The Philippine Chamber of Telecommunications Operators (PCTO) has cautioned that certain provisions in the proposed Konektadong Pinoy bill could negatively impact the telecommunications sector.
The bill, a key government initiative, seeks to enhance internet accessibility nationwide and facilitate the entry of new players into the data transmission industry.
The PCTO expressed support for the government's push for equitable connectivity but warned that the proposed Konektadong Pinoy bill, in its current form, could harm the telecom industry.
"Unfortunately, despite its good intentions, the Konektadong Pinoy bill disregards Constitutional provisions, undermines fair competition, and could stifle investment in the telecommunications sector. We hope to work with lawmakers towards reworking the bill into a version that will be a win-win for all,” explained the PCTO.
Also Read: Philippine Telco Empowerment: Lease-Free Infrastructure Push
The Ramifications of the Konektadong Pinoy Bill
The PCTO called the proposed Konektadong Pinoy bill “unnecessary and superfluous,” arguing that the Amended Public Service Act (RA 11659) already provides a clear framework for new entrants in the telecommunications sector, including data transmission providers.
The group warned that the bill’s provisions are redundant and could lead to regulatory confusion. It also strongly opposed the inclusion of spectrum management provisions, noting that such matters fall outside the bill’s intended focus on data transmission.
The PCTO further argued that the Konektadong Pinoy bill violates the Constitution’s "one bill, one subject" rule by including spectrum management provisions unrelated to its primary focus on data transmission. The group pointed out that the bill extends to broader spectrum allocation policies, covering broadcast frequencies, which it considers a rider provision that makes the measure unconstitutional. The PCTO also raised concerns that many stakeholders in the telecom and broadcast industries were either unaware of, or not consulted on, these provisions.
The PCTO also raised strong opposition to provisions in the Konektadong Pinoy bill that exempt data transmission providers from securing a congressional franchise and a certificate of public convenience and necessity (CPCN).
Feature: How the Philippines Is Heading Towards a Digital Future
The group stated that such exemptions create an uneven regulatory playing field, discourage investment from existing telecom firms, and could ultimately hinder industry growth. The PCTO also stressed that removing franchise and CPCN requirements weakens public interest safeguards, potentially allowing unregulated entities access to critical infrastructure, posing national security risks.
Additionally, the PCTO cautioned that reducing the National Telecommunications Commission’s (NTC) regulatory authority could lead to the unchecked exploitation of the country’s limited spectrum resources. The group further argued that the bill may disadvantage established telecom providers that have heavily invested in infrastructure under the current regulatory framework, potentially resulting in legal challenges and market uncertainty.
With the rise of over-the-top services, such as messaging apps, impacting traditional telecom revenues, according to the PCTO, the bill could further weaken local players' competitiveness while diminishing oversight in a sector critical to national security.
Read More:
Southeast Asian Telcos: Cyber Defense and the Push for Digitalization
