The Philippine Chamber of Telecommunications Operators (PCTO) has warned that certain provisions in the proposed Konektadong Pinoy bill could harm national security and create an uneven playing field for local telecom companies.
The Konektadong Pinoy bill, which is a priority of the current administration, aims to improve internet access by making it easier for new players to enter the data transmission industry. However, PCTO believes that easing too many safeguards may result in serious consequences.
One of the key issues raised is the removal of the legislative franchise requirement for operators of international gateway facilities, cable landing stations, and satellite services. This means any company, including foreign-controlled ones, could build and operate these facilities by simply registering with the National Telecommunications Commission (NTC), without undergoing deeper background checks.
“A shell company that may be state-sponsored can build international gateway facilities and cable landing stations in the Philippines or operate satellite services, and all they are required to do is register with the National Telecommunications Commission (NTC). There is no checking required in the bill as the requirement is only to register,” the PCTO said.
Suggesting NTC continue to oversee the process
PCTO is pushing for the retention of the franchise requirement and wants the NTC to keep its authority to assess new entrants’ legal, financial, and technical capabilities, including their readiness to handle cybersecurity and data privacy.
“Data transmission is central to telecoms and removing the franchise requirement undermines RA 11659 or the Public Service Act,” the group said.
The group also pointed out that the bill allows new players a grace period of one to three years before they must comply with cybersecurity standards. PCTO believes this delay exposes the country’s critical information infrastructure to cyberattacks.
“All Data Transmission Industry Participants should be required to adopt and comply with national and global cybersecurity practices and standards prior to commencing operations,” the group said. “Cybersecurity readiness must be a precondition under the Act.”
Serving GIDA for new players
PCTO is concerned that the bill does not require new players to build in underserved or geographically isolated areas. Without this rule, they may focus on urban locations to earn back investments faster, which could widen the digital gap.
“Data transmission providers should be required to build in GIDAs instead of adding redundant builds in areas where connectivity and competition are already strong,” PCTO said.
The group also said the bill includes spectrum-related provisions that fall outside its core topic, which may violate the constitutional rule of “one bill, one subject.” PCTO also noted that exempting new players from securing a congressional franchise and a Certificate of Public Convenience and Necessity, while existing operators still need them, undermines fair competition.
Holistic approach
Other concerns include weakening NTC’s control over the country’s spectrum, lack of technology neutrality, possible harm to local businesses due to uneven regulations, unclear rules on property access for infrastructure, and the risks tied to the “dig once” policy that could increase exposure to sabotage.
“We are willing to work with our lawmakers toward a version that supports a balanced, secure, and competitive telecommunications landscape that will benefit all Filipinos, and not just those in urban areas,” the PCTO said. “We need a whole-of-nation approach to realize a connected and secure Philippines.”