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09/04/2025

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09/04/2025
LAWIN.news

“Konektado” Pinoy Law poses challenges and opens doors for PLDT, Globe

by Mae De Vera, LAWIN.news September 4, 2025
written by Mae De Vera, LAWIN.news September 4, 2025
Photo Credit: Inquirer.net
7

PLDT and Globe, the leading telecommunications companies in the Philippines, are poised to encounter new risks and opportunities as the government expands the digital infrastructure landscape to include more competition.

According to BMI Research, part of the Fitch Group, the “Konektadong Pinoy” law, which became effective last month, reduces entry barriers for new players, including satellite operators. This reform is seen as a strategic move to overcome obstacles hindering the country’s goal to be a leading digital hub in the region.

BMI describes the measure as “radical,” with the potential to ease PLDT and Globe’s dominance in the profitable wireline broadband sector. However, the research unit also suggests that both companies could capitalize on the law by entering each other’s markets or forming independent infrastructure ventures to attract new partners and revenue.

BMI views the law positively for the telecoms and technology sectors but cautions that existing providers must closely watch the formulation of implementing rules and regulations to adapt their strategies accordingly.

A key aspect of the law eliminates the long-standing requirement for a legislative franchise, a Philippine-specific hurdle deemed outdated by proponents. It mandates current players to offer their infrastructure to third-party providers, a change opposed by PLDT and Globe, who argue that new entrants could undermine their business models and that access fees might not accurately reflect their network investments.

PLDT has indicated it might challenge the law’s validity in the Supreme Court.

BMI also highlighted potential risks, noting the Department of Information and Communications Technology’s limited experience in addressing modern digital service market demands. The final implementing rules could either be overly restrictive or insufficiently comprehensive, potentially leading to vulnerabilities in areas such as data transfers, data sovereignty, cybersecurity, and artificial intelligence use.

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Mae De Vera, LAWIN.news

Mae De Vera is a passionate advocate, creative professional, and entrepreneur. A graduate of Political Science from Saint Louis University and a law student of Arellano University, Mae is dedicated to empowering marginalized communities through outreach programs and advocacy. With a background in digital artwork, event flyer design, ESL teaching, and business management, Mae brings a versatile skill set to her endeavors. She also embraces her love for nature through farming, integrating sustainability into her life. Mae’s leadership experience as a consistent school student leader reflects her commitment to making a difference. Today, she combines her creativity, advocacy, and entrepreneurial spirit to create impactful stories and initiatives that inspire change. Disclaimer: The views and beliefs expressed by the author do not necessarily represent those of LAWIN.news, its management, editorial board, or staff.

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