Konektadong Pinoy Act: Expanding access, redefining competition

The new Konektadong Pinoy Act (KPA), which took effect on 23 August 2025, marks a significant shift in how the Philippines approaches digital infrastructure.

Positioned as a comprehensive framework for data transmission and connectivity, the new law and implementing rules and regulations (IRR) aims to dismantle longstanding structural barriers in the telecoms sector while accelerating universal internet access. As with any transformative reform, its promise is matched by the complexity of its implementation.

Open access drives telecom competition

At the heart of the law is an open access framework designed to liberalise the data transmission industry. The IRR provides that all segments of the network – from international gateways to last-mile connectivity – are to be competitive and open, allowing qualified entities to build and operate networks without the need for a legislative franchise.

This is a significant departure from the earlier restrictive system governing telecoms. By lowering entry barriers, the law seeks to encourage new players including smaller ones to participate in expanding connectivity.

Infrastructure sharing speeds network rollout

The KPA also highlights infrastructure sharing as a key policy direction. Access providers and owners of passive infrastructure must make essential facilities such as towers, ducts and fibre available on fair and non-discriminatory terms. This intends to reduce duplication of infrastructure and lower expenditure, accelerating network rollout.

Spectrum reforms ensure fair allocation

Another important reform is the overhaul of the Spectrum Management Policy Framework, guiding allocation, assignment and recall of frequencies to ensure efficient use and prevent concentration. The emphasis on transparency, periodic review and competition-sensitive allocation reflects global best practices. Notably, the framework introduces mechanisms to reclaim under-utilised spectrum and reassign it.

Green lane eases market entry

The IRR also simplifies the market entry process. The National Telecommunications Commission (NTC) has been directed to adopt faster, more efficient procedures for registering and authorising data transmission industry participants (DTIPs), including the creation of a “green lane” for applications. This is paired with more proportionate requirements, particularly for smaller players, making it easier for new entrants to participate.

To maintain oversight, the framework requires DTIPs to meet performance standards, submit reports, publish pricing details and comply with cybersecurity rules.

Incentives advance inclusive digital connectivity

A strong emphasis on digital inclusion prioritises expanding connectivity to underserved and unserved areas, encouraging investment through incentives such as tax holidays, duty exemptions and VAT zero ratings.

The IRR also recognises the role of smaller and community-based networks, reflecting a more inclusive approach. The intention is not only to expand infrastructure, but to ensure more Filipinos benefit from reliable, affordable internet access.

Implementation challenges test KPA effectiveness

While the KPA introduces a comprehensive and progressive framework, there are several challenges.

• 1. Balancing market entry and competition. While open access lowers barriers to entry, increased participation does not automatically translate into effective competition. Market fragmentation or continued dominance by incumbent players may persist without strong regulatory oversight.
  2. Infrastructure sharing disputes. Determining fair pricing, technical feasibility and access terms may lead to disputes, particularly where key infrastructure remains controlled by existing players. Efficient dispute resolution mechanisms will be critical.
  3. Spectrum management uncertainty. Introducing spectrum recall and reallocation mechanisms, while promoting efficiency, may raise concerns on regulatory stability and investor confidence if not implemented transparently.
  4. Regulatory co-ordination. The law assigns overlapping roles to the NTC, Department of Information and Communications Technology, and Philippine Competition Commission, making co-ordination essential to avoid inconsistent regulation.

KPA’s success depends on implementation

The KPA is a major step in reshaping the country’s digital landscape. By promoting open access, infrastructure sharing and competition, it aims to close connectivity gaps and improve internet access across the Philippines. However, its success will hinge on effective implementation. The challenge lies not only in crafting progressive policies but in ensuring they operate cohesively. Balancing openness with oversight, competition with stability, and ambition with institutional capacity will determine whether the law delivers.

The views and opinions expressed in this article are those of the author. This article is for general informational and educational purposes only, and does not constitute legal advice or opinion.

Jayson P Baltazar is an associate of the Corporate and Special Projects Department of ACCRALAW

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