The Department of Information and Communications Technology (DICT) expects at least seven foreign new telecom players to enter the Philippine market within the next few years, following the signing of the implementing rules and regulations (IRR) for the “Konektadong Pinoy Act” on Wednesday.
DICT Secretary Henry Aguda told reporters that while they expect seven potential new entrants, “maybe two will hit the ground running.”
Aguda estimated that each new entrant is expected to invest between $1 billion and $1.5 billion.
The signing of the IRR, which marks a historic step towards a more connected nation, was led by Aguda and partners from various government agencies.
These officials included Secretary Arsenio Balisacan of the Department of Economy, Planning and Development; Secretary Vivencio Dizon of the Department of Public Works and Highways; Secretary Juanito Victor Remulla of the Department of the Interior and Local Government; acting Secretary Giovanni Lopez of the Department of Transportation; Commissioner Ella Blanca Lopez of the National Telecommunications Commission; and Chairperson Michael Aguinaldo of the Philippine Competition Commission.
The new IRR aims to make it easier for new internet service providers to enter the market, open up competition in the industry and expedite the process of obtaining permits and registrations to reduce the cost of connection.
A key part of this is the implementation of the “Dig Once Policy,” where fiber cables will be laid simultaneously in public projects to save time and costs.
Aguda said “Connected Pinoy is not just a government project, but a promise of the New Philippines that no Filipino will be left offline,” adding that the new legislation effectively removes the barrier for new players to enter the telecommunications industry.
The law eliminates the franchise requirement for participants in the data transmission industry, thereby easing their market entry.
The DICT also completed the national mapping of fiber cables nationwide with assistance from the Australian Government under the Partnerships for Infrastructure (P4I) program.
This step, in partnership with the private sector, is expected to accelerate fiberization and reduce the cost of connectivity.
With the signing of this IRR, the DICT said it is ready to begin the fiberization of every home and advance the President’s goal of providing all Filipinos with fast, reliable and affordable internet by 2028.
