Regulating Connectivity: An Overview of the Konektadong Pinoy Act IRR

The Implementing Rules and Regulations (“IRR”) of Republic Act No. 12234, otherwise known as the ”Konektadong Pinoy Act”, established a comprehensive regulatory framework that aims to  modernize the Philippine data transmission industry. The Act seeks to narrow the digital divide by promoting Open Access, encouraging investment in digital infrastructure, and removing barriers to competition.

Under the IRR, all segments of the data transmission network—including international gateways, backbone, middle mile, and last mile—are declared competitive. Data Transmission Industry Participants (“DTIPs”) may operate without a legislative franchise, subject instead to registration or authorization with the National Telecommunications Commission (“NTC”). The Department of Information and Communications Technology (“DICT”) and the Philippine Competition Commission (“PCC”) play key oversight roles, with the NTC directed to adopt an expedited “Green Lane” registration process with streamlined documentary requirements and reduced processing fees, for micro and community-based DTIPs that intend to operate in rural, underserved or unserved areas. DTIPs must demonstrate legal eligibility, technical capability, financial capacity, and commitment to comply and may qualify for incentives under the CREATE MORE Act such as Value-Added Tax (“VAT”) exemption and duty exemption from the date of registration.

The IRR establishes mandatory access and infrastructure sharing, requiring providers to grant access to passive infrastructure on fair, reasonable, and non-discriminatory terms. The DICT, NTC, and PCC will maintain an Access List of covered infrastructure, while providers must publish Reference Access Offers (“RAOs”) that contains the relevant information, terms, conditions and rates to access the digital infrastructure and services contained in the access list. Entities identified by the PCC in consultation with the NTC as having Significant Market Power or enjoys a position of economic strength are subject to additional obligations. Moreover,the IRR also adopts a Dig Once Policy to reduce deployment costs through coordinated civil works. 

Enhanced compliance requirements apply to spectrum management and cybersecurity. A new Spectrum Management Policy Framework will govern frequency use, and the NTC may perform spectrum recall on all unutilized or underutilized spectrum  upon compliance with due process requirements. DTIPs must likewise comply with international cybersecurity standards and obtain the required certification within two years of registration. Failure to meet cybersecurity or performance standards may result in administrative fines or revocation of authority.The IRR further affirms the basic rights of users, including access to reliable and non-discriminatory services, transparent pricing, student discounts, and effective complaint resolution. Violations of key prohibitions (e.g., refusal to interconnect or anti-competitive practices) carry substantial administrative including monetary fines ranging from PHP 50,000 to PHP 5,000,000 per violation  as well as the suspension or permanent revocation of registration, authorization, and spectrum assignments. Hence, industry participants are advised to assess their regulatory readiness and compliance frameworks in light of the IRR.