Konektadong Pinoy: Unlocking the Philippines’ Next-Gen Telecom Opportunity

The dawn of an open-access era in Philippine telecommunications

For decades, the Philippine telecom market was defined by scarcity — of spectrum, infrastructure, and regulatory openness. That era is ending.

With the passage of the Konektadong Pinoy Act (Republic Act No. 12234) and its newly issued Implementing Rules and Regulations (IRR), the Philippines is launching a landmark reform to modernize its data transmission ecosystem. The Act introduces an open-access, infrastructure-sharing framework, while the amended Public Service Act (R.A. 11659) now permits 100% foreign ownership of telecoms.

For global telecom operators and infrastructure investors, this combination unlocks a new investment frontier. The country of 118 million people, with over 80% internet penetration, is building its next digital backbone — and inviting international players to help shape it.

From regulation to competition: What the Konektadong Pinoy Act changes

The Konektadong Pinoy Act establishes a comprehensive and inclusive data transmission policy. It aims to bridge the digital divide, reduce barriers to competition, and stimulate private investment in digital infrastructure.

Core policy reforms:

  • Open Access: Entities may operate at any layer of the data transmission network (core, middle mile, last mile) without franchise constraints.
  • Infrastructure Sharing: Passive and active assets (towers, fibre, power systems, ducts) must be made available to other qualified players.
  • Non-Discriminatory Access: All access must be provided on fair, reasonable, and non-discriminatory (FRAND) terms.
  • Spectrum Transparency: Prevents monopolistic control and encourages efficient spectrum utilization.
  • Institutional Coordination: The DICT, NTC, and PCC share oversight to balance innovation, technical regulation, and competition.

These reforms dismantle the structural bottlenecks that once limited new entrants — replacing political franchises and exclusivity with a transparent, rules-based open-access system.

IRR Spotlight: The New Step-by-Step Entry Pathway for Foreign Telecom Operators

The IRR of the Konektadong Pinoy Act translates the law’s principles into a clear operational roadmap for local and foreign players. Below is a breakdown of what an international telecom or data transmission operator must do to legally and effectively enter the Philippine market.

Step 1: Incorporate and Register Locally

  • Establish a Philippine-registered corporation with the Securities and Exchange Commission (SEC).
  • Thanks to R.A. 11659, 100% foreign ownership is allowed for telecom and data transmission services, provided reciprocity exists in the investor’s home country.
  • The company must explicitly state that it will engage in data transmission services as defined under the IRR — including broadband, fibre, satellite, and virtual network operations.

Step 2: Register as a Data Transmission Industry Participant (DTIP)

  • Under Rule I, Section 2–4 of the IRR, all entities operating or managing segments of the data transmission network are classified as DTIPs.
  • DTIPs include:
    • Public Telecommunications Entities (PTEs);
    • Value-Added Service Providers (VAS);
    • Satellite System Providers/Operators (SSPOs);
    • Passive Infrastructure Owners, Lessors, and Operators (PIOLOs).
  • Registration with the Department of Information and Communications Technology (DICT) is mandatory before any commercial operations.

Step 3: Obtain Regulatory Authority from the NTC

  • Apply for a Provisional Authority (PA) to operate with the National Telecommunications Commission (NTC).
    • Submit corporate documents, technical plans, rollout timelines, and proof of financial capacity.
  • Once operational benchmarks are met, apply for a Certificate of Public Convenience and Necessity (CPCN) to begin full-scale operations.
  • These authorizations align with the IRR’s open-access policy, meaning applicants are assessed primarily on technical and financial competence, not political franchise.

Step 4: Secure Access to Spectrum and Infrastructure

  • The IRR mandates the creation of an Access List, jointly managed by the DICT, NTC, and PCC, identifying which digital infrastructure and services must be accessible to other entities.
  • Foreign entrants may:
    • Apply for spectrum allocations where available; or
    • Lease capacity from existing operators under open-access and FRAND terms.
  • This enables network virtualization or MVNO-type models without the need for immediate heavy spectrum investment.

Step 5: Partner and Co-Locate

  • The IRR encourages partnerships with existing towercos, fibre network operators, and community-based networks.
  • DTIPs and PIOLOs are required to offer co-location and shared use of passive and active assets — allowing new entrants to scale quickly and cost-effectively.
  • The Dig Once Policy further reduces infrastructure duplication by coordinating right-of-way and civil works between government and private players.

Step 6: Compliance and Governance

  • All DTIPs must comply with:
    • Data Privacy Act of 2012 (R.A. 10173) for handling user data;
    • Cybersecurity regulations under DICT and NTC;
    • Reporting obligations on service quality, coverage, and network resilience.
  • The IRR empowers DICT and NTC to impose administrative penalties for noncompliance, emphasizing transparent governance.

Step 7: Integrate into National Connectivity Initiatives

  • Foreign DTIPs are eligible to participate in public-private partnerships (PPPs) under DICT-led programs such as:
    • The National Broadband Plan;
    • Free Wi-Fi for All projects;
    • Digital Cities and E-Governance initiatives.
  • Participation in these programs accelerates local integration and enhances long-term commercial presence.

In short: The IRR provides a clear, investment-grade process — register, secure authority, access infrastructure, share capacity, and comply. The days of opaque and politically influenced market entry are over.

Commercial opportunities under the new framework

The liberalized regulatory environment is unlocking several high-value segments:

  • Mobile and MVNO Operations: Leverage existing infrastructure to launch niche or enterprise-focused networks.
  • Wholesale Data Transmission: Supply capacity to ISPs, content providers, and hyperscalers.
  • Satellite Backhaul and Rural Connectivity: Deploy non-terrestrial solutions for last-mile delivery in the archipelago’s remote islands.
  • Digital Infrastructure Investment: Tower, fibre, and edge data centers remain capital-hungry assets under mandatory sharing rules.
  • Government Digital Projects: The Philippines is actively seeking private partners for its national broadband rollout.

Regional context: The Philippines as ASEAN’s most open telecom market

While Indonesia, Vietnam, and Thailand maintain varying degrees of ownership caps or joint-venture mandates, the Philippines has leapfrogged into a fully open-access regime.

  • Indonesia: 67% foreign ownership cap.
  • Vietnam: Local control still required for core networks.
  • Thailand: Complex licensing and BOI approvals.
  • Philippines: 100% foreign ownership, open-access infrastructure, FRAND obligations — and a government pushing digital inclusivity.

For investors accustomed to navigating regulatory headwinds, the Philippines now offers clarity, scalability, and policy alignment with global digital standards.

Strategic implications for global telecom investors

  1. Regulatory predictability: The IRR codifies a transparent process, reducing bureaucratic risk.
  2. Asset-light entry paths: Infrastructure sharing allows capital-efficient rollouts.
  3. Regional portfolio diversification: The Philippines offers faster growth potential than mature ASEAN markets.
  4. Public-private alignment: DICT’s national broadband agenda creates stable, long-term partnership opportunities.

From policy to opportunity

The Konektadong Pinoy Act and its IRR are not just another telecom reform — they are a blueprint for digital transformation through competition.

Foreign telcos, towercos, and investors now have a rare chance to enter a high-growth market under rules that reward speed, transparency, and innovation.

With the legal foundation clear, the remaining question for global telecom players isn’t if they should enter the Philippines — but how soon.

Advisory Perspective

As consulting partners, we guide investors and telecom operators through the entire entry lifecycle — from regulatory structuring and licensing strategy to partnership sourcing and rollout planning.

Our team works directly with DICT, NTC, and PCC frameworks to help clients:

  • Secure DTIP registration and operating authority;
  • Structure compliant, scalable market-entry models;
  • Identify tower, fibre, or MVNO partners;
  • Navigate privacy, cybersecurity, and competition requirements.

The Philippines’ new connectivity landscape is open.
Those who move early will shape it.

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