Entry of foreign operators to offer more affordable Internet service to PHL

A NETWORK infrastructure provider recently said the entry of foreign operators will ensure a competitive landscape that could offer more affordable Internet service for consumers, while supporting a growing demand for remote working and learning which are expected to stay here for the long term.

“Bridging the digital divide calls for more investments to ensure equal access to technology by bringing connectivity to rural areas, upgrading digital infrastructure, and reviewing policy frameworks to make it favorable for private sector investment in infrastructure. The entry of foreign operators will ensure a competitive landscape, thus offering more affordable Internet service for consumers while supporting a growing demand for remote working and learning that are here to stay for the long term,” said Jose Antonio Reyes, managing director, service provider, Philippines, of Commscope, a subsidiary of Hickory, North Carolinabased company.

He said the digitalization efforts of the government would not be successful if there are not enough providers that would the enhance the capabilities of the country. “However, with few network providers in the country, consumers are faced with common challenges such as lower speed and weaker connection when it comes to Internet access,” Reyes said.

He said the cost of Internet services in the Philippines is also one of the most expensive in the region, with a 500-megabyte Internet service costing $6.3 per month, the fourth highest in the region after the likes of Singapore and Malaysia. Furthermore, the recent Google, Temasek and Bain e-conomy SEA 2022 report unveiled that the key to unlocking the economic potential and social impact of the Philippines’s digital economy (which is expected to see sustained growth upwards of $15 billion by 2025) lies in driving greater digital inclusion of users in suburban areas.

Although 12 million Filipinos have become new digital consumers since the start of the pandemic, Reyes said there exists a huge noticeable digital divide in the Philippines between urban and suburban areas despite the accelerated digital growth over the past years, with a significantly lower number of consumers in suburban areas (20 percent to 30 percent) adopting Internet services compared to those living in urban areas (more than 90 percent).

Reyes said these challenges will require a deeper review of telecommunication regulatory frameworks to advance greater public-private collaboration in digital infrastructure investments and expand the deployment of shared resources that drive cost efficiencies, digital skills, and boost Internet access, especially in the rural areas.

For example, Reyes pointed out that one of the reasons why effort to roll out faster Internet services is being hampered is due to the number of permits per site required by an operator before deployment can happen. “But now, through publicprivate partnerships [PPP], a local government unit [LGU] can be made a partner in the process, thus eliminating time to deploy challenges.”

“These partnerships will not only enable a faster deployment of mobility and Internet services, but it will also ensure dedicated bandwidth and digital infrastructure resources provided to local schools, health-care facilities and government services. With robust infrastructure forming the bedrock of improved Internet access, Commscope has teamed up with local service provider, Converge ICT, in fiber rollouts to expand network coverage in urban and rural areas, connecting the unserved and underserved communities in the Philippines,” he said.