The House of Representatives passed House Bill No. 178 on December 22, aiming to provide automatic refunds to internet and telecom subscribers for prolonged service outages. The measure covers both postpaid and prepaid customers without requiring them to file requests. It addresses the recurring issue of unreliable internet in the Philippines.
On December 22, the House of Representatives passed House Bill No. 178, known as the Automatic Refund for Internet and Telecommunications Services Outages and Disruptions Act. Bill author Zamboanga Representative Marlesa Hofer-Hasim noted, “This results in financial loss, inconvenience, and unfair charging practices, especially among remote workers, online students, and prepaid subscribers.” The legislation tackles the challenge of unreliable internet in the country, where the Philippines ranked among the worst globally for reliability in 2024 according to OpenSignal.
Refunds are automatic and pro-rated based on the duration of service unavailability, triggered when outages total 24 hours or more within a single month. Exclusions include scheduled maintenance announced at least 48 hours in advance and not exceeding 48 hours monthly, natural disasters like typhoons or earthquakes, or disruptions caused by third parties or the subscriber. For unplanned interruptions, telcos and internet service providers must apply bill adjustments automatically, overseen by the National Telecommunications Commission (NTC) and the Department of Information and Communications Technology (DICT).
Prepaid subscribers are explicitly included, ensuring equal protection. Customers can still dispute refund calculations if needed. Penalties for violators include fines from P50,000 to P200,000 per offense, with repeated violations risking license suspension or cancellation, plus mandatory payout of owed credits. The bill is expected to enhance consumer protections by shifting responsibility to providers.
