Philippines: Congress ratifies the Konektadong Pinoy Act, marking a significant milestone in the liberalization of the data transmission sector in the Philippines

17 Jun 2025    2 minute read
DT Featured Content

In brief

On 9 June 2025, the Philippine Congress ratified the bicameral conference committee report on the Konektadong Pinoy Act (KPA), marking a significant milestone in the country's push for universal, affordable, and high-quality internet access. The bill, which was previously certified as urgent by the president, is now poised for enactment into law.

Contents

In more detail

The KPA aims to establish a comprehensive and inclusive data transmission and connectivity framework that would narrow the digital divide and foster a competitive, open-access environment in the telecommunications sector. It seeks to modernize the country's digital infrastructure by encouraging investment, promoting infrastructure sharing, and ensuring fair competition. In pursuit of the foregoing, the KPA will:

  1. Institute a straightforward registration requirement for data transmission industry participants (DTIPs) 
  2. Repeal the congressional franchise requirement for DTIPs
  3. Allow DTIPs to deploy satellite technology and use associated spectrum in any or all segments of their broadband network without the need for a lease or rent capacity from public telecommunications entities (PTEs)
  4. Mandate the formulation of the Spectrum Management Policy Framework (SMPF) to prescribe the national policies and guiding principles that govern the management of spectrum, including, among others, spectrum valuation and pricing, spectrum allocation, and spectrum assignment for public, private, and government use among other measures.

The KPA was previously recognized as a priority measure by the Legislative-Executive Development Advisory Council (LEDAC). Having been certified as urgent by the president on 27 January 2025, the bill has passed three readings in both houses and has been approved by Congress. The only remaining step is for the KPA to be acted on by the president, which is expected by the end of July 2025.

Taken together with the earlier Public Service Act amendment, which removed the 40% foreign ownership investment cap on the telecommunications sector (our previous client alert regarding this law may be accessed here), the passage of the KPA will remove all significant legal barriers to entry into the Philippine data transmission sector by foreign players.

Key takeaways

Companies (particularly those that are foreign-owned) that are seeking to enter the data transmission sector in the Philippines are advised to monitor and prepare for the imminent passage of the KPA. We are monitoring further action on the KPA by the Office of the President.

* * * * *

LOGO Philippines_QuisumbingTorres_Manila

Please contact QTInfoDesk@quisumbingtorres.com for inquiries.

VISIT QUISUMBING TORRES SITE

Contact Information
Bienvenido Marquez III
Partner
Quisumbing Torres, Manila
Read my Bio
bienvenido.marquez@quisumbingtorres.com
Frederick August Jose
Partner
Quisumbing Torres, Manila
Read my Bio
frederickaugust.jose@quisumbingtorres.com
Felicisimo Agas III
Associate
Quisumbing Torres, Manila
Read my Bio
felicisimo.agas@quisumbingtorres.com

Copyright © 2025 Baker & McKenzie. All rights reserved. Ownership: This documentation and content (Content) is a proprietary resource owned exclusively by Baker McKenzie (meaning Baker & McKenzie International and its member firms). The Content is protected under international copyright conventions. Use of this Content does not of itself create a contractual relationship, nor any attorney/client relationship, between Baker McKenzie and any person. Non-reliance and exclusion: All Content is for informational purposes only and may not reflect the most current legal and regulatory developments. All summaries of the laws, regulations and practice are subject to change. The Content is not offered as legal or professional advice for any specific matter. It is not intended to be a substitute for reference to (and compliance with) the detailed provisions of applicable laws, rules, regulations or forms. Legal advice should always be sought before taking any action or refraining from taking any action based on any Content. Baker McKenzie and the editors and the contributing authors do not guarantee the accuracy of the Content and expressly disclaim any and all liability to any person in respect of the consequences of anything done or permitted to be done or omitted to be done wholly or partly in reliance upon the whole or any part of the Content. The Content may contain links to external websites and external websites may link to the Content. Baker McKenzie is not responsible for the content or operation of any such external sites and disclaims all liability, howsoever occurring, in respect of the content or operation of any such external websites. Attorney Advertising: This Content may qualify as “Attorney Advertising” requiring notice in some jurisdictions. To the extent that this Content may qualify as Attorney Advertising, PRIOR RESULTS DO NOT GUARANTEE A SIMILAR OUTCOME. Reproduction: Reproduction of reasonable portions of the Content is permitted provided that (i) such reproductions are made available free of charge and for non-commercial purposes, (ii) such reproductions are properly attributed to Baker McKenzie, (iii) the portion of the Content being reproduced is not altered or made available in a manner that modifies the Content or presents the Content being reproduced in a false light and (iv) notice is made to the disclaimers included on the Content. The permission to re-copy does not allow for incorporation of any substantial portion of the Content in any work or publication, whether in hard copy, electronic or any other form or for commercial purposes.