The Philippine Chamber of Telecommunications Operators (PCTO) said Monday certain provisions in the Konektadong Pinoy bill could ultimately harm Filipino consumers and undermine fair competition within the telecommunications sector.
“Unfortunately, despite its good intentions, the Konektadong Pinoy bill disregards Constitutional provisions, undermines fair competition, and could stifle investment in the telecommunications sector. We should work towards a version that will protect our critical information infrastructure and benefit the Filipinos,” said PCTO.
The Konektadong Pinoy bill is a priority measure by the Marcos administration that aims to expand internet access in the country by easing the entry of new players in the data transmission industry.
The PCTO said, however, too much easing of the safeguards could pose a serious threat to the national security.
Under the current version of the bill, international gateway facilities, cable landing stations and satellite service providers do not need a legislative franchise requirement. Hence, any company can build or operate these without passing through the safeguards needed to ensure our national security.
“A shell company that may be state-sponsored can build international gateway facilities and cable landing stations in the Philippines or operate satellite services, and all they are required to do is register with the National Telecommunications Commission (NTC). There is no checking required in the bill as the requirement is only to register,” the PCTO said.
This will allow foreign-controlled companies to control critical information infrastructure (CII) essential for national security, it said. Darwin G. Amojelar
PCTO said the franchise requirement should be retained and that the NTC should keep its quasi-judicial authority to assess the new players capabilities—legal, technical, financial, including cybersecurity and data privacy connections, that are not explicitly stated in the bill.
“Data transmission is central to telecoms and removing the franchise requirement undermines RA 11659 or the Public Service Act which already liberalizes foreign ownership in public services, and weakens the oversight of the government of critical information infrastructure,” PCTO said.
The bill also does not require new players to comply with national and global cybersecurity practices on Day 1.
“Ensuring the security of existing digital infrastructure is of primordial importance to protecting our nation’s CII. All Data Transition Industry Participants (DTIP) should be required to adopt and comply with national and global cybersecurity practices and standards prior to commencing operations. Granting a grace period of 1 to 3 years after commencement exposes CII to cyberattacks, providing cyber threat actors a large window of opportunity to exploit access to the CII. Cybersecurity readiness must be a precondition under the Act,” PCTO said.