PCTO Warns Konektadong Pinoy Bill Threatens Telco Industry, Security

The Philippine Chamber of Telecommunications Operators (PCTO) has raised concerns over the Konektadong Pinoy bill, saying the measure could undermine fair competition, violate constitutional provisions, and pose risks to national security.

While the bill seeks to expand internet access and encourage new players in the data transmission industry, the PCTO warned that its provisions could negatively impact the telecommunications sector.

“We believe in fostering a competitive environment that encourages innovation and makes connectivity more accessible and affordable to Filipinos,” the PCTO said in a statement.

“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.”

The PCTO argued that the bill is unnecessary since the Amended Public Service Act (RA 11659) already provides a framework for new entrants in the telecommunications market, including data transmission providers.

It also pointed out that the bill’s provisions could create confusion and regulatory overlap.

Legal and Security Concerns

One of the PCTO’s strongest objections is the inclusion of spectrum management provisions in the bill.

It argued that the measure violates the Constitution’s “one bill, one subject” rule by including broad spectrum allocation policies that go beyond data transmission and cover broadcast frequencies.

The organization also warned that exempting data transmission providers from securing a congressional franchise and a Certificate of Public Convenience and Necessity (CPCN) could create an unequal regulatory environment.

“This disparity could discourage investment from existing players, ultimately achieving the contrary effect to what the bill intends and might hinder the growth of the telecommunications sector,” the PCTO said.

It also warned that the lack of franchise and CPCN requirements could eliminate crucial safeguards that ensure service providers meet quality standards, potentially compromising national security.

The bill could also weaken oversight of spectrum resources, which the PCTO described as a vital part of the country’s national patrimony.

Impact on Local Businesses and Competition

The PCTO cautioned that reducing regulatory scrutiny for data transmission providers could lead to cybersecurity risks and hurt local telecommunications firms.

It warned that the removal of barriers to entry could allow an influx of new players who may not be subject to the same regulatory standards, making it harder for domestic companies to compete.

The chamber also flagged concerns over the bill’s access list provisions, which would allow the government to mandate access to private property for infrastructure development.

According to the group, this provision raises concerns about potential violations of due process and property rights.

Call for a Balanced Approach

The PCTO said the bill should require new data transmission providers to roll out services in geographically isolated and disadvantaged areas (GIDAs) rather than competing in well-connected locations.

“Data transmission providers should be required to build in GIDAs instead of adding redundant builds in areas where connectivity is already strong,” the organization said.

It urged lawmakers to consider amendments that would balance industry growth with fair competition, regulatory safeguards, and national security.

“PCTO stands ready to hold a dialogue with lawmakers to address these concerns and work towards a revised version that supports a balanced and competitive telecommunications landscape that benefits all Filipinos.”