The National Economic and Development Authority (NEDA) said fast, reliable and affordable Internet service will be within reach through the timely passage of the Open Access in Data Transmission Bill.
In a policy note released yesterday, NEDA said from January 2020 to January 2023, internet penetration rates rose from 67 percent to 73 percent, underlining the growing importance of digital connectivity.
“However, this growing demand is not adequately met due to the existing market structure where the industry is dominated by a few major players, leading to higher costs, slower speeds and limited coverage compared to global standards,” the policy note said.
The report further said the digital economy’s share to the gross domestic product has been decreasing, indicating that there is substantial untapped potential in the digital economy.
NEDA in a statement said the proposed measure aims to establish an open access policy, create a comprehensive spectrum management framework and revamp the franchise and licensing regime for potential market players.
The measure promotes more competition in the telecommunications sector by removing the requirement of a legislative franchise for players seeking to build their networks.
Another proposed reform is to rationalize access and use of the country’s scarce spectrum resources.
“The reforms are crucial to accelerate digitalization and create a dynamic innovation ecosystem as key elements of the country’s transformation agenda, as outlined in the Philippine Development Plan 2023-2028,” NEDA said.
The measure forms part of the Common Legislative Agenda of the Legislative-Executive Development Advisory Council.
“The proposed changes to the policy and regulatory regime will make it easier for entrants to provide better services to consumers and businesses at competitive prices,” NEDA said.
“The measure will also encourage the development of data transmission infrastructure, remove barriers to competition in data transmission services and enable the full potential of e-commerce, digital trade and applications in education, health, agriculture and other fields,” it added.
