CitizenWatch calls for abolishing telco lease fees

In the Philippines, a consumer advocacy group is urging Congress to eliminate lease fees imposed on telecommunications companies. This call comes as internet connectivity becomes essential in today’s digital world. CitizenWatch Philippines believes that internet access should be treated equally to utilities like water and electricity. Tim Abejo, a coconvenor of CitizenWatch, stated that the current lease fees drive up costs for telecom providers. Ultimately, these costs are passed on to consumers. According to the group, under the National Building Code from 1977, there are no lease fees for water and electricity equipment, but this does not apply to internet service providers (ISPs). Abejo pointed out that ISPs often face huge charges, amounting to millions of pesos each year, for installing broadband infrastructure. This situation hinders the growth of digital services and connectivity, which are vital for communication, business, and education. He criticized the outdated law and described the fees as a scheme that burdens Filipino citizens who rely on the internet in their daily lives. In August 2023, the House of Representatives passed a bill aimed at updating the National Building Code to improve building stability. CitizenWatch is now calling on the Senate to prioritize its own version of this bill. Additionally, Rep. Christian Yap filed another bill to ensure buildings are equipped with adequate space for broadband infrastructure. Abejo emphasized that changing these policies would allow telecom companies to invest more in improving connectivity instead of burdening themselves with unnecessary costs. Currently, data from the World Bank shows that only 33 percent of households in the Philippines have internet access, which is lower than in neighboring countries like Malaysia, Thailand, and Vietnam.