Deregulate

FIRST PERSON

- Alex Magno

The most significant aspect of the Konektadong Pinoy Act, I believe, is that it frees data transmission from franchise requirements. The urgent bill, now awaiting the President's signature, will make internet connectivity more accessible by lowering barriers to entry for new market participants and encouraging competition.

Most immediate among the benefits this proposed law brings is that all public schools will be connected to the internet by the end of this year. Millions of young Filipinos will gain from this.

In a world where the highways of information determine ability to compete, the Philippines suffers from decades of imperfect policy. Our internet coverage is spotty, slow, unreliable and expensive. In the region, Filipinos pay the most for the slowest service. Again, our consumers are made to pay for bad policy.

This is simply unjust. It condemns the next generation to information scarcity. It sets back e-governance. It traps us in the past.

This cannot go on.

The reason we have fallen way below par in this information age is the persistence of statism over the free market. It discouraged investments that will improve transmission efficiency. It forced our consumers to pay more for less.

The requirement for a franchise is often a devious instrument that enabled the rise of monopolies and oligopolies in many aspects of our lives. Franchise requirements imposed wantonly were preferred by the oligarchic gatekeepers because it was a source of bribes. There was no technical reason for subjecting data transmission to be subject to franchise requirements in the first place.