconnect the service unless 
directed otherwise. 
SECTION 12. Promulgation of Implementing Rules.- Within ninety (90) days from 
the effectivity of this Act, the Commission shall promulgate an Implementing Rules 
and Regulations for the Act. 
SECTION 13. Repealing Clause. - All law, decrees, orders, and rules and 
regulations inconsistent with the provisions of this Act are hereby repealed or 
modified accordingly. 
SECTION 14. 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 effect. 
SECTION 15. Effectivity Clause. - This Act shall take effect fifteen (15) days 
after its complete publication in the Official Gazette or in at least two (2) newspapers 
of general circulation. 
Approved,