CONGRESS OF THE PHILIPPINES TWENTIETH CONGRESS First Regular Session HOUSE OF REPRESENTATIVES H. No. 178 BY REPRESENTATIVES HOFER-HASIM, TIANGCO, ALMARIO (C.M.), PLEYTO, REVILIA (B.), MERCADO-REVILLA, REVILLA (R.J.), ARROGANCIA, NISAY, VILLAFUERTE (M.L.), DY (F.), MARCOS, RIVERA, ADIONG, VARGAS, GARCIA (M.A.), SINGSON (R.), IWAY, HORIBATA, DAZA, ROMAN, ROMULO, YNARES, ODUCADO, LAGDAMBO (J.M.), LAGON (S.), SALCEDA, GARCIA (K.H.), AUMENTADO, PADIERNOS, RODRIGUEZ (E.), QUIMBO, MATIBAG, CO, LACSON, BAUTISTA-LIM, ANGELES AND GARIN AN ACT MANDATING PUBLIC TELECOMMUNICATIONS ENTITIES AND INTERNET SERVICE PROVIDERS TO INSTITUTE AN AUTOMATIC REFUND MECHANISM FOR SERVICE OUTAGES AND DISRUPTIONS, PROVIDING PENALTIES FOR VIOLATIONS THEREOF Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:
SECTION 1. Short Titte, - This Act shall be known as "Automatic Refund for Internet
2 and Telecommunications Services Outages and Disruptions Act."
SEC. 2. Declaration of Policy. - The State recognizes the vital role of information
4 and communications technology in nation building. The State shall implement measures to regulate internet and telecommunications services offered by public telecommunications 6 entities (PTEs) and internet service providers (ISPs) and ensure that the interest and 7 welfare of its people, more particularly the consuming public, are protected and upheld.
SEC. 3. Definition of Terms. - As used in this Act:
(a) Fortuitous event refers to either an "act of God" or natural occurrences, such as floods, typhoons, storms, earthquakes and the like; or an "act of man", namely riots, strikes, wars, governmental prohibitions, robbery, theft, sabotage,
cyberattacks, deliberate destruction, or accidental damage to telecommunications facilities by third parties and the like; (b) Internet refers to the biggest global computer network providing a wide variety of information and communication facilities, consisting of interconnected networks using standardized communication protocols; (c) Internet access refers to the process of connecting to the internet using personal computers, laptops, or mobile devices by users; (d) Internet service provider (ISP) refers to a public telecommunications entity (PTE) or value-added service (VAS) provider duly authorized by or registered with the National Telecommunications Commission (NTC) that provides users or other entities with data connection allowing internet access through physical transport infrastructure, and such access is necessary for internet users to reach content and service on the internet, and for content providers to publish or distribute materials online; and (e) Public telecommunications entity or PTE refers to any person, firm, partnership or corporation, government or private, engaged in the provision of telecommunications services to the public for a fee.
SEC. 4. Coverage. - All PTEs, including ISPs in the Philippines shall be covered by
this Act.
SEC. 5. Network Maintenance. - In the conduct of their necessary network
maintenance to sustain or update their services, whether minor or major, the services provided by PTEs and ISPs may not be available. Thus, the planned repairs and improvements or the scheduled network maintenance carried out from time to time by 24 PTEs and ISPs, which should be notified at least 48 hours in advance and which shall not 25 exceed a cumulative duration of 48 hours in a month, shall not be deemed as service outage. Likewise, the unscheduled maintenance or the emergency network maintenance where a repair is needed to an internet equipment or facility that suffered from unexpected breakdown or change in condition, shall not be considered as service outage.
SEC. 6. Automatic Refunds for Internet and Telecommunications Service
Outages and Interruptions. - PTEs, including ISPs, shall, on a pro-rated basis, provide a refund credit to a customer, or adjust a customer's bill, who was adversely affected by an internet service outage or interruption for an aggregate period of twenty-four (24) hours or more, within a month, except when the reason for such outage is due to network maintenance, a fortuitous event, or acts of third party or subscriber.
The concerned PTEs and ISPs shall apply an automatic bill adjustment, without need for consumer to initiate request, after a standard process but shall not preclude the consumer from filing a complaint to the appropriate administrative or quasi-judicial agency for disputes regarding refund or bill adjustment amount The refund credit granted under the circumstances mentioned supra, shall likewise be granted to customers subscribing to a service on a pre-paid basis.
SEC. 7. Penalties. - Any PTE or ISP who fails to comply with any of the provisions
of this Act, the NTC may, motu proprio or upon complaint of any interested party, in the appropriate administrative or quasi-judicial process, and in accordance with due process, shall impose the following penalties: (a) A fine of not less than Fifty thousand pesos (P50,000.00) but not more than Two hundred thousand pesos (P200,000.00) for each count of violation; and (b) For repeated violations, aside from fine, revocation or cancellation of the license, registration or franchise of the PTEs or ISPs, whichever applies, including the waving of any pre-termination fees of affected subscribers and timely disbursement of any remaining credits from excessive downtime.
SEC. 8. Implementing Rules and Regulations. - Within sixty (60) days after the
effectivity of this Act, the NTC shall, in coordination with the Department of Information and Communications Technology, and other concerned agencies, promulgate the rules and regulations necessary to ensure the effective implementation of this Act.
SEC. 9. Repealing Clause. - All laws, presidential decrees, executive orders,
proclamations, rules and regulations, or any part thereof, which are inconsistent with the provisions of this Act are hereby repealed or modified accordingly.
SEC. 10. Separability Clause. - If any provisions or part of this Act, or the
application thereof to any person or circumstance, is held unconstitutional or invalid, the remainder of this Act shall not be affected thereby.
SEC. 11. Effectivity. - This Act shall take effect fifteen (15) days after its publication
in the Official Gazette or in a newspaper of general circulation. Approved,