BMI cites advantages of 'Konektadong Pinoy' law 

A study by BMI, a Fitch Solutions unit, dubbed the “Konektadong Pinoy (Connected Filipinos)” law “the most radical overhaul of the country’s technology and telecoms legal framework", according to a report by Philippine News Agency.

In a market report dated Sept. 3, a copy of which was sent to journalists on Thursday, BMI said the measure, signed into law on Aug. 23, provided the foundation for the liberalization of the country’s digital infrastructure and services market.

This is because the law allows third-party providers to use existing players’ infrastructure, addressing constraints of congressional franchises.

“In principle, the law is broadly positive for the telecoms and technology market, but incumbents will need to closely monitor the development of the detailed implementing rules and regulations before adapting their business models and strategies for the new era,” it said

“Not only would it encourage new service providers (satellite operators are most often cited as potential market disruptors) to enter the market, it would allow incumbents to deploy their own infrastructure in areas dominated by their rivals or use their rivals' infrastructure in more transparent, open access mechanisms.”

Another plus is the possibility of an increase in infrastructure as new entrants come in, since the law simplified rules to operate in the country.

While this change might be detrimental to existing players like PLDT and Globe, the report said current service providers may take advantage of it “to create standalone digital infrastructure and services business that can tap a wider pool of business opportunities.”

"We concur with the Philippine Competition Commission's view that, by institutionalizing competition in the digital infrastructure sector, lower costs, improved service quality and greater access to end-users will result, particularly in underserved areas,” it added.