Konektadong Pinoy rules out

MANILA, Philippines — The government has released the implementing rules and regulations (IRR) of the Konektadong Pinoy Act, opening the doors for up to $1.5 billion in fresh investments from new players.

Information Secretary Henry Aguda yesterday confirmed he has already signed the IRR for the Konektadong Pinoy Act ahead of the 90-day deadline for issuance.

Aguda said the IRR still awaits the signature of other agencies involved in its implementation before it is published in a newspaper of general circulation.

He added that seven data transmission industry participants (DTIPs) are waiting for the IRR to take effect. Once the IRR is active 15 days from publication, Aguda will kick off formal talks with these DTIPs for their potential entry into the Philippines.

These DTIPs, he said, come from all over the world, seeing opportunity in the broadband market of the Philippines. Some of them offer new solutions like satellite, but most of them specialize on traditional assets like broadband.

Aguda said these DTIPs are expected to fill in the infrastructure gap in connectivity, as they will be asked to put up cellular towers and mobile sites, especially in the countryside.

In the data segment, for instance, the DICT estimates that the needed investments to deliver up to 100,000 towers nationwide would be $1.5 billion yearly.

Aguda said the DICT would encourage DTIPs to concentrate their investments in geographically isolated and disadvantaged areas where the network availability is lacking.

To date, the country is served by about 30,000 towers, but Aguda said this is insufficient to cover the connectivity requirements of every Filipino. Aguda hopes to at least triple this number before President Marcos ends his term in 2028.

The Konektadong Pinoy Act, once a controversial measure in the telco industry, will simplify the entry procedure for new investors by lifting the need for a legislative franchise. Through this, the government aims to foster competition to lower prices.

Under Aguda’s leadership, the DICT is shooting for an ambitious 50-percent decrease in internet prices by 2028.

Apart from this, the Konektadong Pinoy Act enforces a dig once policy on telcos, requiring them to plan their cable works ahead to minimize road excavations.