Prepaid Load Forever Act

hot of tear de TWENTIETH CONGRESS OF THE REPUBLIC OF THE PHILIPPINES 25 JUL 10 P3:10 First Regular Session SENATE RECEIVED BY: S. No. _ Introduced by Senator Jinggoy Ejercito Estrada AN ACT PROHIBITING ALL PUBLIC TELECOMMUNICATIONS ENTITIES AND INFORMATION AND COMMUNICATIONS TECHNOLOGY PROVIDERS FROM IMPOSING AN EXPIRATION PERIOD ON THE VALIDITY OF PREPAID LOAD CREDITS AND THEIR FORFEITURE EXPLANATORY NOTE There were 135 million mobile phone subscribers all throughout the country in 2024. Two leading telecommunications firms-PLDT Inc. and Globe Telecom-had a substantial amount of prepaid and postpaid mobile subscribers. For prepaid subscribers, PLDT had 68 million subscribers, Globe had a total of 58.47 million subscribers, while third telco player DITO's prepaid mobile subscribers reached 14 million. 1 This measure prohibits telecommunication companies from imposing an expiration period on the validity of prepaid load and forfeiture of load credits. Under this proposed legislation, it shall be unlawful for telcos to impose an expiration period on the validity of unused prepaid load credits, whether purchased via prepaid cards or electronic load, forfeit prepaid load credits on an active prepaid account, save for the purpose of availing of the mobile number portability service; and refuse to give a 1 Corporate filings and various news articles.

refund to any prepaid subscriber whose load credits were forfeited without any valid cause. However, if a prepaid account or prepaid number has become dormant, one peso (Php1.00) shall be deducted from its remaining load credits for every day of inactivity, until such remaining credits are fully consumed. This would allow telcos to offer or assign the dormant number to another subscriber. This measure would also effectively deter telcos from unduly imposing additional burden on their subscribers. This bill would also impose varying degrees of monetary fines and jail time penalties against any officer of the telco or the telco itself for violations of this Act. In view of the foregoing, approval of this bill is earnestly sought. Restat l JINGGOY EJERCITO ESTRADA

SPIREE Note of the seeing TWENTIETH CONGRESS OF THE REPUBLIC OF THE PHILIPPINES 25 JUL 10 P3:10 First Regular Session SENATE RECEIVED BY: S. No. _ Introduced by Senator Jinggoy Ejercito Estrada AN ACT PROHIBITING ALL PUBLIC TELECOMMUNICATIONS ENTITIES AND INFORMATION AND COMMUNICATIONS TECHNOLOGY PROVIDERS FROM IMPOSING AN EXPIRATION PERIOD ON THE VALIDITY OF PREPAID LOAD CREDITS AND THEIR FORFEITURE 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 "Prepaid Load Forever

2 ACt.

Sec. 2. Declaration of Policy. - It is hereby declared the policy of the State to

recognize the vital role of information and communications technology in nation- 5 building. It likewise recognizes the primary role of the private sector as an engine of 6 development. Towards this end, it is the duty of the State to intervene when the 7 common good so requires, including protecting the interests of consumers and promoting their general welfare. The State shall also implement measures to protect the consumer against unfair practices and facilitate sound choice and proper exercise of consumer rights.

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

a) Active Prepaid Account refers to a number with any activity involving voice, short messaging system (SMS) or text, mobile data, value added services (VAS), or any other telecommunications service; b) Dormant Prepaid Account refers to a number without any activity involving voice, short messaging system (SMS) or text, mobile data, value added

services (VAS), or any other telecommunications service within a period of one year; c) Information and Communications Technology or ICT refers to the totality of electronic means to access, create, collect, store, process, receive, transmit, present, and disseminate information; d) Information and Communications Technology or ICT Provider refers to any entity in the ICT sector, which includes telecommunications and broadcast information operators, ICT equipment manufacturers, multimedia content developers and providers, ICT solution providers, internet service providers, ICT training institutions, software developers, and ICT-ES providers; e) Prepaid refers to the type of account that requires its owners to purchase load credits before telecommunications services can be used; f) Prepaid Load Credits refers to the monetary value or the consumable amount loaded via prepaid card or electronic load to a device that enables a subscriber to use telecommunications services; g) Prepaid Subscriber refers to any person, natural or juridical, who avails of telecommunications services from a public telecommunications service from a public telecommunications entity and/or information and communication technology provider by purchasing credit in advance of service use. The purchased credit is used to pay for telecommunications services at the point the service is accessed or consumed; h) Public Telecommunications Entity or PTE refers to any duly authorized public telecommunications services to the public for a fee; and refers to any process which enables i) Telecommunications telecommunications entity to relay and receive voice, data, electronic messages, written or printed matter, fixed or moving pictures, words, music or visible or audible signals, or any control signals of any design and for any purpose by wire, radio, or other electromagnetic, spectral, optical or technological means.

Sec. 4. Prohibited Acts. - The following shall constitute prohibited acts of any

PTE or ICT provider and are hereby declared to be unlawful:

a) Imposition of an expiration period on the validity of unused prepaid load credits, whether purchased via prepaid cards or electronic load; b) Forfeiture of such prepaid load credits on an active prepaid account, save for the purpose of availing of the mobile number portability service; and c) Refusal to give a refund to any prepaid subscriber whose load credits were forfeited without any valid cause. In view of Section 4 (b), a prepaid account that has become dormant shall be deducted one peso for every day of inactivity from its remaining load credits until such credits are fully consumed.

Sec. 5. Penal Provision. - Any director, officer, employee, or agent of a PTE or

ICT provider providing prepaid telecommunications services who shall violate any of the acts mentioned under Section 4 hereof shall, upon conviction, be subject to the penalty of a fine of not less than One hundred thousand pesos (P100,000.00) but not to exceed One million pesos (P1,000,000.00) or imprisonment of not less than two (2) years but not more than six (6) years, or both, upon the discretion of the court. If the violation was committed by or in the interest of a juridical person duly licensed to engage in business in the Philippines, the following penalties shall be imposed: a) First offense - a fine of Five hundred thousand pesos (P500,000.00); b) Second offense - a fine of One million pesos (P1,000,000.00) plus suspension of license to engage in business for a period of thirty (30) days; and c) Third offense - a fine of Two million pesos (P2,000,000.00) plus immediate revocation of license to engage in business.

Sec. 6. Implementing Rules and Regulations (IRR). - Within ninety (90) days

from the effectivity of this Act, the National Telecommunications Commission shall coordinate with the Department of Information and Communications Technology and the Department of Trade and Industry to promulgate rules and regulations and other issuances as may be necessary to ensure the effective implementation of this Act, including the issuance of proper and adequate information dissemination of its contents and benefits to the general public. The IRR issued pursuant to this Act shall take effect fifteen (15) days after its

publication in a newspaper of general circulation.

Sec. 7. Separability Clause. - If any provision of this Act is held invalid or

unconstitutional, the other provisions not affected thereby shall remain in full force and effect.

Sec. 8. Repealing Clause. - All laws, decrees, executive orders, proclamations,

rules and regulations, and issuances, or parts thereof which are inconsistent with the provisions of this Act, are hereby repealed, amended or modified accordingly.

Sec. 9. Effectivity. - This Act shall take effect fifteen (15) days after its

9 publication in the Official Gazette or in any newspaper of general circulation. Approved,