U.S., China rivalry seen over data grid

U.S., China rivalry seen over data grid | Daily Tribune

The American satellite Internet service provider Starlink, China Telecom and Singapore’s Singtel are the three giants that are expected to fight it out in the fiercely competitive local market after the passage of the Konektadong Pinoy Act (Republic Act 12234).

The bill lapsed into law on 24 August 2025, representing a landmark reform in the telecommunications landscape.

Also known as the Open Access in Data Transmission Act, it aims to dismantle barriers to entry in the data transmission sector by promoting competition, affordability, and improved quality of internet services.

Key provisions include the elimination of legislative franchises for Internet service providers (ISPs) and data transmission entities.

Previously, congressional approval or a Certificate of Public Convenience and Necessity (CPCN) was needed for ISPs, which was replaced under the law with streamlined registration processes through the Department of Information and Communications Technology.

The law allows full foreign equity participation, aligning with amendments to the Public Service Act (RA 11659) and opening the door for international players.

Starlink was reported as engaging the Department of Information and Communications Technology on the drafting of the law’s implementing rules and regulations (IRR).

The IRR was signed by President Ferdinand Marcos Jr. on 5 November and took effect shortly thereafter.

3-cornered battle

The American Starlink has been registered with the National Telecommunications Commission (NTC) since 2022 and is piloting services in remote areas. Ideal for GIDAs via low-Earth orbit satellites.

It provides satellite broadband through low-Earth orbit satellites and targets underserved rural and maritime regions with speeds up to 220 megabits per second (Mbps).

China Telecom participated in prior auctions particularly in 2018, for the third telco slot.

Singtel, meanwhile, is a regional powerhouse with investments in Indonesia and Thailand and is being speculated in industry forums for its Optus subsidiary’s Asia-Pacific ambitions. It has a partnership with telco Globe Telecom.

Other strong contenders for a local entry are SK Telecom (South Korea) and China Unicom (China).

Konektadong Pinoy mandates expedited approvals for permits such as a 30-day processing for the problematic rights-of-way and promotes passive infrastructure sharing among providers to reduce deployment costs.

The law places emphasis on expanding connectivity to Geographically Isolated and Disadvantaged Areas (GIDAs), with goals to achieve universal broadband access.

DICT has projected investments of up to $10.5 billion annually from foreign players to hit a 40 percent reduction in internet costs by 2026, alongside improved speeds and reliability, to bridge the digital divide affecting over 25 percent of Filipinos without reliable access.

The new entrants are expected to challenge the duopoly of PLDT (Smart) and Globe Telecom, which control over 90 percent of the market, alongside newer players like DITO Telecommunity and Converge ICT.

Enhanced competition could increase average broadband speeds (currently around 65 Mbps for top providers) and lower prices as household plans often exceed P1,500 a month for 100 Mbps.