Telco war? PLDT threatens legal action over 'Konektadong Pinoy Act'
PLDT Inc. Chairman, President and CEO Manuel V. Pangilinan
Pangilinan-led telecommunications giant PLDT Inc. has expressed its willingness to take the government to court to challenge the constitutionality of the proposed Konektadong Pinoy Act, which is now awaiting the signature of President Marcos.
“We're hoping that it will not be signed by the President into law,” said PLDT senior vice president and corporate secretary Marilyn Victorio-Aquino, referring to the highly contentious measure.
“But if it is signed into law, then we have our option to go to court to raise the issues of constitutionality,” she said.
Certified as urgent by the Marcos administration, the Konektadong Pinoy bill is seeking to enhance competition in the telco industry, improve internet connectivity, and promote digital services nationwide.
In order to do this, the measure would streamline licensing processes for network providers, providing a more seamless entry for telecom operators, whether domestic or foreign.
It would likewise grant regulatory authority to the National Telecommunications Commission (NTC), removing the congressional franchise requirement for prospective telco players.
Victorio-Aquino, also senior legal advisor to the chairman, said this multi-pronged approach is among the many constitutional issues of the proposed law.
“From a legal point of view, a bill can only cover one subject. So that everything is discussed in full, there's no side trap,“ she told reporters.
“The data transmission providers are being given so much benefits, which are not being given to the telcos also,” she added.
Victorio-Aquino said the bill is essentially “discriminatory” as existing telco operators in the country will be required to open up their network assets for new players.
“They don't have to build infrastructure because they can just access our assets. That's not how open access works,” she explained.
“And you know how expensive it is to build this infrastructure. And suddenly we will not have any control over it,” she added.
PLDT Chairman and Chief Executive Officer (CEO) Manuel V. Pangilinan said Marcos should strongly consider vetoing this bill, given its potential impact during worst-case scenarios.
For instance, Pangilinan said the bill provides no assurance for the government that these potentially new telco firms will continue their operations in the country no matter what.
“Here [in PLDT], we have no choice, we continue to provide the service regardless of conditions in this country,” he said.
Pangilinan added that the telco industry is not asking for the government’s protection, but rather for a “level playing field.”
The country’s top telcos, including PLDT, Globe Telecom Inc., DITO Telecommunity Corp., and
Converge ICT Solutions Inc., earlier wrote to Marcos to oppose the passage of the bill.
Victorio-Aquino said they have been requested by Malacañang to comment on the bill, during which the industry raised the issue of constitutionality and its position that the President should veto the bill.
The bill is now awaiting the signature of the President for its enactment.
However, it may also lapsed into law on Aug. 24 if not acted upon.
In a related development, Globe is urging President Marcos to instead return the Konektadong Pinoy bill back to Congress for further refinement.
The Ayala-led firm said the bill will only able to serve its purpose of universal access to affordable and reliable internet through a level playing field across the telco industry.
“We believe this bill needs further study and reform. We hope the President understands the concerns raised by many in the industry, including respected voices and notable personalities,” said Globe general counsel Froilan Castelo.
“Our key concerns include regulatory imbalance, uneven competition, and the lack of transparency and oversight for new players,” he added.
Castelo said the company would firmly support the bill if it were returned to Congress to address its issues.