Officially designated as Republic Act (RA) No. 12234, the Konektadong Pinoy Act automatically lapsed into law last week after no presidential action was taken on it within 30 days after Congress transmitted the bicameral bill to Malacañang.

Also known as the Open Access in Data Transmission Act, RA 12234 seeks to narrow the digital divide and provide affordable internet services for all Filipinos. It exempts new data transmission providers from legislative franchise requirements and introduces novel provisions on fair spectrum management.

The Philippine Chamber of Telecommunications Operators (PCTO) strongly opposed the enactment of the Konektadong Pinoy Act due to certain provisions that could undermine regulatory oversight and pose national security risks as well as cybersecurity threats. In fact, PCTO urged President Ferdinand Marcos Jr. to veto the bill and return it to Congress for further refinement.

Two major PCTO members, Globe Telecom Inc. and Smart Communications Inc., voiced their opposition to the passage of this law, according to various media reports. Globe is jointly owned by the Ayala Group and Singapore Telecom, while Smart is a subsidiary of PLDT.

Globe general counsel Froilan Castelo cited “regulatory imbalance, uneven competition, and the lack of transparency and oversight for new players” as key concerns. PLDT chief legal counsel Marilyn Aquino said the legislation provides “so much benefits which are not being given to the telcos.” The latter raised the option of going to court regarding the issue of constitutionality since the law covers multiple subjects, contrary to Article VI, Section 26 (1) of the Philippine Constitution, which is called the “one bill, one subject” rule.

But another PCTO member, Dito Telecommunity Corp., expressed support for RA 12234 because it mirrors the journey of Dito in the Philippine market and, at the same time, opens opportunities aligned with Dito’s infrastructure-led business model. Dito is a joint venture between the Udenna Group and China Telecommunications Corp.

Dito Chief Revenue Officer Adel Tamano noted that “the law’s aim of opening the data or internet space for greater competition would be very, very positive business-wise.” He believes that opening up the telcos will allow smaller players to use Dito’s network, which he thinks would be a win-win situation for the country’s third major telco.

During the company’s recent press briefing in Bonifacio Global City, Tamano indicated Dito’s willingness to participate in the preparation of RA 12234’s implementing rules and regulations (IRR). This event coincided with the launch of “Kaya Dito” – a nationwide movement aimed at empowering Filipinos through better digital experiences and superior connectivity. The campaign underscores Dito’s rapid rise over the past four years and its commitment to fulfilling the digital aspirations of Filipinos.

Under the new law’s provisions, the IRR must be finalized by the Department of Information and Communications Technology (DICT) within 90 days of its effectivity. DICT Secretary Henry Aguda intends to publish the IRR within 30 days instead of maximizing the three-month deadline.

Aguda is calling for a two-day industry summit to finalize the IRR, a draft of which has already been prepared by the DICT for presentation to telco operators during the summit for their review and feedback. Investors who plan to operate in the country could thus firm up their business decisions by year-end 2025.

Moreover, Aguda disclosed that the DICT has received numerous inquiries from data transmission industry participants (DTIPs) who can provide internet connectivity via satellite or fiber technology. The prospective DTIPs are just waiting for the IRR to take effect so they can set up shop sans the bureaucratic red tape.

Once operational, the DTIPs will be asked by the DICT to prioritize the placement of their network assets in geographically isolated and disadvantaged areas or GIDAs. Based on the DICT’s digital mapping results and the latest data from the Philippine Statistics Authority, only 49 percent of Filipinos have access to the internet, with peak penetration confined to the regions of Metro Manila, Central Luzon, and Calabarzon.

Hopefully, the Konektadong Pinoy Act could fast-track mobile and internet connectivity in the GIDAs and ultimately bridge the country’s digital divide.