HOUSE OF REPRESENTATIVES
RECEIVED

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

SEVENTEENTH CONGRESS
1st Regular Session

REGISTRATION UNIT
BILLS AND INDEX SERVICE

House Bill No. 931

Introduced by Hon. Francis Gerald Aguinaldo Abaya

EXPLANATORY NOTE

Our world has indeed become a knowledge-based society brought by
mass production and widespread use of so-called digital logic circuits, and their
derive technologies that allow individuals to explore their personalized needs
even with just a click of their hand. The rise and continuous usage of cellular
phones entail the use of a certain smart card that carries not only necessary
information transmitted back and forth to the network but also the subscriber's
personal data which includes phone contacts, text messages and history of calls.

This smart card is what we call the Subscriber Identity Module (SIM) Card
which is accessible from direct sellers without any form of identity documentation
procedure. While it is undoubtedly convenient to consumers, the unregulated
system for the sale of SIM cards paved the way for the commission of various
nefarious activities such as kidnapping for ransom, extortion of money and other
mischiefs, harassment, and even petty crimes like theft. It is high time that we
establish a registration mechanism or platform that will regulate the sale of SIM
Cards to prevent the above-mentioned illegal acts.

This bill seeks to establish a system of sale and registration of SIM Cards
through mandatory recording of pertinent data of the SIM Card buyer in a
registration form and to require Public Telecommunications Entities (PTEs) and
direct sellers to maintain a registry that shall serve as the repository of all their
subscribers’ information. The said system will be of great help to law enforcement
agencies in tracking down and identifying lawless criminals

For the foregoing reasons, the approval of this bill is earnestly sought.

niKibtiioG AGUINAUDO ABAYA

Representative, First District, Cavite



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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS.
First Regular Session

931

House Bill No.

Introduced by Hon. Francis Gerald Aguinaldo Abaya

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

Be it enacted by the Senate and 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”.

SECTION 2. Declaration of Policy. — The State recognizes the vital role of
information and communications technology in nation building.

The introduction of moder telecommunications technology with the view of
providing the widest information dissemination is greatly encouraged. The possession
of the most modern technology carries with it tremendous responsibility. Thus,
mechanism for its effective use for the good of all and not for an illegal or malicious
purpose to benefit a few must be installed.

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

SECTION 3. Definition of Terms. — As used on this Act:

a.) Direct seller refers to a person or entity, whether natural or juridical, who

directly dispenses or sells a SIM card to an end user;

b.) End user refers to any individual/subscriber who directly purchases a SIM

card from a direct seller for personal use;

¢.) Post paid mobile phone refers to a mobile phone the service of which is

provided by a prior arrangement with a Public Telecommunications Entity.
The user in this situation is billed after the fact, according to their use of
mobile services at the end of the monthly billing cycle;


d.) Prepaid mobile phone refers to a mobile phone for which credit is purchase
in advance of service use. The purchased credit is used to pay for mobile
phone services at the point the service is accessed or consumed. If there is
no available credit then access to the requested service is denied,

e.) Public Telecommunication 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:

SIM card refers to the Subscriber Identity Module (SIM), which is an

integrated circuit that securely stores the international mobile subscriber

f.

identity and the related key used to identify and authenticate subscribers on
mobile telephony devices, such as mobile phones and computers. A SIM
card is a removable plastic card into which a SIM circuit is embedded, and
can be transferred between different mobile devices;

g.) SIM card registration refers to the process of recording and verifying mobile
phone number and personal information of a subscriber, by a PTE or other
direct seller, including the subscriber's photograph, name, date of birth,
gender, and address.

SECTION 4. Sale and Registration of SIM Cards. — Every direct seller shall
require the end user of a SIM card to present valid identification with photo to ascertain
the latter’s identity. The direct seller shall further require the end user to accomplish
and sign a control-numbered registration form issued by the respective PTE of the SIM
card being purchased. The registration form shall include an attestation by the end
user that the person personally appearing before the direct seller and the identification
documents presented are true and correct and that the person is one and the same
who has accomplished and signed the registration for,

Except in cases where the PTE is the direct seller, the accomplished
registration form must be submitted to the concerned PTE within fifteen (15) days from
the date of sale. The confidentiality clause in the SIM card registration under Section
9 hereof shall start to apply at the point of sale

‘An end user who does not produce valid identification with photo and fails to
accomplish a registration form in accordance with the preceding paragraph shall be
refused the sale of a SIM card by a direct seller. The direct seller shall only issue the


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SIM card to the end user after compliance with the requirements mentioned above
and in the succeeding sections.

SECTION 5. Representative Registration of SIM Cards. — A person who
wants to purchase a SIM card but cannot personally register with the direct seller may,
for valid reason, authorize another to register in that person's behalf, subject to the
following conditions: (1) the representative is authorized through a duly notarized
‘Special Power of Attorney; and (2) the principal and the representative should present
an original and a true and clear copy of any of the valid identification cards with photo
listed in Section 6 (a) hereof.

In case the person intending to purchase a SIM card is a minor, the parents 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 parents or guardian

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

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

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

1) Driver's license

2) Social Security Service/Government Service Insurance System

(SSS/GSIS) Card

3) Passport
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6
7
8)
9) Voter's Identification Card

Senior Citizen's Card

Person with Disabilities Card

National Bureau of Investigation (NBI) Clearance

Police Clearance
Firearms Clearance



10)Taxpayer's Identification Number
11)Professional Regulation Commission (PRC) Identification Card
12)Government Office Identification Card
13)School Identification Card (in case of a minor)
14)Other Government-issued Identification Cards

The direct seller may make further inquiries or require the submission of

additional identification if necessary, and withhold the sale of the SIM card

pending compliance with the additional requirements.

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

SECTION 7. Submission of Registration Form. — The registration form
required under Section 6 of this Act shall be accomplished in triplicate, and shall be
forwarded by the direct seller to the concerned PTE. The concerned PTE shall submit
a copy of the duly accomplished registration form of the National Telecommunications
Commission (NTC) within fifteen (15) days from the date of sale or receipt of such form
from their respective direct sellers. 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.

SECTION 8. Submission of Verified List of Dealers or Agents. - The PTEs
shall submit to the NTC, within thirty (30) days from the date of the effectivity of this
Act, a verified list of their current authorized dealers or agents nationwide. Thereafter,
the PTEs shall submit to the NTC, every quarter of each year an updated list of the
same.

SECTION 9. Confidentiality Clause. — Any information in SIM card registration
shall be treated as absolutely confidential, unless upon written consent of the
subscriber: Provided, That the waiver of absolute confidentiality shall not be made as
a condition for the approval of subscription agreements with PTEs

SECTION 10. Disclosure of Information. — Notwithstanding the provisions of
Section 9 hereof, the PTEs shall be required to provide information contained in the
SIM card registration only upon order of a competent court upon finding of probable
cause that a particular number is used in the commission of a crime or that it was
utilized as a means to commit an unlawful act.

SECTION 11. SIM Card Register. — All PTEs are required to submit an updated
SIM Card Register of their subscribers to the NTC every six (6) months of both

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postpaid and prepaid mobile phone users, and maintain a record containing
information required 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 thirty (30) days from such loss or
change. The concerned PTE in return must notify the NTC of such loss or change in
the information within fifteen (15) days from receipt of notification from the subscriber.

All PTEs 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 9 of this Act and in accordance with existing laws.

SECTION 12. Registration of Existing Prepaid Mobile Phone Subscribers.
~All existing mobile phone subscribers with prepaid SIM cards are required to register
with their respective PTE within one hundred eighty (180) days from effectivity of this
‘Act. Such deadline may be extended by the NTC but shall not be longer than one
hundred twenty (120) days, upon a valid written request.

Failure to register within the prescribed period shall authorize the PTE to
automatically deactivate its services to the specific existing prepaid SIM card
subscriber

SECTION 13. 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 Three hundred thousand pesos (P300, 000.00);

2) Second offense: A fine of Five hundred thousand pesos (P500, 000.00); and

3) Third and subsequent offenses: A fine of One million pesos (P1,

000,000.00) for every offense
b.) A penalty of suspension of its operation and a fine ranging from Five thousand
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

SECTION 14. Implementing Rules and Regulations (IRR). — Within ninety
(90) days from the effectivity of this Act, the NTC, in coordination with concerned
agencies, shall promulgate the rules and regulations and other issuances as may be
necessary, to ensure the effective implementation of this Act


SECTION 15. Separability Clause. ~ Should any part of this Act be declared
unconstitutional or invalid, other provisions hereof that are not affected thereby shall
continue to be in full force and effect.

SECTION 16. Repealing Clause. — All laws, decrees, executive orders,
proclamation, 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 17. Effectivity. — This Act shall take effect fifteen (15) days after its

complete publication in the Official Gazette or in a newspaper of general circulation

Approved,