Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO. _______ 
____________________________________________________________________ 
Introduced by HON. JOSEPH “JOJO” L. LARA 
____________________________________________________________________ 
EXPLANATORY NOTE 
Information and Communications Technology (ICT) is widely recognized as an 
effective tool for socio-economic upliftment. In the Philippines, ICT has become a 
major economic driver for job creation and investment and a critical tool for better 
governance, corporate performance, and individual achievement. ICT is an enabler of 
more efficient government operation and service delivery, productivity, and national 
competitiveness. 
This economic growth spurt has necessitated the creation of a Strategic Roadmap that 
would outline the Philippine government’s strategies and programs, as well as signal 
the country’s determination and commitment to improving a vibrant, accessible, and 
world-class ICT sector. 
ICT should not be concentrated in a single area or region but should be promoted 
throughout the country. This can be done by institutionalizing ICT hubs that will serve 
as bases all over the country that are internet accessible and complete with equipment 
and facilities that will foster a productive and competitive work environment. 
This bill seeks to establish information and communications technology (ICT) hubs in 
all provinces in order to provide efficient interconnectivity especially in the unserved 
and underserved areas in the country. Its passage in the 19th Congress is earnestly 
sought. 
JOSEPH “JOJO” L. LARA 
August 1, 2022
5:12 pm
2942


Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO. _______ 
____________________________________________________________________ 
Introduced by HON. JOSEPH “JOJO” L. LARA 
____________________________________________________________________ 
AN ACT 
ESTABLISHING INFORMATION AND COMMUNICATIONS TECHNOLOGY 
HUBS NATIONWIDE 
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 “Online Network 
Philippines Act”.  
SECTION 2. Declaration of Policy. – The State recognizes the vital role of 
information and communication in the development and in promoting growth in the 
countryside. To this end, the State shall encourage the expansion of information and 
communications technology (ICT) and infrastructure throughout the country to 
facilitate the access of the citizenry to goods and services. Pursuant thereto, the State 
shall establish ICT hubs throughout the country in accordance with the National ICT 
Roadmap and National ICT Plan.   
SECTION 3.  Definition of Terms. – As used in this Act: 
a) Bandwidth refers to the amount of data that can be transmitted over a network
connection over a period of time;
b) Broadband refers to a high capacity transmission technique using a wide range
of frequencies which enables a large number of messages to be communicated
simultaneously. In the context of internet access, it refers to access that is
continuing and unhindered, and faster than the traditional dial-up mode;
c) Broadband network refers to a network able to transmit signals with a high bit
rate and a transmission channel being equal to or greater than two megabits
per second (2 mbps);
2942


 
d) Committed information rate refers to the information rate guaranteed by a 
public telecommunications entity (PTE). The bandwidth cannot fall below the 
committed rate of ninety-eight point five percent (98.5%) of the time;  
 
e) Cyber skills learning hub or Digital transformation center refers to a facility 
specifically designed for cyber-education and digital literacy, and that provides 
knowledge, skills, theoretical and practical experiences, and access to 
technologies for all learners to become information and technology proficient;  
 
f) Data farm refers to a physical facility that houses servers, network equipment, 
personnel like information technology specialists and network technicians for 
business-critical support such as online data storage, data processing, core 
computing services, data, and application backup services, and distributing 
large amounts of data from remote data facilities. The operation and 
management thereof shall be subject to pertinent laws and policies on data 
security to prevent, detect and intercept unauthorized access of data, specially 
on matters of national security;  
 
g) Digital innovation hub refers to a specialized business incubation and 
acceleration facility offering physical workspace, mentoring, and coaching, and 
devices for technical application testing or experimenting, and training. It is a 
one-stop-shop, usually but not always affiliated with educational institutions, 
that helps companies including start-ups to become more competitive with 
regard to their business production processes, products or services using digital 
technologies by providing access to the latest knowledge, expertise, and 
technology to support them;  
 
h) Information and communications technology (ICT) refers to the totality of 
electronic means to access, create, collect, store, process, receive, transmit, 
present, and disseminate information;  
 
i) Information and communications technology hub (ICT hub) refers to a location 
where ICT services may be provided by a PTE with at least the minimum 
internet speed required by the National Telecommunications Commission 
(NTC). Such services may include telecommunications services, broadband and 
convergence services, business processing and data management;   
 
j) Information technology and business processing management hub refers to a 
location that caters to and offers support mechanisms for companies and 
enterprises engaged in IT services and business process management and 
operations;  
 
k) Public telecommunications entity (PTE) refers to any person, natural or    
juridical, government or private engaged in the provision of telecommunications 
services to the public for compensation.  
 
 


 
  
SECTION 4. Establishment of Information and Communications Technology 
Hubs. – There shall be established ICT hubs all over the country in accordance with 
a National ICT Plan to be prepared by the Department Information and 
Communications Technology (DICT).   
 
The ICT Plan shall assess the needs of every province in the country and identify the 
appropriate types and the number of ICT hubs to be developed therein. Every province 
shall have at least one (1) of the following classifications of ICT hubs based on the 
type of activity that it hosts:   
 
a) Data Farms;  
 
b) Information Technology (IT) and Business Processing Management (BPM) Hub;  
 
c) Cyber Skills Learning Hub and Digital Transformation Center (DTC);  
 
d) Digital Innovation Hub; and    
 
e) Any other ICT hub that may arise in the future.   
 
Pursuant to the ICT Plan and the national, provincial, city, or municipal spatial 
development plans, the DICT and the local government units (LGU) shall identify the 
areas where the ICT hubs shall be established based on geographical area and 
population: Provided, That ICT hubs shall be developed in geographically equitable 
and accessible locations throughout the province: Provided, further, That the area or 
site of an ICT hub shall be on a property owned by an LGU.   
  
The private sector shall be encouraged to establish ICT hubs in accordance with the 
standards set forth by the DICT. The DICT shall employ the latest and emerging 
technologies available to serve commercially unviable areas.  
 
SECTION 5.  Role of the Department of Information and Communications 
Technology (DICT). – The DICT shall formulate a National ICT Plan, based on the 
National ICT Roadmap, which shall include the development of a national broadband 
network, provision of incentives to encourage private sector participation and 
promotion of competition. The Cybercrime Investigation and Coordinating Center of 
the DICT shall formulate, oversee, and validate the ICT cyber plan of the ICT hubs.  
The DICT shall update the National ICT Plan and shall submit the same on or before 
the 15th of April of every year to the Office of President of the Republic of the 
Philippines, the National Economic and Development Authority (NEDA), and the ICT 
Joint Congressional Oversight Committee established under this Act.  
 
SECTION 6. Advisory Committee. – There is hereby created an Advisory 
Committee that shall solicit inputs towards the shaping of policy directions of the 
National ICT Plan, including the supervision of ICT hubs and the coordination to be 
undertaken with the private sector and other agencies and instrumentalities of the 
government. The DICT shall determine the composition of the Advisory Committee 


 
and ensure the equal representation of the (a) government, (b) the service providers, 
(c) the end users, and (d) other industry stakeholders.  
 
SECTION 7. Role of the National Telecommunications Commission (NTC). –
The NTC, through the exercise of its quasi-legislative and quasi-judicial powers, shall 
be the primary infrastructure regulator to ensure the monitoring and implementation 
of this Act. The NTC shall approve proposed ICT hub telecommunications projects 
through an administrative process prescribed for the purpose and shall ensure the 
compliance of PTEs with the required and committed information rate and quality of 
service. All PTEs shall regularly submit the necessary data and reports as required by 
the NTC.  
 
SECTION 8. Incentives. – Any registered business enterprise in the ICT hub may 
be granted incentives provided under Title XIII of the National Internal Revenue Code 
of 1997, as amended: Provided, That, these incentives shall be granted in addition to 
the incentives given by the LGU where such ICT hubs are located.   
 
The eligibility of the ICT hubs for the incentives provided herein should be within the 
boundaries of a performance-based, time-bound, and transparent system of incentives 
tailor-fit for highly desirable ICT investments and shall be subject to compliance 
monitoring by the Fiscal Incentives and Review Board and the LGU where such ICT 
hubs are located.  
 
SECTION 9. Digital Skills Development. – The DICT, together with the 
Department of Education, Commission on Higher Education, and the Technical 
Education and Skills Development Authority, shall establish a program on digital skills 
development for all learners to enhance their competitiveness, adaptability, and 
employability in the emerging digital economy, which shall be integrated into the 
pertinent programs of the ICT hubs.  
 
SECTION 10. Digital Network Infrastructure. – A digital network infrastructure 
shall be established to connect the local ICT hubs to the National Broadband Program 
through a core backbone network of the DICT, to be funded from the spectrum users’ 
fees.  
 
The DICT is hereby authorized to classify the said funds for capital outlay, which 
classification shall be furnished to and duly reflected by the Department of Budget and 
Management in its records. The release of funds shall be subject to applicable laws 
and existing budgeting, accounting, and auditing rules and regulations.  
 
SECTION 11. Local Government Responsibility. — The issuance of licenses and 
permits for ICT-related activities and infrastructure construction projects shall not be 
delayed and hampered, and shall further be prioritized, subject to the provisions of 
Republic Act No. 11032, otherwise known as the Ease of Doing Business and Efficient 
Government Service Delivery Act of 2018.  
 


 
  
The Department of the Interior and Local Government (DILG) shall include ICT 
competitiveness and ICT integration as a criterion of governance under the Seal of 
Good Local Governance program.    
 
SECTION 12.  Private Sector Support and Public-Private Partnership. – The 
LGUs may engage the private sector through PPP agreements targeted towards 
financing, designing, implementing, and operating infrastructure facilities and services 
for the ICT hub to maximize costs and allow for sharing of revenue, subject to the 
provisions of Republic Act No. 6957, otherwise known as “An Act Authorizing the 
Financing, Construction, Operation and Maintenance of Infrastructure Projects by the 
Private Sector and for Other Purposes”, as amended.  
 
SECTION 13. Prohibition Against Exclusivity. – All ICT hubs established under 
this Act are hereby declared free zones within which any PTE may operate. Any 
agreement or arrangement designating a PTE, or any of its subsidiaries or affiliates as 
an exclusive PTE within an ICT hub shall be void and unenforceable. The domestic 
internet exchanges shall be interconnected. The interconnection agreement between 
the PTEs shall be submitted to the NTC for its approval. If the parties fail to reach an 
agreement within ninety (90) days from the start of negotiation, the NTC shall 
intervene and prescribe the terms and conditions of the interconnection.  
 
SECTION 14. Penalties. — In the exercise of its quasi-judicial power, the NTC shall 
impose a fine of Five hundred thousand pesos (Php500,000.00) for (a) nondisclosure, 
(b) non-interconnection, or (c) non-compliance with the committed information rate 
and quality of service.  
 
The NTC shall increase the amount of fine every five (5) years subject to a certification 
from the NEDA on the computation of the cost of money based on the current 
consumer price index.   
 
SECTION 15. Implementing Rules and Regulations. – Within sixty (60) days 
from the effectivity of this Act, the DICT as the lead agency, together with NEDA, 
DILG, the League of Provinces and the Leagues of LGUs, the Board of Investments, 
the Philippine Economic Zone Authority, and the Advisory Committee, shall issue the 
necessary rules and regulations for the effective implementation of this Act.   
 
SECTION 16. ICT Joint Congressional Oversight Committee. – An ICT Joint 
Congressional Oversight Committee (ICTJCOC) is hereby created to monitor the 
effective implementation of this Act, recommend the necessary remedial legislative or 
administrative measures, and perform such other duties and functions as may be 
necessary to attain the objectives of this Act. It shall be composed of the Chairpersons 
of the House Committee on Information and Communications Technology and Senate 
Committee on Science and Technology and two (2) members from each of the Senate 
and the House of Representatives who shall be designated by the Senate President 
and the Speaker of the House of Representatives, respectively: Provided, That one (1) 
member from each House shall be nominated by their respective Minority Leaders.  
 


 
The Chairpersons of the House Committee on Information and Communications 
Technology and the Senate Committee on Science and Technology shall serve as 
Chairperson and Vice Chairperson or vice versa of the ICTJCOC on a rotational basis 
every six (6) months. The Secretariat of the ICTJCOC shall be the existing secretariat 
personnel of the concerned Committees of the House of Representatives and the 
Senate.  
 
SECTION 17. Separability Clause. – If any provision of this Act shall be declared 
unconstitutional or invalid, the other provisions not affected shall remain in full force 
and effect.  
SECTION 18. Repealing Clause. – All laws, presidential decrees, executive orders, 
rules and regulations or parts thereof which are inconsistent with or contrary to the 
provisions of this Act are hereby amended, repealed, or modified accordingly.    
 
SECTION 19. Effectivity. – This Act shall take effect fifteen (15) days after its 
publication in the Official Gazette or in a newspaper of general circulation.  
 
Approved,