News & Updates

THE KONEKTADONG PINOY ACT: BUSINESS IMPLICATIONS

Justin Nicholas T. Sy

On 24 August 2025, Republic Act No. 12234, also known as the Konektadong Pinoy Act, lapsed into law without the signature of the President.

The Konektadong Pinoy Act, among others, provides a framework over the data transmission sector, with the Department of Information and Communications Technology (“DICT”) as the lead agency in charge of planning, developing, and promoting the national ICT agenda, and the National Telecommunications Commission (“NCT”), an attached agency of the DICT, as the principal regulatory and adjudicatory body over the data transmission sector.

Under the framework provided by the Konektadong Pinoy Act, all participants to the data transmission sector are required to register with the NTC, as well as secure a cybersecurity certification from a third-party organization based on minimum cybersecurity standards identified by the DICT. Notably, the Konektadong Pinoy Act also expressly repeals the requirement to obtain a legislative franchise in order to engage and participate in the data transmission sector. In combination with the amendments introduced to the Foreign Investments Act, even foreign entities may now enter the data transmission industry, and existing participants in the industry may expect the possibility of increased competition borne by new entrants.

In addition, the Konektadong Pinoy Act also mandates the formulation of a Spectrum Management Policy Framework, to govern the management of the spectrum, including valuation and pricing, allocation, and assignment for public, private, and governmental use.

The Konektadong Pinoy Act sets a 90-day deadline for the DICT, in coordination with other governmental agencies and upon consultation with stakeholders, to promulgate the Implementing Rules and Regulations (“IRR”) of the act. Prior to the promulgation of the IRR, existing legislative franchises, certificates of registration, spectrum assignments, and other agreements shall remain valid and effective, subject to the provisions of the IRR upon its effectivity.

A Joint Congressional Oversight Committee on Open Access in Data Transmission shall monitor and ensure the effective implementation of the Konektadong Pinoy Act for the first five (5) years counting from its effectivity; subsequently, such oversight function shall be transferred to the Senate Committee on Science and Technology and the Committee on Information and Communication Technology of the House of Representatives.

As the Konektadong Pinoy Act comes into force, and especially upon the promulgation and effectivity of its IRR, existing participants in the data transmission sector may expect possible threats in the form of new entrants, while consumers can expect a wider array of data transmission service providers to enter the market.