NextGen Day

Following the House of Representatives’ adoption of the resolution on second reading, it moved closer to being enacted and providing for an open access approach to regulating the data transmission business.

House Bill 6, the proposed Open Access in Data Transmission Act, which intends to establish a powerful and independent regulatory structure and body to ensure fair competition in the data transmission business, was approved by the parliament during Monday’s plenary session through a voice vote.

The bill’s author, Speaker Martin Romualdez, claimed it would lay the groundwork for a framework that would establish guidelines and standards to encourage the development of trustworthy, affordable, open, and accessible data networks that transmit data at a rate and caliber “comparable to the best in the world.”

The legislation, according to Romualdez, “proposes to establish a strong and independent regulatory system and body to create an environment within the data transmission industry that is conducive to open, fair, and innovation-driven competition, and shall encourage investments in the development of the country’s digital infrastructure.”

To prevent monopolization by a single player or by a group of data providers, the bill will mandate interconnection among data transmission participants.

The National Telecommunications Commission (NTC) shall have the responsibility to ensure that spectrum is made available for use by all registered data transmission industry participants in order to maximize the utilization of radio spectrum resources in the allocation and assignment of such finite resources in the transmission of data.

The NTC is also required to enforce sanctions for non-compliance with the prescribed performance criteria on Public Telecommunications Entities (PTEs) and other industry participants in the data transmission sector who provide data transmission services.

By requiring that there be at least two substantial providers at every given tier, the proposed measure also promotes fair competition.

All participants in the data transmission industry must register with the NTC, and anyone operating an international cable landing station must get a legal franchise.

Any participant in the data transmission business who fails to substantially comply with the minimum service requirement would be subject to a fine ranging from PHP300,000 to PHP5,000,000 for each day of infringement, depending on the required performance criteria.

Additionally, subject to the due procedure, the said entity shall be withdrawn from the registry of registered data transmission industry players and shall not be permitted to provide data transmission services if it fails to meet the prescribed performance standards for three years in a row.

The bill outlaws vertical ownership, throttles, paid priority, and refusal to plug and play.

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