Advocacy group warns of POGO-like problems amid move to reduce government restrictions on new telecom companies

October 1, 2024 Philippines Crime & Legal

An advocacy group has issued a warning regarding the proposed Konektadong Pinoy Act, officially known as Senate Bill 2600. This legislation aims to improve internet connectivity in the Philippines but has drawn criticism for potentially compromising national security. CitizenWatch convenor Orlando Oxales articulated these concerns, drawing parallels between the bill and the previous liberalization of the Philippine Offshore Gaming Operator (POGO) sector, which resulted in numerous social and security issues.

The Konektadong Pinoy Act seeks to enhance the country’s digital infrastructure by allowing new telecommunications companies to enter the market without the need for congressional franchises. Proponents argue that reducing government restrictions will stimulate competition, thereby improving internet access and lowering costs. Financial and trade institutions have rallied behind the bill, emphasizing the urgent need for better connectivity in a nation frequently criticized for slow and expensive internet service.

However, Oxales cautioned that the benefits of the Konektadong Pinoy Act could come at a high price. “This concern is not unfounded, given our recent experience with the liberalization of online gaming, which led to various social, economic, and security issues,” he was quoted as saying in a report published by the Manila Bulletin. He highlighted that the influx of online gaming operations led to various social, economic, and security challenges, suggesting that a similar pattern could emerge from the proposed telecommunications reforms.

One of the most contentious aspects of the Konektadong Pinoy Act is its potential to diminish the regulatory authority of the National Telecommunications Commission (NTC). Oxales pointed out that removing the requirement for congressional franchises could undermine the integrity of the country’s radio frequency spectrum, which is a critical and limited resource. He warned that this reduction in oversight could lead to the exploitation of spectrum allocation and increased security risks.

Oxales emphasized the challenges posed by rapidly expanding the telecommunications landscape without adequate regulatory safeguards. “Allowing more telco players into the country will be difficult to monitor, and some may not have the country’s best interest at heart,” he cautioned. Instead of loosening restrictions, he argued that the government should focus on enhancing the capabilities of the NTC. Strengthening this regulatory body would ensure it has the necessary tools to manage an evolving telecommunications environment effectively.

The Konektadong Pinoy Act is part of President Ferdinand Marcos Jr.’s broader vision for digital transformation in the Philippines. The administration has made significant efforts to improve internet connectivity, particularly in geographically disadvantaged and isolated areas. While these initiatives are well-intentioned, the push for rapid implementation raises concerns about the implications for national security.

In addition to the Konektadong Pinoy Act, another piece of legislation, Senate Bill 2699, also known as the Open Access in Data Transmission Bill, has surfaced in discussions surrounding telecommunications reform. Authored by Senator Alan Peter Cayetano, this bill similarly seeks to eliminate franchise requirements for new telecom players and encourage infrastructure sharing among existing companies. Despite its potential benefits, CitizenWatch remains skeptical about its impact on national security.

Oxales reiterated that while improving digital connectivity is essential, it should not come at the expense of the nation’s safety. He emphasized the importance of scrutinizing legislation to ensure that the balance between growth and security is maintained. “Rapidly allowing more telco players in the country would be difficult to monitor, as some might not have the country’s best interest business at heart,” he stated.