The chairman of PLDT Inc. on Tuesday called for a review of certain provisions in the proposed Konektadong Pinoy Act (KPA), expressing concerns that the legislation could negatively impact industry competition.
“We are prepared to compete, but do not ask for special treatment nor should special favors be given to an external operator because we have invested a lot. All of us invested in this country,” PLDT chairman Manuel Pangilinan said during the company’s annual stockholders’ meeting.
“So, what we are asking is a level playing field when it comes to competition. We don’t ask for protective measures,” he said.
Pangilinan said the proposed KPA raises issues related to cybersecurity and its implications for national security.
Marilyn Victorio-Aquino, PLDT senior vice president and corporate secretary, echoed these sentiments. “We welcome increased competition but the competition must be fair and sustainable. We must avoid competition that will be ruined and will just harm our subscribers. There are features in the Konektadong Pinoy that will be exploited and could result in ruinous competition,” she said.
The Senate passed the proposed KPA on its third and final reading on Feb. 5, 2025. The bill aims to simplify market entry for service providers, with the goal of increasing competition and offering more options for consumers.
The Philippine Chamber of Telecommunications Operators (PCTO) previously raised concerns about specific provisions of the Konektadong Pinoy bill.
While the PCTO supports the government’s efforts to provide equitable connectivity, it warned that the bill, in its current form, could harm the telco business.
The chamber said it undermines constitutional provisions regarding congressional franchises and the protection of national security and interest, and violates principles of fair competition.
The PCTO said the bill is “unnecessary and superfluous,” asserting that the existing Amended Public Service Act (RA 11659) already provides a clear framework for new players, including data transmission providers, to enter the telecommunications market. The chamber suggests that the KPA’s provisions are therefore redundant and could lead to confusion and regulatory overlap.
To effectively bridge the digital divide, the PCTO recommends that the Konektadong Pinoy Act mandate new data transmission participants to roll out their services in geographically isolated and disadvantaged areas (GIDAs).
This, the PCTO said, would prevent “ruinous competition” with existing telcos that have already established connectivity infrastructure in non-GIDA areas.
