We need open access

When I first visited the United States over 30 years ago, finding one’s way in the interstate system of highways required using folded paper maps that are cumbersome to use. If you are driving alone, it is impossible.

Now, you have a choice of GPS powered apps from your mobile that you attach to your car’s monitor. You type the address of your destination and you get a map, and start hearing a voice that guides you all the way. It even tells you what lane to take and to prepare to take the proper exit.

I have been wondering when we can benefit from broadband in a way that you almost take for granted. At the rate we are doing nothing to make the legal framework up to date with current technology, 10 years may seem too soon.

Grace Mirandilla Santos, a tech analyst who has been closely following developments (or lack of) in the tech legal framework, recently delivered a presentation that simplified the points some senators seem to forever refuse to understand. Here are some of her key takeaways.

Philippine internet has gone a long way, but not enough. It can be a lot better if we had more players, choices, and competition. After 25 years, internet access, quality, and affordability are still a huge problem.

For Grace, this is because we suffer from a broadband infrastructure gap. There are legal obstacles, thanks to outdated laws, that prevent growth. There are high barriers to entry, and costly and inefficient network rollout.

Congress has been debating a new law for years, “Open Access in Data Transmission Act” to cure the problem. It was designed to address the legal obstacles and bridge the gap.

Our situation today is simply this: millions of Filipinos are still offline. This deficiency came to bite us with the pandemic, forcing schools and offices to go online. We have 53 percent of individuals still offline; 52 percent of public schools; 83 percent of public school students and 57 percent of households.

Looks like the only ones with good access are the trolls. But even then, a good part of the trolling being done on behalf of some politicians are coming from China and other countries.

Grace points out that many regions lack ISPs and broadband infrastructure. Total internet use is only 47 percent; 55 percent in Luzon; 66 percent in NCR; 39 percent in the Visayas; 39 percent in Mindanao. There are large patches of unserved and underserved areas.

Barangays have poor access to broadband infrastructure. That is probably one reason many of our people were not adequately warned by the government about how ferocious the last typhoon was going to be.

Poorest access due to lack of towers is Bicol, with only 15.8 percent covered. Cagayan Valley is only 8.6 percent covered by fiber optic cable and MIMAROPA is only 1.6 percent covered by Free WiFi.

Download speed has been improving, but still behind ASEAN neighbors. We are only slightly ahead of Cambodia. War-torn Myanmar is way ahead of us.

Our mobile broadband is more affordable, but fixed broadband is expensive and behind ASEAN.

Why do we have a broadband infrastructure gap? Basically because we do not have enough players putting up towers, fiber, wireless and satellite broadband networks. There is a lack of flexibility in pricing. Regulatory barriers are a disincentive to extend service to unserved and underserved areas.

The legal obstacles can be explained simply because we have very old laws that were made way before our time. These laws include the Radio Control Law meant to regulate broadcast, which was passed in 1931.

Then there is the Public Service Act to regulate telephone and telegraph that is circa 1936. Then there is the Public Telecoms Policy Act to cover telephone, radio, and paging that was passed in 1995.

There is a clear disconnect between policy and technology that is crying out for updating.

The 1931 law requires legislative franchise for access to radio spectrum. The 1936 law requires tedious licensing (quasi-judicial process) plus outdated penalties. The 1995 law requires legislative franchise for entities to build a “network”.

All that results in costly and inefficient network rollout. There is no legal framework for infrastructure sharing and coordinated buildout. This results in wasteful duplication of resources, outages, and unplanned downtime due to accidents.

That explains why we are playing catchup with our ASEAN neighbors.

On the other hand, the proposed Open Access Framework will ensure new entrants are able to enter markets that show high structural barriers to entry. Competition will be created in all segments of the network.

Furthermore, the proposal separates physical infrastructure from services: wholesalers from retailers. Anyone can connect to anyone, using any technology.

The proposal is a curative legislation, based on the following conceptual distinction:

The internet is separate and distinct from telecom.

The internet can be offered using different types of technologies and networks, not just telecom.

This will empower non-telco ISPs and other stakeholders, such as passive infrastructure operators, to participate in building our digital infrastructure.

A legal distinction will be made such that telco is no longer the only network that can carry out data transmission. RA 7925 clearly regulates telcos that operate telecom networks, not ISPs. Open Access will provide appropriate regulatory framework for ISPs.

Having more players is clearly beneficial to the public. This can happen by simplifying registration and qualification of data transmission industry players.

More infrastructure, such as more available towers, can be achieved by promoting infrastructure sharing and cross-sector buildout. Interconnection must also be mandated.

Better coverage and quality can be achieved by making spectrum distribution equitable and transparent.

Bridging the infrastructure gap provides better consumer protection by defining rights of end users.

We also need responsive policy and regulation by clarifying the role of NTC, DICT, and the Philippine Competition Commission in industry regulation. We will also need to penalize erring providers.

The proposal was approved by the House and transmitted to the Senate last July 29, 2021. It is in the Senate where this proposal has been snagged.

Hopefully, it is passed before this Congress adjourns. Good and reliable internet service is now basic, like electricity and water. Explains a lot, I guess.

Boo Chanco’s email address is [email protected]. Follow him on Twitter @boochanco