Manila: A study by BMI, a Fitch Solutions unit, dubbed the ‘Konektadong Pinoy (Connected Filipinos)’ law ‘the most radical overhaul of the country’s technology and telecoms legal framework.’ In a market report dated Sept. 3, a copy of which was sent to journalists on Thursday, BMI said the measure, signed into law on Aug. 23, provided the foundation for the liberalization of the country’s digital infrastructure and services market.
According to Philippines News Agency, the law allows third-party providers to use existing players’ infrastructure, addressing constraints of congressional franchises. “In principle, the law is broadly positive for the telecoms and technology market, but incumbents will need to closely monitor the development of the detailed implementing rules and regulations before adapting their business models and strategies for the new era,” it said.
The report highlights that the law not only encourages new service providers, such as satellite operators, to enter the market but also allows incumbents to deploy their infrastructure in areas dominated by their rivals or use their rivals’ infrastructure through more transparent, open access mechanisms.
Another significant advantage is the possibility of an increase in infrastructure as new entrants come in, given that the law has simplified the rules to operate in the country. While this change might challenge existing players like PLDT and Globe, the report noted that current service providers might leverage this opportunity ‘to create standalone digital infrastructure and services business that can tap a wider pool of business opportunities.’
The report also aligns with the views of the Philippine Competition Commission, suggesting that institutionalizing competition in the digital infrastructure sector will lead to lower costs, improved service quality, and greater access for end-users, particularly in underserved areas.
