End to lease fees on broadband connectivity equipment sought

MANILA, Philippines — Consumer advocacy group CitizenWatch Philippines is urging lawmakers to eliminate lease requirements for broadband connectivity equipment, calling the current practice a major barrier to universal internet access.

In a statement, Tim Abejo, co-convenor of CitizenWatch Philippines, said the internet is now as indispensable as electricity and water and should be treated as an essential utility in both public and private developments.

“The digital economy demands seamless, reliable connectivity. Yet, property developers continue to impose exorbitant lease fees on telecommunications providers, driving up costs that ultimately burden consumers,”  Abejo said. “This has to stop. Internet connectivity is not a luxury – it is a necessity,” he added.

CitizenWatch Philippines is supporting the amendment of the National Building Code of the Philippines, which has remained unchanged since 1977. The organization argues that the outdated law fails to recognize broadband connectivity as a utility that should be accorded the same stature in the Building Code as power and water utilities.

“We cannot afford to let a law passed nearly half a century ago dictate to hamper the development of our digital infrastructure. Today, broadband internet connectivity is the backbone of communication, business, education, and essential services,” Abejo said.

He said that telecommunications and Internet Service Providers are being charged substantial fees – sometimes amounting to hundreds of millions of pesos annually – by property developers just to install fiber optic cables and other broadband infrastructure in residential and commercial properties. These costs directly translate to higher internet fees for consumers and slow down the expansion of broadband services across the country.

CitizenWatch Philippines is calling for broadband infrastructure to be given the same treatment as water and electricity – integrated into building designs from the outset and exempt from lease payments.

Abejo said that abolishing lease fees on broadband infrastructure would accelerate network expansion, particularly in underserved and remote areas. “With a more supportive policy environment, telcos can redirect their resources toward improving last-mile connectivity instead of paying unnecessary overhead costs,” he said.

The organization is urging the Senate to act swiftly and prioritize the passage of their version of the proposed amendments, which was unanimously passed by the House of Representatives in August 2023.

“Connectivity is not just about convenience – it is a human right in today’s world. We must ensure that all Filipinos, regardless of their location or economic status, have access to fast and affordable internet,”  Abejo said.