The Philippine Chamber of Telecommunications Operators (PCTO) has expressed concerns over provisions in the Konektadong Pinoy bill, warning that certain aspects could jeopardize the nation’s security and impede the growth of the telecommunications sector.

Despite the bill’s aim to expand internet access and ease the entry of new players in the telecommunications industry, PCTO believes that certain provisions could undermine national security, hinder fair competition, and stifle much-needed investments in the sector.

“We recognize the good intentions behind the Konektadong Pinoy bill, but there are critical flaws that need to be addressed. If passed in its current form, the bill could disregard constitutional provisions, harm fair competition, and pose a serious threat to our country’s national security,” said PCTO representatives.

One of the primary concerns raised by the PCTO is the bill’s removal of franchise requirements for international gateway facilities, cable landing stations, and satellite service providers. Under the current provisions, these entities can operate without thorough legislative scrutiny, potentially allowing foreign-controlled companies or even shell companies to control critical information infrastructure essential for national security.

“A foreign entity, or worse, a state-sponsored entity, could easily set up international gateways or cable landing stations in the Philippines with minimal regulatory oversight. This lack of safeguards could leave our country vulnerable,” PCTO officials warned.

Additionally, the bill does not require new players to comply with national and global cybersecurity standards from day one. PCTO views this as a significant loophole, especially given the rising incidents of cyberattacks worldwide. The organization emphasized that ensuring cybersecurity readiness should be a precondition for operating in the Philippines, with no grace period for new players to meet these requirements.

“Cybersecurity readiness is vital for the protection of our critical infrastructure. Allowing new players to operate without securing their systems first exposes the country to potential cyber threats,” the PCTO stressed.

The PCTO also called for a mandate that new players prioritize service expansion to underserved and unserved areas, instead of focusing only on urbanized regions where competition is already strong. The bill currently does not require new players to address the digital divide in rural areas, an issue that could further marginalize remote communities from the benefits of increased connectivity.

“New players should be required to build infrastructure in General Areas of Information Development (GIDAs), rather than concentrating solely in areas where services are already abundant,” the PCTO said, emphasizing the importance of ensuring that the Konektadong Pinoy initiative truly benefits all Filipinos, particularly those in rural and underserved regions.

Further issues raised by the PCTO include:

• An Unconstitutional Rider on Spectrum Allocation: The inclusion of spectrum management provisions in a bill primarily focused on data transmission is seen as a violation of the Constitution’s “one bill, one subject” rule.
• Violation of the Equal Protection Clause: The bill’s exemption of new data transmission providers (DTPs) from securing a congressional franchise while requiring it from existing operators creates an unequal regulatory environment.
• Threat to Natural Resources Protection: The removal of franchise requirements and the reduction of the NTC’s powers could lead to the unchecked exploitation of the country’s finite spectrum resources.
• Technology Neutrality: Provisions favoring satellite technology over others violate the principle of technology neutrality, potentially stifling future innovation in telecommunications.

PCTO also expressed concerns over provisions that could undermine domestic businesses, as the influx of new, less-regulated players could hinder the growth of local telecom companies. Additionally, the bill’s “Dig Once” policy—mandating shared underground infrastructure—raises the risk of disruptions and sabotage due to a lack of redundancy in infrastructure systems.

“The PCTO believes that there is still time to rectify these issues to ensure the Konektadong Pinoy bill can fulfill its goals without compromising the nation’s security or the integrity of the telecommunications sector,” the group said.

The PCTO reaffirmed its willingness to collaborate with lawmakers to craft a balanced and secure version of the bill that supports the growth of a competitive and secure telecommunications industry in the Philippines.

“We are committed to working with our lawmakers to ensure that the bill reflects a holistic approach to connectivity and security, benefiting not just urban areas but all Filipinos,” said PCTO.

The organization called for a “whole-of-nation” approach to realizing a connected and secure Philippines, one that puts the needs of the entire country first.