NEDA: Further reforms needed in telco industry

MANILA, Philippines — The National Economic and Development Authority (NEDA) is pushing for the passage of an open access framework bill and key reforms in the country’s franchising and licensing regime to further promote competition in the telco sector.

In a policy note, NEDA said the passage of the proposed Open Access in Data Transmission Act would narrow the digital divide in the country by encouraging the development of data transmission infrastructure and promoting competition in data transmission services.

According to NEDA, the high entry barriers and limited competition in the market make legislation for an open access framework necessary.

“This policy will allow new entrants to challenge the dominant market players, leading to increased efficiency, reduced costs, and improved service quality,” NEDA said.

It pointed out that open access is necessary to disrupt the existing market structure, mitigate monopolistic practices and foster innovation.

As the current franchise and licensing process is a significant barrier to new entrants in the sector, NEDA said removal of the franchise requirement is being pushed to simplify market entry and enhance sector competitiveness.

“Streamlining these processes will create a more dynamic telecommunications environment,” it said.

Given the country’s outdated and inefficient spectrum management practices, the agency explained a new law is needed to optimize this finite resource, as well as ensure its transparent allocation and efficient use.

“This approach will enable new technologies and services, contributing significantly to the sector’s growth,” NEDA said.

Through the proposed changes, NEDA believes it would be easier for firms to provide better services at competitive prices for consumers and businesses.

“The measure will also encourage the development of data transmission infrastructure, remove barriers to competition in data transmission services, and enable the full potential of e-commerce, digital trade, and applications in education, health, agriculture, and other fields,” NEDA added.