Control over the internet highway

Big telecommunications players once bristled at the idea of open access, or allowing smaller internet providers to piggyback on their systems.

- MARVIN TORT

Recently, however, they signaled support for the Konektadong Pinoy Act, which paves the way for just that, and appear to have dropped plans to challenge the new law in court.

Konektadong Pinoy, enacted last month, removed political franchise hurdles. Under the law, those intending to provide internet services no longer need a congressional franchise or a Certificate of Public Convenience and Necessity (CPCN) to do business. Instead, they simply register with the National Telecommunications Commission (NTC).

The law also provides for open access. Big networks must rent out capacity to new players. Also, frequencies held by incumbents that are idle or underused can be reassigned. Moreover, foreign and local satellite providers can interconnect more easily.

This augurs well for a geographically fragmented country that badly needs cheap internet service. It was no small shift for telcos to now consider win-win arrangements, given that they previously warned of possible lawsuits against Konektadong Pinoy for being unfair to incumbents.

Moving forward, I believe that the challenge is fairness, particularly in crafting rules that honor past investments, attract new players, and give the public cheaper, faster internet. If big telcos must allow access to their systems, then they should be compensated fairly.

Frankly, this was a twist I did not expect. I anticipated a protracted legal battle, yet the very companies that had warned of constitutional violations have now publicly supported the Konektadong Pinoy Act. Their change of heart looks pragmatic: better to help shape the rules than fight a long court battle.

After all, public and government support was unlikely to be on their side. Supporters of Konektadong Pinoy could have easily cast incumbents’ opposition as greed and a desire to protect market share and profits at the expense of consumers, with the government as enabler.