President Rodrigo Duterte’s decision to give the country’s third telecommunications player the best possible preferential treatment is “absolutely justified” to give Filipinos access to faster and cheaper Internet connection speeds, Makati City Rep. Luis Campos Jr. said on Sunday.
“Public interest dictates the preferential treatment. We have to enable the new entrant to quickly roll out its network for the benefit of consumers, who for years have had no choice but to endure the inadequate and costly Internet services being supplied by the two players,” Campos said.
“The state, in going out of its way to accommodate the third player, is in fact merely fulfilling its duty to foster stronger and freer market competition,” added Campos, a deputy minority leader.
Malacañang has ordered all agencies—from the National Telecommunications Commission down to local government units—to expedite the granting of all licenses and permits needed by the possible third telco firm.
Without the President’s directive, Campos said the third player would face numerous hurdles, including potential delays in securing licenses and regulatory approvals to form the new telecommunications company.
The new entrant may have to spend up to P125 billion over the next three years to be in a position to effectively compete with PLDT Inc. and Globe Telecom Inc., according to market analysts.
“Having real competition in three years, or before the President’s term ends in 2022, is definitely better than having no foreseeable competition at all,” Campos said.
The lawmaker downplayed concerns over a possible foreign role in the new telco player, which is widely believed to involve a Chinese entity.
Both PLDT and Globe are already substantially, or up to 40 percent, owned by foreigners, Campos said.
Campos has been batting for the reclassification of internet access as a “basic telecommunications service” so that the NTC may compel suppliers to provide rising connection speeds under pain of severe punitive fines.
Under House Bill No. 5337, Campos wants the NTC empowered to regulate both the quality and the cost of internet access by tagging it a basic service.
At present, the 23-year-old Philippine Public Telecommunications Policy Law treats internet access as a “value-added service” rather than a basic service, thus, suppliers are relatively free to provide the service on their own terms.
