MANILA, Philippines (February 3, 2025) – The Philippine Chamber of Telecommunications Operators (PCTO) today expressed 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.
While PCTO is one with the government in efforts to provide equitable connectivity, it warns 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,” said PCTO.
The PCTO also believes the bill is “unnecessary and superfluous,” as the existing Amended Public Service Act (RA 11659) already provides a clear framework for new players to enter the telecommunications market, including data transmission providers. The Konektadong Pinoy bill’s provisions are therefore redundant and could create confusion and regulatory overlap.
The PCTO and its member telco operators hope to air the following concerns to lawmakers:
An Unconstitutional Rider on Spectrum Allocation: One of PCTO’s strongest objections is the inclusion of spectrum management provisions in a bill ostensibly focused on data transmission. 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 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. Many stakeholders in the telecom and broadcast industries were either unaware of or not involved in consultations regarding this issue.
Violation of the Equal Protection Clause: 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. 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.
Undermines Constitutional Policy for Protection of Natural Resources: The removal of the congressional franchise requirement and the reduction of the NTC’s powers could lead to the unchecked exploitation of the country’s finite spectrum resources, a vital part of the national patrimony.
Threat to National Security: The relaxation of regulatory scrutiny of data transmission participants could potentially lead to an explosion of cybersecurity incidents that threaten national security. Given the growing use of over-the-top services or chat apps, which have led to the decline of voice and SMS, the bill could further stifle the growth of local telecommunications companies and reduce their ability to compete effectively. The bill also seems to discriminate against existing telecommunications service providers who have invested heavily in building critical infrastructure under the existing regulatory framework. This could lead to legal challenges and uncertainty in the market. Telecommunications is a critical industry and losing oversight is a threat to national security.
Erosion of Domestic Business: The removal of barriers to entry could lead to an influx of new players, many of whom may not be subject to the same level of regulatory scrutiny as existing telecommunications companies. This could create an environment where local companies struggle to compete, potentially harming the overall development of the telecommunications sector in the Philippines.
Access List Provisions Offend Due Process: The bill’s access list provisions, which grant the government broad powers to mandate access to private property for infrastructure development, raise concerns about potential violations of due process and property rights.
“Dig Once” Policy Increases Risks: The “dig once” policy, mandating shared underground infrastructure, raises concerns about increased vulnerability to sabotage and potential disruptions in emergency situations due to the lack of redundant systems.
For Konektadong Pinoy to be effective in bridging the digital divide, the PCTO believes it should mandate new data transmission participants to roll out their respective services in (GIDAs). This will prevent ruinous competition with existing telcos who have sufficiently built connectivity infrastructure in non-GIDAs.
“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.
PCTO stands ready to hold a dialogue with lawmakers to address these concerns and work towards a revised version that supports a balanced and competitive telecommunications landscape that benefits all Filipinos. It believes that a collaborative approach involving stakeholders across the telecommunications industry, government, and regulatory bodies is essential to address barriers to connectivity.
To know more about PCTO, visit https://www.facebook.com/letsgophtelco/.
