THE Philippine Chamber of Telecommunications Operators (PCTO) on Monday, April 7, said it will work with lawmakers to rectify the Konektadong Pinoy bill, a provision of which removes the legislative franchise requirement to build major telco infrastructures – a stipulation the chamber says undermines fair competition and national security.
Cable and internet providers, on the other hand, support the bill, a priority measure of the current administration with the aim to expand internet access in the country by easing the entry of new players in the data transmission industry.
Under the current version of the bill, also known as the Comprehensive And Inclusive Data Transmission And Connectivity Framework For The Philippines Act (Senate Bill No. 2699), international gateway facilities, cable landing stations, and satellite service providers do not need a legislative franchise.
Hence, any company which may even be foreign state-sponsored can build or operate the facilities without passing through safeguards to ensure national security, needing only to register with the National Telecommunications Commission (NTC), PCTO said.
Balanced, secure, competitive landscape
“We are willing to work with our lawmakers towards a version that supports a balanced, secure, and competitive telecommunications landscape that will benefit all Filipinos, and not just those in urban areas,” said PCTO, whose members include Globe Telecom Inc. Smart Communication Inc. and Dito Telecommunity Corp.
“Unfortunately, despite its good intentions, the Konektadong Pinoy bill disregards Constitutional provisions, undermines fair competition, and could stifle investment in the telecommunications sector. We should work towards a version that will protect our critical information infrastructure and benefit the Filipinos,” it added in a statement.
PCTO said the franchise requirement should be kept and the National Telecommunication Commission (NTC) should retain its quasi-judicial authority to assess the new players capabilities – legal, technical, financial, including cybersecurity and data privacy connections, that are not explicitly stated in the bill.
“Data transmission is central to telecoms and removing the franchise requirement undermines RA 11659 or the Public Service Act which already liberalizes foreign ownership in public services, and weakens the oversight of the government of critical information infrastructure,” PCTO said.
The bill also gives new players a grace period of one to three years after starting operation to comply with national and global cybersecurity practices, PCTO said, calling it a major loophole given the increasing incidences of hacking globally and in the Philippines.
Internet providers welcome bill
Meanwhile, Philippine Cable and Telecommunications Association (PCTA), an industry group composed of over 300 cable TV and Internet service providers nationwide, described Konektadong Pinoy as leveling the playing field for Internet service providers.
“Removing barriers such as the legislative franchise is a huge first step, Konektadong Pinoy subjects Internet service providers to a simplified licensing process that enables small operators, especially those in the countryside, to build the necessary infrastructure to deliver the service,” said PCTA president Jon Arayata in a statement on Monday, April 7.
Konektadong Pinoy will drive the entry of new players, and allow small providers to build and operate their own data transmission networks, PCTA added. Under existing rules, only telcos with a Congressional franchise are allowed to put up a network.
The Department of Information and Communications Technology (DICT) also earlier clarified the proposed law only allows data transmission providers not to seek a congressional franchise to operate. Those operating voice transmission like telcos are still required to obtain a franchise.
Data from the World Bank showed only 33 percent of Filipino households had Internet access, compared to 76 percent in neighboring Vietnam. The International Telecommunications Union meanwhile found that the Philippines had the second-most expensive Internet in ASEAN at 10 percent of gross national income (GNI) per capita, four times more than Vietnam’s 2.34 percent.
The Konektadong Pinoy bill was passed on Third Reading in the Senate last February 5. The bill was certified urgent by President Ferdinand “Bongbong” Marcos Jr., and was among the priority measures of the Legislative-Executive Development Advisory Council’s (LEDAC) for the 19th Congress.
Once passed into law, it will ensure that data transmission industry participants, such as cable Internet operators, connect to telcos at fair and reasonable rates, and benefit from the sharing of common infrastructure such as poles, ducts, and towers, its proponents said.
