The House of Representatives has backed a measure that seeks to promote open access in data transmission and provide additional powers to the National Telecommunications Commission.
As defined under House Bill 6557, “data transmission” refers to the process of sending digital or digitized analog signal over a communication medium to one or more computing network/s, communication or electronic device/s. It enables the transfer and communication of devices in a point-to-point, point-to-multipoint and multipoint-to multipoint environment.
The bill, with Speaker Pantaleon Alvarez as one of the principal authors, had been approved on second reading and is up for third and final reading approval when Congress resumes session on Monday, Nov. 20.
The term data transmission includes the provision of Voice Over Internet Protocol (VOIP) services but does not include the provision of Basic Telephone Services.
On the other hand, the bill refers to “open access” as the system of allowing the use of data transmission and/or distribution systems and associated facilities subject to fair, reasonable, and non-discriminatory terms in a transparent market.
Rep. Victor Yap of Tarlac, chairperson of the committee on information and communications technology and principal author of the bill, said as the Philippines struggles with limitations of infrastructure, it is necessary to ensure open access allowing every option to improve data transmission to be explored.
“Data transmission is a key factor in communications and this measure seeks to establish a regulatory framework to develop efficient and effective data transmission in the long term,” Yap said.
The bill is in line with the policy of the State to narrow the digital divide in the country by encouraging the development of data transmission infrastructure and removing any barrier to competition in data transmission services.
The bill also aims to establish a strong and independent regulatory body and system to ensure and enhance fair competition in the data transmission sector.
The bill also seeks to create an entrepreneurial ecosystem where persons who wish to engage in the data transmission industry can compete openly and freely in the spirit of fair competition and permission-less innovation.
It also intends to encourage investment in the digital infrastructure of the country.
The measure seeks to protect the public interest as it is affected by its ability to access data networks.
The Act shall apply to all persons who participate in the data transmission industry, Yap said.
The bill provides that any person or entity whose business deals substantially with the transmission of data, including VOIP service provider, Internet Service Providers (ISP), and Data Center service providers shall be governed by the provisions of the Act.
Under the measure, Public Telecommunications entities (PTEs) principally engaged in the provision of basic telephone services, such as international carrier, inter-exchange carrier, local exchange operator, and mobile radio services provider which also provide data transmission services shall likewise be subject to the provisions of this Act with respect to the data transmission services they provide and interconnection to their networks that they extend to data transmission industry participants.
The bill provides that among the functions of the National Telecommunications Commission (NTC) is to ensure that the data transmission sector remains open and accessible to all qualified participants by implementing an efficient and speedy administrative process in the authorization and registration of data transmission sector participants.
It shall also mandate interconnection so that data transmission industry participants can connect to each other at the various segments and interfaces, such that entities of any size may freely enter and exit the market, and dominance by any single player or group of players is avoided.
The NTC shall adopt a technology-neutral framework that allows data transmission industry participants to use any available technology to provide service.
It shall promote fair and open competition at all multiple layers of the data transmission network, allowing a wide variety of physical networks and applications to interact in an open architecture.
The NTC shall mandate transparency in pricing and the publication of pricing information to ensure fair trading within and between each data transmission segment so as to allow clear, comparative information on market prices and services.
It shall promulgate policies that will encourage distributed local solutions rather than centralized ones, encouraging services that are closer to the user.