EIGHTEENTH CONGRESS
OF THE REPUBLIC OF THE PHILIPPINES }
First Regular Session )

HOUSE OF REPRESENTATIVES

House Bill No._ 23!

Introduced by Representative Victor A. Yap

EXPLANATORY NOTE

In 2017, there are approximately 119 million mobile phone subscriptions in the country
around 96% or 114 million of which are prepaid, according to a report by technology site
Yugatech.com. This shows that subscribers prefer the convenience and affordability of prepaid
subscription. Unlike postpaid subscription where users are required to submit identification papers
before entering into a contract with a public telecommunications entity, prepaid mobile phone
users can activate their SIM (subscriber identity module) cards, which can be bought almost
everywhere, and use their phones while remaining anonymous.

Unfortunately, unscrupulous individuals take advantage of such accessibility and
untraceable nature of prepaid SIM cards to carry out illegal activities. We hear rampant cases of
text scams such as the "raffle draw winner" scam, and the "relative asking for load" scam. Worse,
kidnappers exploit this blanket of anonymity to demand ransom, while terrorists make use of
mobile phones as trigger devices to defuse bombs, killing and injuring many innocent victims.

This bill aims to promote accountability for the use of mobile phones by mandating SIM
card registration. This measure seeks to regulate the sale and distribution of SIM cards by requiring
users to present their valid ID at purchase. All public telecommunications entities will also be
required to maintain a SIM Card Register of their subscribers’ data to be submitted to the
Department of Information and Communications Technology.

In view of eradicating prepaid phone-aided crimes, the passage of this bill is earnestly
sought

Representative, 2nd District of Tarlac


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EIGHTEENTH CONGRESS
OF THE REPUBLIC OF THE PHILIPPINES )
First Regular Session )

HOUSE OF REPRESENTATIVES
298

‘House Bill No. _“~

Introduced by Representative Victor A. Yap

AN ACT
REQUIRING THE REGISTRATION OF ALL USERS OF SUBSCRIBER IDENTITY
MODULE CARDS.

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

SEC. 1. Short Title. - This Act shall be known as the “Subscriber Identity Module (SIM)
Card Registration Act”.

SEC. 2. Declaration of Policy. — ‘the State recognizes the vital role of information and
communications technology in nation building.

‘The introduction of modern telecommunications technology with the view of providing
the widest information dissemination is greatly encouraged, but possession of the most modern
technology carries with it tremendous responsibility. Thus, a mechanism must be installed to
maximize the benefits of modem telecommunications technology and to deter illegal or malicious
utilization of the same that benefit only a few.

‘Towards this end, the State shall require the registration of all users of subscriber identity
module (SIM) cards. :

SEC. 3. Definition of Terms. — As used in this Act:

(a) Direct seller refers to a person, natural or juridical, who directly dispenses or sells a
‘SIM card to an end user;

(b) End user refers to any individual/subscriber who directly purchases a SIM card from a
direct seller;

(© Postpaid subscription refers to the subscription wherein service is provided by virtue of
‘@ prior arrangement with a public telecommunications entity, and the end user
thercof is billed at the end of the monthly billing cycle according to the use of mobile

servi

(@) Prepaid subscription refers to the subscription wherein credit is purchased in advance of
service use. The purchased credit is used to pay for mobile phone services at the
point the service is accessed or consumed. If there is no available credit, then access

to the requested service is denied;


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(© Public Telecommunications Entity or PTE refers to any person, natural or juridical,
government or private, engaged in the provision of telecommunications services to
the public for compensation;

() SIM refers to the Subscriber Identity Module which is an embedded circuit that
securely stores international mobile subscriber identity and related keys used to
identify and authenticate subscribers on mobile devices, such as mobile phones and
computers;

@ SIM card refers to a removable card into which an electronic integrated circuit is
embedded and _ is transferrable between different mobile devices; and

(h) SUM curd registration refers to the process of recording and verifying mobile phone
number and personal information of a subscriber, by a PTE or other direct seller,
including the subscriber's full name, date of birth, gender, and address.

SEC. 4. Sale and Registration of SIM Cards. — Every PTE or direct seller shall require

the end user of a SIM card to present valid identification with photo to ascertain the latter’s
identity. The PTE. or direct seller shall further require the end user to accomplish and sign a
control-numbered registration form issued by the respective PTE of the SIM card purchased. The
registration form shall include an attestation by the end user that the person appearing before the
direct seller is the same person who accomplished and signed the registration form and that the
identification documents presented are valid and correct. Failure of an end user to comply with the
requirements under this section shall be a ground for the PTE or direct seller to refuse the sale and
issuance of a SIM card.

Except in cases where the PTE is the direct seller, the accomplished registration form must
be submitted by the direct seller to the concerned PTE within fifteen (15) days from the date of
sale, Failure on the part of the direct seller to comply under this section shall constitute a violation

of this Act.

SEC. 5. Coverage of Registration, - All direct sellers are hereby mandated to register the
following information in the SIM card registration form:

(@ Full name, date of birth, gender, and address of the end user appearing in a valid
government-issued identification document with photo. SIM card end users shall be required to
present the original copy of any of the following valid government identification documents (ID)
with photo:

(1) Passport;

2) Digitized Social Security Service (SSS) ID;

) Government Service Insurance System (GSIS) e-Card;
() Driver's license;

(5) Virearms’ License to Own and Possess (LTOP) ID;
(6) Professional Regulation Commission (PRC) ID;


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(Integrated Bar of the Philippines (IBP) ID;

(8) Overseas Workers Welfare Administration (OWWA) ID;
(9) Digitized Bureau of Internal Revenue (BIR) ID;

(10) Voter’s ID;

(11) Senior Citizen’s card;

(a2)

(PWDs) card; or

(13) Other government issued ID.

In the absence of any of the above IDs, a National Bureau of Investigation (NBI)

clearance, police clearance, or a Philippine Statistics Authority (PSA) certified birth certificate with
an ID picture taken within the last six (6) months prior to the purchase of a SIM card shall suffice.

‘The direct seller may make further inquiries or require the submission of additional identification,

if necessary. The purchase of a SIM card may be withheld pending submission of the additional

requirements;

(b) Assiy;ned cell phone number of SIM card(s) and its serial number.

In the case of end users who are foreign nationals, they shall register their full name,

passport number, and address in the SIM card registration form upon presentation of the

following:

(1) For foreign nationals visiting as tourists for not more than thirty (30) days:

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a)
(iii)

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Passport;

Proof of address in the Philippines;

Re(urn ticket to own country of the tourist or any other ticket showing the date and
time of departure from the Philippines; and

Any other information as may be required by the Department of Information and

Communications Technology (DICT); and

(2) For foreign nationals staying for more than thirty (30) days cither as workers or

students:

10}

Passport;

(i) Full name as indicated in the passport;
(ii) Proof of address in the Philippines;
(iv) Alien Employment Permit issued by the Department of Labor and Employment

(DOLE), school registration and ID for students; and

(8) Any other information as may be required by the DICT.

SEC.
accomplished

6, Submission of Registration Form. — ‘The registration form shall be
in triplicate, and forwarded by the direct seller to the concemed PTE. The

concerned PTE shall submit a copy of the duly accomplished registration form to the DICT within

fifteen (15) days from the date of sale or receipt of such form from their respective direct sellers.

‘The required registration form and copies thereof shall be certified by the direct seller or any other


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duly appointed officer of the PTE.

SEC. 7. Submission of Verified List of Dealers or Agents. - The PTE shall submit to
the DICT, within thirty (30) days from the date of effectivity of this Act, a verified list of their
current authorized dealers/agents nationwide. The PTE shall submit to the DICT and National

‘Telecommunications Commission (NTO) every quarter of each year an updated list of the same.

SEC. 8. Confidentiality Clause. - Any information in the SIM card registration shall be
treated as absolutely confidential, unless access to information has been granted upon written
consent of the subscriber: Provided, That the waiver of absolute confidentiality shall not be made a
condition for the approval of subscription agreements. The confidentiality clause in the SIM card

registration shall take effect at the point of sale.

SEC. 9. Disclosure of Information. - Notwithstanding the provisions of Section 8 hereof
and in accordance with Section 12(¢) of Republic Act No. 10173, otherwise known as the “Data
Privacy Act of 2012”, the PTE or the DICT shall be required to disclose the full name and address
contained in the SIM card registration, upon a duly issued subpoena or order of a court upon
finding of probable cause, or upon written request from a law enforcement agency in relation
to an ongoing investigation, that a particular number is used in the commission of a crime or that it

was used as a means to commit an unlawful act.

SEC. 10. SYM Card Register. - All PTEs are required to maintain a SIM Card Register of
their subscribers containing information required under Section 5 of this Act and to submit the
same to the DICT every six (6) months.

In case of loss of a SIM card or any change in information contained in the registration
form after purchase of the SIM card, the subscriber shall notify the PTE within forty-eight (48)
hours from such loss or change in information. Within fifteen (15) days from receipt of
notification from the subscriber, the concerned PTE must notify the DICT of such loss or change
in information.

All PTEs are required to keep the data of theie subscribers and the DICT shall ensure that
this data is kept with utmost confidentiality.

SEC. 11, Registration of Existing Prepaid Mobile Phone Subscribers. — All existing
mobile phone subscribers with prepaid SIM cards are required to register with their respective
PTE. within one hundred eighty (180) days from the effectivity of this Act. An extension period of
no longer than one hundred twenty (120) days shall be allowed upon a valid written request to the
bicr

Failure to register within the prescribed period shall authorize the PTE to automatically

deactivate its services to the concerned prepaid SIM card subscriber.


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SEC. 12. Penalties. — The following penalties shall be imposed for failure to comply with

any of the provisions of this Act:

@) IF the offense is committed by a PTE, the President and other executive officers
shall be held liable, and the following penalties shall be imposed:
(1) First offense: a fine not exceeding Three hundred thousand pesos
(P300,000.00);
(2) Second offense: a fine not exceeding Five hundred thousand pesos
(P500,000.00);and
(3) Third and subsequent offenses: a fine not exceeding One million pesos
(P1,000,000.00) for every offense;

(b) If the offense is committed by a direct seller, a penalty of suspension of its
operation and a fine of Five thousand pesos (P5,000.00) to Fifty thousand pesos
(P50.000.00) shall be imposed; and

(©) If the offense is committed by an officer or employee of an implementing agency
under this Act, a penalty of suspension or dismissal from service and a fine to be
determined by the court shall be imposed without prejudice to the filing of an

appropriate criminal, civil and administrative case,

SEC. 13. Implementing Rules and Regulations (IRR). - Within ninety (90) days from
the effectivity of this Act, the DICT shall, in coordination with the NTC and other concerned
agencies, promulgate the rules and regulations and other issuances as may be necessary to ensure

the effective implementation of this Act.

SEC. 14. Transitory Provision. - Only direct sellers who have been duly authorized by
the PTEs and the NTC shall be allowed to sell prepaid SIM cards. Upon the effectivity of this Act,
all PTEs are mandated to recall all prepaid SIM cards for sale to the public by those establishments
not authorized by it. Otherwise, they shall be liable for the penalties prescribed in this Act.

SEC. 15, Separability Clause, — Should any part of this Act be declared unconstitutional
or invalid, the other provisions hereof that are not affected thereby shall continue to be in full

force and effect.

SEC. 16, Repealing Clause. - All laws, decrees, executive orders, proclamations, rules and
regulations, and issuances, or parts thereof which are inconsistent with the provisions of this Act

are hereby repealed, amended or modified accordingly.


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SEC. 17. Effectivity. - This Act shall take effect fifteen (15) days after its publication in
the Official Gazette or in any newspaper of general circulation.

Approved,