The passing of the Konektadong Pinoy Act could lead to lower internet quality in the Philippines, as it may force telecom companies to cut corners with their services to get ahead of the new playing field with new entrants, a think tank said.
CitizenWatch Philippines said new telcos might use their position as a new player to cut prices and force everyone to focus on lower costs, which could lower service quality.
“New entrants might resort to aggressive pricing strategies to gain market share, which could force all players to cut costs and reduce investments in critical infrastructure, leading to slower expansion, especially in GIDAs areas where broadband services are most needed,” CitizenWatch lead convenor Orlando Oxales said.
SB 2699, if passed, will eliminate the need for a congressional franchise for telecommunication companies, which “diminishes” the regulatory powers of the National Telecommunications Commission (NTC) into mere oversight, CitizenWatch said.
The network fears that stripping the NTC of its oversight functions would leave consumers with little recourse to poor and unfair practices brought by the new competition landscape.
“As a result, there could be erosion of consumer protection because it is the NTC’s mandate to hold telecommunications providers accountable and compliant to standards that protect consumers,” he said.
Oxales also warned that, if not addressed, new telcos would set up their operations mainly in urban areas to recuperate costs, which could further delay growth in Geographically Isolated and Disadvantaged Areas (GIDA), which could be the outcome that law avoids.
Oxales called on the Senate to work with industry experts to promote a safe expansion of the country’s digital infrastructure without reducing the powers of the NTC.
The Konektadong Pinoy Act is currently lodged at the Senate and awaits further deliberations and actions as a priority bill.
