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BusinessMirror August 31, 2025

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Sunday, August 31, 2025 Vol. 20 No. 322

P25.00 nationwide | 3 sections 16 pages | 7 DAYS A WEEK

IN ‘KONEKTADO’ LAW

A bill with the noblest of intentions to ensure universal access to the internet and its blessing has been passed after a bruising battle in Congress, and stakeholders are prepping for the next battleground: the IRR.

T

By Lorenz S. Marasigan

and the Anti-OSAEC/CSAEM Law, all of which require immediate and effective protection of citizens and state systems,” Castelo said.

ELECOMMUNICATIONS operators are seeking a bigger role in shaping the implementing rules and regulations (IRR) of the newly enacted Konektadong Pinoy Act, warning that gaps in policy design could undermine both the law’s intent of expanding access and the security of the country’s digital ecosystem. The law—also known as the Open Access in Data Transmission Act—lapsed into law on August 24, ushering in a framework aimed at streamlining licensing, opening the market to new players, and accelerating investment in internet infrastructure. The Department of Information and Communications Technology (DICT) targets to finalize the IRR within 60 to 90 days. Industry leaders say, however, that the IRR will be the true battleground that will determine whether the law delivers on its promise of inclusive connectivity—or inadvertently destabilizes a sector critical to economic growth and security. “At the very beginning, we don’t have any objections with the noble objectives of the bill. Now that it’s passed into law, obviously, we are here to support it,” Dito Telecommunity Corp. CEO Eric Alberto said in an interview. However, he underscored three key areas that must be addressed in the IRR: sustained infrastructure investment, robust cybersecurity and national security safeguards, and clarity on the obligations imposed on new entrants. “We would like to request, and we enjoin the other members of the industry, that we take part in the development and crafting of the IRR, so that we protect a number of things,” he said. On infrastructure, Alberto likened the market to a highway system. “We are lagging behind countries that we aspire to be in economically. I look at the players as vehicles, but where is the commitment to build more roads? So you’re just putting more vehicles on the road,” he said, stressing that the framework must ensure that new entrants contribute to building out the digital backbone rather than simply riding on existing networks. On oversight, he said unimpeded entry without government supervision could compromise national security. “We should not allow unfettered entry without the supervision and oversight of government, particularly with cybercrime, security, data privacy, national security, and the like,” Alberto said. “That should not be neglected.” This is the most serious issue flagged earlier by the other established telcos. Finally, he flagged fairness.

“We were subjected to stringent hurdles to make sure that we are serious. Not only in being a provider but also in ensuring continued and sustainable digital infrastructure development, including annual taxation. Maybe we’d like to see clarity in those specifics as we go through and thresh out the particulars on the IRR for that bill,” Alberto said. Dito Chief Revenue Officer Adel Tamano echoed these points, but also emphasized the need to strike a balance. He said the law’s spirit was the same spirit that opened the doors for Dito as the third telco, and opposing it outright would be inconsistent. “I do not want the IRR to be done in such a way that you are killing the purpose of the law,” Tamano said. “The spirit of Konektadong Pinoy was part of the spirit that allowed us in the industry. We are brought in to increase competition. I think it is hypocritical for me to oppose competition.” Tamano said the IRR should lower barriers for data transmission industry participants (DTIPs) while ensuring they are not “flyby-nights” with poor security standards. He added that Konektadong Pinoy could even be positive for DITO’s long-term strategy if smaller players tapped into its network. “I think Konektadong Pinoy can be very positive business-wise. The framework of Konektadong Pinoy of opening up the telcos, so that smaller players can use our network was our business strategy . . . . If we position ourselves properly to take the opportunity, Konektadong Pinoy can be very positive for you,” Tamano said. Meanwhile, Globe Telecom Inc. General Counsel Froilan Castelo warned that the law leaves gaps in vetting new entrants, exposing the network to risks. “Telecommunications networks are the backbone of national security. Yet the law leaves gaps in the vetting of new entrants, heightening the risk that inadequately screened operators may gain access to critical infrastructure,” he said. Particularly concerning, he said, is the two-year grace period before new players are required to secure cybersecurity certification. “[This] creates a prolonged window for exploitation. This is at odds with the spirit of several existing laws including the Cybercrime Prevention Act, the Data Privacy Act, the Anti-Terrorism Act,

Spectrum risks

CONNECTIVITY AT A CROSSROADS A tangle of telco and power lines looms over a street in Manila, reflecting the complex challenges facing the Philippines’ digital backbone. Telcos are now pressing for a bigger role in drafting the implementing rules of the newly enacted Konektadong Pinoy Act, warning that gaps in the law’s design could affect investment, security, and the promise of universal internet access. TUPUNGATO | DREAMSTIME.COM

Globe also raised alarm over spectrum management, claiming that the law permits unregulated use of spectrum by satellite operators. “This risks placing the Philippines in breach of its international treaty obligations, and more seriously, invites harmful interference with frequencies used by the country’s defense and disaster-response agencies. Such interference could compromise communications at precisely the moments, during crises and emergencies, when they are needed the most,” he said. He noted that Globe will engage government and multisectoral stakeholders “to ensure that the law advances its intended goals without compromising security, stability, or consumer welfare.” Converge ICT Solutions Inc. CEO Dennis Uy said it is “very important to ensure that the right regulatory frameworks are in place, in this case the IRR.” “The last thing we want is for consumers to suffer from substandard offers. We need strong, clear, and enforceable rules that guarantee an equal playing field,” he said. Similarly, Uy raised concerns about regulatory standards and cybersecurity. “Regulations should make sure that capitalization is right, manpower is enough, and there is enough capability to serve our consumers. It should not be a case of here today, gone tomorrow. That’s how consumers get victimized by fly-by-night operators,” he said, speaking partly in Filipino. Meanwhile, PLDT Inc., the country’s largest telco, has not yet issued a detailed position but a company official said it is “awaiting the IRR,” and hinted that the telco was pinning its hopes on a scenario where a well-crafted IRR can mitigate the potential adverse consequences of the new law. Earlier, PLDT Corporate Secretary Marilyn Victorio-Aquino had warned that the measure grants “so much benefits” to data transmission providers without extending similar obligations to incumbent operators. As telcos seek a seat at the table to help craft the IRR of the law, industry advocates are now “drafting” their proposal, a source said. They have been in a celebratory mode since the bill lapsed into law last week, as they had fought for its passage for nine years and three administrations.

DICT’s vow “We are lagging behind countries that we aspire to be in economically. I look at the players as vehicles, but where is the commitment to build more roads? So you’re just putting more vehicles on the road.”— Eric Alberto, DITO CEO

“I do not want the IRR to be done in such a way that you are killing the purpose of the law.”— Adel Tamano, DITO CRO

“Telecommunications networks are the backbone of national security. Yet the law leaves gaps in the vetting of new entrants, heightening the risk that inadequately screened operators may gain access to critical infrastructure.”— Froilan Castelo, Globe General Counsel

“The last thing we want is for consumers to suffer from substandard offers. We need strong, clear, and enforceable rules that guarantee an equal playing field.”— Dennis Uy, Converge CEO

“Ensure that Konektadong Pinoy delivers the objective of universal connectivity in the country and ensure that all Filipinos have affordable and quality access to the internet.”— Henry Aguda, DICT Secretary

DICT Secretary Henry Aguda committed to “ensure that Konektadong Pinoy delivers the objective of universal connectivity in the country and ensure that all Filipinos have affordable and quality access to the internet.” The DICT and the Department of Economy, Planning and Development (DEPDev) will co-lead the drafting of the IRR no later than the third week of November.

PESO EXCHANGE RATES n US 57.0850 n JAPAN 0.3885 n UK 77.1561 n HK 7.3242 n CHINA 8.0057 n SINGAPORE 44.5316 n AUSTRALIA 37.2708 n EU 66.6753 n KOREA 0.0412 n SAUDI ARABIA 15.2137 Source: BSP (August 29, 2025)


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