Telcos support Marcos’ internet push but flag flaws in Konektadong Pinoy Bill

The Philippine Philippine Chamber of Telecommunications Operators (PCTO) has expressed strong support for President Ferdinand Marcos Jr.’s vision of a digitally connected Philippines but cautioned against the immediate passage of the Konektadong Pinoy Bill in its current form.

In a statement, PCTO affirmed its commitment to reforms that will accelerate the delivery of fast, affordable, and reliable internet to all Filipinos. “We believe every Filipino deserves fast, affordable, and reliable internet, and we will support reforms that can bring us closer to that future,” the group said.

However, the industry coalition also welcomed the President’s prudence in evaluating the proposed law, arguing that while the bill is well-intentioned, it poses unintended risks that could destabilize the very infrastructure it seeks to improve.

“If franchise requirements are to be removed, what all sides are now calling for is simple: the same rules for all.”
- PCTO

Concerns over uneven playing field

PCTO warned that the bill, as drafted, could weaken investor confidence, introduce uneven regulations, and compromise the sustainability of the country’s digital infrastructure. 

A central issue is the perceived preferential treatment for satellite service providers, many of which are foreign entities. These players, PCTO argued, would not be held to the same standards—such as legislative franchises, infrastructure investment, or rural servicing obligations—as existing local telcos.

“This is not a game we invented; it is the legal regime with which we simply complied,” PCTO noted, while clarifying that the group is not advocating for more congressional franchises but rather for fairness and consistency. “If franchise requirements are to be removed, what all sides are now calling for is simple: the same rules for all.”

Reform should encourage, not discourage, infra investment

The PCTO highlighted that existing competition already spans all levels of the internet ecosystem, including small-scale point-to-point (P2P) providers. While these offer low-cost options, many rely on infrastructure built by larger players without contributing to its maintenance or expansion. This dynamic, they argued, has led to “ruinous competition” and fragmented services, especially in the provinces.

The group acknowledged that expanding competition at the infrastructure level is key to achieving improvements in internet speed, reach, and reliability. But they warned that the bill’s current provisions could disincentivize further investments from established infrastructure builders.

“Preferential treatment that any investor would see as a red flag,” the statement said, could destabilize the long-term telecom ecosystem.

“We support reform. But it must be designed to strengthen, not weaken, our infrastructure, resilience, and sovereignty.”
- PCTO

A call for balanced, inclusive reform

The PCTO also raised national security and sovereignty concerns, pointing out that even in the world’s most liberal telecom markets, satellite providers are required to partner with locally regulated firms. Allowing direct-to-community access by foreign satellite providers, without local oversight, would make the Philippines an outlier on the global stage.

“We support reform. But it must be designed to strengthen, not weaken, our infrastructure, resilience, and sovereignty,” PCTO emphasized.

The group concluded by reiterating its willingness to collaborate with lawmakers and stakeholders to improve the Konektadong Pinoy Bill. “We remain confident that, together, we can get this right.”  —Ed: Corrie S. Narisma

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