HOUSE OF REPRESENTATIVES

HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH (17TH) CONGRES:
First Regular Session

RESISTRATION UNIT
BILLS AND INDEX SERVICE

House Bill No,_2&04

Introduced by: Rep. BERNADETTE R. HERRERA-DY

AN ACT AUTHORIZING THE NATIONAL TELECOMMUNICATIONS,
COMMISSION TO IMPLEMENT A PER PULSE BILLING SCHEME FOR
‘TELECOMMUNICATIONS COMPANIES, AND FOR OTHER PURPOSES.

EXPLANATORY NOT

This bill seeks to authorize the NTC to implement a mobile voice service billing scheme
of 6 seconds per pulse, down from a 60 seconds per pulse (per minute billing), in order
to protect consumers from excessive mobile phone charges.

Presently, in a total population of 101 million more or less, there are 119 million mobile
phone subscriptions ~ a 117% penetration rate.' This number is expected to grow in
time.

The prevailing billing method is based on the number of minutes a mobile call consumed,
However, our findings show that the per-minute billing scheme does not provide
consumers a fair and reasonable method since most calls do not terminate exactly at the
end of a minute, Subscribers are still charged for the whole minute even if they consume
less than sixty seconds,

‘The Constitution, through Section 24, Article 2, fully recognizes the vital role of
communications in nation building and provides for the emergence of communications
structures suitable to the needs and aspirations of the nation.

The promotion of competition in the telecommunications market is a key objective of
Republic Act No. 7925, otherwise known as The Public Telecommunications Policy Act

‘4 Profile of Internet Users. inthe ‘Philippines, -—-Rappler, {no date]
|htp://www.rappler convbrandrap/profile-intemet-users-phi'sources (last accessed on July 27, 2016)


of the Philippines, which mandates that “a healthy competitive environment shall be
fostered, one in which telecommunications carriers are free to make business decisions
and interact with one another in providing telecommunications services, with the end in
view of encouraging their financial viability while maintaining affordable rates.””

Furthermore, Sec. 4(d) of R.A. No. 7925 provides that rates and tariff charges shall be
fair, just and reasonable.

Pursuant to R.A. No. 7925 and in order to protect and promote the interest of
subscribers/end-users,’ it is essential to decrease the maximum unit of billing for the
cellular mobile telephone service whether postpaid or prepaid to six (6) seconds per
pulse.

‘The use of per-pulse billing scheme is increasingly an industry practice all over the world.
The Philippines remains to be one of the few countries in the world where subscribers
are charged by the minute, and no less, on mobile phone calls.’ With the implementation
of the six-second per-pulse billing scheme, average subscribers are expected to realize
larger savings and our telecom charging system will be aligned to international
standards*

Pursuant to the provision of its existing charter, Executive Order No. 546, the National
Telecommunications Commission is empowered to regulate the telecommunications
industry. One of its powers, under Section 15, paragraph k of the said Executive Order,
permits the Commission to perform such other functions as may be provided for by law.
Hence this bill seeks to authorize the Commission to require, if it finds necessary and in
the interest of the public, to the billing of cellular phone charges on a per pulse basis, to
be implemented by the NTC accordingly.

In view of the foregoing, the approval of this bill is earnes

fy recommended.

DETTE HERGERA-DY

2 Memorandum circular 05-07-2009. nic.gov.ph. retrieved June 7, 2012 from

hup://r7.ntc. gov. ph/index.php?option=com_content&view=article&id=11 6&ltemid=53,

Sid.

* CA orders telecom firms to comply with ‘per pulse” billing, Znguirer News Online. Retrieved June 7,
2012 from hitp://business. inquirer. nel/42555/ca-orders-telecom-firms-to-comply-with-%E2%80%98per-
pulse%E2%80%99-billing

Sid.



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH (17TH) CONGRESS
irst Regular Session

2264

House Bill No.

Introduced by: Rep. BERNADETTE R. HERRERA-DY

AN ACT AUTHORIZING THE NATIONAL TELECOMMUNICATIONS
COMMISSION TO IMPLEMENT A PER PULSE BILLING SCHEME FOR
TELECOMMUNICATIONS COMPANIES, AND FOR OTHER PURPOSES.

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

SECTION 1. Short Title. This Act shall be known as “The Per Pulse Mobile Voice
Service Billing Act.”

SECTION 2. Declaration of Policy. The State recognizes the vital role of the
telecommunications industry in national growth and development. Towards this end, the
State shall protect the interests of consumers by providing an internationally acceptable and
consumer friendly unit of measure for call charges.

SECTION 3. Definition of Terms. - For purposes of this Act, the following terms are
hereby defined:

a) “Call” - refers to the moment a receiver is connected to a caller;
b) “Caller” - refers to the person dialing a mobile phone number;
c

“Receiver” - refers to the person attempting to be contacted by the caller;

d) "Cellular mobile phone” - refers to any wireless telephone that communicates with a
local transmitter using a short-wave analog or digital transmission. This definition
includes units that are capable of relaying and receiving visible and/or audible
electronic messages;


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e) "Commission" - refers to the National Telecommunications Commission;

£) "Postpaid" - refers to a conventional method of payment for wireless service where
a subscriber pays for a significant portion of services and usage in arrears, subsequent
to consuming the services;

2) "Prepaid" - refers toa method of payment for wireless service that allows a subscriber
to prepay a set amount of airtime in advance of actual usage;

h) “Pulse” ~ refers to a period of 6 seconds;

i) "Provider" - refers to every cellular mobile phone service provider or any profit-
oriented entity or company that provides wireless telecommunications to its
subscribers;

j) “Special Prefixes” ~ refers to codes or combinations added before the actual contact
number of the receiver in order to opt out of the per-minute billing scheme when
making a call.

k) "Subscriber" - refers to a user of wireless service bought from a provider or a person
who avails the cellular mobile phone services offered by a provider; and

SECTION 4. Default Rules for Call Billing. Unless the Commission sets a different

billing scheme subsequent to the effectivity of this Act, the following default rules shall
apply:

1. The standard unit of billing for the cellular mobile call whether postpaid or prepaid
shall be six (6) seconds per pulse.

2. Existing authorized rates shall be adjusted correspondingly. The rate for the first two
(2) pulses, or its equivalent if a lower period per pulse is used, may be higher than
the succeeding pulses to recover the cost of the call set-up; provided, however, that
the first two (2) pulses or their equivalent shall not be substantially more onerous to
the subscriber than a standard six (6) seconds pulse.

3. A call shall only be billed from the moment the receiver accepts the phone call of the
caller.

4, Providers shall submit to the Commission their respective proposed rates based on
the herein prescribed unit of billing within thirty (30) days from the effectivity of this
Act.

SECTION 5. Exceptions.
1) International call service shall not be covered.

2) Subscribers may opt to be billed on a one (1) minute per pulse basis or to subscribe to
unlimited service offerings or any service offerings if they actively and knowingly
enroll in the billing plan; provided, that such plan or billing system would lead to

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significantly no less onerous results to the subscriber had the latter enrolled in per
pulse billing.

SECTION 6. Amendment of Agreements. Interconnection agreements between cellular
mobile telephone service providers (CMTS) and between CMTS providers and other
interconnecting network and service providers shall be amended to incorporate the herein
prescribed unit of billing within thirty (30) days from the effectivity of this Act.

SECTION 8, Mandatory Nature of Billing. Service providers are prohibited from
requiring subscribers to dial special prefixes or their functional equivalent when making calls
to be able to opt out of per-minute charging that would negate the mandatory nature of the
proposed billing.

SECTION 7. Implementing Agency. The Commission shall be the implementing
agency charged with carrying out the provisions of this Act, with authority to assign the
direct executive control of the enforcement of its provisions and the rules and regulations
that may hereafter be promulgated to such representatives, bureau, office or service as the
Commission may designate.

SECTION 8. Separability Clause. In the event that any provision of this Act is declared
unconstitutional, invalid, or illegal, the constitutionality, validity, or legality of the remainder
of the provisions of this Act shall not be affected thereby.

SECTION 9. Repealing Clause. All laws, presidential decrees, letters of instructions,
executive orders, administrative orders, rules, regulations, and other issuances or parts
thereof which are contrary to or inconsistent with the provisions of this Act are hereby
revoked, repealed or modified accordingly

SECTION 10. Effectivity. This Act shall take effect fifteen (15) days following the
completion of its publication in any two (2) national newspapers of general circulation

Approved...

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