In President Marcos’ recent State of the Nation Address (Sona), he mentioned how digitalization can transform government, education, and industries.
But many Filipinos still do not have internet access, and the President himself acknowledged that the number of digitally connected households was “much too low.” His Sona focused on common towers and free Wi-Fi, and not on the expensive mobile data and limited bandwidth that most telco subscribers have to contend with.
Research by the Ateneo Center for Social Entrepreneurship and the microfinance organization Social Enterprise Development Partnerships, Inc. found that digital technologies that served as a lifesaver for many nano-enterprises during the COVID-19 pandemic have become a costly luxury when travel restrictions were lifted. While free Wi-Fi serves a purpose, communities should not have to rely on the government to connect them.
In places where there is low population density, low income, and difficult terrain, traditional telecommunication operators do not find sufficient return to their investment to deploy infrastructure. The International Telecommunication Union recommends promoting local innovation ecosystems and providing incentives to small and community operators for them to deploy low-cost rural networks.
Community-centered connectivity models go beyond providing connectivity. They build digital skills and create culturally sensitive and relevant local digital content. Community providers thus bring many important social and economic benefits.
Many countries are creating enabling policy and regulatory frameworks for community-centered connectivity operators. In the Philippines, these systems are considered illegal due to outdated laws. The Public Telecommunications Policy Act of 1995 (Republic Act No. 7925) only allows telcos with a congressional franchise to build networks. This landline-era law does not discriminate between big or small, national, or local networks. An older law, the radio control law of 1931, was designed for analog radio broadcast and wireless telegraphy, making it unresponsive to digital connectivity.
Forward-looking legislators are proposing a digital-era law called the “Konektadong Pinoy” (or Open Access in Data Transmission) bill. Konektadong Pinoy aims to address the barriers to entry by transitioning to a simplified licensing process for network operators and a more efficient spectrum management. This will attract more investments from internet service providers and empower communities to build and operate networks in areas that are not reached by traditional ISPs.
A 2023 study by the Philippine Institute for Development Studies envisions the open access bill as a reform that will “boost digital connectivity, particularly in communities that are currently underserved and unserved.” In “strongly advocat[ing]” Konektadong Pinoy, the National Economic and Development Authority notes that it will “strengthen the country’s internet infrastructure” and “enhance digital connectivity.”
The World Bank has described Open Access as a “viable, promising opportunity to reform the Philippines’ decades-old policy frameworks,” that will “fast-track and make network rollout more cost-efficient, including for small players and community networks.”
Renamed the Konektadong Pinoy bill, this proposed law on open access has all the right elements that the country should have adopted years ago. Internet for all can only be achieved if we deregulate the market and allow different types of networks, technologies, and business models to be accommodated and encouraged. The new title encapsulates the outcome that the bill intends to achieve: A truly digitally connected Filipino nation.
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Dr. Roberto Martin N. Galang is dean of the John Gokongwei School of Management at the Ateneo de Manila University, and chairs the Institute for Social Entrepreneurship in Asia.