Automatic Refund for Internet and Telecommunications Services Outage and Disruptions Act

Senate ‹Office of the Secretarp TWENTIETH CONGRESS OF THE ) 26 JAN 19 P3:43 REPUBLIC OF THE PHILIPPINES ) First Regular Session RECEIVED BY: SENATE S. No. 1672 Introduced by Senator Raffy T. Tulfo MANDATING PUBLIC TELECOMMUNACATIONS ENTITIES AND INTERNET SERVICE PROVIDERS TO INSTITUTE AN AUTOMATIC REFUND MECHANISM FOR SERVICE OUTAGES AND DISRUPTIONS, PROVIDING PENALTIES FOR VIOLATIONS THEREOF EXPLANATORY NOTE During the COVID 19 pandemic, the Filipinos were pushed to their limits having to adapt to restricted access and movement within the country due to health protocols. This necessitated Filipinos to study and work from home and basically rely on their home internet to make ends meet. This setup emphasized the importance of having consistent and stable internet connection. However, it also highlighted the lapses in internet access and customer service. According the Speedtest Global Index by Ookla, the Philippines is in the mid-tier range and ranks 73rd in December 2025 in mobile and broadband speeds ranking with internet speeds at a download speed median of 54.13 Mbps and upload speed median of 7.88 Mbps.1 Struggling to get online, internet in the Philippines is still expensive and hard for many people to use, with households spending a big part of their income on service that is not always reliable. Compared with other Southeast Asian countries, broadband costs in the Philippines, being higher than international targets, are among the most 1 https://www.speedtest.net/global-index/philippines - mobile

expensive. Thus, being among the most expensive internet services, this underscores the need for better quality of service, especially as livelihood, education, and communication are increasingly conducted online, making internet services a crucial public service in the country. This measure aims to ensure that consumers are not charged for internet services they did not use or for services that underperform. It establishes a fair billing mechanism and holds internet service providers and public telecommunications entities accountable through penalties for violations, encouraging improvements in both internet access and customer service. In view of the foregoing, immediate approval of this measure is earnestly sought. RAFFY T. TULFO jay 2 https://www.philstar.com/business/2023/12/04/2316194/connectivity-cost-philippines-weigh-consumer- pockets-first-two-parts

THE PHILIP RECEIVED A DAJAN 19 2026 2 TWENTIETH CONGRESS OF THE EN REPUBLIC OF THE PHILIPPINES TIME: 3.43 am First Regular Session BY: BILLS INDEX SENATE S. No. 1672 Introduced by Senator Raffy T. Tulfo 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 Title. - This Act shall be known as the "Automatic Refund for

2 Internet and Telecommunications Services Outage and Disruptions Act."

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

4 and communications technology in nation building. It shall implement measures to regulate internet and telecommunications services offered by public telecommunications entities (PTEs) and internet services providers (ISPs), to ensure reliable, accessible, and 7 affordable connectivity, responsive and effective customer service, and the protection and promotion of the rights and welfare of the consuming public.

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 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

13 Act.

Sec. 5. Network Maintenance. - In the conduct of their necessary network maintenance

15 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 17 scheduled network maintenance carried out from time to time by PTEs and ISPs, which 18 should be notified at least 48 hours in advance and which shall not exceed a cumulative 19 duration of 48 hours in a month, shall not be deemed as service outage. Likewise, the 20 unscheduled maintenance or the emergency network maintenance where a repair is needed to an internet equipment or facility that suffered from unexpected breakdown or 22 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 30 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, an in accordance with due process, 8 shall impose the following penalties: (a) A fine of not less than Fifty thousand pesos (Php 50,000.00) but not more than Two hundred thousand pesos (Php 200,000.00) 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 18 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 applications

23 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,