DICT Issues IRR for Konektadong Pinoy Act, 40% Internet Price Cut Seen

Manila: The Department of Information and Communications Technology (DICT) has released the implementing rules and regulations (IRR) of the Konektadong Pinoy (KP) Act, a move expected to lower internet prices, attract new foreign players, and expand connectivity to underserved and remote communities nationwide. At a media briefing on Monday, DICT Secretary Henry Aguda said the agency aims for at least a 40-percent drop in internet costs by 2026.

According to Philippines News Agency, DICT Secretary Henry Aguda stated, "In ASEAN (Association of Southeast Asian Nations), we are number 6 in terms of affordability. For us to move up to number 1 or 2, the reduction should be at least 40 percent, that's the target," Aguda said in Filipino. He emphasized that besides price reduction, improvements in internet quality and speed are also necessary. "Now, it shouldn't just be a price reduction. Because in terms of quality and speed, we're also a bit low. So, what should happen is, it will get cheaper, the quality will get better, that's what needs to be done," he added.

DICT Undersecretary for Policy, Legal, and Communications, Sarah Maria Sison, announced that the public can access the KP IRR through the DICT website. The IRR was completed in 60 days, ahead of the 90 days required by law. Sison hopes for the provisions to be implemented by December. The IRR, signed on Nov. 5, aims to streamline processes for new internet service providers, improve competition, and expedite permitting and registration, steps expected to drive down internet costs.

Aguda mentioned that the IRR operationalizes the KP Act, a priority legislation under the Legislative Executive Development Advisory Council (LEDAC) and a key directive of President Ferdinand Marcos Jr. The law, enacted on Aug. 24 and effective since Sept. 14, mandates faster permitting, streamlined registration for new internet service providers, and increased competition in the telecommunications sector, addressing long-standing gaps in access and affordability.

Sison confirmed that foreign internet companies are preparing to enter the Philippine market. Several firms from the United States and Europe have already expressed interest in establishing operations in the country. Current internet prices range from PHP480 to PHP1,300 for basic plans, with premium postpaid packages reaching PHP10,000. The cost per Mbps is PHP10 to PHP14 for prepaid users and PHP3 to PHP10 for postpaid, he said. Sison added that consumers should start feeling improvements by next year, stating, "Hopefully, by next year, it would be felt already. Of course, we also expect the market forces to come into play. So, we're looking forward to that."