Advocacy group CitizenWatch Philippines cautioned lawmakers about an oversight gap in the proposed Konektadong Pinoy Act that could result in unintended negative outcomes for broadband users and urged them to reconsider its implications.

CitizenWatch Philippines convenor Orlando Oxales said the bill’s intent to open up the telecommunications market to more players might seem like a good solution to the country’s connectivity issuesbut without the proper regulatory safeguards, the approach could backfire.

“This could lead to a host of unintended consequences that could undermine the very goals it seeks to achieve,” said Oxales.

The Konektadong Pinoy Act is now awaiting action at the Senate as one of the LEDAC priority bills. The House of Representatives passed its version of the measure on third reading in December 2022.

Oxales said that they are primarily concerned with the potential weakening of the National Telecommunication Commission (NTC), which has long served as the gatekeeper of the country’s telecommunications sector and has ensured that only qualified operators with the adequate resources and expertise are allowed to provide services to the public.

“The Konektadong Pinoy Act proposes to reduce the NTC’s role to that of a mere registrar, stripped of its oversight functions. If the NTC’s role is diminished, consumers may find themselves with little recourse when faced with poor service or unfair practices,” said Oxales.

He expressed concern that this could give way to a deluge of new entrants, even those without technical capability or financial stability to provide reliable connectivity to Filipinos.

“In the rush to increase competition, we could end up with a marketplace flooded with providers who would claim to prioritize speed but cannot deliver on quality and security, leaving Filipino consumers with subpar and unsafe internet services,” said Oxales. 

“These may open opportunities for cybercrime syndicates to infiltrate and cause harm to our individual and enterprise consumers in both the government and private sectors,” he added.

In a separate statement, Stratbase Institute President Prof. Victor Andres Dindo Manhit said that weakening the regulatory oversight function of the NTC can potentially lead to a chaotic scenario wherein the country's telecommunications networks can be exploited by hostile entities, posing significant risks to national security.

“The Konektadong Pinoy Act should align with the safeguard provisions of the Public Services Act (PSA) wherein critical infrastructure, defined as public services whose disruption could significantly impact national security, public health, or safety, is subject to rigorous regulatory oversight by the National Telecommunications Commission and other agencies,” Manhit said.

CitizenWatch pointed out that by easing the entry requirements without corresponding measures to ensure that new operators will invest in infrastructure, particularly in geographically isolated and disadvantaged areas (GIDAs), the bill risks exacerbating the digital divide rather than closing it.

“Rural and remote communities could be left further behind as new players focus on more profitable urban markets, where returns on investment are quicker and more substantial,” Oxales added.

CitizenWatch raised the serious issue of erosion of consumer protection, because it is the NTC’s mandate to hold telecommunications providers accountable and compliant to standards that protect consumers.

Operators could then resort to cutting corners to maximize short-term gains, to the detriment of long-term service quality and innovation, Oxales said.

Furthermore, the emphasis on deregulation raises economic concerns. “New entrants might resort to aggressive pricing strategies to gain market share, which could force all players to cut costs and reduce investments in critical infrastructure thus leading to slower expansion especially in GIDAs areas where broadband services are most needed.”

He said a balanced approach is crucial: “Any new legislation must not only promote competition but also guarantee that operators contribute to the expansion and improvement of digital infrastructure, especially in underserved areas.”

This could be achieved, he said, by imposing obligations on new entrants to serve GIDAs as the priority of their deployments, particularly if they are to be assigned valuable spectrum resources that require a franchise or allow the use of available frequencies that are compatible to existing transmission and broadband technologies.

Oxales called on the Senate to work with industry experts in integrating adequate safeguards that would mitigate risks to all broadband users.