PSA Amendment Implementing Rules And Regulations

On March 20, 2023, the National Economic Development Authority (NEDA) issued the Rules and Regulations Implementing the amended Public Service Act (PSA IRR). It took effect on April 4, 2023. It seeks to operationalize the amendments introduced by Republic Act No. 11659 to the Public Service Act, which amendments opened critical public service industries, including telecommunications, to 100% foreign ownership, subject to certain conditions. The discussion below focuses on provisions of particular interest to the telecommunications industry, which is classified as a public service owning critical infrastructure under the amended Public Service Act.

Key provisions

• Process for National Security Review. Any proposed merger or acquisition transaction, or any investment in a public service entity, that (a) will effectively result in the grant of control, whether direct or indirect, to a foreigner or a foreign corporation, or a foreign government; and, (b) has