Group warns of wider digital divide with Konektadong Pinoy bill

A consumer advocacy group said the proposed Konektadong Pinoy Act has no provisions that would mandate new players in the telecommunications space in the country to invest in far-flung areas and could result to a wider digital divide in the country.

CitizenWatch Philippines said that geographically isolated and disadvantaged areas (GIDA) should be given priority, which the bill failed to address.

"Rural and remote communities could be left further behind as new players focus on more profitable urban markets, where returns on investment are quicker and more substantial," CitizenWatch convenor Orlando Oxales said.

Relaxing restrictions could also be economically detrimental to the country's telco industry, as new entrants might force all players to implement competitive pricing and focus their resources more on urban areas.

"New entrants might resort to aggressive pricing strategies to gain market share, which could force all players to cut costs and reduce investments in critical infrastructure, thus leading to slower expansion, especially in GIDAs areas where broadband services are most needed," Oxales added.

The World Bank earlier said that policymakers in the Philippines should focus on reforms and invest more budget to improve the Philippines' broadband infrastructure, as the limited internet connection affects many people and future opportunities.

Senator Alan Peter Cayetano, proponent of the bill, earlier said the proposed measure was a "landmark bill" that would pave the way for reliable, affordable, accessible internet connection across the country.

"I really feel that this is an opportunity to comprehensively approach this and once magawa natin to, we will in a year, two, or three years see the difference of having reliable, affordable, accessible internet connection in Luzon, Visayas, Mindanao," he added.

The National Economic and Development Authority (NEDA) is pushing for the passage of the measure which, it said, will provide open access and transparency in the country’s data transmission sector.

“NEDA supports the advocacy for the passage of the Open Access Bill, or its newest iteration, the Konektadong Pinoy Bill,” NEDA Secretary Arsenio Balisacan said.

“This landmark legislation embodies our commitment to promoting fair competition and dismantling barriers to entry in the data transmission sector. It aims to reduce costs and expand access to high-quality internet services for all Filipinos, especially those in unserved and underserved areas,” Balisacan said.—Mariel Celine Serquiña/AOL, GMA Integrated News