01 July 2025
The Philippine Chamber of Telecommunication Operators (PCTO) has called on President Ferdinand Marcos, Jr. to veto the recently ratified Konektadong Pinoy Act, warning that the legislation could undermine the competitive landscape in the country’s telecommunications sector.
The PCTO expressed concerns that the act’s provisions would relax requirements for new data transmission operators, particularly satellite service providers, potentially leading to an uneven playing field.
Ratified earlier this month by the Philippine Congress, the legislation aims to simplify the process for new players to establish operations and access satellite spectrum. It also mandates the creation of a Spectrum Management Policy Framework (SMPF), which will oversee spectrum valuation and pricing, allocation, and assignment for various sectors including public, private, and government use.
The Department of Information and Communications Technology (DICT) has argued that the law will foster increased competition, help bridge the digital divide, and reduce internet costs for consumers. However, the PCTO, which represents major local telcos such as PLDT, Smart, Globe Telecom, and DITO Telecommunity, contends that the legislation could have the opposite effect. The association warns it may lead to a less regulated environment, allowing foreign satellite providers like Starlink to operate with fewer restrictions than established Filipino telcos.
The PCTO pointed out that unlike existing franchise holders, these new foreign operators would not be mandated to build infrastructure, serve or subsidise underserved rural communities, or support the government during national emergencies. Such disparities, the organisation warns, could distort market competition and undermine local telcos’ investments and responsibilities.
While the PCTO expressed reservations about certain aspects of the law, it acknowledged support for provisions such as removing the requirement for data transmission operators to obtain a legislative franchise to offer services, which it views as a positive step towards facilitating market entry.
