Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City
FIFTEENTH CONGRESS
First Regular Session

House Bill No,__4066

Introduced by REP. MA. RACHEL J. ARENAS

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
cyberservices. This allowed the country to participate in the Global Off-shoring
and Outsourcing (Global O & ©) Industry. Consequently, niche markets
emerged in animation, customer contact, back office, software development,
medial and legal transcription, game development, and other cyberservices.
In 2005, the ICT sector niche markets brought US$2.4B 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 investments areas in the Investment Priority Plan. With more
investments in these industries, especially on information and technology, we
should be able to create more Information 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 other growth areas of the province. This bill hopes to
minimize the so-called digital divide as well as speed up the setting up of a
wireless communications infrastructure.

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

Immediate passage of this bill is requested. [ -

MA. RACHEL J. ARENAS


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Manila
FIFTEENTH CONGRESS
First Regular Session

House Bill No__ 4066

Introduced by REP. MA. RACHEL J. ARENAS

AN ACT
ESTABLISHING AN ICT HUB IN EVERY PROVINCE
AND FOR OTHER PURPOSES

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

Section 1. Title. - This Act shall be known and cited as 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 communication and information in
nation-building. Toward this end, the State shall provide for the
creation and establishment of Information Communications
Technology Hub, hereinafter referred to as ICT Hub, in every
province;

b. To promote and encourage investment in the countryside by
providing the infrastructure necessary for the growth of information
and communications technology; and

c. To ensure the adequate supply of power and electricity in the
countryside in support of the development of information and
communications technology.


Sec. 3. Information Communications Technology Plan. — The provincial
or city board, consistent with the Medium Term Philippine Development Plan
(MTPDP) and in coordination with the Commission on Information and
Communications Technology (CICT), shall formulate and approve an
Information Communications Technology (ICT) Plan for the province or city,
taking into consideration its comparative advantage, funding mix, private
sector involvement, incentives to locators, local tax incentives, among others.

Sec. 4. Location of ICT Hub. - Pursuant to the provincial or city
development plan, the provincial or city board shall identify the area where
the ICT Hub shall be established: Provided, That, the area/s shall not be in
the capital or urban center of the province: Provided, further That, the area is
owned by the provincial or city government.

For purposes of this Act, Information Communications Technology (ICT)
is 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 infrastructure, the components of which include the
telephone system, the Internet, fax machines and computers.

An ICT Hub refers to a center or location where services may be
provided through the use of ICT. Such services may include
telecommunication services, data management, etc.

Sec. 5. Digital Infrastructure Fund. - A Digital Infrastructure Fund
hereinafter referred to as the Fund is hereby created and lodged in the CICT.
The amount of Ten Billion Pesos (Php10,000,000,000.00) or as much thereof
as may be necessary is hereby appropriated from the general fund for the
purpose of providing seed capital and as the counterpart of the national
government in the establishment of the ICT Hub in each province or city:
Provided, That, the Fund shall be disbursed in a pro-rata manner based on
the following criteria: telephone density, degree of digital divide, ICT
penetration ratio, presence of new alternative backbone networks, science
and technology parks and industrial estates with an ICT focus, among others.

Subsequent appropriations shall be annually provided for in the General
Appropriations Act with an annual increment of 25 percent per annum until
the amount of Php 50,000,000,000.00 shall have been reached.

Sec. 6. Tax and Fiscal Incentives. — Any locator in the ICT Hub shall be
entitled to the fiscal and non-fiscal incentives under the Omnibus Investments
Code (E.0. No. 226, series of 1987), as amended, and the Special Economic
Zone Act of 1995 (R.A. No. 7916), including a 5-year tax break from national


taxes: Provided, That, they are part of the Global O & O, such as, but not
limited to: animation, customer contact, back office, software development,
medical and legal transcription, and other cyberservices: Provided, Further
That, sixty percent (60%) of its labor force shall be recruited locally and that
corporate income shall be declared and taxes shall be paid locally on the sixth
(6") year of its operations; Provided, Finally, That locators in the top 30
Poorest provinces of the country as identified by the National Economic and
Development Authority, shall be given a pioneer status and shall be entitled to
such additional incentives as may be allowed by law.

ICT Hubs already receiving such incentives shall continue to be entitled
to them.

Sec. 7. Implementing Rules and Regulations. - The Commission on
Information and Communications Technology, in coordination with the
Department of Interior and Local Government, and other concerned entities,
shall formulate the necessary implementing rules and regulations of this Act.

Sec. 8. Separability Clause. - Any portion or provision of this Act that
may be declared unconstitutional shall not have the effect of nullifying other
provisions hereof, as along as such remaining provisions and still subsist and
be given effect in their entirety.

Sec. 9. 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. 10. Effectivity. - This Act shall take effect fifteen (15) days from its

Publication in the Official Gazette or two national newspapers of general
circulation.

Approved,