Home / News / Congressional franchise req’t should be scrapped to boost PH internet service, says policy researcher

Congressional franchise req’t should be scrapped to boost PH internet service, says policy researcher

The country ranked 83rd out of 140 countries based on its mobile internet speed last month, up by three spots from its previous rank, the Department of Information and Communications Technology said on Wednesday. Meanwhile, its fixed broadband speed rose by eight spots to 92nd place. (FILE PHOTO)

Metro Manila (CNN Philippines, September 17) — There is a need to increase industry competition to enhance internet availability nationwide, according to an information and communications technology (ICT) policy researcher.

However, the prerequisite of obtaining a congressional franchise in order to operate a broadband network hinders the entry of more players in the market, said Mary Grace Mirandilla-Santos, who is also a member of the Better Broadband Alliance (BBA), in an interview with CNN Philippines on Thursday.

Santos explained that the long and complicated process of securing such a franchise discourages investors and smaller industry players from offering possibly better internet services, especially in areas that are hardly reached by major telecommunications companies.

“Halimbawa, sa isang probinsya niya lang gusto mag-offer ng internet, napakalaking barrier nito sa kanyang decision para makapasok sa broadband market,” Santos explained.

[Translation: For instance, if a company wants to offer internet in only one province, the congressional franchise requirement becomes a huge barrier to its decision to enter the broadband market.]

Santos said the BBA believes that a simple registration and qualification process will be enough, as she noted that the Philippines is the only nation worldwide that requires a broadband network to acquire Congress’ approval for a license.

“Hindi naman natin pwedeng asahan na ‘yung mga malalaking network operators na, for example, 110 million na population kaya nilang punan ang pangangailangan,” Santos stressed.

[Translation: We cannot expect the major network operators, for example, to address the needs of 110 million people.]

She further explained that other potential service providers utilize alternative technologies that would better suit different areas, including island-municipalities, and mountain and coastal villages.

Earlier, Secretary Gringo Honasan of the Department of Information and Communications Technology (DICT) remarked that the country’s internet speed is “not that bad.”

However, Santos said that while the DICT has been actively trying to reform ICT policies to pave way for better internet service, there is still “a lot of room for improvement.”

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