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0090032 MIS-1


The Philippines – is one of the most amazing archipelago countries, comprising 7,107 islands and having
the 5th longest coastline in the world populated by almost 98mn of people. The country, divided into three
main geographical divisions: Luzon, Visayas, and Mindanao, is located western Pacific Ocean of South
East Asia. Multiplicity of islands led to appearing and developing variety of ethnicities and cultures, as well
as one of the most diverse tropical climates in the world. Despite country consist of various of ethnic and
cultural groups, it participates in different processes of the international relations and world economy,
being a founder of the Association of Southeast Asian Nations (ASEAN). It is also a member of the World
Bank, the International Monetary Fund (IMF), the Asia Pacific Economic Cooperation (APEC), the World
Trade Organization (WTO), the Colombo Plan and the G-77 and other International organizations. This
participation also includes involvement in the processes of Internet communication technologies
development as well as electronic business penetration.

Broadband Internet connection in the Philippines is offered by two types of Internet Service Providers:
cable and DSL operators. Broadband internet connection is also widely available at public internet cafes
and offices, especially in major cities.

As for the Wi-Fi Internet service it has also is progressively being deployed since 2005 owing to Smart
Communications that presented its "Smart Wi-Fi" service for the public, which, however, make use of
wireless internet connection via its cellular infrastructure. Thus, the service supplies wireless fixed
connection at 384 kbit/s 512 kbit/s and 4 Mbit/s for corporate lines, like coffee shops, malls and major
airports around the country, through the use of Motorola's Canopy equipment. The service was later
rebranded as "Smart BRO" on April 2006. Since 2008, it has become available in pre-paid through the
use of a USB modem where users can purchase load/credit at different handphone loading centres.


The State recognizes the vital role of information and communications technology (ICT) in nation-
building; the need to create an information-friendly environment which supports and ensures the
availability, diversity and affordability of ICT products and services; the primary responsibility of the
private sector in contributing investments and services in ICT; the need to develop, with appropriate
training programs and institutional policy changes, human resources for the information age, a labor force
skilled in the use of ICT and population capable of operating and utilizing electronic appliances and
computers; its obligation to facilitate the transfer and promotions of technology; to ensure network
security, connectivity and neutrality of technology for the national benefit; and the need to marshal,
organize and deploy national information infrastructures, comprising in both communications network and
strategic information services, including their interconnection to the global information networks, with the
necessary and appropriate legal, financial, diplomatic and technical framework, systems and facilities.

This Act aims to facilitate domestic and international dealings, transactions, arrangements agreements,
contracts and exchanges and storage of information through the utilization of electronic, optical and
similar medium, mode instrumentality and technology to recognize the authenticity and reliability of
electronic data messages or electronic documents related to such activities and to promote the universal
use of electronic transactions in the government and by the general public.

• It gives legal recognition of electronic data messages, electronic documents, and

electronic signatures. (section 6 to 13)
• Allows the formation of contracts in electronic form. (section 16)
• Makes banking transactions done through ATM switching networks absolute once consummated.
(section 16)
• Parties are given the right to choose the type and level of security methods that suit their needs.
(section 24)
• Provides the mandate for the electronic implementation of transport documents to facilitate
carriage of goods. This includes documents such as, but not limited to, multi-modal, airport, road,
rail, inland waterway, courier, post receipts, transport documents issued by freight forwarders,
marine/ocean bill of lading, non-negotiable seaway bill, charter party bill of lading. (section 25 and
• Mandates the government to have the capability to do e-commerce within 2 years or before June
19, 2002. (section 27)
• Mandates RPWeb to be implemented. RPWeb is a strategy that intends to connect all
government offices to the Internet and provide universal access to the general public. The
Department of Transportation and Communications, National Telecommunications Commission,
and National Computer Center will come up with policies and rules that shall lead to substantial
reduction of costs of telecommunication and Internet facilities to ensure the implementation of
RPWeb. (section 28)
• Made cable, broadcast, and wireless physical infrastructure within the activity of
telecommunications. (section 28)
• Empowers the Department of Trade and Industry to supervise the development of e-commerce in
the country. It can also come up with policies and regulations, when needed, to facilitate the
growth of e-commerce. (section 29)
• Provided guidelines as to when a service provider can be liable. (section 30)
• Authorities and parties with the legal right can only gain access to electronic documents,
electronic data messages, and electronic signatures. For confidentiality purposes, it shall not
share or convey to any other person. (section 31 and 32)
• Hacking or cracking, refers to unauthorized access including the introduction of computer viruses,
is punishable by a fine from 100 thousand to maximum commensurating to the damage. With
imprisonment from 6 months to 3 years. (section 33)
• Piracy through the use of telecommunication networks, such as the Internet, that infringes
intellectual property rights is punishable. The penalties are the same as hacking. (section 33)
• All existing laws such as the Consumer Act of the Philippines also applies to e-commerce