Philippine President Ferdinand Marcos Jr. has prioritized Senate Bill No. 2699 as an urgent legislative matter, aimed at promoting the national digital transformation and enhancing communication infrastructure development.
However, the inclusion of provisions that allow foreign telecommunications companies direct access to the Philippine market has raised concerns among local small telecom operators.
The Association of Philippine Private Telecommunication Companies (Paptelco) has expressed that the bill could undermine the competitiveness of local telecom businesses, especially those that have been serving remote areas for a long time.
Paptelco Chairman, lawyer Normandy Baldovino, warned that the entry of large-scale foreign enterprises might lead to the elimination of local businesses from the market.
"The Philippine telecommunications industry heavily relies on small and medium enterprises, particularly in rural and remote areas that are hard to reach by large telecom companies. With strong financial resources and advanced technology, foreign enterprises might overpower small local operators, potentially leading to a market monopoly by foreign entities," emphasized Baldovino.
Some analysts have pointed out that the bill could further lower the barriers for foreign entry into the Philippine telecom market, especially since Chinese companies already have a significant market share. If the policy is relaxed, Chinese telecom companies might expand their operations in the Philippines more smoothly.
Although supporters of the bill believe that introducing more foreign capital will enhance industry competition, bring advanced technology, and offer more favorable pricing schemes, critics worry that local enterprises might struggle to survive, which could ultimately be detrimental to the healthy development of the industry in the long run.
Currently, the bill is still under legislative discussion, with clear divisions among different stakeholders. The future direction of the bill remains to be further observed.
