What's Happening?
The Konektadong Pinoy bill, aimed at liberalizing the Philippines' data services market, has become law after President Ferdinand R. Marcos Jr neither signed nor vetoed it within the constitutional timeframe. The legislation, ratified by Congress in June, simplifies licensing procedures for new data access providers, allowing them to invest in broadband infrastructure without needing a congressional franchise. It also promotes infrastructure sharing, enabling new entrants to utilize existing facilities. The bill seeks to increase competition and reduce consumer prices, particularly in underserved areas, by removing barriers that have historically kept broadband costs high. The Philippine Competition Commission supports the bill, citing its potential to lower costs and improve service quality.
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Why It's Important?
The enactment of the Konektadong Pinoy law is significant for the Philippine telecommunications sector, as it is expected to foster competition and potentially lower consumer prices. The law could lead to the entry of over 1,000 small internet providers, challenging the dominance of major players like PLDT, Globe Telecom, and Converge ICT. These incumbents have expressed concerns over the bill, arguing it favors new entrants, particularly satellite broadband operators, and poses cybersecurity risks. The law's impact on pricing and service quality could be substantial, especially in areas that have been underserved due to high costs and limited access.
What's Next?
The Department of Information and Communications Technology (DICT) must now develop the implementing rules and regulations (IRR) to operationalize the Konektadong Pinoy law. This process will involve setting cybersecurity standards and ensuring a technology-neutral approach. Major telecom companies are urging DICT to include them in the IRR drafting process to address their concerns about cybersecurity and potential biases towards satellite broadband providers. The outcome of this regulatory process will be crucial in determining how effectively the law achieves its goals of increased competition and reduced consumer prices.
