Remedial legislation liberalizing the telecommunication industry is seen to make more viable the entry of a third player that could “break the virtual duopoly” of telco giants Smart and Globe, according to Sen. Grace Poe, chairman of the Senate Public Services Committee tasked to review telecom franchise applications.
In a news statement issued on Wednesday, Poe confirmed that lawmakers are pushing for the speedy passage of Senate Bill (SB) 1754 amending the 82-year-old Public Service Act of 1936 to allow “meaningful competition” in the telco sector.
Poe predicted its early enactment into law will pave the way for a third telco player that will directly compete against the two telco giants, adding that SB 1754 was crafted to “effectively liberalize” the telco sector.
The senator recalled that President Duterte earlier mentioned the enactment of a new law that would pave the way for the entry of a third, fourth or even fifth telco player in the local market.
In sponsoring the remedial legislation suggested by the President, Poe said it is “time to respond and act” on the President’s proposal.
She added, however, that she expects “immediate Senate action” to pass the bill when sessions resume in May, as Congress is already set to adjourn this week.
At the same time, Poe said lawmakers “expect that more public services would be opened to wide competition,” adding that “a meaningful competition will allow more players, domestic and foreign, to slug it out to win the satisfaction of the Filipino people.”
This way, she predicts “there will be lively competition in providing quality services and products at reasonable prices for the benefit of consumers.”
“We intend to erase the take-it-or-leave-it attitude of those who benefited operating as monopolies for decades,” Poe said.
The senator noted that the 1987 Philippine Constitution restricts the operation of a public utility to companies whose ownership is at least 60-percent Filipino-owned. “The antiquated Public Service Act, however, only provides a list and not a definition of public services and no definition of a public utility. Thus, foreign equity restrictions also apply to public utilities like telecommunications, electricity, water and transportation, among others,” she added.
Poe said that currently, electricity (distribution and transmission), water, transportation, telecommunications and other essential services fall under the foreign equity rule mandated by the Constitution.
“Once the measure is approved,” she said, “only the electric power distribution and transmission, water pipeline distribution and sewerage pipeline system are restricted.”
Poe added “the natural effect of our proposed definition of ‘public utility’ is to free all public services not included in the three public services mentioned, meaning constitutional restrictions on foreign ownership, equity and operation will be lifted.
Poe mentioned that the remedial legislation “seeks to improve the quality of the goods and services of public service providers and lower the costs of their goods and services at the same time.”
The senator added that companies are expected to “provide better services or they will face a fine of up to P5 million per day of violation plus “disgorgement of profits” and additional “treble damages,” effectively amending the existing law that, she notes, “only imposes a measly fine of P200 per day of violation.”
7 comments
ang galing tlga ni senator poe, kung yung mga papasok na telco’s dapat na tlga may batas n para sa kanila para namna mapanatili nila yung serbisyo nila ng maayos
its about time, these telecom here are simply legalized extortionists
“We intend to erase the take-it-or-leave-it attitude of those who benefited operating as monopolies for decades,” tama tlga dito si senator poe, dahil gusto natin magka internet ginigipit or tinitipid naman tayo nung 2 nangungunang telco company ngayon
magkaroon ng batas sa mga telco company na dapat may refund kung sakaling magkaroon sila ng interruption of connection nila
kung totoo man n may bago ng telco company sigurado mag ok at mas maganda dapat ang serbisyo iooffer nila
makinig naman kay senator poe kasi ang mga ginagawa nya naman is para sa ikakagnada ng bansa eh
give the 5G technology to the 4th & 5th telco player waste no time,it will led to the downfall of greedy 1st & 2nd telco player.