One of the most significant bills to come out of the legislative mill this year is the Konektadong Pinoy Bill (KPB) or Konektadong Pinoy Act (KPA). It is pending signature by President Ferdinand Marcos Jr. (aka BBM, Bongbong Marcos) probably by or before end-July this year.
The bill has formidable backers – Imee Marcos and 10 other senators in the Senate (Senate Bill 2699) and House Speaker Ferdinand Martin Romualdez and his wife, beauty queen and party-list congressman Yedda Marie, in the House. As you know, Imee is the elder sister of BBM; Martin is the first cousin of the President.
KPB, according to global law firm Baker McKenzi (BM), marks “a significant milestone in the country’s push for universal, affordable and high quality internet access.” “KPA will remove all significant legal barriers to entry into the Philippine data transmission sector by foreign players,” says BM.
The firm says KPA will:
• Institute a straightforward registration requirement for data transmission industry participants (DTIPs)
• Repeal the congressional franchise requirement for DTIPs
• Allow DTIPs to deploy satellite technology and use associated spectrum in any or all segments of their broadband network without the need for a lease or rent capacity from public telecommunications entities (PTEs)
• Mandate the formulation of the Spectrum Management Policy Framework (SMPF) to prescribe the national policies and guiding principles that govern the management of spectrum, including, among others, spectrum valuation and pricing, spectrum allocation and spectrum assignment for public, private and government use among other measures.
Fast, reliable, cheap and safe WiFi, nationwide.
Who can argue against those lofty objectives? It will be like arguing against God, motherhood and country, against rice at P20 per kilo or against quality water or better service (for once) from PrimeWater.
PLDT Smart and Globe Telecom are moving heaven and earth to stop BBM from signing the bill into law. Why? Because every Tom, Dick and Harry (TDH) can now go into telephony, WiFi and data transmission. Especially if TDH is well connected, financially endowed or, in plain language, a crony.
Why? Because you don’t need to get a congressional franchise to engage in telephony, WiFi, data transmission or similar technology. A congressional franchise, as you know, can cost you millions, hundreds of millions, indeed billions, to get. One utility, an insider told me, was extracted P800 million in exchange for its franchise renewal.
With low-cost threshold to enter the most lucrative business in town, there will be many players. Many players mean more competition. More competition means better service. And lower pricing. Great. On paper.
In 1992, then President Ramos opened up the telephone business –because of me. As a senior correspondent, I wrote an editorial in Asiaweek that said, “In the Philippines, 98 percent are waiting for a telephone. The remaining two percent are waiting for a dial tone.” Visiting Manila that year, Singapore PM Lee Kuan Yew addressed a huge business audience hosted by PLDT. LKY quoted my Asiaweek editorial in his sarcastic speech. Enraged by LKY’s borrowed joke, Ramos ordered telephony opened up, to seven major players, through an EO drafted by super lawyer Tony Carpio.
I congratulated FVR. For the first time, a president could cut PLDT down to size. With Carpio’s EO, I thought there would be at least eight telephone companies nationwide – PLDT plus the seven newcomers. You know what happened? There are only two major telephone players today, PLDT Smart and Globe. Why? The carpetbaggers, the upstarts did not turn out to be serious players. They are gone. They were a joke. They were gobbled up, by the serious players. No joke.
So will KPA be a joke? It depends. Not if you listen to Globe and PLDT Smart. Here are the main arguments against KPB, in its present form:
The Konektadong Pinoy Bill is superfluous. If it wants to serve satellite providers, there are enough provisions in existing laws to allow them in the country. In fact, satellite providers are already serving Phl customers today.
The Konektadong Pinoy Bill violates the tech neutrality policy by “seemingly” favoring satellite technology.
The bill also allows for satellites to use any spectrum, which may result in spectrum overlaps and interference if this is not managed correctly.
The bill unjustly favors satellite providers. No prior approval is required from the Department of Information and Communications Technology (DICT) for broadband services or the National Telecommunications Commission (NTC) for non-broadband and broadcast services. They just need to inform DICT or NTC, for record-keeping only.
New entrants, including satellite providers, will not be compelled to serve missionary or geographically isolated and disadvantaged areas like industry players were subjected to. Hence it will not benefit the unconnected, which is the main objective of the bill.
KPB claims to center on the role of digital inclusivity in nation-building and narrow the digital divide in the country by promoting open access and competition in data transmission services.
This bill further expands internet access nationwide by recognizing satellite internet services as a key component of digital infrastructure. Under the bill:
• Satellite Service Providers (SSPOs) are now included and classified as a Data Transmission Industry Participant (DTIP).
• This classification as a DTIP allows SSPOs to operate in the Philippines without the need for a legislative franchise, permits or certifications, significantly lowering regulatory barriers.
• This legislative framework will accelerate the entry of satellite companies and will provide them an unfair advantage versus other providers.
Perhaps, BBM should listen to Globe and PLDT Smart. So KPA will not become a joke that FVR’s EO on PLDT became. No joke, Mr. President.
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