MANILA, Philippines – Before Christmas, the House of Representatives passed House Bill No. 178 or the Automatic Refund for Internet and Telecommunications Services Outages and Disruptions Act.

The bill, passed on December 22, seeks to require telcos and internet service providers (ISPs) in the Philippines to automatically refund or credit subscribers when internet or telecom services suffer prolonged outages or disruptions. 

Here’s how it works. 

What problem is the bill trying to fix?

Internet outages are a problem in the Philippines. In 2024, the country ranked among the worst in the world for internet reliability, according to online metrics firm OpenSignal. 

When this happens, subscribers usually still have to pay the same monthly fee. “This results in financial loss, inconvenience, and unfair charging practices, especially among remote workers, online students, and prepaid subscribers,” writes bill author Zamboanga Representative Marlesa Hofer-Hasim. 

What does the bill propose?

The bill mandates automatic refunds or bill adjustments when:

• A subscriber experiences a total internet or telecom outage lasting 24 hours or more, aggregated within a single month.
  
• The disruption is not due to scheduled maintenance, natural disasters, or actions of third parties or the subscriber.

Refunds must be pro-rated, meaning customers are compensated based on how long the service was unavailable

No need to file a complaint

One key change: subscribers won’t need to request the refund.

Telcos and ISPs are required to apply the bill adjustment automatically, following standards set by regulators. 

If consumers believe that the computation is inaccurate, they retain the right to complain if they dispute the amount or computation of the refund. 

Prepaid users included

Unlike many consumer protection policies that favor postpaid users, the bill explicitly states that prepaid subscribers must also receive refund credits when their service is disrupted. 

What counts as an outage, and what doesn’t?

The bill distinguishes between different scenarios:

• Not considered outages (no refund required)
  • Scheduled maintenance, if users are notified at least 48 hours in advance
  • Maintenance should not exceed 48 hours total in a month
  • Events like typhoons, earthquakes, or floods
  • Other acts that may have been caused by a “third party or subscriber” 
• Considered outages (refund applies):
  • Unplanned or prolonged service interruptions

Are there penalties for telcos and ISPs?

Yes. The NTC can penalize violators with:

• Fines ranging from P50,000 to P200,000 per violation
• For repeated violations, possible license suspension or cancellation, plus mandatory disbursement of owed credits to subscribers

Who will implement the law?

The NTC, in coordination with the Department of Information and Communications Technology (DICT), will issue the implementing rules and regulations. The bill is expected to shift the burden away from consumers and onto service providers, making refunds automatic, standardized, and enforceable, rather than complaint-driven. So if your internet goes down for a day or more, you get money back, even without action from the consumer such as having to get in touch with a telco’s customer service. – Rappler.com