The government’s efforts to expand the reach of the internet to geographically-isolated and disadvantaged areas (GIDAs) could be affected if more telco players would be allowed to operate under the proposed “Konektadong Pinoy” Act.

CitizenWatch Philippines lead convenor Orlando Oxales said existing telcos in the Philippines 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," Oxales said.

The “Konektadong Pinoy”, or Senate Bill 2699, would eliminate the need for a congressional franchise for telecommunication companies if passed. 

This is because the bill, according to Oxales, "diminishes" the regulatory powers of the National Telecommunications Commission (NTC) into mere oversight.  

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," said Oxales.  

“If not addressed, new telcos would set up their operations mainly in urban areas to recuperate costs, which could further delay growth in GIDAs, which could be the outcome that law avoids. 

Oxales then urged 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.