A local network group warned that the proposed Konektadong Pinoy Act may lead to lower internet quality in the Philippines, as it could result in telco companies cutting corners with their services to get ahead of the new playing field with new entrants.

In a statement, CitizenWatch Philippines said that the passage of the proposed measure could weaken the National Telecommunications Commission’s (NTC) regulatory powers, potentially leading to lower internet quality and slower expansion, especially in underserved areas.

It disclosed that the bill -- which seeks to eliminate the need for a congressional franchise for telecommunication companies -- could diminish the NTC’s role to mere oversight.

“Stripping the NTC of its oversight functions would leave consumers with little recourse to poor and unfair practices brought by the new competition landscape,” said Orlando Oxales, CitizenWatch lead convenor.

The group fears that new entrants may resort to aggressive pricing strategies to gain market share, forcing all players to cut costs and reduce investments in critical infrastructure. This, in turn, could lead to slower expansion, particularly in Geographically Isolated and Disadvantaged Areas (GIDA).

Oxales also warned that new telcos might prioritize urban areas to recoup costs, further delaying growth in GIDA.

He urged the Senate to work with industry experts to promote a safe expansion of the country’s digital infrastructure without compromising the NTC’s regulatory authority.

The Konektadong Pinoy Act is currently pending in the Senate as a priority bill.