MANILA, Philippines (April 7, 2025) – The Philippine Chamber of Telecommunications Operators (PCTO) today raised the alarm over certain provisions in the Konektadong Pinoy bill that will be detrimental to both the Philippine’s 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,” said PCTO.
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.
However, the PCTO believes 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. Hence, any company can build or operate these without passing through the safeguards needed to ensure our 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 will allow foreign-controlled companies to control critical information infrastructure (CII) essential for national security.
PCTO firmly believes that 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 bill also does not require new players to comply with national and global cybersecurity practices on Day 1. This is a major loophole that PCTO believes should be immediately addressed given the increasing incidences of hacking globally and in the Philippines.
“Ensuring the security of existing digital infrastructure is of primordial importance to protecting our nation’s CII. All Data Transition Industry Participants (DTIP) should be required to adopt and comply with national and global cybersecurity practices and standards prior to commencing operations. Granting a grace period of 1 to 3 years after commencement exposes CII to cyber attacks, providing cyber threat actors a large window of opportunity to exploit access to the CII. Cybersecurity readiness must be a precondition under the Act,” PCTO said.
Under the bill, the State envisions universal access to the internet especially in critical areas such as e-governance and the delivery of basic services, education, health, trade, finance, disaster preparedness, and public safety. These services can be compromised if there is no requirement explicit in the bill that new players should be cyber secure prior to operating in the Philippines to the detriment of their future subscribers.
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.
This may lead to the new players congregating in urbanized areas to recover their investments, rather than expanding telecommunication services to help those in unserved areas.
“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.
Other issues being raised by the PCTO and its member telco operators are the following:
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 and unrelated to the main focus of the bill —the bill introduces a rider provision that is unrelated to its core objective, rendering it unconstitutional. 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 DTPs from securing a congressional franchise and a Certificate of Public Convenience and Necessity (CPCN) while requiring the same from existing telecommunication operators. This 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.
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. The NTC should remain the primary authority for spectrum allocation, assignment and recall. Imposing a 15% spectrum cap may distort competition and hinder network expansion. Likewise, introducing a requirement of a no-objection notice from the Philippine Competition Commission may result in unnecessary delays. Competition concerns can be better addressed through antitrust enforcement mechanisms.
Technology Neutrality for future-proofing : Provisions on satellite technology in the bill does not comply with the principle of technology neutrality. Regulations should focus on the function or outcomes of technology, rather than favoring or discriminating against any specific technology to enable future-proof regulations by allowing legislation to adapt to technological changes. There are currently specific provisions on satellite technology that violates technology neutrality.
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.
The PCTO believes that there is still time to rectify the bill to ensure it is able to deliver its good intentions, at the same time protecting our national security and the consuming public.
“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. We need a whole of nation approach to realize a connected and secure Philippines,” the PCTO said.
To know more about PCTO, visit https://www.facebook.com/letsgophtelco/.
