HOUSE OF REPRESENTATIVES:

RECEIVED
Republic of the Philippinds pare. __0.1 SEP 2016
HOUSE OF REPRESENTATIVES . 70
Quezon City, Manila Te: ___
BY:

SEVENTEENTH CONGRE!
First Regular Session

3437

REGISTRATION UNIT
BILLS AND INDEX SERVICE

House Bill No.

Introduced by REPRESENTATIVE ROSE MARIE ‘BABY’ J. ARENAS and
REPRESENTATIVE ARNULFO P, FUENTEBELLA

EXPLANATORY NOTE

The archipelagic nature of the Philippines has always proved to be a
challenge to our government. The more than 7,000 islands and the various
bodies of water surrounding these islands bogged down many government
development projects to the detriment of our people. However, with the
advent of information and communications technology, bringing programs
and services to even remote barangays has now become doable and feasible.

The deregulation of the telecommunications industry which began in
1987, brought tremendous changes to the way we relate with each other and
with the world. This enabled universal access to information and
communications technology thereby allowing the development of cyber
services. This allowed the country to participate in the Global Off-shoring
and Outsourcing (Global O & O) Industry. Consequently, niche markets
emerged in animation, customer contact, back office, software development,
medical and legal transcription, game development, and other cyber services.
In 2005, the ICT sector niche markets brought USS2.4B in revenues, which
provided 162,250 jobs. In 2009, revenue grew by 200 per cent to US$7.2B,
while increasing local jobs to 442,000.

IT-related industries, BPO/contact centers, and tourism are among the
priority investment areas in the Investment Priority Plan. With more
investment in these industries, especially in information and technology, we
should be able to create more Information and Communications Technology
or ICT Hubs in every province. This should allow the country to become
more competitive and to leapfrog to the future.

The Philippines has 81 provinces, and if this bill becomes a law, at
least 81 nodes can be established to pump prime economic activities and
promote development in every province. This bill hopes to minimize the so-
called digital divide as well as speed up the setting up of a wireless
communications technology.



With an ICT Hub, a province will be able to harness its potential to
making it investor-friendly and accessible. It can also electronically promote
the province’ nerve center to connect to the various agencies of the national
government thereby pushing the growth of e-government locally and
nationally. The ICT Hub can also link a province to the national government
during times of national calamities and disasters. More importantly, with
the ICT Hub, the archipelagic feature of the country can be bridges, thereby
creating One Philippines.

Former Rep. Felix William B. Fuentebella and I have authored and
sponsored said bill in the Sixteenth Congress. It has gone through
committee and technical working group deliberations. A public hearing on
said bill and an ocular visit of CICT members to ICT hubs in Cebu City were
also conducted. Finally, it has been approved on Third Reading at the House
of Representatives on September 26, 2014 and has been transmitted to the
Senate.

Immediate passage of this bill is requested.

heen he ARNULF 'UENTEBELLA


COV AKH ez wONH

11
12
13
14
15
16
17
18
19
20

Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Manila

SEVENTEENTH CONGRESS
First Regular Session

House Bill No, 38487

Introduced by REPRESENTATIVE ROSE MARIE “BABY” J. ARENAS and
REPRESENTATIVE ARNULFO P. FUENTEBELLA

AN ACT
PROVIDING FOR AN ON-LINE NETWORK ESTABLISHMENT POLICY FOR THE
PHILIPPINES

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

SECTION 1. Short Title. - This Act shall be known as the “On-line
Network Establishment Policy for the Philippines” or the “ONE Philippines Act".

SEC. 2. Declaration of Policy. - It is hereby declared the policy of the
State:

a To recognize the vital role of information and communications
technology in nation-building and encourage investment in the countryside by
providing the infrastructure necessary for the growth of information and
communications technology; and,

b. To promote the adaptation of technology from all sources for
national benefit and embolden the widest participation of private groups, local
government, and community based organizations in the generation and
utilization of available technology.

Towards this end, the State shall provide for a comprehensive policy for
the creation and establishment of and Information and Communications
Technology Center (ICTC) or an Information Communications Technology Hub
(ICT Hub), whichever is applicable, in every legislative district of the country
with the end in view of enhancing the access of every Filipino to information.

SEC. 3. Scope. - This Act shall provide for a policy framework for the
establishment of ICTCs or ICT Hubs in every legislative district of the country.
This Act shall:


oryaunerwne

a
12
13
14
15
16
17
18
19
20
21
22
23
24
28
26
27
28
29
30
31
32
33
34
35

a mandate the development and enforcement of a comprehensive
national information and communications technology plan;

b. mandate the development of the information superhighway;

c. define the powers and functions of key national government entities in

the implementation of this policy; and

d_ provide incentives for all private industry participants.
In support of these mandates, the issuance of the necessary permits of
telecommunications and ICT service providers shall be accelerated.

SEC. 4. Definition of Terms. -As used in this Act:

4.1 Bandwidth refers to the amount of data that can be transmitted over a

network connection over a fixed amount of time;

4.2 Bit or Binary digit refers to either 1 or 0 in the binary system which is

the smallest unit of information handled by a computer;

4.3 Broadband refers to high-speed, high capacity internet and data
connection. It is a communications medium that uses wide -
bandwidth channels for sending and receiving large amounts of data,
video or voice information;

4.4 Committed information rate refers to the average bandwidth for a
virtual circuit guaranteed by public telecommunications entity to work
under normal conditions. At any given time, the bandwidth cannot fall
below this committed figure;

4.5 Information and Communications Technology (ICT) refers to the
totality of electronic means to collect, process, and present information
to end-users in support of their activities. It consists, among others, of
computer systems, office systems and consumer electronics, as well as
networked information structure, the components of which include the
telephone system, the internet, fax machines, and computers;

4.6 Information and Communications Technology Center (ICTC) refers to a
center or location where services may be provided through the use of
ICT with a minimum speed of 4 Megabits per second (Mbps). Such
services may include telecommunications services, broadband and
convergence services, business processing and data management;

4.7 Information and Communications Technology Hub (ICT Hub) refers to
a center or location where services may be provided through the use of
ICT with a minimum speed of 100 Megabits per second (Mbps). Such


wearnanewne

services may include telecommunications services, broadband and
convergence services, business processing and data management;

4.8 Information Technology (IT) refers to all matters concerned with the
furtherance of computer science and technology, design, development,
installation and implementation of information systems and
applications;

4.9 Information superhighway refers to the digital communication
systems and the internet telecommunications network;

4.10 Megabit per second or Mbps refers to the measure of the speed of
data transfer which amounts to one million bits per second;

4.11 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.

4.12 Department of Information and Communications Technology (DICT) is
a national government agency created under Republic Act 10844 dated
May 23, 2016.

SEC. 5. Role of the Department of Information and Communications
Technology (DICT). - The DICT, consistent with the Philippine Development
Plan (PDP) and in coordination with the National Telecommunications
Commission (NTC), shall formulate and approve a national ICT Plan which shall
include, among others, the development of an information superhighway that
will accelerate the establishment of ICTCs and/or ICT Hubs, in every legislative
district of the country and ICTCs in every barangay. The ICTO shall likewise be
the lead agency to oversee the implementation of the National ICT Plan. The
updated National ICT Plan shall be submitted annually to the Office of the
President of the Republic of the Philippines, the ICT Joint Congressional
Oversight Committee established under Sec. 13 herein, and the National
Economic Development Authority (NEDA) on or before the fifteenth (15") of
April. The ICTO may call on other government entities to assist in the
development of the information superhighway.

SEC. 6. Role of 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 of the
implementation of this Act. It shall take the necessary measures to implement
the policies and objectives set forth herein. The NTC shall approve proposed


Ce OarNaAne one

ICTC or ICT Hub projects and shall ensure the compliance of public
telecommunications entities with the required committed information rate and
the quality of service as prescribed by NTC. The PTE shall regularly submit all
necessary data and reports as required by NTC, especially on the development
of the information superhighway.

SEC. 7. Advisory Committee. - There is hereby created an Advisory
Committee, to be convened by the DICT, that shall solicit inputs for the policy,
direction, coordination and supervision of ICT Hubs or ICTCs in every legislative
district of the country. The composition of the Advisory Committee shall be
determined by DICT which shall include equal representation from (a) the
government, (b) the service providers and (c) the end-users.

SEC. 8. Establishment of ICT Hubs or ICTCs In Each Legislative District.
~ Pursuant to the development of a comprehensive information superhighway,
National ICT Plan and the national, provincial, city, or municipal spatial
development plans, the DICT shall identify the area where the ICT Hubs or
ICTCs shall be established, with the end in view of establishing one in every
legislative district. The private sector shall be encouraged to establish the ICT
Hubs or ICTCs in accordance with the standards set by the DICT. The DICT shall
come up with a scheme to address the unviable areas, using the latest and
emerging technologies available.

SEC. 9, Incentives. - Any locator enterprise or Public Telecommunications
Entity (PTE) in the ICT Hub or the Information and Communications Technology
Center (ICTC) may be granted incentives provided under Executive Order No.
226, otherwise known as the Omnibus Investment Code of 1987 or Republic Act
No. 7916, otherwise known as The Special Economic Zone Authority Act of 1995,
as amended by Republic Act No. 8748, or An Act Amending RA 7916, otherwise
known as the Special Economic Zone Act of 1995 and other relevant laws:
Provided, That such locator enterprise or PTE in ICT Hubs or ICTCs are qualified
under the said laws: Provided further, That no locator enterprise may avail of the
incentives mandated in both laws at the same time: Provided finally, That these
incentives shall be granted in addition to the incentives given by the local
government unit where such ICT Hub or ICTC is located.

SEC. 10, Prohibition Against Exclusivity. - All ICT Hubs or ICTCs
established under this Act are hereby declared free zones within which any
public telecommunications entity may operate. Any agreement or arrangement


Ce arnNanrone

11
12
13
14

16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34

designating a public telecommunications entity, or any of its subsidiaries,
affiliates or dummy entities, as exclusive public telecommunications entity
within an ICT Hub or ICTC shall be void and unenforceable. The internet
exchanges shall be interconnected. The interconnection agreement between the
public telecommunications entities shall be submitted for the approval of the
NTC. If the parties fail to reach an agreement within ninety (90) days from start
of negotiation, the NTC shall intervene and prescribe the terms and conditions
of the interconnection.

SEC. 11. Penalties. - The NTC, in the exercise of its quasi-judicial
authority, shall impose a fine of Three hundred thousand pesos (P300,000.00)
for any of the following acts: (a) non-disclosure, (b) non-interconnection, or (c)
non-compliance with the committed information rate and quality of service.

The NTC shall increase the amount of the fine every five (5) years subject
to a certification from the National Economic Development Authority (NEDA) on
the computation of cost of money based on the current consumer price index.

SEC. 12. Implementing Rules and Regulations (IRR). - Within sixty (60)
days from the effectivity of this Act, the DICT, in coordination with the NTC,
NEDA, the Department of the Interior and Local Government, the Board of
Investments, the Philippine Economic Zone Authority and the Advisory
Committee, shall issue the necessary rules and regulations of this Act.

SEC. 13. ICT Joint Congressional Oversight Committee. - There is hereby
created an ICT Joint Congressional Oversight Committee to 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 Leader.

The Chairpersons of the House Committee on Information and
Communications Technology and the Senate Committee on Science and
Technology shall serve as Chairperson of the ICT Joint Congressional Committee
on a rotational basis every six (6) months. In every case, the other member of
the Committee belonging to the majority in the House or in the Senate shall be
the Vice Chair. The Secretariat of the Congressional Oversight Committee shall


ervyauneune

1
12
13
14
15
16
17
18

come from the existing secretariat personnel of the concerned Committees of
the House of Representatives and the Senate.

The ICT Joint Congressional Oversight Committee shall monitor and
ensure the effective implementation of this Act, including the approval of the
rules and regulations issued pursuant hereto. It shall determine inherent
weakness and loopholes in the law, recommend the necessary remedial
legislation or administrative measures and perform such other duties and
functions as may be necessary to attain the objectives of this Act.

SEC. 14. Separability Clause. - {f any part or provision of this Act is held
unconstitutional or invalid, other provisions that are not affected shall remain in
full force and effect.

SEC. 15. Repealing Clause. - All laws, rules and regulations, other
issuances or parts thereof, which are inconsistent with this Act, are hereby
repealed or modified accordingly.

SEC. 16. Effectivity. - This Act shall take effect fifteen (15) days after its
complete publication in the Official Gazette or in any newspaper of general

circulation.
Approved,