The Philippine Chamber of Telecommunications Operators (PCTO) has raised concerns over a measure that seeks to open the country’s data transmission sector, saying it could have adverse effects on national security and consumer protection.
In a 17-page position paper, PCTO asked the Senate to assess the proposed Senate Bill 2669 or the Konektadong Pinoy bill, particularly the impact of opening up the industry basically “for all.” The paper was addressed to Senate committee on science and technology chairperson Senator Alan Peter Cayetano.
The PCTO particularly expressed concern on the bill’s provision on removing the requirement for legislative franchises and Certificates of Public Convenience and Necessity (CPCNs) for data transmission industry participants (DTIPs).
Excluded in the requirement, however, are public telecommunications entities (PTEs) offering “basic telephone services.”
The group said that exempting DTIPs while still requiring PTEs to secure legislative franchise and CPCNs “creates an unjustifiable difference in treatment between these two classes of entities.”
The PCTO said that “opening up” the country’s radio frequencies would lead to “a dangerous ‘free-for-all’ environment over a valuable part of the national patrimony.”
The group also argued that doing away with the existing legal, economic, and technical assessment to operate in the industry could give way to the entry of “fly-by-night” players and could sacrifice consumer welfare.
“The manner in which the bill reworks entire segments of the economy and the way a vital resource is allocated requires a careful review of whether this approach potentially violates the Public Trust Doctrine recently established by the Supreme Court,” the PCTO said.
The group added that the radio frequencies are a finite and vital national resource, thus its regulation should be stringent to safeguard national security and public interest.
A “free-for-all” market, the group said, could also compromise service quality and consumer welfare, as well as further expose the country to cybersecurity risks.
“Governments have begun to find out that the security of their citizens and national borders can be undermined by well-intentioned economic models of the 80s that fail to take into account the reality of the current age. They have begun to move away from the model of ‘opening up’ on the promise of economic development,” the PCTO said.
The group added that even “several countries are reconsidering the wisdom of entrusting the safety of their citizens’ data in the hands of foreign entities whose activities span multiple jurisdictions.”PCTO counts as members some of the country’s top telcos and internet providers, namely PLDT-Smart, Globe, Converge, Bayantel, Eastern Telecommunications, Philippine Telegraph & Telephone Co., among others. — VDV, GMA Integrated News
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