TECH4GOOD
Having been passed by the House, it looks like the proposed Open Access in Data Transmission Act (Open Access Bill) is now closer to passage than it has ever been, as it will now be the turn of the Senate to work on its version of the bill.
The proposed law aims to establish a future-ready digital policy framework for the country that is expected to allow as many service providers as possible to operate data networks. Lowering entry and cost barriers for new internet service players is projected to promote fair and open competition at different segments of the data transmission network.
Based on recent reports by Ookla, the Philippines has seen an enormous leap in terms of speed in the last five years but still lags behind other ASEAN middle-income peers. As the world rapidly advances through the digital revolution, the Philippines stands at a crucial juncture. Current infrastructures and frameworks need help to meet the growing demand.
A recent study by the World Bank revealed that merely 33 percent of Filipino households have access to fixed internet. This essential resource is a lifeline for remote work, online learning, access to government services, and participation of small businesses in the digital economy. Today’s digital economy is not just about connectivity; it is a gateway to opportunities, innovation, and inclusion. Unfortunately, prohibitive costs and lack of internet infrastructure in many remote areas prevent many, especially those in lower-income brackets, from accessing these critical services, thereby widening the country's digital divide.
The Department of Information and Communications Technology (DICT), responsible for ensuring that the Philippines will have a digital infrastructure at par with other middle-income countries, is currently in a massive build-up to improve connectivity. However, DICT needs help from private service providers to move the needle significantly.
The Open Access Bill, a beacon of progress, presents a regulatory framework poised to expand and stimulate investment in Internet infrastructure, especially in underserved areas. By fostering a competitive environment, the Bill challenges existing providers to elevate the reach and quality of their offerings. It encourages competition and fosters innovation.
If passed into law, the bill will invigorate the telecommunications industry by eliminating franchise requirements and embracing a policy framework promoting shared passive infrastructure. By allowing a broader spectrum of service providers, an anticipated result is a surge in reliable internet services, reduced costs, and wider access even to the most rural communities. The Bill encourages new entrants, other than the incumbents, to invest in broadband infrastructure and allows existing facilities to be shared fairly.
We do not have to wait for the Open Access Law to pass to benefit from the reforms we need to see in the telco sector. The right spectrum management policy is a low-hanging fruit crucial for encouraging healthy competition among wireless broadband service providers. Allocating wireless frequencies correctly will help them improve efficiencies to ensure that the country can harness the full potential of new technologies and meet the growing demand for data and wireless connectivity. Our spectrum management policy must keep pace with advancements in telecommunications technology.
The digital world is constantly evolving and innovating, so the Philippines must strive to adapt quickly and effectively. Poor internet access and a lack of digital infrastructure affect crucial industries such as the service sector. The information technology and business process outsourcing industry, which generates jobs and drives service exports, is constrained in expanding to certain locations. The Open Access Bill and instituting reforms in spectrum management policy are the catalysts to ensure that the country’s growth and development progress into the digital age and make it a significant player in a global digital economy.
There is now a broadening call for the Senate of the Philippines to prioritize deliberations on the Open Access Bill, following the lead of the House of Representatives, which passed the Bill as early as December 2022. Our lawmakers must champion a digital policy that meets current demand and anticipates future needs. The passage of this Bill will signal a solid commitment to propelling the Philippines into a future where digital access is not just a privilege but a right available to all.
The cost of continued inaction is high, including the possibility of ill-equipped citizens who will result in missed opportunities and a widening digital divide. Due to poor internet connectivity, we cannot remain the last investment option among ASEAN economies. The Philippines must prioritize reforms to enhance affordability, speed, and accessibility to bridge the digital gap and foster inclusive growth in the digital era. Doing so can forge a path to a more connected, competitive, and innovative Philippines. ([email protected])
(The author is an executive member of the National Innovation Council, executive director of the Alliance for Technology Innovators for the Nation (ATIN), vice president of the Analytics and AI Association of the Philippines, and UP System Information Technology Foundation.)