Congress urged to scrap telco lease fees
With connectivity increasingly becoming a necessity in the digital era, a consumer advocacy group has renewed calls to remove lease fees charged to telecommunications firms via the amendment of a 48-year-old law.
CitizenWatch Philippines said in a statement on Friday that internet connectivity was as much a necessity as power and water, therefore warranting the same treatment in terms of costs.
“This digital economy demands seamless, reliable connectivity,” CitizenWatch coconvenor Tim Abejo said. “Yet, property developers continue to impose exorbitant lease fees on telecommunications providers, driving up costs that ultimately burden consumers.”
Under the National Building Code of the Philippines (NBC), which was enacted in 1977, no lease fees are required for water and electricity equipment.
Abejo argued that internet connectivity should also be recognized as a “necessity” and accorded the same exemption as power and water utilities.
However, Abejo pointed out that internet service providers (ISPs) were being charged “substantial fees—sometimes amounting to hundreds of millions of pesos annually” to install fiber optic cables and other broadband infrastructure.
Hampering development
This is because the NBC does not mandate for space to be provided for broadband equipment that is used to upgrade the capacity and bandwidth of telecommunications firms and ISPs.
“We cannot afford to let a law passed nearly half a century ago to hamper the development of our digital infrastructure,” Abejo said.
“Today, broadband internet connectivity is the backbone of communication, business, education and essential services,” he added, calling the fees “an income-generating scheme at the expense of every Filipino who depends on the internet for work, education and daily life.”
In August 2023, the House of Representatives passed House Bill (HB) No. 8500, or the proposed Philippine Building Act that aims to amend the NBC and improve the stability of the country’s buildings, especially during natural calamities.
Faster action
CitizenWatch urged the Senate to “act swiftly” and prioritize the passage of their own version of the bill.
Last June, Tarlac Rep. Christian Yap also filed HB 900, which seeks a review of the NBC to ensure that buildings have enough space to accommodate broadband infrastructure.
“With a more supportive policy environment, telcos can redirect their resources toward improving last-mile connectivity instead of paying unnecessary overhead costs,” Abejo said.
Data from the World Bank showed that in 2022, only 33 percent of Filipino households had access to the internet. This is lower than that of its neighbors, including Malaysia (50 percent), Thailand (58 percent) and Vietnam (76 percent).
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