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Friday, March 29, 2024

PCC backs proposed national broadband

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The Philippine Competition Commission is recommending measures to make the proposed National Broadband Plan more beneficial to consumers.

The Department of Information and Communications Technology is spearheading the formulation and implementation of NBP to upgrade the quality of broadband services in the country, widen its reach, and link all government agencies, public institutions and local government units through the internet.

The DICT is looking at about P78 billion to build NBN.

“The objective of the NBP is to ensure that all Filipinos will reap the benefits of broadband, address challenges in the sector, and accelerate broadband deployment,” PCC said in a position paper. “The PCC supports the DICT in its efforts to improve broadband services in the country.”

PCC said to ensure that the NBP would be effective in attaining its goals, several measures were needed, including giving regulators such as the National Telecommunications Commission more teeth to enforce its mandate, reviewing the competition landscape in the telco sector and resolving interconnection issues in the broadband market.

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The NTC should be given sufficient tools to overcome several challenges that hamper its ability to effectively regulate the industry, it said. 

Recommendations also include amending Republic Act 7925 that would allow NTC to impose higher penalties on telco players that are violating the country’s laws and regulations.

PCC said RA 7925, which was passed in March 1995, did not contain penal provisions. Because of this, the NTC applies the penalties provided under the Public Services Act of 1936, which sets fines at not more than P200 per day until the violation is corrected.

“When penalties are low and enforcement unlikely, operators will tend to choose to violate rules rather than sacrifice profits,” PCC said.

Moreover, the antitrust body said the PCC should not be prevented from pursuing its mandate of enhancing economic efficiency and promoting fair and free competition in the market.

“The PCC plays a crucial role in improving broadband services in the country. By implementing the Philippine Competition Act, it prevents firms from exploiting consumers and excluding competitors. Experience has proven that regulation by itself is insufficient to create a robust competitive environment in the telco industry. The PCA establishes rules to safeguard the competitive process and its effective application is necessary to assist entry as well as ensure that competition is maintained,” the commission said.

PCC also said there was need to remove regulations that were creating barriers to competition.

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