FOR years, Filipinos have lived with some of the slowest and most expensive internet in the region. At the center of this problem is a market long dominated by a few giant telcos, where competition is scarce and access is unequal.

Now, a new law promises to change that. 

The “Konektadong Pinoy” Act, which recently lapsed into law, opens the door for new internet service providers by removing the need for a legislative franchise, streamlining licensing, and encouraging infrastructure sharing. 

Advocates say this could finally break the telco duopoly, lower costs, and bring connectivity to places that today’s market has largely ignored.

But the promise comes with questions. Globe, one of the country’s biggest providers, has already sounded the alarm, warning that the law could weaken cybersecurity and undermine national safeguards.

So what exactly is the Konektadong Pinoy Law — and how will it deliver on its ambitious vision of bridging the digital divide?

A Change in Registration Rules

The “Kontektadong Pinoy” act— also known as “Open Access in Data Transmission”— is a law that aims to make internet access in the Philippines better, faster, and more affordable for everyone. 

Its goal is to to close the digital divide— the gap between those who have reliable internet and those who don’t.

To do this, the law lays out measures for an “open, accessible, and competitive environment.” This includes changing the current registrations of Data Transmission Industry Participants (DTIPs— the telco companies), allowing a more open competition where multiple players can enter, and not just dominant ones like PLDT, Globe, Smart, and others. 

Normally, utilities like telcos need a legislative franchise or CPCN (Certificate of Public Convenience and Necessity) to operate. Usually, it takes a long time for the CPCN to be issued by the National Telecommunications Commissions Commission (NTC), requiring a filing fee to be assigned a number. 

Now, with the Konektadong Pinoy Act, this requirement is removed. DTIPs now only need to register with NTC and meet their criteria. This criteria is set by the Department of Information and Communications Technology (DICT). 

NTC is now also legally required to make the registration fast and efficient. 

In terms of foreign companies, they are now allowed to enter the industry, but they must comply with several laws, primarily the he Foreign Investments Act (RA 7042, amended by RA 11647) and The Public Service Act (CA 146, amended by RA 11659). 

This major structural shift may invite multiple players from the Philippines and outside to join the market, creating more supplies to meet the demand of the country’s population even in hard to reach areas. 

In turn, the multiple competition may lead to cheaper and quality internet services. 

Education as Priority

The law also prioritizes bridging the digital divide that plagues the Philippine education system. 

According to Senator Alan Peter Cayetano, who sponsored the law, it aims to prioritize establishing infrastructure near schools and would also offer discounts to students from both the private and public schools. 

“We honor these concepts to provide connectivity to those who need it the most. If all of these different laws work, we hope to have free WiFi in the schools to help the students,” said Cayetano. 

A Threat to Cybersecurity?

Globe Telecom— the Ayala-backed biggest telecom company in the country— was quick to raise concerns over the “Konektadong Pinoy” law. 

In their official statement, they claimed that it might post significant risks for the country’s cybersecurity and national security. 

“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,” said Globe General Counsel Atty. Froilan M. Castelo.   

Likewise, Converge ICT Solutions Inc. raised concerns over cybersecurity issues and regulatory standards. 

“Too often, commitments are made but services are not delivered to the people. This shows that standardization is very important. Once you offer products to the market, it should meet clear standards,” said Dennis Anthony Uy, CEO of Converge. 

Like Globe, Converge ICT Solutions Inc is also a major telco player in the country, holding 54% of the country’s fiber to the home market share in 2023. 

DICT Secretary Henry Aguda, on the other hand, assured that the law maintains the national safeguard and cybersecurity of the country. 

“Under the final version of the bill, all incoming telcos are required to comply with strict cybersecurity standards set by the DICT, Cybercrime Investigation and Coordinating Center, and other relevant agencies,” said Aguda during an interview with PTV. 

In Section 9 Cybersecurity Certification section of the law, all DTIPs must follow national and international cybersecurity standards. 

They will be audited by the DICT’s Cybersecurity Bureau, and within three years of registering, they must get certified by an independent third-party organization based on ISO standards or other security requirements set by the DICT.

Bridging Digital Gap

The Philippines’ push to liberalize and strengthen its data transmission industry comes amid ongoing efforts to close the digital divide. 

But even with reforms and new policies, challenges remain. 

A World Bank report noted that three decades after the Philippines first connected to the internet, broadband infrastructure continues to lag behind its neighbors.

In 2022— two years after the COVID-19 pandemic onslaught—only a third of households had fixed internet access, and just 70 percent of Filipinos had active mobile broadband subscriptions — well below the ASEAN averages.

The proposed Konektadong Pinoy Act seeks to address these gaps, as the country continues its fight for equal access — both in the real and digital world.