Group wants to restudy ‘Konektadong Pinoy’ bill

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THE Philippine Chamber of Telecommunications Operators (PCTO) yesterday raised its concern over certain provisions of the Konektadong Pinoy bill, a priority measure that aims to expand internet access in the country and ease the entry of new players in the data transmission industry.

PCTO, which has 16 telco members including PLDT Inc., Globe Telecom Inc. and Dito Telecommunity Corp., warned that the proposal, in its current form, would prove detrimental to the telco business as it undermines constitutional provisions on the grant of a congressional franchise and the protection of national security and interest, and violates principles on fair competition.

“We believe in fostering a competitive environment that encourages innovation and makes connectivity more accessible and affordable to Filipinos. 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,” PCTO said in a statement on February 3.

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The PCTO also said the bill is “unnecessary and superfluous” as the existing Amended Public Service Act already provides a clear framework for new players to enter the telecommunications market, including data transmission providers.

The Konektadong Pinoy bill’s provisions are thus redundant and could create confusion and regulatory overlap, it added, noting its concerns on the bill also include the unconstitutional rider on spectrum allocation.

“The Constitution’s ‘one bill, one subject’ rule requires that every legislative measure be limited to a single subject matter, which must be clearly expressed in its title. By incorporating broad spectrum allocation policies—extending beyond data transmission to include broadcast frequencies—the bill introduces a rider provision that is unrelated to its core objective, rendering it unconstitutional,” the PCTO said.

It pointed out that spectrum management provisions are too broad and unrelated to the main focus of the bill, as they encompass frequencies beyond data transmission, including broadcast frequencies.

In addition, the bill’s exemption of data transmission providers from securing a congressional franchise and a certificate of public convenience and necessity (CPCN) creates an unequal regulatory environment, violating the principle of fair competition, the PCTO said.

“This disparity could discourage investment from existing players, ultimately achieving the contrary effect to what the bill intends and might hinder the growth of the telecommunications sector. Further, the removal of the franchise and CPCN requirements eliminates crucial safeguards that protect public interest by ensuring that telecommunications providers meet specific standards and obligations in order to provide quality and reliable services. It may also compromise national security by granting access to critical infrastructure to potentially unregulated entities, both foreign and domestic,” the PCTO said.

For Konektadong Pinoy to be effective in bridging the digital divide, the PCTO said the bill should mandate new data transmission participants to roll out their respective services in geographically isolated and disadvantaged areas (GIDAs).

This will prevent ruinous competition with existing telcos who have sufficiently built connectivity infrastructure in non-GIDAs, it added.

“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,” the PCTO said.

The group said it stands ready to hold a dialogue with lawmakers to address its concerns and work towards a revised version that supports a balanced and competitive telecommunications landscape that benefits all Filipinos.

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