Strict regulations urged after Konektadong Pinoy lapses into law
The telecommunications industry is urging the government to ensure strong safeguards for consumers under the implementing rules and regulations (IRR) to be crafted for the Konektadong Pinoy Act, which recently lapsed into law.
The bill, also known as the Open Access in Data Transmission Act, officially became law on Sunday, Aug. 24, after President Ferdinand “Bongbong” Marcos Jr. opted not to veto or sign the measure within 30 days of receiving it in his office.
The Department of Information and Communications Technology (DICT), the primary implementing agency of the law, said it will deliver “universal, reliable, and affordable internet” for the country.
"By making internet access truly universal, we are creating a foundation for better education, e-commerce growth, accessible government services, and stronger communities," said DICT Secretary Henry Aguda.
Aguda said the agency will swiftly convene stakeholders to draft the law’s IRR, which must be finalized within 90 days.
He added that the government will work with industry players to ensure that the legislation is “inclusive and will deliver real, tangible benefits.”
In a statement on Monday, Converge ICT Solutions Inc. Chief Executive Officer (CEO) Dennis Anthony Uy said his company stands ready to collaborate with the DICT to ensure the law’s proper implementation.
“At Converge, we have always pushed to ensure that every Filipino has access to world-class connectivity. This also means protecting consumers and supporting a fair and competitive market,” Uy said.
Last week, Uy said that he “personally supports” the law since it will boost competition in the industry, providing consumers with more options.
Konektadong Pinoy Act, a priority measure of the Marcos Jr. administration, seeks to boost nationwide connectivity by making it easier for internet service providers (ISPs) to operate by encouraging infrastructure sharing and simplifying the licensing process.
Under the law, new telco players are no longer required to secure a legislative franchise or a certificate of public convenience and necessity to operate in the country.
With this provision, Uy stressed the need to ensure that the appropriate regulatory framework is in place under the IRR.
“The last thing we want is for consumers to suffer from substandard offers,” he said. “We need strong, clear, and enforceable rules that guarantee an equal playing field.”
Instead of limiting regulatory powers, Uy said agencies must be equipped with sufficient authority to guarantee that incoming operators comply with requirements and are held accountable.
The executive said among the regulations that the IRR should focus on include enforcement of capitalization requirements to make sure that new ISPs are financially equipped to provide their services, protecting consumers from “fly-by-night operators.”
He also said that these firms should have systems in place to crack down on cyberthreats such as scams and spam.
“Cybersecurity is so important. Every operator must have the capability to protect their network,” said Uy.
The Philippine Chamber of Telecommunications Operators (PCTO) previously flagged the then-proposed measure over supposed national security risks.
PCTO, in particular, opposed the provision that only mandates new players to comply with cybersecurity practices and standards within a grace period of up to three years.
The industry group warned that this could weaken the government’s oversight of critical information infrastructure, particularly among foreign-controlled companies.
Digital Pinoys, a group of digital advocates, said the government must address these cybersecurity concerns, while keeping the true essence of the law “intact.”
“We also urge the drafters of the IRR to introduce clear safeguards that will protect consumers and ensure these are effectively mapped out,” the group said in a statement.
It noted that the law will attract more ISPs to enter the country, cultivating fairer competition that should lead to a better customer experience.
Aguda said last week that he has engaged with about 20 ISPs that expressed interest in expanding their services in the Philippines, with the majority based in the United States (US).
Despite displaying strong opposition at first, the DICT chief said the country’s leading telco players have conveyed their willingness to participate in creating the law’s IRR.
To recall, Converge, PLDT Inc., Globe Telecom Inc., and DITO Telecommunity Corp. wrote a letter to Marcos to refrain from signing the bill and instead return the bill to Congress for further deliberation.
Manuel V. Pangilinan-led PLDT even raised the possibility of taking the government to court to challenge the constitutionality of Konektadong Pinoy Act.
“Their [PLDT] chief legal, Joan de Venecia, they said they will work with the IRR. So I’ve already talked to them. They’re okay,” Aguda told reporters in a chance interview.
Several business and advocacy groups have been pushing for the passage of the measure to democratize internet connectivity and bridge the digital divide.