A new law aimed at transforming the telecommunications landscape in the Philippines has ignited widespread debate, bringing President Ferdinand Marcos Jr. to the spotlight as he prepares to weigh its implications before signing. The Konektadong Pinoy Act, also known as the Open Access in Data Transmission Act, seeks to enhance internet accessibility, reduce costs, and elevate service quality, particularly in underserved regions. Proponents assert that the legislation is a game-changer, designed to welcome new market entrants by dismantling regulatory barriers, such as the need for a legislative franchise.
Nonetheless, the Philippine Chamber of Telecommunications Operators (PCTO), an organization representing major telecom firms like PLDT and Globe Telecom, has voiced significant concerns. The group is urging a closer examination of the law, warning that it could lead to weakened regulatory oversight, potential national security threats, and industry destabilization.
“We support increased connectivity for all Filipinos, but the bill lowers accountability standards and exposes the nation to risks from unregulated infrastructure and foreign influence,” remarked Atty. Froilan Castelo, PCTO President and Globe’s General Counsel.
The controversial bill eliminates the requirement for new data transmission firms to secure a legislative franchise or a Certificate of Public Convenience and Necessity (CPCN). Castelo cautioned that this action removes critical safeguards meant to evaluate financial, legal, and technical capabilities, creating an unbalanced landscape where established players adhere to stricter regulations while newcomers operate with leniency.
Further complicating matters, the PCTO criticized provisions exempting satellite operators from mandatory registration with the Department of Information and Communications Technology (DICT) and the National Telecommunications Commission (NTC). “This appears to contradict the law’s professed commitment to technology neutrality and opens a dangerous backdoor,” Castelo said, possibly evoking visions of rogue satellites spiraling out of control.
Moreover, the bill gives new operators a two-year grace period to meet cybersecurity requirements and does not mandate them to service geographically isolated and disadvantaged areas (GIDAs), raising concerns that rural communities might be left in the digital dust.
Castelo highlighted past experiences, referencing the POGO law as a cautionary tale about the pitfalls of hastily passed legislation: “We’ve seen the fallout from poorly vetted laws. We can’t afford another misstep that creates larger issues down the line.”
PLDT echoed similar apprehensions during its recent annual stockholders’ meeting. Marilyn Aquino, a senior legal advisor to PLDT and its Chairperson, cautioned that the open-access policy may compel existing telecom providers to share their infrastructure with newcomers who aren’t bound to invest in network development—a prospect that some might liken to inviting a raccoon into the pantry.
Despite the backlash, advocates for the Konektadong Pinoy Act are standing firm. Economic Planning Secretary Arsenio Balisacan emphasized that the proposed reforms aim to enhance competition, reduce prices, and expand digital access. The World Bank has labeled the Philippines an “outlier” in Southeast Asia regarding internet access, with only one-third of households boasting fixed broadband and about 70% of the population using mobile internet.
As the Konektadong Pinoy Act awaits the President’s signature, it has the potential to critically reshape the future of digital connectivity in the Philippines.
What is the primary goal of the Konektadong Pinoy Act?
The Konektadong Pinoy Act aims to enhance internet access, reduce costs, and improve service quality, particularly in areas that are currently underserved.
What concerns do major telecom companies have about the new law?
Major telecom firms are worried that the bill could weaken regulatory oversight, create national security risks, and lead to an unbalanced industry where new entrants face less scrutiny than established businesses.
How does the law impact rural communities?
The law does not require new providers to serve geographically isolated and disadvantaged areas (GIDAs), raising concerns that these communities could remain underserved in the digital landscape.
