Roll-over Internet Act

Senate Ollie of de brrictare TWENTIETH CONGRESS OF THE REPUBLIC OF THE PHILIPPINES 25 AU6 -7 P1 26 First Regular Session RECEIVED BY: SENATE S.B. No. 1094 Introduced by SEN. WIN GATCHALIAN AN ACT MANDATING AND INSTITUTIONALIZING ROLL-OVER DATA ALLOCATION SCHEME AND PROVIDING PENALTIES FOR NON-COMPLIANCE THEREWITH EXPLANATORY NOTE Active digitalization efforts from the government, coupled with the rapid evolution of the digital landscape in the Philippines beginning from the height of the COVID-19 pandemic, have significantly transformed how Filipinos perform day-to-day activities. As online learning, work-from-home arrangements, digital payments, and even online government transactions become more prevalent and popular, internet connectivity becomes even more of a necessity to everyone. While the Philippines has seen considerable improvement in terms of internet connectivity, with the country ranking sixth (6th) in the ASEAN in terms of internet penetration and speed in 2024, a considerable improvement from its previous gth ranking, the country still needs to catch up with global standards in connectivity. In the 2024 report of the ICT Development Index of the United Nations, the Philippines scored 74.4 in terms of universal and meaningful connectivity, an improvement of 14 percentage points compared to 2023. Despite this considerable improvement,

however, the Philippines remains below the world average score of 74.8 and was ranked the fifth lowest in the East and Southeast Asia region. 1 Considering the vital role of information and communications technology in nation building, as well as the undeniable role of internet connectivity in facilitating universal access to vital products and services, this proposed measure seeks to improve internet accessibility and affordability for Filipinos by directing all internet service providers (ISPs) to implement a roll-over data allocation scheme for their subscribers. Through this bill, unused data allocation for both postpaid and prepaid subscribers shall be carried over to the following day, week, or month until it is fully consumed, depending on the applicable internet data package. A mandatory roll-over data allocation scheme will allow internet subscribers to fully consume the data allocation in their internet data package, in accordance with their particular data needs and usage. This is especially helpful for subscribers who may not have access to, or be able to afford, higher internet data packages which allow for roll-over of unused data allocation. In view of the foregoing, the immediate passage of this measure is earnestly sought. 1 Raffy Ayeng, Ph/ seen to rank ASEAN's 3d strongest in internet connectivity in 2028, Daily Tribune, at https://tribune.net.ph/2024/07/13/phl-seen-to-rank-aseans-3rd-strongest-in-internet-connectivity-in-2028 (last visited June 26, 2025).

Scilate Olice Bi ls 30118854,24 m TWENTIETH CONGRESS OF THE REPUBLIC OF THE PHILIPPINES 25 AUG -7 P1 26 First Regular Session PECEIVEDRY:_ SENATE 1094 S. B. No. _ Introduced by SEN. WIN GATCHALIAN AN ACT MANDATING AND INSTITUTIONALIZING ROLL-OVER DATA ALLOCATION SCHEME AND PROVIDING PENALTIES FOR NON- COMPLIANCE THEREWITH Be it enacted by the Senate and the House of Representatives of the Philippines in Congress assembled:

SEC. 1. Title. - This Act shall be known as the "Roll-Over Internet Act".

SEC. 2. Declaration of Policy. - The State recognizes the vital role of

information and communications technology in nation building. The State shall implement measures for the regulation of internet service providers (ISPs) and ensure that the interest and welfare of the people and the consuming public are protected and upheld.

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

(a) Data Capping refers to the limit of bandwidth allocation an ISP is offering to its subscriber per day, week, or month; (b) Internet Data Package refers to the internet service packages, plans, or promos offered by ISPs with maximum limits on the open access data volume an end user may avail per set period of the package; (c) Internet Service Provider refers to any service-based operator whose services involve the combination of computer processing,

information storage, protocol conversion, and transmission to enable subscribers to access internet content and services as well as multimedia services and its transmission of data through digital subscriber line (DSL), fixed wireless broadband, cable broadband, fiber-optic or fiber-to-the-home (FTTH) and mobile data to enable subscribers to access internet content and services, as well as multimedia services; (d) Offer Duration refers to the length of time a subscriber or user is allowed to use an internet data package service and promos; (e) Roll-Over Data Allocation refers to the unused internet data allocation per day, week, or month, as the case may be, depending on the applicable internet data package, which shall be carried over to the following day, week, or month until it is fully consumed; and (f) Unlimited Internet Data Package refers to an internet service package with no data cap.

SEC. 4. Coverage. - All ISPs in the Philippines shall be covered by this

Act.

SEC. 5. Roll-Over Data Allocation Scheme. - All ISPs are required

to implement a Roll-Over Data Allocation Scheme for their subscribers as follows: (a) For postpaid subscribers or users: The rolled-over data allocation shall be prioritized to be consumed in the succeeding month: Provided, That the unused data every month shall be rolled-over and accumulated up until the last month of the year: Provided, further, That all unused data allocation for a year may be used and converted as rebates that may be used by subscribers as payment for internet service in the succeeding year of subscription. (b) For prepaid subscribers or users and postpaid subscribers who avail of internet data package promo offers:

(1) Unused data allocation shall be rolled over: Provided, That the subscriber or user renews the subscription right after the lapse of the offer duration; The unused data allocation of subscribers or users who fail (2) to renew subscription shall be reduced by twenty percent (20%) every day until the subscription is renewed; and (3) If after five (5) days, the subscription is not renewed, all unused data allocation shall be considered consumed.

SEC. 6. Exemptions. - Subscribers who availed and shall avail of any

unlimited internet data package with no data cap shall be exempted from this Act.

SEC. 7. Penalties. - Any ISP who fails to comply with Section 5 of this

Act shall be subject to the following penalties: (a) A fine of Fifty thousand pesos (Php 50,000.00) per violation per subscriber; and (b) For repeated violations, in addition to fine, revocation or cancellation of the license, registration or franchise of an ISP, including the waiving of any pre-termination fees of the affected subscriber.

SEC. 8. Implementing Rules and Regulations. - Within sixty (60)

days from the effectivity of this Act, the Secretary of the Department of Information and Communications Technology (DICT), in coordination with the National Telecommunications Commission (NTC) and other concerned agencies, shall promulgate the rules and regulations and other issuances as 25 may be necessary to ensure the effective implementation of this Act.

SEC. 9. Separability Clause. - Should any part or provision of this Act

27 be declared unconstitutional or invalid, the remaining parts or provisions not affected thereby shall remain in full force and effect.

SEC. 10. Repealing Clause. - All laws, decrees, executive orders,

issuances, rules, and regulations which may be inconsistent with any of the provisions of this Act, are hereby deemed repealed, amended, or modified accordingly.

SEC. 11. Effectivity. - This Act shall take effect fifteen (15) days after

6 its publication in the Official Gazette or in a newspaper of general circulation. Approved,