Konektadong Pinoy bill only exempts data providers from franchise requirement - DICT

The Department of Information and Communications Technology (DICT) clarified on Friday that the proposed Konektadong Pinoy Act only allows data transmission providers not to seek a congressional franchise to operate.

At a forum in Taguig City organized by the Philippine Information Communications Technology Organization (PICTO), which is made up of representatives from the broadcast, IT, electronics, and telco industries, DICT Director Maria Victoria Castro said the proposal does not apply to full-service telcos.

''Kung mag ooperate kayo na parang telco meaning mayroon pong voice yun po yung kailangan ng franchise pero 'pag data po siya di na po kailangan na magrequire ng franchise,'' she said.

(If you have voice operations like telcos, then you need a franchise. If it's data, you are not required to get a franchise.)

National Economic and Development Authority (NEDA) Secretary Arsenio Balisacan said the proposed measure “aims to reduce costs and expand access to high-quality internet services for all Filipinos, especially those in unserved and underserved areas.”

However, telco groups have expressed reservations about the bill. They claimed that they were not consulted in its drafting and argued that removing franchise requirements raises security issues.

They also believe that the penalties for data transmission providers that fail to meet the minimum performance requirements—which range from P5,000 to P2 million per day—are excessive.

"Sa Bill of Rights natin sa Constitution yung excessive fines pinagbabawal 'yon dapat di ganun kalaki,'' said PICTO legal counsel Atty. Stanley Cabrera IV. ''Ubos din kaming maliliit.''

(The Bill of Rights in the Constitution prohibits the imposition of excessive fines. These fines will hurt small players.)

Should the bill become a law, the DICT assured telcos that their concerns could still be addressed during the drafting of the Implementing Rules and Regulations (IRR).

Certified as urgent by President Ferdinand Marcos Jr., the Konektadong Pinoy bill is now at the bicameral conference committee, where lawmakers from the Senate and House of Representatives will have to produce a unified version before it is forwarded to Malacañang for Marcos' signature. — Oscar Oida/VBL, GMA Integrated News