Communication is essential in our daily lives. It maintains connectivity among family and friends and opens opportunities with just a phone call or a simple email or message.
Since the Covid-19 pandemic, there has been an increase in the demand in communication and internet connectivity, from learning, to working, and even shopping. The internet provides us prompt information, latest updates and trends with just a simple touch of our phones.
In order to enhance competition in the telecommunication sector and improve the internet speed, the government recently enacted several laws and regulations.
Mobile Number Portability
In 2019, the government enacted Republic Act No. 11202 otherwise known as the Mobile Number Portability Act. Mobile Number Portability refers to the ability of a mobile postpaid or prepaid subscriber to retain an existing mobile number despite having moved from one mobile service to another, or to change the type of subscription from postpaid to prepaid or vice versa.
It aims to promote consumer welfare as it fosters the freedom to choose and to respond to quality, price, and other relevant considerations without the consumers having to change their mobile numbers whenever they change mobile service providers or subscription plans.
Telecom Tower Sharing
Tower Sharing means the joint use of Telecom Towers and facilities by two or more persons or operators. It aims to ensure universal access to quality, affordable, reliable, and secure Information and Communication Technologies services without the need to put up more towers. Instead, the Mobile Network Operators (“MNO”) would be leasing from Independent Tower Companies (“ITC”) registered by the Department of Information and Communications Technology (“DICT”).
To implement this, on 29 May 2020, the DICT issued Department Circular No. 008, Re: Policy Guidelines on the Co-Location and Sharing of Passive Telecommunications Tower Infrastructure for Macro Cell Sites. The DICT also issued the Rules on the Accelerated Roll-out of Common Towers in the Philippines.
This policy has led the entry of Independent Tower Companies that build and lease out tower infrastructure to MNOs, facilitating faster deployment and reducing costs on the part of the MNOs. The law prohibits ITCs to be a related party of the MNOs in order to promote non-discriminatory access and uniformity and transparency in tower leasing arrangements.
Amendment in the Public Service Act
On 21 March 2022, Republic Act No. 11659 was enacted amending Commonwealth Act No. 146, otherwise known as the Public Service Act.
Under R.A. No. 11659, telecommunications was categorized under “critical infrastructure”. Critical Infrastructure refers to any public service which owns, uses, or operates systems and assets, whether physical or virtual, so vital to the Republic of the Philippines that the incapacity or destruction of such systems or assets would have a detrimental impact on national security, including telecommunications and other such vital services as may be declared by the President.
Telecommunications refers to any process which enables a telecommunications entity to relay and receive voice, data, electronic messages, written or printed matter, fixed or moving pictures, words, music or visible or audible signals or any control signals of any design and for any purpose by wire, radio or other electromagnetic, spectral, optical or technological means, as defined by Section 3(a) of Republic Act No. 7925, otherwise known as the “Public Telecommunications Policy Act of the Philippines”, as amended, except passive telecommunications tower infrastructure and components, such as, but not limited to, poles, fiber ducts, dark fiber cables, and passive telecommunications tower infrastructure, as defined by the Department of Information and Communications Technology (DICT), and value-added services, as defined in Section 3(h) of Republic Act No. 7925, as amended.
Considering that telecommunications is categorized as public service, and not public utilities, telecommunications may now be 100% foreign owned. This is a significant change from the previous cap of 40% foreign ownership.
With these changes, we can expect foreign investors to enter the Philippines’ telecommunications industry, and a more competitive environment in the said industry.
Written by: Sri Michi Cordelle Domantay
Sources:
Republic Act No. 11202, 08 February 2019.
Republic Act No. 11659, 21 March 2022.