Konektadong Pinoy bill to affect small PH telco firms –group

The Philippine Association of Private Telecommunications Companies (PAPTELCO) has expressed concern over the impending enactment of the bill seeking to improve the internet connection in the country, saying it may displace independent telecommunications companies.

PAPTELCO president Atty. Normandy Baldovino Jr. said that the “uneven regulatory playing field” proposed by Senate Bill 2699 or Konektadong Pinoy Act that allows entry of foreign telco players in the Philippines will be detrimental for small Filipino-owned telco companies.

“The majority of the telecommunications companies in the Philippines are not big players. There are small ones like us that will be the first to be affected by this if it passes into law,” Baldovino said in a statement.

“We play an important role in the ICT ecosystem, providing connectivity where the big telcos are not able to go. Just allowing foreign telcos to enter the Philippines is anti-Filipino. Our legislators may not have considered the negative impact of allowing any foreign telco to set-up in the Philippines. That is why you need a congressional franchise to operate,” he added.

Last month, President Ferdinand “Bongbong” Marcos Jr. wrote a letter to Senate President Francis “Chiz” Escudero, calling for the immediate enactment of the Konektadong Pinoy Act to “facilitate the development of a robust and resilient communications infrastructure.”

The Senate passed the bill on third and final reading on February 5, before going into session break.

However, the PAPTELCO lamented that passing the bill into law may result in closure of some local firms that were pioneers in the telecommunications industry in the country, including Independent Tel Company, Inc (INTELCO) in Biñan, Laguna; Radio City Tel Company, Inc. (RACITELCO) in Bulacan; and Iriga Telephone Company, Inc. (IRIGATEL) in Iriga City, Camarines Sur.

“These companies are institutions in the areas they cover, and they have upgraded their systems as new technologies came in, within the limitations of their financials. These investments will be wasted if a well-funded foreign telco company comes in to engage the small players in a price war,” Baldovino said.

Under the Konektadong Pinoy Act, the Department of Information and Communications Technology and the National Telecommunications Commission (NTC) will jointly maintain and update a centralized database of data transmission infrastructure.

The Philippine Competition Commission and the NTC are also mandated to ensure that all industry players will observe fair, reasonable, and non-discriminatory treatment in all their dealings.

GMA News Online reached out to the concerned government agencies and officials for comment and will publish it once available. 

Marcos had said that establishing a competitive and innovation-driven data transmission industry “will safeguard the public interest, promote fair competition, encourage investment in critical digital networks, and equip the government and public with the necessary tools to maintain vital communications channels and effectively respond to emergency situations.” —AOL, GMA Integrated News