Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

FIFTEENTH CONGRESS
Second Regular Session

House GlitNe,__ 52.19

introduced by Representatives
DIOSDADO MACAPAGAL ARROYO and GLORIA MACAPAGAL ARROYO

THE
WIRELESS TELEPHONE
CONSUMER PROTECTION ACT OF 2011

EXPLANATORY NOTE

Since 1997, wireless telephone service has expanded immensely.
Considered a luxury decade ago, now more than thirty five million Filipinos use
wireless telephone service in the conduct of their business and daily routine. But
despite its many advantages, a handful of consumer systematic abuses have
surfaced ranging from the terms and conditions of wireless telephone service,
poor service quality, billing errors, termination of service, and lack of effective
procedures for redress of consumer grievances.

Most consumers buy wireless phones for business and personal use.
Competition among telecommunications companies throughout the country has
helped bring down the prices of wireless phones and more accessible. The use
of wireless phones has become so integral in people's lives that the mere
mention of being separated from their wireless devices is unacceptable. Some
consumers have opted to keep a wireless phone as their primary phone {ine for
ease of accessibility. Although many consumers are content with their wireless
phones and its corresponding contract of service, consumer complaints have
continued to increase which reflects that wireless telephone service in the
country still needs improving.


The proposed legislation is a step towards that direction. It realizes the
growing importance of wireless telephone service and establishes basic
consumer rights and remedies that will apply equally to all providers, so that
there will be a level playing field amongst providers to promote healthy
competition to benefit Filipino consumers.

In view of the importance of this bill, it expeditious passage into law is
eamestly requested.

DIOSDAD (ACAPAGAL ARROYO GLORIA MACAPAGAL ARROYO
Second District, Camarines Sur Second District, Pampanga

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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

FIFTEENTH CONGRESS
Second Regular Session

nob 5219
House Bill No.

Introduced by Representatives
DIOSDADO MACAPAGAL ARROYO and GLORIA MACAPAGAL ARROYO

THE
WIRELESS TELEPHONE
CONSUMER PROTECTION ACT OF 2011

Be it enacted by the Senate and the House of Representatives of the
Philippines in Congress assembled:

SECTION 1. Title. .- This Act shalt be known as the “Wireless Telephone
Consumer Protection Act of 2011."

SECTION 2. Definitions. - For purposes of this Act, the following
definitions shall apply:

a) "Commission" — means the National Telecommunications Commission
(NTC).

b) “tntemet" - means the shared global computing network. A network
based on standards including Intemet Protocol (IP), Simple Mail Transfer
Protocol (SMTP) and the Domain Name System (DNS), which enables global
communications between ail connected computing devices. It provides the
platform for web services and the World Wide Web.

¢) “Wireless telephone service" - means commercial mobile radio service,

) "Wireless telephone service provider" or "provider" — means any entity
that provides wireless telephone service in the country.


e) "Wireless telephone number information" — means the telephone
number, electronic address and any other identifying information by which
a calling party may reach a subscriber to commercial mobile services, and
which is assigned by a wireless telephone service provider to such
subscriber.

SECTION 3. Information Requirement. — Within 180 days following the
effective date of this act, the Commission shall adopt rules and regulations
Tequiring that any publication, including publication on the Intemet, of a wireless
telephone service provider conceming the terms of its plans or contracts for
wireless telephone service shall set forth, in a plain and conspicuous manner, the
following information:

(1) Information on charges, including the originating location of the
call, monthly base charge, per-minute charges for minutes not
included in the plan, and the method of calculating minutes
charged;

(2) Information on the minutes included in the plan, including
allowable minutes during daytime on weekdays, allowable minutes
during nights and weekends, or any other differing charges for long-
distance, roaming, incoming and directory assistance;

(3) Information on plan or contract terms, including length of
contract, early or other termination fees, trial periods, and start-up
fees;

(4) Information on taxes to be collected by the provider for, and
paid to the national, local, or other governmental agency;

(6) Information on surcharges imposed by the provider for the costs
of compliance with regulations or for other purposes; and

(6) Any other information that the Commission considers
appropriate to ensure that consumers of wireless telephone service
are fully informed of the terms of the plan or contract.

The Wireless telephone service providers shall provide the information
required by this section to a consumer prior to entering into any contract with a
consumer for wireless telephone service.

SECTION 4. information on Service Coverage. - Each wireless telephone
service provider shall make available maps showing the wireless telephone
service area of such provider and the wireless telephone service area of such

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provider within the country. Such maps shall contain the maximum practicable
level of granularity and shalll be updated quarterly.

Each map of a service area required under subsection a. of this section
shall be provided to a consumer:

(1) upon the request of the consumer; and
(2) whenever a plan or contract for the service is entered into.

Each map of a service area required under subsection a. of this section
shall be available:

(1) on the Internet website of the provider concemed; and
(2) on the Intemet website of the Commission.

SECTION 5. Monitoring. -The Commission shall monitor the quality of
wireless telephone service providers based on the following standards:

(1) dropped calls;
{2) blocked calis;

(3) known coverage gaps (including average signa! strength) or dead
zones,

(4) predicted street tevel signal strength; and
(5) any other matters the Commission considers appropriate.

{n monitoring the quality of wireless telephone service under subsection a
of this section, the Commission shall establish an internet website which allows
the public to submit their comments and views to the Commission on the quality
of such service. The Commission shall also accept written complaints by mail

SECTION 6. Availability, of Information, — The Commission shail make
information available to wireless telephone service providers and the public on a
semiannual basis concerning the quality of wireless telephone service of the
provider.

SECTION 7. Extension of Contract. — An extension of a contract for
wireless telephone service shall not be valid unless the extension of the contract
is in writing and is signed by the subscriber, or confirmed in writing and signed by
the subscriber within seven days of receipt by the subscriber.


SECTION 8. Notice on Change of Terms. — A wireless telephone service
provider shall provide subscribers with written notice of any change in rates,
terms, or conditions of service at least 30 days before the change is to take
effect. If any such change will result in higher rates or more restrictions on
service or otherwise will result in a material, adverse change for such subscnber,
the subscriber may, within such 30-day period, terminate the service without
penalty and receive a pro rata refund of the charges, if any, paid for the handset
used for the service. The notice of change shail inform the subscriber of the right
to terminate the contract, the right to a handset refund, and the steps to take to
implement such a termination.

SECTION 9. Cancellation of Contract. — A contract for wireless service
may be canceled upon the request of the subscriber for any reason during the
first 30 days. There shail be no penalty or other costs to the subscriber for any
cancellation during these 30 days, except that the subscriber shall be responsibie
for the cost of the service used during the time period that the contract was in
effect.

SECTION 10. Billing. — A wireless telephone service provider shall provide
bills for wireless telephone services that are clearly organized and clearly
describe in plain language the products and services for which charges are
imposed, and that conform to format standards established by the Commission.

SECTION 11. Taxes. - Taxes and fees which are required by the law, or
tocaf ordinance or regulation to be collected from the subscriber shail be set forth
in a separate section of the bill and shall be itemized separately. This section of
the bi shall only contain charges that the provider is required to be recovered
from subscribers pursuant to law.

SECTION 12. Roaming charges, — Roaming or off-network charges shall
be itemized on the subscriber's bill within 60 days of the call being placed, and
such roaming or off-network charges shall identify the date and originating
location of the call.

SECTION 13. Request for Billing Statement. — Upon the request of a
subscriber, a wireless telephone service provider shail provide an itemized bill to
the subscriber at no cost to the subscriber.

SECTION 14. Charges on Unauthorized Use. — Charges associated with
the use of wireless telephone equipment or services shall not be the liability of
the subscriber if such use was unauthorized by the subscriber due to loss or
theft, provided that such loss or theft is promptly reported to the wireless
telephone service provider.

SECTION 15. Rules and Regulations on Complaints. — The Commission
shall adopt rules and regulations as may be necessary to allow subscribers to file


complainis with the Commission with regard to billing disputes between wireless
telephone service providers and subscribers.

SECTION 16. Non-termination of Service. ~ A wireless telephone service
provider shall refrain from terminating a subscriber's service for nonpayment so
long as the subscriber's billing complaint is pending before the Commission and
for 15 days thereafter, or for such period as the Commission for good cause shall
establish, provided that as a condition of continued service during the pendency
of any such dispute, the subscriber shall pay the undisputed portions of any bill
for service and any amounts the Commission determines are necessary to fairly
compensate the wireless telephone provider for services rendered while the
complaint is pending and 15 days thereafter.

SECTION 17. Publication of information. ~ A wireless telephone service
provider, or any direct or indirect affiliate or agent of a provider, providing the
name and wireless telephone number information of a subscriber for inclusion in
any directory of any form, or selling, leasing, licensing or sharing the contents of
any directory database, or any portion or segment thereof, shall not include the
wireless telephone number information of any subscriber without first obtaining
the express consent of that subscriber. The provider's form for obtaining the
subscriber's express consent shall meet all of the following requirements:

(1) it shall be a separate document that is not attached to any other
document;

(2) it shall be signed and dated by the subscriber,

(3) it shail be unambiguous and legible, and shall conspicuously disclose
that, by signing the form, the subscriber consents to having the
subscriber's wireless telephone number information sold or licensed as
part of a list of subscribers and having the subscriber's wireless telephone
number information included in a publicly available directory; and

(4) if under the subscriber's calling plan the subscriber may be billed for
receiving uitsolicited calls or text messaging from a telemarketer, the
provider's form shall be unambiguous and legible, and shall conspicuousty
disclose that, by consenting to have the subscriber's wireless telephone
number information sold or licensed as part of a list of subscribers or to be
included in a publicly available directory, the subscriber may incur
additional charges for receiving unsolicited calls or text messages,

SECTION 18. Revocation of Consent. — A subscriber who provides
express prior consent pursuant to the preceding section may revoke that consent
at any time. A wireless telephone service provider shall comply with the
subscriber's request to opt out within a reasonable period of time, not to exceed
60 days.

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SECTION 19. Exceptions. — The provisions of Section 17 shall not apply
to the following parties for the purposes indicated:

(1) To a collection agency, to the extent disclosures made by the provider
are exclusively for the collection ofthe subscriber's unpaid debt to the
provider;

(2) To any law enforcement agency;
(3) To a lawful process issued by the court under the law;

(4) To a telephone company providing service between service areas for
the provision to the subscriber of telephone service between service
areas, or to third parties for the limited purpose of providing billing
services;

(5) To a telephone company to effectuate a subscriber's request to
transfer the customer's assigned telephone number from the customer's
existing provider of telecommunications services to a new provider of
telecommunications services; and

(6) To the Commission pursuant to its jurisdiction and control over
wireless telephone providers.

SECTION 20. Penalties. — Any director, officer or agent of a corporation
who shall authorize, order or perform any of the acts or practices constituting in
whole or in part a violation of Section 3, and who has knowledge or notice of
noncompliance received by the corporation from the Commission, shall upon
conviction, be subject to a fine of not less than One hundred thousand pesos
{P100,000.00) but not more than One Million Pesos (P1,000,000.00} or
imprisonment of not less than six (6) years but not more than twelve (12) years,
or both upon the discretion of the court.

In case the violation is committed by, or in the interest of a juridical person
duly licensed to engage in business in the Philippines, such license to engage in
business shall also be immediately revoked.

SECTION 21. Authority of The Commission - The Commission shall
enforce this Act in the same manner and by the same means as though all
applicable terms and provisions of the Public Telecommunications Policy Act of
the Philippines were incorporated into and made part hereof. The Commission
may prescribe regulations to cary out this Act.


SECTION 22. Separability Clause. — If any provision or part thereof, is
held invalid or unconstitutional, the remainder of the law or the provision not
otherwise affected shall remain valid and subsisting

SECTION 23. Repealing Clause. — Any law, presidential decree or
issuance, executive order, etter of instruction, administrative order, rule or
regulation contrary to, or inconsistent with the provisions of this Act is hereby
repealed, modified or amended accordingly.

SECTION 24. Effectivity Clause. - This Act shall take effect fifteen (15)
days after its publication in at least two (2) newspapers of general circulation.

Approved,