Lifeline Rate for Internet Services Act

TWENTIETH CONGRESS OF THE REPUBLIC OF THE PHILIPPINES 25 JUL 10 P6:32 First Regular Session SENATE RASHVAGE --- S. B. No. _ Introduced by Senator Rodante D. Marcoleta AN ACT ESTABLISHING A LIFELINE RATE FOR INTERNET SERVICES, AMENDING FOR THIS PURPOSE SECTION 17 OF REPUBLIC ACT NO. 7925, OTHERWISE KNOWN AS THE PUBLIC TELECOMMUNICATIONS POLICY ACT OF THE PHILIPPINES EXPLANATORY NOTE The United Nations, particularly in the 2016 Human Rights Council resolution, has emphasized the indispensable role of "internet access in exercising freedom of expression, facilitating access to information and protecting other fundamental rights." In this complex digital age, the internet is a platform for culture, education, and economy. In 2021, the Philippine Institute for Development Studies has reported that "despite the widespread cellular phone signal coverage and mobile device ownership, internet usage in the country remains low owing to poor and expensive internet connectivity and inadequate digital infrastructure, especially outside the National Capital Region." The Department of Information and Communications Technology established their target to increase the number of households with internet access nationwide from the current 44% in 2024 to 60% by 2028. Relatedly, their free public Wi-Fi program is "seen to benefit 9.8 million users across 1,401 cities and municipalities, United Nations Human Rights Council. The Promotion, Protection and Enjoyment of Human Rights on the Internet. A/HRC/RES/32/13, 1 July 2016, available at www2.0hchr.erg/enalish/bedies/hrcouncil/decs/32sessien/A.HRC.32.b.20.pdf. (tast accessed on July 07, 2025).

including 3,040 geographically isolated and disadvantaged areas." This issue of access must also simultaneously address affordability. Internet connectivity is a game-changing tool that defines income, dignity and access for every citizen. Moreover, the occurrence of natural disasters and pandemics in the past accelerated the need for internet access in expanding employment with work-from-home options, ensuring learning continuity in shift learning modalities, and assessing up-to-date information for informed decision-making. This measure aims to establish a lifeline rate for internet access, similar to electricity, in order to ensure assistance to low-income and connectivity-dependent households. Relatedly, it compliments Republic Act 10929 or the Free Internet Access in Public Places Act. In recognition of the right to internet access, the immediate approval of this bill is most earnestly sought. RODANTE D. MARCOLETA

TWENTIETH CONGRESS OF THE REPUBLIC OF THE PHILIPPINES 25 JUL 10 P6:32 First Regular Session RECHYATSE SENATE S. B. No.. Introduced by Senator Rodante D. Marcoleta AN ACT ESTABLISHING A LIFELINE RATE FOR INTERNET SERVICES, AMENDING FOR THIS PURPOSE SECTION 17 OF REPUBLIC ACT NO. 7925, OTHERWISE KNOWN AS THE PUBLIC TELECOMMUNICATIONS POLICY ACT OF THE PHILIPPINES 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 "Lifeline Rate for

Internet Services Act".

Sec. 2. Establishment of Lifeline Rate. - Section 17 of Republic Act No. 7925,

4 otherwise known as the Public Telecommunications Policy Act of the Philippines, is hereby amended to read as follows: "Sec. 17. Rates and Tariffs. - The Commission shall establish rates and tariffs which are fair and reasonable and which provide for the economic viability of telecommunications entities and a fair return on their investments considering the prevailing cost of capital in the domestic and international markets. The Commission shall exempt any specific telecommunications service from its rate or tariff regulations if the service has sufficient competition to ensure fair and reasonable rates or tariffs. The Commission shall, however, retain its residual powers to regulate rates or tariffs when ruinous competition results or when a monopoly or a cartel or combination in restraint of free competition exists and the rates or tariffs are distorted or unable to function freely and the public is adversely affected. In such cases, the Commission shall either establish a floor or ceiling on the rates or tariffs.

A BROADBAND AND DATA LIFELINE RATE FOR QUALIFIED MARGINALIZED INTERNET END-USERS SHALL BE SET BY THE COMMISSION. LIFELINE RATE REFERS TO A SOCIALIZED PRICING MECHANISM IN THE FORM OF APPLICABLE DISCOUNTS BASED ON CONSUMPTION THRESHOLDS. THE LEVEL OF CONSUMPTION AND CORRESPONDING DISCOUNT RATES SHALL BE DETERMINED BY THE COMMISSION AFTER DUE NOTICE AND HEARING: PROVIDED, THAT THE COMMISSION CANNOT SET A BASE LEVEL OF CONSUMPTION LESS THAN ONE (1) GIGABYTE PER MONTH OR A BASE DISCOUNT LOWER THAN THIRTY PERCENT (30%). QUALIFIED MARGINALIZED INTERNET END-USERS SHALL REFER TO THE FOLLOWING: (A) QUALIFIED HOUSEHOLD-BENEFICIARIES UNDER REPUBLIC ACT 11310, OTHERWISE KNOWN AS THE PANTAWID PAMILYANG PILIPINO PROGRAM (4PS) ACT, AS REGULARLY SUBMITTED BY THE DEPARTMENT OF SOCIAL WELFARE AND DEVELOPMENT TO THE COMMISSION, AND THE PUBLIC TELECOMMUNICATIONS ENTITY; OR (B) MARGINALIZED END-USERS AS CERTIFIED BY THE PUBLIC TELECOMMUNICATIONS ENTITY BASED ON A CRITERIA DETERMINED BY THE COMMISSION: PROVIDED, THAT THE CRITERIA SHALL TAKE INTO ACCOUNT THE POVERTY THRESHOLD SET BY THE PHILIPPINE STATISTICS AUTHORITY, AND PRIORITIZE MEMBERS OF INTERNET AND/OR CONNECTIVITY-DEPENDENT SEGMENTS OF SOCIETY SUCH AS STUDENTS, SENIOR CITIZENS, PERSONS WITH DISABILITIES, AMONG OTHERS AND SHALL CONTAIN AN EXCLUSIVE LIST OF REQUIREMENTS TO BE SUBMITTED TO THE PUBLIC TELECOMMUNICATIONS ENTITY: PROVIDED, FURTHER, THAT THE EXCLUSIVE LIST OF REQUIREMENTS AND THE PROCEDURE FOR THEIR SUBMISSION, WHICH SHALL BE SUBJECT TO THE REVIEW

AND SUPERVISION OF THE COMMISSION, SHALL NOT BE BURDENSOME FOR THE APPLICANT: PROVIDED, FINALLY, THAT THE PUBLIC TELECOMMUNICATIONS ENTITY SHALL ACT ON THE APPLICATION FOR CERTIFICATION AS QUALIFIED MARGINALIZED END-USER WITHIN TWO (2) WORKING DAYS FROM SUBMISSION OF COMPLETE DOCUMENTARY REQUIREMENTS, AND SHALL NOT UNREASONABLY WITHHOLD OR DELAY THE ISSUANCE OF SUCH CERTIFICATION. THE COMMISSION SHALL PROMULGATE GUIDELINES FOR QUALIFIED MARGINALIZED END-USERS WHOSE ACCOUNTS ARE NOT REGISTERED IN THEIR NAME."

Sec. 3. Harmonization with the Free Internet Access in Public Places Act. - The

implementation of this Act shall be harmonized with the implementation of the Republic Act 10929 or the Free Internet Access in Public Places Act.

Sec. 4. Mandatory Submission of Report to Congress. - The Department of

Information and Communications Technology (DICT) shall submit to the Congress of the Philippines, through the respective Chairpersons of the Senate Committee on Public Services and House Committee on Information and Communication Technology, a program report detailing the implementation every fiscal year. The program should include but not limited to: a. total number of househoid beneficiaries including relevant information, such as but not limited to, number of household members (including their age, sex), and location; and b. assessment of the impact of the program to the National Broadband Plan.

Sec. 5. Implementing Rules and Regulations. - Within sixty (60) days from the

effectivity of this Act, the DICT shall, in coordination with the National Telecommunications Commission and the Department of Social Welfare and Development, and in consultation with relevant stakeholders, promulgate the rules and regulations to effectively implement the provisions of this Act: Provided, That the

failure of the promulgation of the IRR shall not prevent the implementation of this Act upon its effectivity.

Sec. 6. Appropriations. - The amount necessary to carry out the implementation

4 of this Act shall be included in the DICT budget in the annual General Appropriations Act.

Sec. 7. Separability Clause. - If any provision or part of this Act is declared

invalid or unconstitutional, the remainder thereof not otherwise affected shall remain in full force and effect.

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

letters of instructions, proclamations or administrative regulations that 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 following its

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