Govt told to remove telco lease fees

Today's economy needs reliable connectivity, a group said.

File photo

Internet connectivity should be a necessity

Consumer group CitizenWatch Philippines is urging the government to remove the lease fees charged to telecommunications firms by amending the 48-year-old National Building Code of the Philippines.

Existing law states that no lease fees are required for water and electricity equipment.

However, CitizenWatch co-convenor Tim Abejo said internet connectivity should have the same exemption as it should also be considered a "necessity."

This digital economy demands seamless, reliable connectivity, Abejo said. Yet, property developers continue to impose exorbitant lease fees on telecommunications providers, driving up costs that ultimately burden consumers.

He pointed out that internet service providers (ISPs) were being charged "substantial fees—sometimes amounting to hundreds of millions of pesos annually" to install fiber optic cables and other broadband infrastructure.

Abejo called the fees "an income-generating scheme at the expense of every Filipino who depends on the internet for work, education and daily life."

In August 2023, the House of Representatives passed House Bill (HB) No. 8500, or the proposed Philippine Building Act, which aims to amend existing policies.

CitizenWatch urged the Senate to prioritise the passage of their own version of the bill.

With a more supportive policy environment, telcos can redirect their resources toward improving last-mile connectivity instead of paying unnecessary overhead costs, Abejo said.

What do you think, guys?

Via: Inquirer.net