Final fate of KPA hangs

If not signed or vetoed by President Ferdinand “Bongbong” Marcos Jr. (PBBM), the proposed Congress-approved bill called “Establishing a Comprehensive and Inclusive Data Transmission and Connectivity Framework For The Philippines” will lapse into law at midnight this Saturday (Aug. 23). Known by its popular name as the proposed “Konektadong Pinoy Act,” the KPA bill was passed into law by the defunct 19th Congress last June 9, or four days before both chambers adjourned sine die.

But the printed or enrolled KPA bill was only transmitted to Malacañang more than a month later. Under our country’s 1987 Constitution, the Office of the President has 30 days within which to act on enrolled bills from the date of receipt. Many national and local bills approved by Congresses past ended in presidential vetoes.

But if not acted upon within this one-month period, it lapses into law without the President’s signature. There is nothing new or strange if Congress-approved bills get lapsed into law. In fact, there have been so many such Congress-approved bills from administrations past which got enacted without the President’s signature.

If the KPA bill in its present form is signed into law, industry players led by the four biggest telecommunications companies (telcos) vow to question it before the Supreme Court (SC). As industry players, they raised alleged legal and constitutional infirmities of the Congress-approved KPA bill.

For now, the respective heads of our country’s biggest telcos have been urging PBBM to veto the KPA bill. The now controversial KPA bill drew unanimity of no less than the four chief executive officers (CEOs) of telcos, who signed a “Dear Mr. President” letter/appeal to PBBM. While opposed to the KPA bill, they, however, expressed readiness to craft an amended version of this proposed law for consideration of the 20th Congress and their approval.

As envisioned under the KPA bill, the government hopes to bring in foreign players to compete with local players to provide Filipinos with faster internet and to address the connectivity needs of underserved and unserved areas, especially the people living in the geographically isolated, disadvantaged areas (GIDAs).

Under its present form and substance, telco leaders warned that it will open the floodgates for the entry of “bad actors” of new data transmission industry participants (DTIPs). If enacted, new players would no longer be required to go through the screening rigors of congressional franchise applications. This is just the tip of the iceberg, so to speak.

Department of Information and Communications Technology (DICT) “acting” Secretary Henry Rhoel Aguda has been reaching out to the telco industry leaders. Joining us at our Tuesday breakfast club at the Edsa Shangri-la Ortigas last week, Aguda told us he remains optimistic that the stiff objections against the KPA bill could still be ironed out somehow.

As far as the DICT is concerned, Aguda told us the KPA bill is good to go for enactment. Appointed last March 20, Aguda inherited these headaches to sort out. Due to lack of material time, Aguda failed though to hurdle the confirmation process at the Commission on Appointments (CA) that also adjourned sessions sine die with the 19th Congress last June 13.

PBBM earlier rejected his courtesy resignation, along with many of his fellow Cabinet officials who were retained in their respective posts. PBBM subsequently re-issued Aguda’s ad interim appointment as DICT secretary to the CA for immediate confirmation.

Long before he joined the Cabinet, Aguda has been actively part of PBBM’s Digital Infrastructure Sector in the Private Sector Advisory Council (PSAC) headed by Sabin Aboitiz as convenor. PBBM convenes the PSAC at Malacañang twice a month. Aguda was then the senior executive vice president, among other positions, at Union Bank of the Philippines under the Aboitiz Group of companies.

A lawyer by profession, Aguda’s previous job stints enabled him to closely work with top telco executives. And they are the ones who vehemently object to the KPA bill for its projected dire impact not only on their business operations but more so on the government.

Telco industry officers representing the Philippine Chamber of Telco Operators (PCTO) echoed fears that the KPA will further put at risk the country’s cyber security situation. The PCTO likened the KPA bill to a “Trojan horse” where the villains hide inside a well-intentioned legislative reform measure. Lawyers Ariel Tubayan, Globe Telecom vice president of Legal Policy Group, and Roy Ibay, Smart Telecom vice president for Regulatory Affairs, warned about the dire implications of the KPA bill during our conversations with them at the Kapihan sa Manila Bay forum last July 2.

While we all want ease of doing business, PCTO cited with deep concern the KPA bill would allow satellite providers like Elon Musk’s SpaceX Starlink to use spectrum without regulation. This contradicts KPA’s declared policy of “technology neutrality.” The PCTO, together with the Federation of International Cable TV Associations of the Philippines and the Philippine ICT Organization, submitted a letter to the Office of the President outlining these specific concerns on the KPA bill.

The Philippine telco industry is calling out these deficiencies in the bill that can impact our national security, and the public, such as the watering down of the regulatory powers of the National Telecommunications Commission (NTC). Once it becomes a law, it will allow any company to enter the Philippines without checking for financial capacity, technical competency and giving them two years within which to install their cyber security measures.

How can there be a level playing field if such favorable arrangements are given to satellite technology players?

The KPA bill was actually first filed as the proposed “Open Access in Data Transmission Act” during the 17th and then refiled in the succeeding 18th Congress. In both instances, the bill did not see the light of day. It was refiled anew in the 19th Congress. Being included in the priority measures in the common legislative agenda of the Legislative-Executive Development Advisory Council (LEDAC), the KPA bill finally got through Congress.

Now, the KPA’s final fate rests with the President.