Senate Office of the Secretary TWENTIETH CONGRESS OF THE REPUBLIC OF THE PHILIPPINES First Regular Session SENATE RECEIVED BY: Senate Bill No._ 2039 Introduced by Senator Erwin T. Tulfo AN ACT PROVIDING FOR AUTOMATIC REFUND FOR INTERNET AND TELECOMMUNICATIONS SERVICES OUTAGE AND DISRUPTIONS, AND PROVIDING PENALTIES THEREFOR EXPLANATORY NOTE Sections 24, Article II of the 1987 Constitution provides that the State recognizes the vital role of communication and information in nation-building. At present, reliable, accessible, and affordable internet and telecommunications services have become indispensable not only for communication but also for education, commerce, governance, and exercise of fundamental rights. However, persistent service outages and disruptions that are often without compensation continue to burden Filipino consumers undermining public trust and economic productivity. This bill seeks to establish a system of automatic refunds and service credits for internet and telecommunications outages and disruptions. By mandating service providers to compensate subscribers without the need for claims or complaints, the proposed legislative measure will promote accountability, fairness, and transparency in the delivery of essential digital services.
Likewise, this measure aligns with the state's policy under Republic Act No. 7394, known as the Consumer Act of the Philippines to protect consumers against inadequate services and to ensure fair and equitable business practices. In view of the foregoing, the passage of the measure is earnestly sought. ERWIN T. TULFO
Senate TWENTIETH CONGRESS OF THE Office of the Secretary REPUBLIC OF THE PHILIPPINES First Regular Session 26 APR 13 P3:31 RECEIVED BY: SENATE Senate Bill No. 2039 Introduced by Senator Erwin T. Tulfo AN ACT PROVIDING FOR AUTOMATIC REFUND FOR INTERNET AND TELECOMMUNICATIONS SERVICES OUTAGE AND DISRUPTIONS, AND PROVIDING PENALTIES THEREFOR Be it enacted by the Senate and the House of Representatives of the Philippines in Congress assembled:
SECTION 1. Short Title. - This Act shall be known as the
2 Automatic Refund for Internet and Telecommunications Services 3 Outage and Disruptions Act."
SEC. 2. Declaration of Policy. - It is hereby declared the policy
6 of the State to protect the rights of consumers to reliable and 7 uninterrupted telecommunication and internet services. Likewise, the State recognizes that service disruptions and outages adversely affect individuals, businesses, and the national economy. Accordingly, service providers shall ensure fair compensation in the event of service interruptions.
SEC. 3. Definition of Terms. - As used in this Act:
a) Consumer refers to any subscriber, user, or customer of telecommunications or internet services in the Philippines;
b) Internet Services refers to broadband, fiber, mobile data, and other internet connectivity services provided to consumers; c) Service Outage or Disruption refers to any unplanned interruption of service lasting longer than one (1) hour; d) Service Provider refers to any telecommunications or internet service provider operating under the regulations of the National Telecommunications Commission (NTC); and e) Telecommunications Services refers to all voice, data, and text services provided by telecommunications entities.
SEC. 4. Automatic Refund or Credit. - In the event of service
outage or disruption, the service provider shall automatically provide a refund or bill credit to affected consumers without requiring the consumer to file a complaint. Provided, That refunds or credit shall be proportionate to the duration of the service outage. Provided, further, That refunds or credit must be applied to the next billing cycle, upon request of the consumer, or issued by any other means as provided by the service provider.
SEC. 5. Exemptions. - Automatic refund or credit shall not
apply in the following cases: a) Force majeure events, including natural disasters, acts of war, or national emergencies; b) Scheduled repairs and maintenance with prior notice of at least forty-eight (48) hours; and c) Subscriber-caused interruptions, including device malfunction or unauthorized modifications.
SEC. 6. Unscheduled Network Repairs and Maintenance. —
Unscheduled maintenance or any emergency network maintenance
1 where a repair is needed to an internet equipment or facility that 2 suffered from unexpected breakdown or change in condition shall not 3 be considered as service outage or disruptions.
SEC. 7. Monitoring and Compliance. - The NTC shall monitor
6 the compliance of service providers under this Act. It shall publish 7 annual reports on service outages and compliance by service providers. Likewise, service providers shall submit quarterly reports to the 10 NTC on outages, disruptions, conduct of repairs and maintenance, and 11 refunds issued.
SEC. 8. Penalties. - A service provider 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, shall impose the following penalties: a) A fine of Fifty Thousand Pesos (P50,000.00) but not more than Two Hundred Thousand Pesos (P200,000.00) for each count of violations; and b) For repeated violations, aside from fine, revocation or cancellation of the license, registration or franchise of the service provider, whichever is applicable, including the waiving of any pre-termination fees of affected subscribers and timely disbursement of any remaining credits from excessive downtime.
SEC. 9. Implementing Rules and Regulation. - Within sixty
(60) days from the effectivity of this Act, the NTC, in coordination with the Department of Information and Communications Technology (DICT) and other concerned agencies, shall promulgate the rules and regulations and other issuances as may be necessary to ensure the effective implementation of this Act.
SEC. 10. Separability Clause. - Should any provision of this Act
2 or part hereof be declared unconstitutional, the other provisions or parts 3 not affected thereby shall remain valid and effective.
SEC. 11. Repealing Clause. - All laws, decrees, executive orders,
6 issuances, rules and regulations or parts thereof which are inconsistent 7 with this Act are hereby repealed or modified accordingly.
SEC. 12. Effectivity. - This Act shall take effect fifteen (15) days
10 after its publication in the Official Gazette or in at least two (2) 11 newspapers of general circulation. Approved,