New telcos may be required to link Mindanao first – DICT

Under Konektadong Pinoy

MANILA, Philippines — New telco players entering the Philippines through the Konektadong Pinoy Act will be asked to first improve connectivity access in geographically isolated and disadvantaged areas (GIDAs) before challenging industry incumbents in high-traffic areas.

Specifically, Mindanao’s farthest towns will benefit from better access if President Marcos signs the measure into law, according to Department of Information and Communications Secretary Henry Aguda.

Based on data from the Philippine Statistics Authority (PSA), four in five families in Zamboanga Peninsula have no access to the internet as of 2024 while in the Bangsamoro Autonomous Region in Muslim Mindanao, internet penetration also falters at 27.7 percent.

Aguda said these regions would be the first to gain from the Konektadong Pinoy Act.

The measure will lapse into law on Aug. 24 if unacted upon by President Marcos. With a few days left before the deadline, the DICT is now drafting the implementing rules and regulations (IRR) to prepare for enforcement.

Aguda shared with The STAR some sections of the draft IRR, and one of the provisions that stood out is the requirement for new connectivity providers to invest in GIDAs.

Aguda wants data transmission industry participants (DTIPs) to prioritize connectivity access in GIDAs to not just expand availability, but improve quality as well.

The provision also appeases industry incumbents who are asking the DICT to mandate DTIPs to build network assets in GIDAs, as urban centers like Metro Manila are already largely covered.

“Existing providers like PLDT have deployed capital in developing areas, so our commitment to them is of the same nature. We will include a requirement for new telcos to deploy in missionary routes called GIDAs,” Aguda said.

Recently, the DICT received queries from DTIPs on where they can invest once the Konektadong Pinoy Act becomes law. The agency is pointing them to emerging cities and underserved communities in Mindanao, especially Zamboanga and Bangsamoro.

These DTIPs have capacity to extend access to the internet whether by cable or satellite, and they see opportunity in the Philippines due to its digital gap.

As of 2024, barely half of Filipino families, or 48.8 percent, have access to the internet at home, and most of the connected households are concentrated in Metro Manila and Central Luzon.

In response, PLDT Inc. chief legal counsel Joan de Venecia-Fabul said the telco wants to see the details of the IRR first, underscoring again readiness to participate in making the rules.

“As with any policy, the devil is in the details, but we appreciate the DICT’s attentiveness to the concerns of the industry. We look forward to working even closer together in making the internet more accessible and in shaping a truly level playing field in the sector,” De Venecia-Fabul said.

Aguda hopes telcos understand that the country needs more players in the connectivity industry. He said PLDT, Globe Telecom Inc. and Dito Telecommunity Inc. are all cutting their capital expenditures to maximize their existing assets.

PLDT is winding down capex to within the P50-billion radius by 2026, while Globe already did this year, with Dito spending in the P10 billion to P15 billion range.

As such, Aguda asks: Who is now going to connect the towns with minimal to no access?

The Konektadong Pinoy Act, a priority measure of the Marcos administration, will relax barriers to entry for telco providers to build up competition, expand coverage and lower prices.