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The entry of billionaire Elon Musk’s Starlink into the Philippines was a “sign of things to come” as the recently-enacted amendments to the Public Service Act had “lifted the barriers” to foreign investment in telecommunications and other sectors in the country.
This was the sentiment of Senator Grace Poe, who was the primary sponsor of the Senate version of Republic Act (R.A.) No. 11659 or “An Act Amending Commonwealth Act No. 146 otherwise known as the Public Service Act”
“As the kids say these days, ‘We’re just arriving at the exciting part’,” said Poe, and that “Starlink is just the first sign of potentially life-changing investments in public services in the Philippines.”
Poe made the remarks following the approval of Starlink as a new value-added service (VAS) provider, which will enable the firm to direct access to satellite systems, and the construction and operation of broadband facilities.
The entry of Starlink- a network of 2,000 low-orbit satellites providing low-latency broadband services operated by Musk’s SpaceX- has the potential to expand internet connectivity to Filipinos in remote areas.
Poe noted that Starlink’s entry was made possible by the enactment of R.A. No. 11659.
“By easing foreign equity restrictions in key industries, (R.A. No. 11659) will spur critical investments to fast-track inclusive recovery and development that will leave no Filipino behind,” said Poe in a prior statement.
“(It) is the culmination of our determination and hard work with stakeholders to give our economy the long-awaited shot in the arm to pursue the path of inclusive growth, ” she added.
The new law clarifies the previously vague distinction between public services and public utilities- the latter of which is limited to 40% foreign ownership in the 1987 Philippine Constitution.
Now, only distribution of electricity; transmission of electricity; and water pipeline distribution and sewerage pipeline systems are classified as public utilities. 100% foreign ownership is now allowed in the following “public services”: telecommunications, railways, expressways, airports, and shipping.