Joel Dabao l February 13, 2025 l Manila Bulletin
The Philippine Senate recently passed the Konektadong Pinoy Bill (Feb. 5, 2025), a landmark piece of legislation poised to supercharge the nation’s internet landscape. Its core provision? Eliminating the congressional franchise requirement for building internet infrastructure. This simple change removes barriers for smaller internet service providers (ISPs), paving the way for more local players to deploy broadband networks. The expected results? A dramatically shrinking digital divide, especially in rural areas, and a boost to the economy through improved e-governance, distance learning, and remote work opportunities.
Internet access is a proven engine of economic growth. Studies show that a 10 percent increase in broadband penetration can boost gross domestic product (GDP) by a remarkable 1.5 percent. Konektadong Pinoy is expected to accelerate internet expansion, particularly in underserved regions. This translates to more digital jobs, better access to online education, and greater financial inclusion. By simplifying broadband deployment, this bill could be the catalyst that propels the Philippines into a fully digital economy.
This bill isn’t just about connecting communities; it’s about connecting the Philippines to the world. It positions the country as a major player in the regional data center and submarine cable industry. Our strategic location has always been an advantage for trade, from the Spanish galleons to the crucial supply lines of World War II. Now, that advantage translates into digital infrastructure. We are perfectly positioned to be the connectivity bridge between the US and ASEAN.
Several new submarine cable projects—Apricot, Bifrost, and PLCN, among others—are already underway, linking us to the US and the broader Asia-Pacific region. Konektadong Pinoy will empower local companies to partner with global submarine cable consortia, simplifying the process of increasing landing points and boosting redundancy. With cities like Hong Kong and Singapore facing their own challenges, the Philippines has a golden opportunity to become the preferred data center location in Southeast Asia.
Building the Backbone: Fiber and the Cloud
A thriving AI and cloud economy demands a robust fiber infrastructure. Global tech giants like Meta, Microsoft, Alphabet, Amazon, Huawei, and Alibaba require “five nines” uptime (99.99999 percent) for their cloud services, with multiple layers of redundancy to avoid crippling downtime. This legislation helps attract these hyperscale investors by opening the market to new fiber infrastructure developers, ensuring diverse cable routes and minimizing service disruptions.
Consider this: Nvidia projects 40 percent annual revenue growth for the next three years, and the global data center industry expects 20 percent growth in the same period. The Philippines needs to seize this moment. Local players like ePLDT, regional players like Digital Edge, and Digital Halo are already investing in hyperscale-ready data centers, and the arrival of global giant Equinix signals growing investor confidence. The demand for AI-driven infrastructure will explode, requiring even more capacity. That’s where policy reforms like Konektadong Pinoy come in, creating an investment-friendly environment.
Konektadong Pinoy is a significant step forward, but its success depends on smooth execution. With the right policies, the Philippines can become a digital powerhouse in Asia. The journey to full digital transformation is a marathon, not a sprint, but this legislation is a bold first step, securing our place in the global digital economy.
***The views expressed herein are his own and do not necessarily reflect the opinion of his office as well as FINEX. For comments, email joeldabao@mykcat.com. Photo is from Pinterest.