Senator Joel Villanueva on Monday called for the opening up of the country’s telecommunications sector to create competition and increase investments in the telco industry.
According to Villanueva, this move would let more players to come in and offer better services amid consumer problems on the country’s slow and expensive internet.
Based on content delivery provider Akamai’s Global State of the Internet report in May 2017, the Philippines is reported to have the slowest average internet speed in Asia Pacific with an average of 5.5 megabits per second (mbps). This is much lower than the global average internet connection speed which is pegged at 7.2 mbps.
At present, internet services in the country are being offered by only two major telecom providers—the PLDT and Globe Telecom.
Considering the said industry duopoly in the telco sector, Villanueva said it is high time to declassify the country’s telecommunications sector as a public utility.
Under Senate Bill No. 695 authored by Villanueva which amends the 80-year old Public Service Act or Commonwealth Act No. 146, telecommunications will be excluded from the definition of a public utility.
The Supreme Court has defined a public utility in one of its rulings as “a business or service engaged in regularly supplying the public with some commodity or service of public consequence such as electricity, gas, water, transportation, telephone or telegraph service. Public utilities are permitted to operate as regulated monopolies for providing basic services necessary to public consumers.
“Removing the telecom industry in the limitation for public services will harness competition and bring in more investments and technology that are certainly geared to improve the state of internet services in the country,” Villanueva said.
Last week, Malacañang announced that President Rodrigo Duterte is offering China the “privilege” to operate as the third telco operator in the country that would soon “break up” the duopoly of PLDT and Globe Telecom.
Though no specific Chinese company has been lined up yet, China is said to have been chosen by the President for its capital and technology to provide efficient telecom service.
“While I recognize the President’s intention to introduce competition in the telco industry by inviting China, it is better if we open the sector to competition and we invite everyone interested to enter the market. We can do that by reducing the barriers to entry than by giving preferential treatment to one. This is what we are trying to do with SB 695. The President can certify this as urgent so that we can have better options in internet and cellphone services,” Villanueva said.