Republic of the Philippines
HOUSE OF REPRESENTATIVES

SEVENTEENTH CONGRESS
First Regular Session

House Bill No. 3584

Introduced by Representative Gloria Macapagal-Arroyo

THE WIRELESS TELEPHONE CONSUMER PROTECTION ACT OF 2016
EXPLANATORY NOTE

Since 1997, wireless telephone service has expanded immensely. Considered a
Tuxury a decade ago, now more than thirty five million Filipinos use wireless telephone service
in conduct of their business and daily routine, But despite its many advantages, a handful of
consumer systematic abuses have surfaced ranging from the terms and conditions of wireless
telephone service, poor service quality, billing errors, termination of service, and lack of
effective procedures for redress of consumer grievances.

Most consumers buy wireless phones for business and personal use. Competition
among telecommunications companies throughout the country has helped bring down the
prices of wireless phones and made it more accessible. The use of wireless phones has become
so integral in people’s lives that the mere mention of being separated from their wireless
devices is unacceptable. Some consumers have opted to keep wireless phones as their primary
phone line for ease of accessibility. Although many consumers are content with their wireless
phones and its corresponding contract of service, consumer complaints have continued to
increase which reflects that wireless telephone service in the country still needs improvement.

The proposed legislation is a step towards that direction. It realizes the growing
importance of wireless telephone service and establishes basic consumer rights and remedies
that will apply equally to all providers, so that there will be a level playing field amongst
providers to promote healthy competition to benefit Filipino consumers.

In view of the importance of this bill, its expeditious passage into law is earnestly
sought.

REP. GLORIA MACAPAGAL-ARROYO
Second District, Pampanga

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Republic of the Philippines
HOUSE OF REPRESENTATIVES

SEVENTEENTH CONGRESS
First Regular Session

House Bill No, 3984

Introduced by Representative Gloria Macapagal-Arroyo

THE WIRELESS TELEPHONE CONSUMER PROTECTION ACT OF 2016

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

Section 1, Title - This Act shall be known as the “Wireless telephone Consumer
Protection Act of 2016,”

Section 2. Definitions - For purposes of thie Act, the following definitions shall

apply:

a) Commission ~ means the National Telecommunication Commission (NTC).

b) Internet - means the shared global computing network. A network based on
standards including Internet Protocol (IP), Simple Mail Transfer Protocol (SMTP)
and the Domain Name System (DNS), which enables global communications
between all connected computing devices. It provides the platform for web
services and the World Wide Web.

©) Wireless telephone service ~ means commercial mobile radio service.

d) Wireless telephone service provider or provider - means any entity that provides
wireless telephone service in the country.

e) Wireless telephone number information - means the telephone number,
electronic address and any other identifying information by which a calling
party may reach a subscriber to commercial mobile services, and which is
assigned by a wireless telephone service provider to such subscriber.

Section 3, Information Requirement - within 180 days following the effective date of
this Act, the Commission shall adopt rules and regulations requiring that any publication,
including publication on the Internet, of a wireless telephone service provider concerning the
terms of its plans or contracts for wireless telephone service shall set forth, in a plain and
conspicuous manner, the following information:

1) Information on charges, including the originating location of the call, monthly
base charge, per minute charges for minutes not included in the plan, and the
method of calculating minutes charged;

2) Information on the minutes included in the plan, including allowable minutes
during daytime on weekdays, allowable minutes during nights and weekends,
or any other differing charges for long-distance, roaming, incoming and
directory assistance;

3) Information on plan or contract terms including length of contract, early or other
termination fees, trial periods, and start up fees;

4) Information on taxes to be collected by the provider for, and paid to the national,
local, or other governmental agency;

5) Information on surcharges imposed by the provider for the costs of compliance
with regulations or for other purposes; and


6) Any other information that the Commission considers appropriate to ensure that

consumers of wireless telephone service are fully informed of the terms of the
plan or contract.

The wireless telephone service providers shall provide the information required by
this section to a consumer prior to entering into any contract with a consumer for wireless
telephone service.

Section 4, Information on Service Coverage - Each wireless telephone service
provider shall make available maps showing the wireless telephone service area of such
provider and the wireless telephone service area of such provider within the country. Such
maps shall contain the maximum practicable level of granularity and shall be updated
quarterly.

Each map of a service area required under subsection a. of this section shall be
provided to a consumer:

1) Upon the request of the consumer; and

2). Whenever a plan or contract for the service is entered into.

Each map of a service area required under subsection a. of this section shall be
available:

1) On the internet website of the provider concerned; and

2) On the internet website of the Commission.

Section 5. Monitoring - the Commission shall monitor the quality of wireless
telephone service providers based on the following standards;

1) Dropped calls;

2) Blocked calls;

3) Known coverage gaps (including average signal strength) or dead zones;

4) Predicted street level signal strength; and

5) Any other matters the Commission considers appropriate,

In monitoring the quality of wireless telephone service under subsection a, of this
section, the Commission shall establish an Internet website which allows the public to submit
their comments and views to the Commission on the quality of such service. The commission
shall also accept written complaints by mail.

Section 6, Availability of Information - the Commission shall make information
available to wireless telephone service providers and the public on a semiannual basis
conceming the quality of wireless telephone service of the provider.

Section 7. Extension of contract ~ An extension of contract for wireless telephone
service shall not be valid unless the extension of the contract is in writing and is signed by the
subscriber, or confirmed in writing and signed by the subscriber within seven days of receipt
by the subscriber.

Section 8, Notice of Change of Terms - A wireless telephone service provider shall
provide subscribers with written notice of any change in rates, terms or conditions of service at
least thirty (30) days before the change is to take effect. If any such change will result in higher
rates or more restrictions on service or otherwise will result in a material, adverse change for
such subscriber, the subscriber may, within such 30-day period, terminate the service without
penalty and receive a pro rata refund of the charges, if any, paid for the handset used for the
service, The notice of change shall inform the subscriber of the right to terminate the contract,
the right to a handset refund, and the steps to take to implement such termination.


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Section 9, Cancellation of Contract - A contract for wireless service may be canceled
upon the request of the subscriber for any reason during the first 30 days. There shall be no
penalty or other costs to the subscriber for any cancellation during these 30 days, except that
the subscriber shall be responsible for the cost of the service used during the time period that
the contract was in effect.

Section 10. Billing - A wireless telephone service provider shall provide bills for
wireless telephone services that are clearly organized and clearly describe in plain language
the products and services for which charges are imposed, and that conform to format
standards established by the Commission.

Section 11. Taxes ~ Taxes and fees which are required by the law, or local ordinance
or regulation to be collected from the subscriber shall be set forth in separate section of the bill
and shall be itemized separately. This section of the bill shall only contain charges that the
provider is required to be recovered from subscribers pursuant to law.

Section 12. Roaming Charges ~ Roaming or off-network charges shall be itemized on
the subscriber's bill within sixty (60) days of the call being placed, and such roaming or off-
network charges shall identify the date and originating location of the call.

Section 13, Request for Billing Statement - Upon the request of a subscriber, a
wireless telephone service provider shall provide an itemized bill to the subscriber without any
charges.

Section 14, Charges on Unauthorized Use - Charges associated with the use of
wireless telephone equipment or services shall not be the liability of the subscriber if such use
was unauthorized by the subscriber due to loss or theft, provided that such loss or theft is
promptly reported to the wireless telephone service providers and subscribers.

Section 15. Rules and Regulations on Complaints - The Commission shall adopt
rules and regulations as may be necessary to allow subscribers to file complaints with the
Commission with regard to billing disputes between wireless telephone service providers and
subscribers.

Section 16. Non-termination of Service - A wireless telephone service provider shall
refrain from terminating a subscriber's service for nonpayment as long as the subscriber's
billing complaint is pending before the Commission and for fifteen (15) days thereafter, or for
such period as the Commission for good cause shall establish, provided that as a condition of
continued service during the pendency of any such dispute, the subscriber shall pay the
undisputed portions of any bill for service and any amounts the Commission determines are
necessary to fairly compensate the wireless telephone provider for services rendered while the
complaint is pending and 15 days thereafter.

Section 17. Publication of Information - A wireless telephone service provider, or
any direct or indirect affiliate or agent of a provider, providing the name and wireless
telephone number information of a subscriber for inclusion in any directory of any form, or
selling, leasing, licensing or sharing the contents of any directory database, or any portion or
segment thereof, shall not include the wireless telephone number information of any
subscriber without first obtaining the express consent of that subscriber. The provider's form
for obtaining the subscriber's express consent shall meet all of the following requirements:

1) Itshall bea separate document that is not attached to any other document;
2) It shall be signed and dated by the subscriber;


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3) It shall be unambiguous and legible, and shall conspicuously disclose that, by
signing the form, the subscriber consents to having the subscriber's wireless
telephone number information sold or licensed as part of a list of subscribers and
having the subscribers wireless telephone number information included in a
publicly available directory; and

4) If under the subscriber's calling plan the subscriber may be billed for receiving
unsolicited calls or text messaging from a telemarketer, the provider's from shall
be unambiguous and legible, and shall conspicuously disclose that, by
consenting to have the subscriber's wireless telephone number information sold
or licensed as part of a list of subscribers or to be included in a publicly available
directory, the subscriber ay incur additional charges for receiving unsolicited
calls or text messages.

Section 18, Revocation of Consent - A subscriber who provides express prior
consent pursuant to the preceding section may revoke that consent at any time. A wireless
telephone service provider shall comply with the subscriber's request to opt out within a
reasonable period of time, not to exceed sixty (60) days.

Section 19. Exceptions - The provisions of Section 17 shall not apply to the following
parties for the purposes indicated:

1) To a collection agency, to the extent disclosures made by the provider are
exclusively for the collection of the subscriber's unpaid debt to the provider;

2) To any law enforcement agency;

3) Toa lawful process issued by the court under the law;

4) To a telephone company providing service between service areas for the
provision to the subscriber or telephone service between service areas, or to third
parties for the limited purpose of providing billing services;

5) To a telephone company to effectuate a subscriber's request to transfer the
customer's assigned telephone number from the customer's existing provider of
telecommunications services to a new provider of telecommunications service
and

6) To the Commission pursuant to its jurisdiction and control over wireless
telephone providers,

Section 20. Penalties - Any director, officer or agent of a corporation who shall
authorize, order or perform any of the acts or practices constituting in whole or in part a
violation of Section 3, and who has knowledge or notice of noncompliance received by the
corporation from the Commission, shall upon conviction, be subject to a fine of not less than
One hundred thousand pesos (P100,000.00) but not more than One Million Pesos
(P1,000,000.00) or imprisonment of not less than six (6) years but not more than twelve (12)
years, or both upon the discretion of the court.

In case the violation is committed by, or in the interest of a juridical person duly
licensed to engage in business in the Philippines, such license to engage in business shall Iso be
immediately revoked.

Section 21. Authority of the Commission - the Commission shall enforce this Act in
the same manner and by the same means as though all applicable terms and provisions of the
Public Telecommunications Policy Act of the Philippines were incorporated into and made
part hereof, The Commission may prescribe regulations to carry out this Act.


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Section 22. Separability Clause - If any provision or part thereof, is held invalid or
‘unconstitutional, the remainder of the law or the provision not otherwise affected shall remain
valid and subsisting.

Section 23. 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.

Section 24, Effectivity Clause - This Act shall take effect fifteen (15) days after its
publication in at least two (2) newspapers of general circulation.

Approved,