THIRTEENTH CONGRESS OF THE REPUBLI 
OF THE PHILIPPINE 
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First Regular Session 
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Introduced by Senator S. R. Osmeiia 111 
EXPLANATORY NOTE 
This bill seeks the reorganization of the National Telecommunications 
Commission (NTC) so that it can be more responsive to the needs of the public and the 
industry which it oversees. 
Under the proposed provision of this bill, 
The NTC shall be a collegial body of five members, with a chairman and four 
associate commissioners, appointed for a term of three years. The increase in 
membership and reduction in the tenure of the commissioners, as well as stricter 
qualification requirements for members will upgrade the quality of leadership and 
policy-making within the commission; 
The expanded powers and functions of the Commission shall include the 
issuance of Certificates of Authority for the operation of various types of public 
utilities engaged in the telecommunications business; the monitoring of the 
activities of telecommunications public utilities; and adjudicatory powers to settle 
disputes and controversies involving violations of its rules and regulations and 
other related laws. 
There will be greater transparency 
suspend, cancel or revoke permits or authorizations. 
rates and charges, public hearings will be required. 
in the exercise of the NTC's power to 
In the determination of 
The NTC needs a restructuring to enable it to provide good governance over 
telecommunications industry which has benefitted from remarkably rapid technological 
advances. 
In view of the foregoing, early passage of this bill is earnestly requested. 
SERGIO OSMENA 
Senator 


THIRTEENTH CONGRESS OF THE REPU 
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OF THE PHILIPPINE 
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First Regular Session 
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Introduced by Senator S. R. Osmeiia 111 
AN ACT 
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REORGANIZING 
THE 
NATIONAL 
TELECOMMUNICATIONS 
COMMISSION, 
DEFINING ITS POWERS AND FUNCTIONS AND FOR THER PURPOSES 
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress Assembled: 
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SECTION 1. 
- Shorf Tifle - This Act shall be known as the “National 
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Telecommunications Commission Reorganization Act of 2004.” 
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Sec 2. Declaration of Policy. - It is hereby declared the policy of the Date to 
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develop and maintain viable, efficient, reliable, universal and affordable communications 
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systems as an effective instrument for economic growth and development. It is 
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committed to encourage the participation of the private sector in the development the 
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telecommunications, broadcasting and other communications services industry. 
It 
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warrants the formulation of policies designed to create a viable, fair, competitive and 
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responsive economic environment. 
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Sec. 3. Reorganizafion. - In accordance with the provisions of this Act, the 
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National Telecommunications Commission, an attached agency of the Department of 
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Transportation and Communications, hereinafter referred to as the Commission, is 
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hereby reorganized with its structure, powers and functions modified. 
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Sec. 4. The Commissioners. - The Commission shall be reorganized into a 
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collegial body of five (5) members, composed of a Chairman and four (4) Associate 
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Commissioners, who shall be appointed by the President of the Philippines each 
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member serving for a term of three (3) years: Provided, That the term of the first 
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appointed Chairman shall be three (3) years and 
the first appointed Associate 
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Commissioners two (2) 
and one (1) year, respectively: Provided furlher, That no 
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member shall be reappointed for more than one (1) term. 
The Commissioners shall serve in a hold-over capacity until their successors are 
duly appointed. All vacancies, except through the expiration of a term, shall be filled for 
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the unexpired term only. 
In no case shall any Commissioner be designated or 
appointed in a temporary or acting capacity. 
The Commissioners shall be members of the bar or licensed engineers of 
unquestioned integrity, proven competence, and recognized as experts in the field of 
telecommunications, 
broadcasting, 
and other communications 
services. 
Upon 
assumption of office, the Commissioners shall divest themselves of any affiliation with 
or interest in any public utility, company or entity falling under the jurisdiction .of the 
Commission. 
The Commissioners shall enjoy the rank, salary and privileges of a Department 
Undersecretary. 
Sec. 5. Powers and Functions. - The Commission shall exercise the following 
powers and functions: 
a) To issue different classes of Certificates of Authority for the operation 
of varied types of telecommunications, broadcasting and other communications 
utilities and services conformable with the Constitution, the issued legislative 
franchises and other applicable laws; 
b) To establish and prescribe rules, regulations, standards, specifications 
in all cases related to the issued legislative franchises or Certificates of Authority 
and administer and enforce the same. 
c) To grant permits and licenses for the use of radio frequencies; 
d) To establish, prescribe and regulate areas of operation of particular 
operators of telecommunications and broadcast stations; 
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e) To determine and prescribe charges or rates after conducting public 
hearings, pertinent to the operation of such public utility facilities and services, 
except in cases where charges or rates are established by international bodies or 
associations of which the Philippines is participating member or by bodies 
recognized by the Philippines as the proper arbiter of such charges or rates; 
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monitor 
all 
telecommunications, 
broadcast 
and 
other 
communications service activities and investigate illegal or inappropriate 
utilization of radio stations, equipments and/or frequencies, and to exercise the 
necessary police powers for the enforcement thereof, including deputation of 
such police, military or civilian entities or agencies for the purpose. 
g) To suspend, cancel and/or revoke any certificate, permits or licenses 
or any authorization, upon notice and hearing called for the purpose for any 
violations of the provisions of an order of the Commission and other applicable 
laws; Provided, That the Commission may suspend immediately permits/licenses 
and/or certificates as national security, public safety, public welfare and public 
interest may require; Provided, however, That a hearing shall immediately ‘be 
called within five (5) days from said suspension. 
h) To require any public service or utility to produce before the 
Commission any and all records, data, statistics, and documents deemed proper 
or necessary in the exercise of its powers and functions, and to cite in contempt, 
direct or indirect, any person who fails or refuses to comply with any lawful order 
of the Commission. 
i) 
To assign radio frequencies based from the national frequency 
allocation as recommended in those frequency bands allocated by the 
International Telecommunications Union to the specific services and to 
coordinate its uses at the national and international level of coordination; 
j) 
To conduct qualifying examinations for 
radio operators and 
technicians and to issue the appropriate certificate to successful examinees; 
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k) To coordinate and cooperate with government agencies and other 
entities concerned with any aspect involving communications with a view to 
continuously improve the communications service in the country. 
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To perform such other functions not inconsistent herewith as may be 
necessary to achieve the purpose of this Act or as maybe prescribed by law. 
Sec. 6. Administrative Adjudication. - The Commission shall exercise original 
and exclusive jurisdiction to hear and decide cases and controversies involving 
violations of the provisions of the rules and regulations it promulgated under this Act 
and under other laws it administer. This shall likewise include provisions of 
the 
Constitution, legislative franchises and laws relating to the ownership, establishment, 
operation 
and 
maintenance 
of 
public 
utilities 
engaged 
in 
business 
of 
telecommunications, broadcasting, and other communications services. 
The Commission shall a adopt uniform rule or procedure to achieve a just, 
expeditious and inexpensive determination and settlement of disputes presented before 
it. 
Any case or controversy presented before the Commission shall decided within 
thirty (30) days after it is submitted for resolution. Only one (1) motion of reconsideration 
shall be allowed. Any order , ruling or decision shall become final and executory after 
the lapse of fifteen (I 
5) days from the receipt of by the parties a copy thereof. 
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Sec. 7 .  Judicial Review. - 
Any order , ruling, award or decision of the 
Commission may be appealed to the Court of Appeals on questions of law and facts 
following the procedures for appeals from the Regional Trial Courts to the Court of 
Appeals as far as practicable and consistent with this Act. If the appeal is only on 
questions of law, the same shall be brought to the Supreme Court on certiorari. 
Sec. 8. Administrative Organization. - The Chairman of the Commission shall 
be the Chief Executive Officer, directly responsible for the administrative operation and 
management of the Commission. 
There shall be Regional Offices to be located in each geographical region of the 
country to function as regional extension of the Commission in serving the public. 
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These offices shall function as line organizations, interfacing directly with the public in 
their respective regions. There s'hall be at least one (I) 
field office in every region that 
will handle, the renewal of permits and licenses, handling and hearing of complaints by 
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the public against telecommunications, broadcast and other communication service 
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operators and supervision of field facilities of these telecommunication, broadcast and 
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other communication service operators. 
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The Commission en banc shall reform the existing organizational set-up and 
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shall ensure that it will function with maximum operational efficiency, with the staff 
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organization providing specialized advises and services to the Commissioners. To the 
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extent reasonably justified, all existing employees shall be retained, reclassified or 
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retrained and transferred to an appropriate position or function. Otherwise, employees 
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separated from the Commission as a result of the reorganization provided herein shall 
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be entitled to the appropriated separation pay, and other benefits accruing to them 
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under pertinent laws in force at the time of their separation. 
Sec. 9. Promulgation of lmplemenfing Rules. - Within ninety (90) days from 
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the effectivity of this Act, the Commission shall promulgate the rules, regulations, 
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measures, guidelines and other standards with the appropriate sanctions thereof and 
shall make a biennial review to determine whether such rules and regulations conform 
to the provisions of this Act or have to be repealed or modified as they are no longer 
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necessary or have to be updated in the public interest as a result of technological 
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advances or meaningful economic competitions between the operators of such 
services. 
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Sec. I O .  Annual Report. - The Commission shall submit an annual report to the 
Congress not later than thirty-first (31st) of March of each year. The report shall 
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include: 
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a) List the specific goals, objectives, and priorities of the Commission which shall 
be projected over a five (5) year plan; 
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b) Describe in detail the programs which are, or shall be, established to meet or 
carry out goals, objectives, and priorities and their implementations; 
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c) Provide an evaluation of actions taken during the preceding year with regard 
to fulfilling the functions of the Commission, including a report on the performance and 
status of all franchise grantees; and 
d) 
Contain recommendations for legislative action required to enable the 
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Commission to meet its objectives. 
Sec. 11. Repealing Clause. - 
The provisions of Executive Order No. Five 
Hundred Forty-Six and all other laws, decrees, charters, executive orders, 
administrative orders, rules and regulations, or parts thereof, inconsistent herewith are 
hereby repealed and/or modified accordingly. 
All Provisional Authorities (PAS), permits or licenses issued in favor of 
telecommunications and broadcast operators without legislative franchises are hereby 
rev0 ked. 
Sec. 12. Separability Clause. - If any of the sections or provisions of this Act is 
held invalid, all the other provisions not affected thereby shall remain valid. 
Sec. 13. Effectivity Clause. - This Act shall take effect fifteen (15) days after 
the completion of its publication in the Official Gazette or in at least two (2) newspapers 
of general circulation. 
Approved, 
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