The Financial Inclusion Steering Committee (FISC) lauds the signing on 10 March 2021 by President Rodrigo Roa Duterte of the Executive Order No. 127 on Expanding the Provision of Internet Services through Inclusive Access to Satellite Services.
This amends Executive Order No. 467 of 1998 thereby allowing not only enfranchised telecommunication entities but also the non-enfranchised but duly registered internet service providers (ISP) and value added service providers (VASP) to directly access all satellite systems to build and operate broadband facilities to offer internet services.
“On behalf of the members of the Financial Inclusion Steering Committee, I wish to express our grateful appreciation to President Duterte for the swift signing of Executive Order No. 127, a tangible demonstration of his commitment to genuine reforms. This will be a big push for financial inclusion toward a more resilient and truly inclusive digitally-enabled new economy,” BSP Governor and FISC Chair Benjamin E. Diokno said.
By promoting greater competition and investment in the country’s satellite broadband services market, Executive Order No. 127 can bridge the massive internet infrastructure gaps in rural communities within a short time.
Satellite technology represents instant and readily deployable broadband infrastructure suitable for these areas that are largely unserved by incumbents.
The whole country can be connected swiftly as more market players – especially those positioned to serve their local communities – will be able directly access any of the fourteen high throughput satellites covering the country to provide broadband services.
On November 27, 2020, the FISC – the 20-member interagency body tasked to drive the implementation of the National Strategy for Financial Inclusion – endorsed the Executive Order to the Office of the President as an urgent policy reform.
Internet connectivity is a critical enabler of financial and economic inclusion as transactions and services increasingly move online.
Banks and other financial service providers will be able to better serve rural areas with more access points, such as automated teller machines (ATMs) and cash agent services that rely on internet connectivity.
In combination with the roll-out of the Philippine National Identification System (PhilSys) and its electronic know-your-customer (eKYC) facility, greater internet access will allow more unbanked rural clients and low-income communities to use digital financial services and meaningfully benefit from digital innovations.
A copy of the EO No. 127 may be downloaded from the Official Gazette: https://www.officialgazette.gov.ph/downloads/2021/03mar/20210310-EO-127-RRD.pdf
