Internet and telecommunications subscribers in the Philippines may soon receive automatic refunds for prolonged service outages, following the passage of House Bill No. 178, also known as the Automatic Refund for Internet and Telecommunications Services Outages and Disruptions Act, by the House of Representatives on December 22.
The proposed measure seeks to require internet service providers (ISPs) and telecommunications companies to automatically refund or credit customers when they experience extended service disruptions without the need for filing complaints.
Why the Bill Was Filed
Internet reliability remains a persistent issue in the Philippines. In 2024, the country ranked among the worst globally for internet stability, based on data from OpenSignal. Despite frequent outages, subscribers are often billed the full monthly rate.
According to bill author Zamboanga Representative Marlesa Hofer-Hasim, this practice results in financial loss and inconvenience, particularly for remote workers, online students, and prepaid users who rely heavily on stable connectivity.
When Refunds Will Apply
Under the proposed law, telcos and ISPs must issue automatic refunds or bill credits if:
- A total internet or telecom outage lasts 24 hours or more, whether continuous or aggregated within a single month
- The disruption is not caused by scheduled maintenance, natural disasters, third-party actions, or the subscriber
- Refunds are pro-rated, meaning compensation is based on the duration of the service outage
No Action Required From Subscribers
One of the bill’s key provisions removes the burden from consumers. Refunds must be applied automatically by service providers, following standards set by regulators.
Subscribers may still file complaints if they believe the refund amount or computation is incorrect.
Prepaid Users Are Covered
Unlike many consumer protection policies that primarily benefit postpaid subscribers, the bill explicitly includes prepaid users, ensuring they also receive service credits when disruptions occur.
What Does and Doesn’t Count as an Outage
Not eligible for refunds:
- Scheduled maintenance with at least 48 hours’ notice
- Maintenance totaling no more than 48 hours per month
- Natural disasters such as typhoons, earthquakes, or floods
- Outages caused by third parties or the subscriber
Eligible for refunds:
- Unplanned or prolonged service interruptions not covered by exemptions
Penalties for Non-Compliance
The National Telecommunications Commission (NTC) may impose penalties on violators, including:
- Fines ranging from PHP 50,000 to PHP 200,000 per violation
- For repeat offenses: possible license suspension or cancellation, along with mandatory payout of owed refunds
Who Will Enforce the Policy
The National Telecommunications Commission, in coordination with the Department of Information and Communications Technology, will issue the implementing rules and regulations once the bill becomes law.
If enacted, the measure will shift refund responsibility from consumers to service providers, making compensation automatic, standardized, and enforceable—rather than complaint-driven.
