NTC sets thresholds for DTIPs under Konektadong Pinoy Act
From AB Capital's The Opening Bell: Three Moves
Event
The National Telecommunications Commission (NTC) issued a memorandum circular defining financial and technical requirements for data transmission industry participants (DTIPs) under the Konektadong Pinoy Act. Core or backbone operators must have at least P100 million in assets, international gateway P1 billion, middle mile P10 million, and last mile P500,000. A 70% debt-to-asset cap applies across segments. Most applicants must post a performance bond of 10% of two-year projected capex (capped at P5 million).
View
This guidance provides clarity and transparency on eligibility, which we see as positive for the sector, reducing uncertainty around competitive dynamics and ensuring a level playing field for new entrants. While the law lowers structural barriers, the financial thresholds and technical requirements mean only well-capitalized players can meaningfully scale.
Catalyst
The key catalyst is confirmed registrations and actual capital deployment. If credible entrants follow through, competition could rise over the next 2-3 years, especially in core and backbone networks. If uptake is slow due to financial or technical barriers, impacts will be more gradual than headline risk suggests.
Action
We see this as constructive for the sector overall. Listed telcos benefit from clearer eligibility rules and a level playing field, while potential new entrants signal sector growth and investment. Near-term earnings should remain stable, but we would monitor registrations, capex deployment, and the pace of network build-out for signs of evolving competitive pressure.
Disclaimer: The information, analyses, and views contained herein is based on sources which we, AB Capital Securities, believe are reliable, but is not guaranteed by us and is not to be considered all inclusive. It is not to be construed as an offer or solicitation of an offer to sell or buy the securities herein mentioned. AB Capital Securities and its Directors and Officers and/or members of their families may have a position in the securities herein mentioned and may make purchases and/or sales of the securities from time to time in the open-market and otherwise.
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