Support and Concerns Over Konektadong Pinoy Bill
Several leading technology organizations voiced their support for the Konektadong Pinoy bill, emphasizing its potential to improve internet infrastructure and access across the Philippines. However, they also expressed strong reservations about the bill’s data localization provisions, which mandate that data be stored or processed exclusively within the country’s borders.
The Global AI Council Philippines, Blockchain Council of the Philippines, Cybersecurity Council of the Philippines, Data Center Association of the Philippines, Fintech Philippines Association, and Go Digital Philippines jointly released a statement backing the Konektadong Pinoy bill but urging lawmakers to reconsider the localization clause. They explained that the bill’s goal to simplify registration for data transmission infrastructure operators—by removing the legislative franchise requirement—could significantly reduce internet service costs and accelerate network deployment, especially in underserved areas.
Why Data Localization Raises Alarms
Despite the strong support, these groups warned that enforcing data localization could raise operational costs and hinder access to vital technologies like cloud computing and artificial intelligence. They stressed, “Requiring that data be stored or processed only within Philippine territory will drive up business costs, disrupt operations and limit access to technologies such as cloud computing and AI (artificial intelligence).” This, they added, could harm small and medium enterprises, deter investments, and weaken the competitiveness of the country’s IT-BPM and digital sectors.
The bill had been ratified by both houses of Congress on June 9. Yet, during bicameral committee sessions, a data localization provision was introduced, a move that sparked concern among various stakeholders.
Security and Oversight Concerns
Following Congress’s ratification, consumer group CitizenWatch Philippines urged President Ferdinand Marcos Jr. to veto the bill. Their main concern was that eliminating the legislative franchise requirement might allow unvetted or foreign-controlled entities to operate critical data transmission infrastructure without proper oversight. According to CitizenWatch, this could lead to “serious security vulnerabilities and even a national crisis situation.”
Local sources noted that while the bill aims to enhance connectivity and digital infrastructure, the inclusion of data sovereignty clauses could undermine these benefits by imposing restrictive data handling rules.
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