Telco operators warn of security risks as Congress pursues passage of Konektadong Pinoy bill

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The Philippine Chamber of Telecommunications Operators (PCTO) is raising the alarm over supposed national security risks embodied in the Konektadong Pinoy bill, ahead of the legislation’s upcoming bicameral hearings.

In a joint statement, PCTO said that certain provisions in the bill are “detrimental” to both the country’s security and Filipino consumers.

Certified as urgent by President Ferdinand “Bongbong” Marcos Jr., the proposed measure finally hurdled the Senate in February after years of delay.

The bill seeks to enhance competition in the telco industry, improve the quality of internet services, and promote nationwide digital connectivity.

At its core, it seeks to overhaul the country’s digital landscape by streamlining licensing processes for network providers, as well as granting regulatory authority to the National Telecommunications Commission (NTC).

The Konektadong Pinoy bill is now awaiting the bicameral conference committee (bicam), comprising the House of Representatives and the Senate, before it will be up for the President’s signature.

PCTO, whose members include telco giants Globe Telecom Inc. and PLDT Inc., said the bill eased too many safeguards, posing a serious threat to the country.

Particularly, the chamber questioned the bill for not requiring a legislative franchise requirement for international gateway facilities, cable landing stations, and satellite service providers.

This will allow foreign-controlled companies to control critical information infrastructure (CII) essential for national security, it said.

PCTO stressed that franchise requirement should be retained, alongside the NTC’s quasi-judicial authority to assess new telco players’ financial, legal and technical capabilities, including cybersecurity and data privacy connections.

“Removing the franchise requirement undermines the Public Service Act, which already liberalizes foreign ownership in public services and weakens the oversight of the government of critical information infrastructure,” it said.

Konektadong Pinoy, at its current state, does not immediately require prospective telco firms to comply with national and global cybersecurity practices.

According to PCTO, the bill proposes a grace period of one to three years before telcos are required to do so.

This was cited as a major loophole that should be addressed, given the prevalent cases of hacking and other cyber threats across the world.

“Ensuring the security of existing digital infrastructure is of primordial importance to protecting our nation’s CII,” the chamber said.

PCTO said all incoming players should be required to adopt and comply with cybersecurity practices and standards prior to starting operations.

It warned that critical areas such as e-governance and delivery of basic services, education, health, trade, finance, disaster preparedness, and public safety could be compromised if this requirement is not implemented.

In the same manner, PCTO underscored that incoming players should be mandated to focus on unserved areas to bridge the digital divide.

Without such a provision, this may lead to new players only congregating in urban areas instead of expanding their scope to geographically isolated and disadvantaged areas (GIDAs).

“Data transmission providers should be required to build in GIDAs instead of adding redundant builds in areas where connectivity and competition is already strong,” added PCTO.

With this, the group said there is still time to rectify the bill to ensure that it safeguards national security and the consuming public.

Amid these assertions, the Department of Information and Communications Technology (DICT) remained firm in its stance that the Konektadong Pinoy bill will pass Congressional scrutiny.

DICT Policy Planning and Standards Bureau Director Maria Victoria Castro, however, noted that there could still be changes in the bill once bicam deliberations begin.

She said the government is optimistic that hearings would start by June, or before the new slate of lawmakers commence the 20th Congress.

“Hopefully, it will be approved by then,” Castro told reporters.

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