Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
First Regular Session

House Bill No. 0337

Introduced by Representative Luis Jose Angel N. Campos, Jr.

EXPLANATORY NOTE

Telecommunications and technological advancement in wired and wireless
communications such as the internet and high speed broadband internet connections
provide convenience and facilitates the sharing of ideas and information in real time.
Keeping in touch with family and friends though separated by distance becomes easy
because of these advancements.

Historically, voice communication is considered as the basic service in
telecommunications industry. However, the fast and notable progress in information
and communications technology has made internet and high speed broadband internet
service a significant part of everyday living. Personal and business transactions have
become more convenient and efficient due to the availability of internet and high speed
broadband internet service. Nowadays, voice communication and data travel at the
speed of light to everywhere in the world through the digital networks.
Telecommunications regulation needs to cover not only voice-related issues but also
connectivity and capacity issues. Hence, it is essential to put up an updated policy that
reflects the realities of modern telecommunications breakthroughs such as the short
messaging service (SMS) and internet services, including high speed broadband
services.

Telecommunications companies in the Philippines are raking in billions and
billions of profits from their telecommunications products including SMS and internet
services. However, the quality of internet connections rendered by the
telecommunications companies is in a sad and pathetic state. Despite the high cost of
the services, the internet connections and signals are slow and unstable. A study by
Akamai, entitled “State of the Internet Report, 2016” shows that the Philippines ranked 7
in the slowest internet connection in the whole world next only to countries such as
Iraq, Afghanistan and Ethiopia. Currently, the Philippine internet connection is one of
the slowest in Asia.

Presently, internet services and SMS are technically part of the value-added
services (VAS) by the telecommunications companies, hence, the rates and tariffs are
not under the regulatory powers of the National Telecommunications Commission.

This measure proposes to classify the provision of internet services, including
high speed broadband services as basic service to enable the National
Telecommunications Commission to adequately promote and protect the rights of
consumers and users, encourage further innovation, improve the quality of internet


connection and SMS, ensure that fees imposed upon consumers are reasonable, and
punish violations of telecommunications laws and rules by expanding its powers and
placing internet services and SMS within its regulatory authority.

In view of the foregoing, approval of this bill is earnestly sought.

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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
First Regular Session

House Bill No. 5337

Introduced by Representative Luis Jose Angel N. Campos, Jr.

AN ACT
EXPANDING THE POWERS OF THE NATIONAL TELECOMMUNICATIONS
COMMISSION AND CLASSIFYING INTERNET, INCLUDING BROADBAND
SERVICE, AS BASIC TELECOMMUNICATIONS SERVICE, AMENDING FOR THE
PURPOSE REPUBLIC ACT NO. 7925, OTHERWISE KNOWN AS THE “PUBLIC
TELECOMMUNICATIONS POLICY ACT OF THE PHILIPPINES”

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

SECTION 1. Section 3 of Republic Act No. 7925 is hereby amended to read as
follows:

“SEC. 3. Definition and Interpretation. - For purposes of this Act, the
following terms shall be used:

a) xx Xxx xxx

h) Value-Added Service provider (VAS) ~ an entity which, relying
on the transmission, switching and local distribution facilities of the local
exchange and inter-exchange operators, and overseas carriers, offers
enhanced services beyond those ordinarily provided for by such carriers.

Xxx Xxx Xxx

Ll) INTERNET - REFERS TO A COMMUNICATION
NETWORK THAT ALLOWS CONNECTION AMONG COMPUTERS
AND DEVICES WORLDWIDE.

M) BROADBAND - REFERS TO A DATA CONNECTION
SPEED OF AT LEAST 256 KILOBYTES PER SECOND (KBPS).”

SEC. 2. Section 5 of the same Act is hereby amended as follows:

“SEC. 5. Responsibilities of National Telecommunications Commission. —
The National Telecommunications Commission (Commission) shall be the
principal administrator of this Act and as such shall take the necessary
measures to implement the policies and objectives set forth in this Act.
Accordingly, in addition to its existing functions, the Commission shall be
responsible for the following:


a) xx xxx xxx;

1
2

3 b) __Ensure quality, safety, reliability, security, compatibility and
4 interoperability _ of _ telecommunications facilities and services,
5 INCLUDING INTERNET AND BROADBAND SERVICES, in conformity
6 with standards and specifications set by international radio and
7 telecommunications organizations to which the Philippines is a signatory;

8

9

Xxx Xxx Xxx;
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11 e) Promote consumers’ RIGHTS AND welfare by facilitating
12 access to telecommunications services, INCLUDING INTERNET AND
13 BROADBAND SERVICES, whose infrastructure and network must be
14 geared towards the needs of individual and business users;
15
16 f) Protect consumers against misuse of a telecommunications
v7 'y’s monopoly or quasi-monopolistic powers by, but not limited to the
18 investigation of complaints and exacting compliance with service standards
19 from such entity; [and]
20
21 8) _In the exercise of its regulatory powers, continue to impose
22 such fees and charges as may be necessary to cover reasonable cost and
23 expense for the regulation and supervision of the operations of
24 telecommunication entities.
25
26 H) DEVELOP, IMPLEMENT AND MAINTAIN STANDARDS,
27 POLICIES, PROGRAMS AND PLANS TO PROVIDE EFFECTIVE,
28 EFFICIENT AND RELIABLE TELECOMMUNICATIONS SERVICES,
29 INCLUDING INTERNET AND BROADBAND SERVICES; AND
30
31 a) PROVIDE MECHANISMS TO UTILIZE MEDIATION
32 AND ARBITATION TO RESOLVE AND SETTLE DISPUTES, AND
33 IMPLEMENT MECHANISMS AND OTHER MEASURES FOR THE
34 WELFARE AND PROTECTION OF THE CONSUMERS.
35
36 FOR PURPOSES OF THIS ACT, THE NATIONAL
37 TELECOMMUNICATIONS COMMISSION SHALL IMPOSE FINES FOR
38 ANY VIOLATION OF TELECOMMUNICATIONS LAWS, RULES AND
39 REGULATIONS. ANY PUBLIC TELECOMMUNICATIONS ENTITY
40 WHO VIOLATES OR FAILS TO COMPLY WITH THE TERMS AND
41 CONDITIONS OF ANY CERTIFICATE OF PUBLIC CONVENIENCE
42 AND NECESSITY OR ANY LAW, ORDER, DECISION OR
43 REGULATION OF THE NATIONAL TELCOMMUNICATIONS
44 COMMISSION SHALL BE SUBJECT TO A FINE OF FIFTY THOUSAND
45 PESOS (P50,000.00) TO ONE HUNDRED THOUSAND PESOS
46 (100,000.00) PER DAY OF VIOLATION BUT NOT TO EXCEED FIVE
47 HUNDRED (500) DAYS OR FIFTY MILLION PESOS (P50,000,000.00) PER
48 VIOLATION WHICHEVER IS HIGHER.”
49
50 SEC. 3. A new section denominated as Sections 5-A is hereby inserted after

51 Section 5 of the same Act, which shall read as follows:


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“SEC. 5-A. IMMUNITY FROM SUIT. - THE CHAIRPERSON,
COMMISSIONERS AND OFFICERS OF THE COMMISSION SHALL
NOT BE CIVILLY LIABLE FOR ANY ACTION, CLAIM OR DEMAND
IN CONNECTION WITH ANY OFFICIAL ACT DONE IN GOOD
FAITH OR IN THE PERFORMANCE OF THEIR OFFICIAL DUTIES.”

SEC. 4. Section 11 of the same Act is hereby amended to read as follows:

“SEC. 11. Value-Added Service Provider. - Provided that it does not
put up its network, a VAS provider need not secure a franchise. A VAS
provider shall be allowed to competitively offer its services and/or
expertise, and lease or rent telecommunications equipment and facilities
necessary to provide such specialized services, in the domestic and/or
international market in accordance with network compatibility.

Telecommunications entities may provide VAS, subject to the
additional requirements that:

a) _ prior approval of the Commission is secured to ensure that
such VAS offerings are not cross-subsidized from the proceeds of their
utility operations;

b) other providers of VAS are not discriminated against in rates
not denied equitable access to their facilities; [and]

°) separate books of accounts are maintained for the VAS.

VALUE-ADDED SERVICE (VAS) INCLUDES
TELECOMMUNICATIONS SERVICE FOR WHICH A PROVIDER
ENHANCES THE FORM OR CONTENT OF THE CUSTOMER’S
INFORMATION BY PROVIDING FOR ITS STORAGE AND
RETRIEVAL INCLUDING ONLINE DATA PROCESSING, ONLINE-
DATABASE STORAGE AND RETRIEVAL, E-MAIL, VOICE MAIL AND
SIMILAR SERVICES.

BASIC TELECOMMUNICATION SERVICE INCLUDES END-
TO-END TRANSMISSION OF CUSTOMER SUPPLIER INFORMATION
SUCH AS VOICE TELEPHONE SERVICES, PACKET-SWITCH DATA
TRANSMISSION SERVICES, CIRCUIT- SWITCH DATA
TRANSMISSION SERVICES, TELEX, TELEGRAPH, FACSIMILES,
ANALOG, DIGITAL, CELLULAR AND MOBILE SERVICES, MOBILE
DATA SERVICES, PAGING, SATELLITE BASED MOBILE SERVICES,
FIXED SATELLITE SERVICES, VERY SMALL APERTURE TERMINAL
SERVICES, GATEWAY EARTHSTATION SERVICES,
TELECONFERENCING, VIDEO TRANSPORT, TRUNKED RADIO
SYSTEM SERVICES AND ANY IMPROVEMENT AND UPGRADE
THEREOF IN THE FUTURE.

UNDER THIS ACT, INTERNET INCLUDING BROADBAND
SERVICE, IS CONSIDERED BASIC SERVICE AND IS WITHIN THE
JURISDICTION AND REGULATORY POWER OF THE NATIONAL
TELECOMMUNICATIONS COMMISSION.”


SEC. 5. Section 20 of the same Act is hereby amended to read as follows:

“SEC. 20. Rights of End Users. - The user of telecommunications
service shall have the following basic rights:

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a) xxx Xxx Xxx;
1 b) _ Right to be given the first single-line telephone connection or
1 the first party-line connection within two (2) months of application for
2 service, against deposit; or within three (3) months after targeted
3B commencement of service in the barangay concerned per the original
14 schedule of service expansion approved by the Commission, whichever
15 deadline comes later; OR WITHIN ONE (1) MONTH OF APPLICATION
16 FOR SERVICE IN CASE OF INTERNET OR BROADBAND
v7 APPLICATIONS;
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19 c) Regular, timely and accurate billing, courteous and efficient
20 service at utility business offices and by utility company personnel,
2 PROMPT CORRECTION OF ERRORS IN BILLING AND THE
2 PROVISION FOR IMMEDIATE REBATES OR REFUND BY THE
23 TELECOMMUNICATIONS COMPANY; [and]
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25 d) Thorough and prompt investigation of, and action upon
26 complaints. The utility shall endeavor to allow complaints to be received
27 over the telephone, THROUGH E-MAIL, SMS AND OTHER
28 AVAILABLE MODES OF COMMUNICATION and shall keep a record of
29 all written or phoned-in complaints;
30
31 E) RIGHT TO RECEIVE AFFORDABLE, QUALITY,
32 EFFICIENT AND RELIABLE TELECOMMUNICATIONS SERVICE:
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34 F) RIGHT TO RECEIVE A WRITTEN CONTRACT
35 INCLUDING SPECIFIC DETAILS ON THE SERVICES SUBSCRIBED
36 TO, THE COST AND TARIFFS, THE MINIMUM SERVICE QUALITY
37 LEVEL, INCLUDING THE PROVISIONS FOR REFUND, AND
38 TERMINATION OF CONTRACT IF THE WARRANTED QUALITY OF
39 SERVICE IS NOT MET; AND
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41 G) RIGHT TO PRIVACY OF COMMUNICATION SUCH
42 THAT DATA STORED OR TRANSMITTED OVER THE
43 TELECOMMUNICATIONS AND INTERNET NETWORK ARE NOT
44 ACCESSED BY PERSONS, PARTIES, OR ENTITIES OTHER THAN
45 THE ONE TO WHOM THE DATA ARE SENT OR MADE AVAILABLE
46 BY THE SENDER.”
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48 SEC. 6. All other laws, decrees, orders, rules and regulations, or parts

49 thereof, inconsistent with the provisions of this Act are hereby repealed, amended or
50 modified accordingly.

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52 SEC. 7. This Act shall take effect fifteen (15) days after its publication in the
53 Official Gazette or in a national newspaper of general circulation.


Approved,