PH lags behind in Internet connectivity – IDC

Despite the sustained growth in the information technology industry, the Philippines continues to lag behind its neighbors when it comes to Internet connectivity.

IDC said that recent rankings on broadband Internet in Asia show the Philippines at the tail end of the list — only ahead of Afghanistan.

One of the factors that sets the country back from getting better Internet services is its archipelagic nature.

As the country is composed of 7,107 islands, it is more challenging for ISPs to build infrastructure and provide customers unfailing Internet connection. The country’s geographic makeup impedes the expansion of telecom networks to rural areas.

“Building of Internet infrastructure in many provinces remains a work in progress because from a telco standpoint, it can be costly and is a kind of investment that may not necessarily prove to be lucrative, considering the lower number of data users in some areas,” said Alon Anthony Rejano, associate market analyst, IDC Philippines.

To reach out and bring connectivity to far-flung locations, TV white space (TVWS) is being eyed as one of the solutions. TVWS is a wireless data communications standard technology that uses vacant frequencies located between broadcast TV channels to provide wireless data connectivity to remote communities in the country.

The Information and Communications Technology Office (ICTO) announced its plans to deploy this wireless data communications standard technology, and pilot tests are currently being conducted.

In another move to address the country’s slow Internet, the National Telecommunications Commission (NTC) signed a memorandum last August 13, setting the minimum broadband speed at 256Kbps.

The NTC also compelled service providers to disclose to the public their average data rates per location. Much has already been discussed about how this new regulation may affect the consumers. However, it is also important to look at its implications on the commercial space.

No organization in today’s cutthroat environment is immune from the disruption brought about by the everchanging customer demands and the rise of the 3rd Platform technologies.

As the industry moves toward the digital era, companies are requiring higher amounts of bandwidth more than ever. For companies to enjoy the full benefits of these new technologies, good Internet connection is an important factor.

IDC believes that an improved Internet connection can make way for more bullish growth in the commercial ICT sector.

In the commercial space, the new regulation on minimum Internet speed may affect small offices and home offices (SOHOs) but is not likely to have any significant impact on medium-sized businesses and enterprises.

Internet subscriptions of mediumsized businesses and enterprises would typically involve a committed information rate (CIR), which already serves as the minimum speed that an ISP is compelled to provide them based on the service-level agreement (SLA) between the two parties.

SOHOs, on the other hand, would usually opt for consumertargeted Internet subscriptions that do not involve CIR and SLA. Therefore, they are the ones that are most likely to be affected by the minimum Internet speed.

While there are some backlash on the minimum speed set from technology lobbyists who argue that a minimum speed of 256Kbps is still too low, IDC believes that this is already a good move toward effecting change in the country’s telecommunications industry.