Small telco players express concern over proposal to allow foreign firms to operate


Small operators of telecommunication services, especially in the provinces, have expressed concerns over the possible adverse impact on their business of the proposed bill that would allow foreign firms to operate.

Lawyer Normandy Baldovino Jr., president of the Philippine Association of Private Telecommunications Companies (Paptelco), said that should the Senate Bill No. 2699, or the Konektadong Pinoy Bill, be passed, there is a strong possibility that small local firms would be displaced.

"The majority of the telecommunications companies in the Philippines are not big players. There are small ones like us that will be the first to be affected by this if if passes into law," said Baldovino.

"We play an important role in the ICT (information and communications technology) ecosystem, providing connectivity where the big telcos are not able to go. Just allowing foreign telcos to enter the Philippines is anti-Filipino," he added.

Paptelco is an organization of independent telecommunications companies providing connectivity in farflung provinces and the group said the legislators might not have considered the effects of the bill to the local small players.

The Senate Bill No. 2699 aims to improve access to fast and affordable internet nationwide by removing the need for legislative franchises, promoting infrastructure sharing among telecom companies, and overseeing the allocation and use of radio spectrums.

Research firm Stratbase, earlier, said that the "bill in its current form may expose us to more pitfalls and risks."

"The law seeks to make it easier for investments in telecommunications to pour into the country, and part of this is to address the roadblocks that hinder the flow of investments,” the Stratbase said.

“But in our zeal to encourage investments, it would be prudent to maintain the regulatory oversight of the NTC (National Telecommunications Company). Only it will keep telcos in line and will serve as the people’s recourse," it added.