Road to faster internet? Congress moves to ease ISP restrictions

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The legislation aims to level the playing field and provide local players with an opportunity to expand internet access in underserved areas

NEGROS OCCIDENTAL, Philippines – Rural communities across the country are consistently held back by delayed progress, with the digital divide emerging as one of the major barriers that stifles economic growth, limits access to opportunities, and deepens inequality.

On February 5, the Senate gave its final approval to the proposed Konektadong Pinoy law that has been billed as a crucial step toward fixing the country’s sluggish and overpriced internet.

A counterpart proposal in the House, which seeks to promote open access in data transmission and enhance the powers of the National Telecommunications Commission, was filed on June 30, 2022. It passed on third and final reading on December 22, 2022. 

Joel Dabao, former president of the Philippine Cable TV Association, stressed the urgency of the situation, describing the proposed measure as a likely game-changer for small internet service providers (ISPs).

President Ferdinand Marcos Jr. had certified the bill as urgent. Dabao said it still needs to pass the bicameral conference, which is expected to convene when Congress resumes session this June, secure presidential approval, and undergo the drafting of its implementing rules and regulations.

Dabao said the proposed measure could offer a lifeline to smaller ISPs, who have long struggled to compete under outdated regulations. The legislation aims to level the playing field and provide local players with an opportunity to expand internet access in underserved areas.

“By removing the congressional franchise requirement through the Konektadong Pinoy bill, we allow more local players to deploy broadband networks,” Dabao told Rappler on Friday, February 14.

Presently, regulations require ISPs to secure a congressional franchise before operating legally, a process that small players struggle to navigate.

The measure seeks to simplify this process, allowing ISPs to register directly with the National Telecommunications Commission (NTC) instead of waiting for lengthy legislative approval.

Dabao pointed out that many small-scale internet providers, such as coin-operated computer stations known as “pisonets,” operate illegally due to the franchise requirement. He said removing this hurdle will expand internet access in underserved areas while boosting economic growth.

He said it would “dramatically reduce the digital divide, especially in rural areas, while improving e-governance, remote work opportunities, and access to distance learning.”

Dabao also noted that the Philippines remains the only country that requires ISPs to obtain a franchise before rolling out internet infrastructure.

Lawmakers have traditionally classified ISPs alongside telecommunication giants like PLDT, Globe, and Converge, often neglecting the role of smaller providers in remote communities.

He cited the Kabankalan Community Antenna Television System Incorporated (KCAT) as an example, saying that it had already provided services in multiple barangays long before major telecommunication firms arrived.

Aside from franchise restrictions, cumbersome regulatory requirements also slow down small ISPs. “Instead of following a straightforward registration process, I had to apply for multiple permits from the NTC just to build infrastructure. Some of these permits have remained pending since 2019,” Dabao said. 

While the measure aims to level the playing field, the Philippine Chamber of Telecommunications Operators (PCTO) also opposes it, claiming that easing restrictions on small ISPs could disrupt fair competition.

Dabao argued that large corporations already dominate the industry with extensive resources and political influence. “The competition isn’t fair as it is. Congress forces smaller ISPs to go through a legislative process that larger companies navigate easily due to their influence,” he said.

The proposed measure is expected by technology experts to transform the country’s digital landscape, allowing small ISPs to compete fairly, bid for spectrum, offer localized mobile internet, and collaborate with international providers to expand infrastructure, he said.

“Small ISPs will finally compete on equal footing with major players,” Dabao said. – Rappler.com