Malacañang has confirmed that the Konektadong Pinoy Bill has lapsed into law, signaling a significant market trend in the telecommunications sector. This law seeks to broaden internet access, streamline the licensing process for internet service providers (ISPs), and allow new and smaller players to enter the market. It is viewed as a step towards making the Philippines a regional ICT powerhouse.

However, concerns over potential regulatory and cybersecurity risks have been raised regarding the proposed law. Industry groups such as the Philippine Chamber of Telecommunications Operators (PCTO) and the Philippine Association of Private Telecommunications Companies (PAPTELCO) have voiced apprehension, citing national concerns and the potential weakening of regulatory oversight over new data transmission players. They further argue that it could destabilize the telecommunications sector in the long run.

In response, the Department of Information and Communications Technology (DICT) has sought to allay these fears, reaffirming its commitment to "uphold national security, consumer protection, and universal access to secure, affordable, and reliable internet." The DICT emphasized that it will never allow deregulation at the expense of security or public interest and will not weaken the role of the National Telecommunications Commission (NTC). It also assured that "all new entrants will be required to comply with baseline cybersecurity controls before operations begin, under the direct supervision of the DICT and the Cybercrime Investigation and Coordinating Center (CICC)."

Market Signals

Streamlined market entry for new players in the data transmission sector, increasing competition.
Liberalization of the Philippines' data transmission industry aimed at boosting digital transformation and improving internet access.
Potential for reduced internet prices due to increased competition and simplified processes, with projections suggesting a 30-50% decrease.

Stakeholder Impact

Winners: Consumers (lower prices, improved services, wider access), new market entrants, local ISPs, and cable operators. Government (achieving digital transformation goals).

Losers/Challenges: Incumbent telecommunications companies (PLDT, Globe) may face increased competition, potential disruption to market share, and possible legal challenges regarding the law's constitutionality.

Action Timeline

Immediate: Monitor DICT announcements, review legal stances of major telcos.
Short-term: Identify potential new entrants, analyze their business models and strategies.
Long-term: Monitor foreign direct investment (FDI) in the telecom sector, track cybersecurity incidents, and outcomes of legal challenges.