Despite the combined forces of civil society and relevant government agencies who are all backing the passage of the “Konektadong Pinoy” bill, a group of the biggest telcos in the country is still adamant against the proposed legislation.
In a statement on Monday, April 7, the Philippine Chamber of Telecommunications Operators (PCTO) said certain provisions in the measure are detrimental to both the national security and Filipino consumers.
“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,” the PCTO stated.
The Konektadong Pinoy bill is a priority measure by the current administration that aims to expand Internet access in the country by easing the entry of new players in the data transmission industry.
The measure was passed on final reading at the Senate last February 5 after being certified urgent by Pres. Ferdinand Marcos Jr. The Department of Information and Communications Technology (DICT), National Economic Development Authority (Neda), National Telecommunications Commission (NTC), and and the Philippine Competition Commission are all pushing for the approval of the bill.
The Konektadong Pinoy bill allows 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.
However, the PCTO said too much easing of the safeguards can pose a serious threat to our national security.
Under the current version of the bill, international gateway facilities, cable landing stations, and satellite service providers do not need a legislative franchise requirement. This provision, the group said, allows any company to build or operate without passing through the safeguards needed for national security.
“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.
This, it added, will allow foreign-controlled companies to control critical information infrastructure (CII) essential for national security.
The PCTO said the franchise requirement should be retained and that the 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 telcos said the bill also does not require new players to comply with national and global cybersecurity practices. This, it said, is a major loophole that should be immediately addressed given the increasing incidences of hacking globally and in the Philippines.
The PCTO also stressed new players should also be mandated to prioritize unserved areas to close the digital divide. Under the bill, there is no requirement for new players to do so.
“Data transmission providers should be required to build in GIDAs instead of adding redundant builds in areas where connectivity and competition 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.
On other hand, an industry group composed of over 300 cable TV and Internet service providers nationwide issued a statement on the same day branding the Konektadong Pinoy bill as a long awaited measure to empower smaller players.
The Philippine Cable and Telecommunications Association (PCTA) 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 necessary infrastructure to deliver the service,” PCTA president Jon Arayata said in a statement.
It noted that Konektadong Pinoy will drive the entry of new players, and allows small providers to build and operate their own data transmission networks. Under existing rules, only telcos with a congressional franchise are allowed to put up a network.
Data from the World Bank showed only 33% of Filipino households had Internet access, compared to 76% in neighboring Vietnam. The International Telecommunications Union meanwhile found that the Philippines had the second-most expensive Internet in Asean at 10.1% of gross national income (GNI) per capita, four times more than in Vietnam (2.34%).
“Digitalization is a tide that lifts all boats, and Konektadong Pinoy balances fair competition with beneficial cooperation to ensure all Filipinos can get online,” PCTA added.
The group expressed optimism that the measure will soon be enacted by both House and Senate until the bill is passed into law.
