Republic of the Philippines RCURIVED
HOUSE OF REPRESENTATIVE! cael 08 Aug i i
Quezon City aii

17" CONGRESS Ey =
First Regular Session =
Pr TION UNIT
2648 BLS Ss

House Bill no. NCP X SERVICE

Introduced by Representative WES GATCHALIAN

EXPLANATORY NOTE

As the world continues to transform into a digital age, more and more of
our society’s life, from the basic rudiments of communication to innovations in
our commercial transactions, become dependent on the platform provided by our
cellular phones. Considering its massive role in our public life, it is quite
staggering that the sale of prepaid SIM’s in this country is as unregulated as it
currently is. Given this current gap in regulation, it shouldn’t come as a surprise
that such has been exploited through various nefarious schemes by sinister
characters in our society. Well documented has been the various scams perpetrated
through this medium with little to no hope of apprehending the wrongdoers
because any person with criminal designs is capable of purchasing a SIM card
over the counter with his/her anonymity remaining certain. Even more
disconcerting is the reality that petty scams are not the limit of what can be done
with the leg room in the current paradigm as Cellular Phones may also be used to
perpetrate more heinous crimes or even acts terror.

As outlined above, it is in the state’s interest that a certain level of
regulation be introduced in the sale, use, and access to SIM cards. It is therefore
proposed in this act to make the registration of SIM card owners be made
mandatory. The intended result of this measure would be to deter potential
criminals and the effective identification and future apprehension offenders.

Finally, it is submitted that no privacy interest is infringed by this current
measure considering that in other telecommunication platforms such as in
landlines and for postpaid subscribers, registration is a regular course of business.
It is further submitted that even assuming that certain privacy interests are
infringed, the current proposed act is but a reasonable measure to satisfy the more
compelling state interest of public order.



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

17™" CONGRESS
First Regular Session

2648

House Bill no.

Introduced by Representative WES GATCHALIAN

AN ACT
MANDATING THE REGISTRATION OF ALL PREPAID AND
POSTPAID SUBSCRIBER IDENTITY MODULE (SIM) CARDS
AND REQUIRING THE TELECOMMUNICATION COMPANIES TO
KEEP A REGISTRY OF THESE SUBSCRIBERS AND PROVIDING FOR THE
PENALTIES FOR VIOLATION THEREOF

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

SECTION 1.0bjective. - This SIM Card Registration Measure is made to
provide a legal framework for the registration of all prepaid and postpaid
SIM Card sold and providing thereof a database for the validated
information of its authorized owner, for control, administration, and
management of the database.

SECTION 2.Scope. - This Act shall apply to all Telecommunications
Company engaged in the business of selling and dispensing SIM cards in
the Philippines. It shall likewise cover agents of _ these
‘Telecommunications Companies as well as individual, corporate,
private, and commercial users of SIM cards. It shall not extend to the
users of SIM cards issued by foreign telecommunications company, under
a roaming arrangement with the local telecommunications company.

SECTION 3.Submission of Proof of Identification.- Telecommunication
Companies are hereby directed to ensure that the users of their prepaid
and postpaid SIM cards are properly identified and their addresses verified
through the presentation of valid identification cards which shall consist,
but not limited to, any of the following:

+ Driver's License
- School Identification Card
Company identification Card
SSS/GSIS Card
Passport
Senior Citizen's Card
NBI Clearance
Firearms License

If the sale of the prepaid SIM cards are done through sales agents,
Telecommunication companies shall ensure that said agents
submit to them the verified names and addresses of the buyers of
the prepaid SIM cards within fifteen (15) days from the date of
sale

Any subsequent transfer of a SIM card whether by sale, or any
other mode of transferring ownership, by a subscriber must be
registered with the Telecommunication company. The subsequent


owner must also submit the same information as prescribed in the
first paragraph of this section.

SECTION 4. Registry of Subscribers.Telecommunication companies are
required to retain a registration record of all its subscribers, whether
prepaid or postpaid, and are obliged to disclose this registration
information in accordance to SECTION 5 of this Act.

SECTION S.[ssuance of Official Receipt. - Proof of payment of the sale shall
be evidenced by an official receipt, duplicates of which shall be
submitted by the Telecommunications Company to the National
Telecommunications Company (NTC).

SECTION 6.Disclosure of Information.- Information obtained in the SIM
card registration shall be treated as confidential. Except upon order of
any competent court, or based upon a written request from a government
law enforcement agency upon finding of probable cause that a
particular number is used in the commission of a crime or that it
was utilized as a means to commit an unlawful act, or upon consent of
the SIM card holder, the Telecommunications Company shall be obliged to
provide the information.

SECTION 7.Submission of Verified List of Dealers/Agents.-
Telecommunication Companies shall submit to the National
Telecommunications Commission (NTC), within thirty (30) days from the
date of effectivity of this Act, a verified list of their current authorized
dealers/agents nationwide. Thereafter, Telecommunication Companies
shall submit to the NTC, every quarter of each year an updated list of the
same.

SECTION 8.Activation Period. - The Telecommunication companies shall
only activate the SIM cards after the process of registration has been
completed.

SECTION 9.Transitory Provision. - All existing prepaid subscribers are
required to register their SIM cards with their respective mobile phone
companies within three (3) months from the effectivity of this Act. Failure
to register within the prescribed period shall authorize the
Telecommunications Company to suspend its services to the
non-complying user. The Telecommunications Company shall lift
suspension of its service upon compliance of the provision of this Act.

SECTION 10.Penalties.-

(a) The following penalties shall be imposed on any
Telecommunications Company found guilty of violating any
provision of this Act:

alFirst offense- A fine of Three Hundred Thousand Pesos
(P300,000)

a.2 Second offense- A fine of Five Hundred Thousand
Pesos (P 500,000)

a.3 Third offense and subsequent offenses, A fine of One
Million Pesos (P 1,000,000)

If after two (2) years from the effectivity of this Act,
the Telecommunications Company continues to violate


any of its provision, the National Telecommunications
Commission (NTC) shall recommend to Congress the
immediate revocation of its franchise.

(b) A penalty of suspension of its operation and a fine of Ten
Thousand Pesos (P10,000) shall likewise be imposed on any
dealer, retailer or seller who shall fail to comply with the
provisions on this Act..

These penalties are without prejudice to other civil liabilities which a
violating Telecommunication Company may incur as to the SIM card owner.

SECTION 11.Jmplementing Rules and  Regulations.The
NationalTelecommunications Commission shall issue such orders,
rules and regulations and other issuances as may be necessary to ensure
the effective implementation of this Act.

SECTION 12.Separability Clause - Should any part of this Act be
declared unconstitutional, the rest of the provisions of this Act shall
continue to be in effect and subsisting.

SECTION 13.Repealing Clause. - Any law, executive order, letter of
instruction, rules and regulations, circulars, issuances or any part
thereof inconsistent with any of the provision of this Act is hereby
repealed, modified or amended accordingly.

SECTION 14.Effectivity Clause. - This Act shall take effect fifteen {15} days

after its publication in the Official Gazette or in at least two (2) newspapers
of general circulation,

Approved.