The Philippine Chamber of Telecommunications Operators (PCTO), which includes PLDT, Smart Communications, and Globe, has raised concerns about the Konektadong Pinoy bill, a proposed measure aiming to widen internet access and open the data transmission sector to more players.
“We believe in fostering a competitive environment that encourages innovation and makes connectivity more accessible and affordable to Filipinos,” the PCTO said in a statement. “Unfortunately, despite its good intentions, the Konektadong Pinoy bill disregards Constitutional provisions, undermines fair competition, and could stifle investment in the telecommunications sector. We hope to work with lawmakers towards reworking the bill into a version that will be a win-win for all.”
Senate Bill No. 2699, known as the “Konektadong Pinoy Act,” aims to establish a comprehensive and inclusive data transmission and connectivity framework in the Philippines. Filed on May 22, 2024, during the 19th Congress, the bill seeks to address the country’s digital divide by promoting reliable, affordable, and accessible internet services nationwide. (Konektadong Pinoy translates as Connected Filipinos.)
PCTO said it supports the government’s push for broader connectivity but warned that certain provisions could harm the telecommunications sector. PCTO argued that the bill conflicts with Constitutional policies, particularly on spectrum allocation and national security.
Uneven regulatory environment
PCTO also pointed out the bill’s exemption of data transmission providers from securing a congressional franchise and a Certificate of Public Convenience and Necessity (CPCN). This, it said, creates an uneven regulatory environment that could discourage investment and affect fair competition.
The group warned that removing these requirements could pose risks to national security. Without proper oversight, unregulated entities could gain access to critical infrastructure, raising cybersecurity concerns. It also argued that the bill could weaken safeguards that ensure service quality and reliability.
Another issue raised was the “dig once” policy, which mandates shared underground infrastructure. PCTO said this could increase vulnerability to sabotage and make telecommunications networks more prone to disruptions.
The group suggested requiring new data transmission providers to prioritize geographically isolated and disadvantaged areas (GIDAs) instead of competing in areas with existing infrastructure.
“Data transmission providers should be required to build in GIDAs instead of adding redundant builds in areas where connectivity is already strong. Such provision must be added to the bill to realize the spirit and intent of Konektadong Pinoy, which is to achieve connectivity for all,” said PCTO.
PCTO said it is open to discussions with lawmakers to revise the bill and ensure a fair, secure, and sustainable telecommunications industry.
However, several business groups have expressed their support for the bill urging the Senate to pass it.