Konektadong Pinoy—a game changer

Digital connectivity is critical for participating in the modern economy, accessing education, and delivering essential public services. Yet, despite notable progress, the country’s telecommunications sector remains hampered by high costs, low accessibility, and underwhelming speeds—especially when compared with its Asean peers. The Konektadong Pinoy bill, recently ratified by Congress, is a transformative step toward bridging this digital divide and accelerating national development.

The Philippine Development Plan 2023–2028 places telecom reforms and improved digital infrastructure at the core of the country’s strategy. A digitally connected Philippines means more inclusive growth, competitive industries, efficient governance, and broader access to essential services like education and health care. The stakes are high. The digital economy expanded by 7.6 percent in 2024, reaching P2.25 trillion, or 8.5 percent of the GDP. However, this growth masks glaring inefficiencies and inequities in internet access. Without robust and inclusive reforms, the benefits of digitalization will remain out of reach for millions of Filipinos.

Internet connectivity in the Philippines remains a concern, especially compared to other Southeast Asian countries. In 2022, only 33 percent of Filipino households had access to fixed broadband—far lower than Malaysia’s 50 percent, Thailand’s 58 percent, and Vietnam’s 76 percent. While mobile broadband is more widely used, with around 70 active subscriptions per 100 people, this still places the Philippines behind most of its Asean neighbors. Cost is another barrier. Filipinos spend an average of P1,700 to P2,100 per month on fixed broadband—around 11 percent of per capita gross national income. Mobile internet costs P350–P400 per month, or roughly 2 percent of GNI. These figures are significantly higher than regional averages, burdening predominantly low-income households.

Speed is no consolation. As of April 2025, the Philippines ranked 66th out of 104 countries for mobile internet speed and 52nd out of 155 for fixed broadband. A deeply entrenched duopoly and underinvestment in infrastructure exacerbate poor service delivery. Most troubling is the stark digital divide across socioeconomic groups. World Bank data reveals that even the wealthiest 20 percent of Filipinos have less internet access than the poorest quintiles in Malaysia and Thailand. The situation is even worse in remote and underserved areas, effectively excluding large population segments from the benefits of digital transformation.

Recognizing these urgent challenges, the Konektadong Pinoy bill introduces comprehensive reforms designed to open the market, enhance competition, reduce network rollout costs, and increase the quality and availability of digital services. The bill removes the requirement for a legislative franchise to build and operate data transmission infrastructure. Instead, a streamlined registration or authorization process with the National Telecommunications Commission will make it easier for new players to enter the market, especially in underserved areas.

To address monopolistic practices, the bill empowers the regulator to require large infrastructure owners to provide fair and transparent access to smaller internet service providers. The bill establishes a Reference Access Offer system, standardizing and publishing rates and terms, fostering a more competitive environment. The bill mandates the sharing of passive infrastructure (e.g., towers, ducts) and enables the sharing of active infrastructure (e.g., antennas, transmitters), reducing redundant investment and speeding up service deployment, especially in rural areas. The bill introduces a rational and transparent spectrum allocation framework to ensure the efficient use of this finite resource. Provisions include competitive bidding processes, revocation of unused licenses, and support for innovative satellite-based technologies.

The bill prohibits lower courts from issuing injunctions against regulatory actions, ensuring swift enforcement. It also outlines clear liabilities for public officers who act in bad faith or with gross negligence, promoting accountability in implementation. If implemented well, the Konektadong Pinoy bill’s impact will be far-reaching. In education, it will enable access to digital learning resources, real-time assessment tools, and expanded reach for the Alternative Learning System, all vital in overcoming existing inequities. For the business sector, particularly MSMEs and the BPO industry, improved connectivity means enhanced productivity and access to global markets. In health care, it facilitates remote consultations and efficient data management, while in governance, it supports digitized public services and disaster response systems.

The Konektadong Pinoy bill is more than a telecommunications reform—it is an imperative for national development. By addressing long-standing barriers to access, affordability, and quality of internet services, the bill positions the Philippines to thrive in the digital age. As implementation begins, the challenge will be to ensure that the promise of universal connectivity is not just a policy goal but a lived reality for every Filipino.

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Arsenio M. Balisacan is Secretary of the Department of Economy, Planning, and Development (DepDev). The views expressed here are solely the author’s and do not necessarily reflect those of the institutions with which he is affiliated.

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ambalisacan@depdev.gov.ph