FOURTEENTH CONGRESS OF THE REPUBLIC) 
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OF THE PHILIPPINES 
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First Regular Session 
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Introduced by Senator Miriam Defensor Santiago 
EXPLANATORY NOTE 
It is in the public interest for business enterprises owned by minorities and women to 
participate in procurement contracts of all providers of telecommunications services. The 
opportunity in our free enterprise system by minorities and women is essential if this nation is to 
attain social and economic equality. 
Business enterprises can be improved through the development by the providers of 
telecommunications services of substantial long-range and annual goals, which are supported by 
training and technical assistance, for the purchase to the maximum practicable extent of 
technology, equipment, supplies, services and materials from minority business enterprises. 
Procurement policies which include participation of business enterprises that are owned by 
minorities and women also benefit the communication industry and its consumers by 
encouraging the expansion of the number of suppliers for procurement, thereby encouraging 
competition among suppliers and promoting economic efficiency in the process.' 
*This bill was originally filed during the Thirteenth Congress, First Regular Session, 


FOURTEENTH CONGRESS OF THE REPrJBLIC) 
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OF THE PHILIPPINES 
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First Regular Session 
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Introduced by Senator Miriam Defensor Santiago 
AN ACT 
THAT REQUIRES ALL PROVJDERS OF TELECOMMUNICATIONS SERVICES TO 
ESTABLISH AND CARRY OUT PLANS FOR PROCUREMENT FROM 
BUSINESSES OWNED BY MINORITIES AND WOMEN 
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 “Telecommunications 
Economic Opportunity Act of 2007.” 
SECTION 2. Declaration of Policy. - It is the policy of the State to encourage and foster 
greater economic opportunity for business enterprises that are owned by minorities and women. 
SECTION 3. Dejnition of Terms. - For the purpose of this Act, the term: 
(A) ‘‘Business enterprise owned by minorities or women” means- 
(1) A business enterprise that is at least 51 percent owned by a person or persons 
who are minority persons or women; or 
(2) In the case of any publicly owned business, at least 51 percent of the stock of 
which is owned by one or more persons who are minority persons or women, 
and whose management and daily business operations are controlled by one or 
more of those persons. 
(B) “Minority person” means persons who belong to indigenous cultural communities or 
group of persons not fully assimilated into the mainstream of social life on account 
of race, creed, or religion, 
(C) “Control” means exercising the power to make financial and policy decisions. 
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(D) “Operate” means the active involvement in the day-to-day management of the 
business and not merely being officers or directors. 
(E) “Commission” means the National Telecommunications Commission. 
(F) “Telecommunications service” means the offering, on a common carrier basis, of 
telecommunications facilities, or of telecommunications by means of such facilities. 
Such term does not include an information service. 
SECTION 4. Annual Plans Required. - 
(A) In General. - The Commission shall require each provider of telecommunications 
services to submit annually a detailed and verifiable plan for increasing its procurement from 
business enterprises that are owned by minorities or women in all categories of procurement in 
which minorities are under represented. 
(B) Contents of Plans. - The annual plans required by paragraph (1) shall include, but 
shall not limited to, short and long-term progressive goals and timetables, technical assistance 
and training and shall, in addition to goals for direct contracting opportunities, include methods 
for encouraging both prime contractors and grantees to engage business enterprises that are 
owned by minorities and women in subcontracts in all categories in which minorities are under 
represented. 
(C) Implementation Report. - Each provider of telecommunications services shall furnish 
an annual report to the Commission regarding the implementation of programs established 
pursuant to this Act in such form as the Commission shall require, and at such time as the 
Commission shall annually designate. 
SECTION 5. Report to Congress. - The Commission shall provide an annual report to 
Congress beginning in January of the year in which this law is enacted, on the progress of 
activities undertaken by each provider of telecommunications services regarding the 
implementation of activities pursuant to this Act to develop business enterprises that are owned 
by minorities or women. The report shall evaluate the accomplishments under this Act and shall 
recommend a program for enhancing the policy declared in this Act, together with such 
recommendations for legislation as it deems necessary or desirabIe to further that policy. 
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SECTION 6. Regulation and Criteria for Determining Eligibility of Minority Business 
Enterprises for Procurement Contracts. - 
(A) In General. - The Commission shall establish regulations for implementing programs 
pursuant to this Act that will govern providers of telecommunications services and their 
affiliates. 
(B) Verzfiing Criteria. - The Commission shall develop and publish regulations setting 
forth criteria for verifying and determining the eligibility of business enterprises that are owned 
by minorities or women for procurement. 
(C) Outreach. - The Commission’s regulations shall require each provider of 
telecommunications services and its affiliates to develop and to implement an outreach program 
to inform and recruit business enterprises that are owned by minorities or women to apply for 
procurement contracts under this Act. 
(D) Enforcement. - The Commission shall establish and promulgate such regulations 
necessary to enforce the provisions of this Act. 
SECTION 7. Waiver Authority. - The requirements laid down in the preceding section 
may be waived, in whole or in part, by the Commission with respect to a particular contract or 
subcontract in accordance with guidelines set forth in regulations which the Commission shall 
prescribe when it determines the application of such regulations proven to result in undue 
hardship or unreasonable expense to a provider of telecommunications services. 
SECTION 8. False Representation ojBusiness; Sanctions - 
(A) In General. - Any person corporation, through its directors, officers, or agents, which 
false represents the business as a business enterprise that is owned by minorities or women in the 
procurement or attempt to procure contracts from telephone operating companies and their 
affiliates pursuant to Section 6; shall be punished by a fine of not more than one hundred fifty 
thousand pesos (Pl50,000.00), or by imprisonment €or a period not to exceed five (5) years of its 
directors, officers, or agents responsible for the false statements, or by both fine and 
imprisonment. 
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(B) Holding Companies. - Any provider of telecommunications services which falsely 
represents its annual report to the Commission or its implementation of its programs pursuant to 
Section 6 shall be subject to a fine of one million pesos (P1,000,000.00) and be subject to a 
penalty of up to five (5) years restriction from participation in lines of business activities 
provided for in this Act. 
SECTION 9. Discrimination Prohibited. - No otherwise qualified business enterprise 
that is owned by minorities or women shall solely, by reason of its racial, ethnic, or gender 
composition be excluded from the participation in, be denied the benefits of, or be subjected to 
discrimination in procuring contracts from telephone utilities. 
SECTION 10. Civil Actions Authorized. - Whenever a qualified business enterprise that 
is owned by minorities or women has reasonable cause to believe that a provider of 
telecommunications services or its affiliate is engaged in a pattern or practice of resistance to the 
full compliance of any provision of this Act, the business enterprise may bring a civil action in 
the appropriate court against the provider of telecommunications services or its affiliate 
requesting such monetary or injunctive relief, or both, as deemed necessary to ensure the full 
benefits of this Act. 
SECTION 11. Attorney’s Fees and Costs. - In any action or proceeding to enforce or 
charge a violation of a provision of this Act, the court, in its discretion, may allow the prevailing 
party reasonable attorney’s fees and costs. 
SECTION 12. Separability Clause. - If any provision or part hereof, is held invalid or 
unconstitutional, the reminder of the law of the provision not otherwise affected shall remain 
valid and subsisting. 
SECTION 13. Repealing Clause. - Any law, presidential decree or issuance, executive 
order, letter of instruction, administrative order, rule or regulation contrary to, or inconsistent 
with, the provisions of this Act is hereby repealed, modified or amended accordingly. 
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SECTION 14. Effectivity Clause. - This Act shall take effect fifteen (15) days after its 
publication in at least two (2) newspapers of general circulation. 
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Approved, 
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