In a contentious discussion surrounding the recently passed Konektadong Pinoy (KP) Bill, former Department of Information and Communications Technology (DICT) Undersecretary Jeffrey Ian Dy expressed his opposition to Secretary Henry Aguda regarding the bill.
While acknowledging the good intentions of the proposed legislation, Dy warned that it is based on a misunderstanding of the telecommunications supply chain and could pose serious risks to both the industry and national security.
The KP Bill, which has received approval from both chambers of Congress, contains a particularly controversial provision—Section 16. This section mandates that all Data Transmission Industry Players (DTIPs), including Public Telecommunications Entities (PTEs), must co-locate and share their infrastructure. The former DICT undersecretary, who previously advocated for infrastructure sharing to facilitate industry operations and reduce internet costs, criticized this provision for oversimplifying the complex dynamics of the market.
He identified several critical weaknesses within the bill:
1. Inadequate Regulation of Development Projects: The KP Bill fails to address the excessive fees charged by malls and real estate developers for telecommunications infrastructure. This oversight could hinder PTEs from effectively providing services to more consumers.
2. Weak Enforcement Provisions: While Section 16(2) mandates government agencies to implement rules for sharing in-building data infrastructure, the penalties outlined primarily target DTIPs. The lack of accountability for lessors, real estate developers, and landlords could perpetuate high costs.
3. International Regulatory Challenges: Noting that 99% of internet traffic travels through undersea cables managed by international consortiums, the former undersecretary questioned how Section 16 could be realistically enforced in the context of global telecommunications regulations.
4. Potential National Security Risks: With a foreign company poised to provide broadband services in Northern Luzon, he raised alarms about the implications for national security under the current framework of the KP Bill. The connection of a Chinese-operated fiber network to local PTE infrastructures could endanger sensitive national interests.
5. Concerns about Satellite Operations: The relaxation of regulatory requirements for satellite operators under the bill may also expose the Philippines to further security vulnerabilities, as existing orbital slots above the nation are occupied by foreign entities, limiting the country’s control over its airspace.
Finally, Dy urged the President to reconsider the bill in its current form, asserting that while the goal of a more competitive and affordable telecommunications market is commendable, the KP Bill inadequately addresses the complexities and security concerns that underlie the industry. He emphasized the need for a more comprehensive study before finalizing legislation that could have lasting impacts on the future of the telecommunications industry in the country.
