What's Happening?
The Konektadong Pinoy bill has become law in the Philippines, aiming to enhance competition in the data services market. The legislation, which was ratified by the Philippine Congress in June, streamlines licensing procedures for new data access providers, allowing them to invest in broadband and data transmission infrastructure without needing a congressional franchise. This law promotes infrastructure sharing, enabling new players to utilize existing infrastructure alongside building their own. The bill automatically became law after President Ferdinand R. Marcos Jr did not sign or veto it within the 30-day period. The law is expected to lower consumer prices and improve service quality, particularly in underserved areas. However, major telecom companies like PLDT, Globe Telecom, and Converge ICT have expressed opposition, citing concerns over fairness and cybersecurity risks.
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Why It's Important?
The enactment of the Konektadong Pinoy law is significant as it aims to reduce the high costs of broadband internet services in the Philippines, which are among the most expensive in Southeast Asia. By fostering competition, the law could lead to improved service quality and expanded access, benefiting consumers, especially in underserved regions. The entry of over 1,000 small internet providers into the market could drive innovation and offer more choices to consumers. However, the opposition from established telecom companies highlights potential challenges in implementation, particularly regarding cybersecurity and equitable access to infrastructure.
What's Next?
The Department of Information and Communications Technology (DICT) is tasked with creating the implementing rules and regulations (IRR) for the Konektadong Pinoy law. These regulations will detail how the law's provisions will be executed, including cybersecurity standards and ensuring a technology-neutral approach. Major telecom companies have requested involvement in the IRR drafting process to address their concerns. The law requires new players to obtain international cybersecurity certification within two years, but they must comply with local cybersecurity standards from the outset.
Beyond the Headlines
The Konektadong Pinoy law could have broader implications for the Philippine digital infrastructure sector. By reducing barriers to entry, the law may encourage innovation and investment in new technologies, potentially transforming the country's digital landscape. The focus on cybersecurity standards highlights the importance of safeguarding digital infrastructure as new players enter the market. The law's impact on existing telecom companies and their business models could lead to strategic shifts in the industry.
