Roll-over Internet Act

Senate Office of the Ecretary TWENTIETH CONGRESS OF THE ) 26 JAN 19 P3:42 REPUBLIC OF THE PHILIPPINES ) First Regular Session RECEIVED BY: SENATE 5. No. 1671 Introduced by Senator Raffy T. Tulfo MANDATING AND INSTITUTIONALNZANG ROLL-OVER DATA ALLOCATION SCHEME AND PROVIDING FOR PENALTIES EXPLANATORY NOTE In 2023, there has been a recorded 134,739,253 mobile-cellular telephone subscribers in the Philippines, according to statistics from the National Telecommunications Commission. 1 Reports likewise provide that prepaid internet services continue to dominate the Philippine telecommunications market, particularly among younger users and households seeking low cost internet. Despite regular usage and renewal, prepaid subscribers continue to lose unused data due to fixed expiration periods. The same report notes that Globe's GFiber Prepaid product has a reload rate of seventy- eight percent (78%) and serves more than 260,000 subscribers, many of whom purchase short-duration plans to which current policies allow unused data to lapse, resulting in the forfeiture of value already paid for.? This bill aims to eliminate the expiration period for prepaid load credits and to allow unused postpaid data to roll over into the succeeding month. This ensures that consumers are able to fully utilize the services they have already paid for, rather than losing credits or data because of fixed expiration periods. Furthermore, this measure 1 https://ictstatistics.dict.gov.ph/wp-content/uploads/2024/07/Connectivity-Data June-2024.pdf 2 https://www.philstar.com/business/2025/04/08/2434218/young-pinoys-prefer-prepaid-plans-globe

supports broader access to digital services, particularly for users who rely on connectivity for their livelihood, education, and communication. In view of the foregoing, immediate approval of this measure is earnestly sought. RAFFY T. TULFO jay

Senate Office of the Secretary TWENTIETH CONGRESS OF THE ) JAN 19 P3:42 REPUBLIC OF THE PHILIPPINES ) First Regular Session RECEIVED BY: 5. No._ SENATE 1 Introduced by Senator Raffy T. Tulfo MANDATING AND INSTITUTIONALNANG ROLL-OVER DATA ALLOCATION SCHEME AND PROVIDING FOR PENALTIES Be it enacted by the Senate and House of Representatives of the Philippines in Congress Assembled:

Section 1. Short 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. It shall implement measures to regulate internet services provided by internet service providers (ISPs) to ensure accessible and affordable connectivity, and to protect and uphold the interests and welfare of the people and the consuming public..

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

(a) Data Capping refers to the 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 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; (f) Unlimited Internet Data Package refers to an internet service package with no data cap. (g) Year refers to twelve (12) calendar months, beginning on the date of subscription for prepaid users or on the start of the applicable billing cycle for postpaid users.

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 preceding month: Provided, That the unused data every month will 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; (2) The unused data allocation of subscribers or users who fail 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 any of the provisions of this Act,

the following penalties shall be imposed: (a) A fine of Fifty thousand pesos (Php 50,000.00) per violation per subscriber; and, (b) For repeated violations, aside from fine, revocation or cancellation of the license, registration or franchise of an ISP including the waiving of any pre-termination fees of 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, in coordination with the National Telecommunications 14 Commission and other concerned agencies, shall promulgate the rules and regulations 15 and other issuances as may be necessary to ensure the effective implementation of this Act.

Sec. 9. Separability Clause. - Should any part or provision of this Act 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 contrary to, or inconsistent with any of the provisions of this Act, are hereby 22 deemed repealed, amended, or modified accordingly.

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,