This week, the Department of Information and Communications (DICT) released the implementing rules and regulations (IRR) for the Konektadong Pinoy Act 76 on Wednesday, November 5. Also known as the Open Access in Data Transmission Act, this aims to boost competition and attract foreign investment in the Philippine telecommunications industry.
DICT Secretary Henry Aguda said that six to seven foreign companies are planning to enter the telco sector once the IRR is in effect. He added that two of the seven are reputable, and will ‘hit the ground running’.
For reference, this is set to take effect 15 days after its publication. This law allows Data Transmission Industry Participants (DTIPs) to build and operate networks without a legislative franchise.
Moreover, it promotes infrastructure sharing to help with improving connectivity nationwide. Aguda has a target of 100,000 cell sites and full fiber coverage, requiring at least USD 1 to 1.5 billion in annual investments.
In other words, the added competition and new companies should make for lower prices and better network quality. Local companies like PLDT, on the other hand, are reviewing the new framework.
Aguda says that the Konektadong Pinoy Act will drive growth because it expands the market base. He says that when more Filipinos gain reliable internet access, the demand for digital services (ecommerce, fintech) rises.
The Philippines’ digital transformation has been a national priority since 2022. It has since progressed, albeit slowly.
A World Bank report from July 13 says this was due to weak broadband infrastructure and outdated policies hindering competition and investment. The IRR hopes to address these issues by reshaping the telco sector.
Intersted area quezon province