The final hurdle for digital inclusion

The bicameral conference committee is set to finalize the text of a bill that promises to bring faster, cheaper, and more secure broadband internet to millions of Filipinos: Konektadong Pinoy. With Senate Bill No. 2699 certified by President Marcos as urgent and with support for it across party lines, a final version is likely to be endorsed by the committee for the President’s signature. However, there are concerns that some provisions could be diluted or removed due to pressure from powerful interests.

The Philippines currently has one of the slowest yet most expensive broadband internet connections globally, according to a World Bank report. The 2023 Internet Poverty Index highlights that around 20 million Filipinos are considered ‘internet poor,’ unable to afford at least one gigabyte of data each month. Rural areas suffer the most, with limited access to the internet, rendering them disconnected from the opportunities available online.

Business groups, including the Philippine Chamber of Commerce and Industry (PCCI), joint foreign chambers, industry associations, and civil society, have extolled the virtues of the Konektadong Pinoy bill. This initiative streamlines licensing for service and network providers, easing the process of doing business in the data transmission industry as well as allowing new players to enter the market. It is seen as a critical solution for improving connectivity, especially for rural communities.

For marginalized populations, Konektadong Pinoy offers numerous benefits, among them affordable internet, participation in digital commerce, job opportunities, and educational upskilling. Remote communities will gain access to essential government services and have a platform to influence decision-making, which are typically centralized in urban areas.

The Institute for Social Entrepreneurship in Asia believes that Konektadong Pinoy will significantly enhance community-centered connectivity initiatives (CCCIs), which are pivotal in bridging the digital divide. CCCIs empower local communities to build and manage their connectivity infrastructure, fostering a sense of ownership and responsibility. These initiatives have been proven to provide social and economic gains, turning community centers into hubs where residents discuss issues and devise solutions.

A study by the Association for Progressive Communications found that CCCIs facilitate greater civic engagement, allowing communities to reach the halls of power effectively. By determining the contours of internet use from the ground up, CCCIs ensure that the digital landscape reflects the needs and aspirations of the community.

Social enterprises are crucial players in this ecosystem. They can serve as retail internet service providers (ISPs), leveraging their resources and networks to provide affordable internet access to underserved areas. By integrating digital tools into their operations, these enterprises not only enhance connectivity but also contribute to broader social development goals, such as education and economic empowerment.

Konektadong Pinoy’s provisions to allow smaller ISPs to enter the market will democratize access to broadband, enabling social enterprises to thrive alongside bigger players. This shift will encourage innovation and competition, ultimately benefiting underserved communities that have long been neglected.

Critics of the bill argue that it is unconstitutional, particularly regarding the removal of the need for a Congressional franchise for ISPs that will access the radio spectrum. However, the Constitution itself does not mention radio spectrum. What it does mention is the “vital role of communication and information in nation-building,” which can be facilitated by better Internet connectivity. The Philippines is currently the only country that still mandates such a franchise for data transmission. This outdated requirement has stifled competition, preventing smaller ISPs from entering the market and exacerbating the digital divide.

Konektadong Pinoy offers Congress a chance to correct these archaic policies, which have inadvertently allowed market distortions to persist. By enabling a more competitive environment, we can deliver digital justice for inclusive development.

Konektadong Pinoy represents a critical opportunity to transform the digital landscape in the Philippines. By promoting community-centered connectivity initiatives and empowering social enterprises, we can ensure that every Filipino has access to the digital world. This is not just about faster internet; it is about creating equitable opportunities for all, fostering a more inclusive society.

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Gomer Padong works on programs and development cooperation at the Institute for Social Entrepreneurship in Asia, and coordinates Asia Policy and Regulations of the Local Networks (LocNet), a global initiative on local access and community connectivity implemented with the Association for Progressive Communications and Rhizomatica.