QUEZON CITY – The NATCCO Network Board of Directors on May 1 approved a resolution to support the passage into law of the Konektadong Pinoy Bill which is pending in Congress and may pass into law soon.  

The Konektadong Pinoy Bill is Senate Bill 2699, an “Act Establishing a Comprehensive and Inclusive Data Transmission and Connectivity Framework for the Philippines” to “to encourage the development of data transmission infrastructure and removing any barrier to competition in data transmission services in the telecommunications sector.”

With the NATCCO Board resolution, the NATCCO Network joins Government agencies, IT Industry professionals and stakeholders, NGOs, and the academe in supporting the Bill.

If and when the Bill becomes law, the Government will adopt “a policy to promote, develop and sustain new communication technologies and best quality of data transmission services at an affordable cost and at standards consistent with the needs of the nation.”

In short, the Act will open the market to more internet service providers and put an end to the current situation where telecommunications companies dominate the market.  

The KPA proposes four key reforms:

• simplify the process for telecommunications companies to get approval

• manage the radio spectrum more effectively to enhance service quality and coverage

• require telecommunications companies to share infrastructure with new companies

• set performance standards to ensure effective implementation and protect Filipino consumers

Earlier, at the Konektadong Pinoy Digital Connectivity Law and Policy Conference on March 28 at the University of the Philippines Law Center, UP Dilliman, information technology stakeholders, NGO leaders, and officials of the Bangko Sentral ng Pilipinas (BSP), Philippine Institute of Development Studies (PIDS), and the Department of Economy, Planning & Development (formerly the NEDA) expressed full support for the Konektadong Pinoy Bill.   

Government agencies that will implement the KP Act are the Department of Information and Communications Technology (DICT) and the National Telecommunications Commission (NTC), in coordination with other agencies.

NATCCO Chief Executive Officer, Sylvia O. Paraguya, at the Konektadong Pinoy Conference stated: “We strongly support the Konektadong Pinoy Bill and urge Congress for its swift passage once sessions resume on June 2. The enactment of Konektadong Pinoy Bill will have great impact in bridging the digital divide. It also creates opportunities for social enterprises and cooperatives to take the lead in connecting underserved and unserved communities.”

This bill was certified as “Urgent” by the President on January 27, 2025.  

Dr. Maynard Mojica of the BSP reported that 76% of Filipinos own a mobile phone and use the internet, 60% use a mobile phone and the internet to perform financial transactions.  On the other hand, the second top reason why 43% of Filipinos are not using their mobile phone and internet for financial transaction is: “weak or no mobile signal or slow wi-fi/internet connection.”

Ramonette B. Serafica of the Philippine Institute of Development Studies (PIDS) said one of the barriers to faster and more reliable internet are “actions by existing firms to protect their market position (specifically) cartel agreements to fix prices and/or limit levels of outputs and bid-rigging.”

At the conference, the most glaring report came from Mr. Naoto Kanehira of the World Bank.  He said 1) internet in the Philippines is exceptionally poor, least pervasive and most expensive in Southeast Asia; 2) Telecommunications is not competitive, most profitable and yet least invested in Southeast Asia; 3) Policies are outdated and least favorable; 4) among the slowest in the world.

Kanehira pointed out four logjams that the KP Act addresses: 1) Rigid radio frequency spectrum, 2) Anti-competitive pricing in wholesale bandwidth, 3) Legislative Franchise requirement, and 4) Weak infrastructure sharing.

Also at the Conference, the current internet situation in the Philippines was described as a “duopoly.”

A week after the Conference, telecommunications companies issued a reaction by expressing reservations that the Bill does not address cybersecurity issues that may result in opening up the industry to new players without the right regulation.  Regulators, however, are confident that the Implementing Rules & Regulations will address that matter.

Bill co-author Senator Sherwin Gatchalian declared: “Today, we are demanding a fundamental right denied to millions of Filipinos.  The digital divide is real.  Compared to other ASEAN countries, Philippine internet lags in affordability, speed, and access.  This is unacceptable.  Konektadong Pinoy Act will deliver.  This Act will propel the Philippine economy forward.  It will accelerate our digital transformation.  Konektadong Pinoy is a landmark legislation that is pro-Filipino, Pro-consumer, pro-competition that will break down the barriers that have kept millions of Filipinos disconnected.  This Act will bring internet to additional 19,000 barangays.”

Internet connection is becoming more and more essential – if not crucial – to the sound operations of credit cooperatives.

The NATCCO Network offers to credit cooperatives the eKoopBanker core banking software.  The program performs the transactions of credit cooperatives, stores and safekeeps the transaction and financial data, and makes the same data available to management on demand 24/7.  

Cooperatives with poor internet connection are forced to store data in their desktop computers in their offices.  This is considered to be a very risky practice because if disasters like theft, flood, fire or earthquake hits the office, the computers could be destroyed and the stored data along with it.

Thus, all co-ops are advised to store their data in “the cloud”, where data will be safe and retrievable.  However, this is only possible with good internet connection. But this requires strong and reliable internet.

The NATCCO Network is also pushing digital transactions among cooperatives, and offers the KAYA Payment Platform that enables co-op members to transact with their cooperatives and businesses through four channels: KAYA ATMs, KAYA Mobile App, over-the-counter, and point-of-sale (POS).

Again, a strong internet connection is essential to the operations of KAYA Payment Platform.  

KAYA is in line with the Financial Inclusion thrust of the BSP, as it enables more Filipinos access to financial services from formal – i.e. regulated and registered -- financial institutions like cooperatives.