The question revolves around providing internet data for audio calls and short messaging, as an alternative to using the regular call and sms channels. The question is not about providing internet data for other uses (watching movies, emails with huge attachments, cloud backup, etc.).

An article by Mark Johnson, http://www.tele-datasolutions.com/internet-speed-bandwidth-impact-voip-phone-system/, gives a simple explanation of the concepts of internet bandwidth and speed, by comparing them with highway width (or number of lanes) and speed limit.

In that article, the author suggests that “it is a best practice is to always separate the computer network [from] the VoIP or voice network”. So in this question, we are concerned only with the voice network part (whether wired in offices, or wireless using celphones), not with the computer network part (for internet uses in general, multimedia, cloud storage, gaming, etc.). SMS uses very little data, so it can be assimilated in the voice data allotment without futher problems.

In the article, we can see that for simple voice calls and sms, we do not really need a very high internet bandwidth and speed. It is like making deliveries in a small town, where a single lane would be enough for the delivery tricycle to reach its destination without any difficulty. We do not need a four-lane highway in this town to deliver goods using tricycles.

In the same way, a single caller would be very happy with 3MBps up and downspeeds, while ten simultaneous users, 5-10 MBps. This means that even if, based on others’ replies in this post, Philippine speeds of around 5MBps are second to the last in Asia and among the last in the world, voice and sms users would already be happy.

We can initially conclude then that Philippine Telco’s are indeed already providing enough “internet bandwidth and speed that would diminish the demand for voice calls and short message services”, at least for the normal citizen Juan de la Cruz, and for SOHO’s (Small Office / Home Office) with up to 10 simultaneous users. Even mid-sized businesses that make calls in different moments anyway, not simultaneously all the time, would already be satisfied by subscribing to several internet lines. (Gamers, multimedia users, web designers, etc. would of course be frustrated, but this is not the issue being discussed in this post.)

However, the force of this initial conclusion is weakened if we consider that the Philippine speed of around 5 MBps refers to the average available for everyone. Some people would have slower connections (and thus be frustrated), and others faster (the big businesses who can afford, but would then need to pay more). From this perspective, the final conclusion then is a definite yes, the Philippine Telco’s should provide more internet bandwidth and speed: to improve voice and sms services for those below the average (since the average is already sufficient for voice and sms), and to make these services more affordable for everyone.

(Since replies in this forum have to be concise but substantive, I just limited myself to some very concrete items, to help complete the picture a bit more. I definitely agree with the others’ replies and data on the need for the Telco’s to improve their services, and need not repeat them here.)

In  October 2014, the National Telecommunications Commission (NTC) summoned major telecommunication players to a public consultation on the minimum speed of broadband connections. Amid the free and unlimited Internet and Facebook offerings of major telecommunications providers, subscribers have been complaining about the slow broadband services in the Philippines. In September 2015, solons urged the NTC to go beyond testing Internet speed, and conduct a broader audit of telecommunication companies to assess the coverage and quality of services offered to make them provide faster and cheaper Internet access.  According to the lawmakers this will become the basis for NTC to come up with new guidelines on acceptable speed and cost that Telco’s are duty-bound to follow.

 I fully agree that the Philippines has one of  the most expensive and least accessible data services in the world. The latest household download index report by global internet provider Ookla showed that the Phlippines placed 21st out of 22 countries in  Asia in terms of internet speed, trailed only by Afghanistan.

Despite the government’s efforts in enhancing Internet accessibility for Filipinos to accelerate economic, social and educational opportunities and in reducing the growing Digital Divide under the overarching e-Filipino Program of the DOST ICT Office’s project  “Internet For All” as part of  the Philippine Digital Strategy 2011-2016, their data show that 85.8% of the 38,683 public elementary schools  do not have an internet connection which   strongly suggests that many areas remain underserved or unserved with respect to broadband service.

With these developments and statistics in internet use in the Philippines, Telco’s must be able to provide such internet service and speed that would facilitate broadband and wireless communication and diminish the demand for voice calls and short message services, as a lot of internet apps provide free calls and messaging service.  Internet connection, especially mobile-based,  provides opportunities and benefits  that would have tremendous potential to national development. A recent World Bank report shows that for every 10 percent increase in broadband connectivity results in a 1.38 percent increase in Gross Domestic Product (GDP).

Telco’s claim that upgrading their internet services cannot support the ROI which is one of the reasons why they internet services are below par. Yet, ironically they  peddle fast and reliable internet services in their big-budget advertisements. Since Telco’s reap billions of profits, they must be able to provide the necessary infrastructure expansions and upgrades that will allow them to provide better data services to individuals and companies.

Telco’s  and internet service providers must realize  that slow and expensive Internet connection is severely affecting the ease of doing business in the Philippines. They should also remember  that to shortchange their  valued subscribers  is a violation of a very basic business ethic.  Otherwise, they lose them.  Moreover,  as a country, we all lose out in the process.

References:

Desiderio,  Louella D.  “Solon urges NTC to audit telco’s Internet services.”  The Philippine Star dated September 21, 2015.  Retrieved from: http://www.philstar.com/business/2015/09/21/1502042/solon-urges-ntc-audit-telcos-internet-services

“Telcos to explain expensive but slow Internet at NTC hearing.” Published by Rappler.com on October 21, 2014.  Retrieved from: http://www.rappler.com/business/industries/172-telecommunications-media/72568-ntc-public-hearing-internet-speed

“Free Wi-Fi Internet Access in Public Places.” A DOST-ICTO Project.  Retrieved from: file:///F:/RESEARCHGATE/NWICO/Free-Wi-Fi-Project-TOR%20DOST.pdf

Dr. Alexander Flor asked: “Should Telco’s be expected to provide the Internet bandwidth and speed that would diminish the demand for voice calls and short message services?”He also noted that, “Data services in the Philippines are among the most expensive and least accessible in the world according to 2015 World Economic Forum figures. Private telecommunications service providers are often accused of dragging their feet when it comes to providing these services.” He asked as well, “Are there studies or big data that would support or debunk this claim?”

What’s with the Data Services in the Philippines?

Lila Ramos Shahani writes in PhilstarGlobal that, “In 2011, a United Nations report declared internet access to be a basic human right, arguing that disconnecting individuals from the internet was a violation of human rights and international law.”  Shahani then poses this question: “So: if internet access is a basic human right, shouldn’t Filipinos be more outraged with the quality—or lack—of service we get from our internet providers?”

Pinoy News and Current Affairs section of The Philippine Pride announces in September 2015 that: “The misery of most Filipino Internet users may finally come to an end when Telstra, Australia’s biggest telecom company enters the Philippines in the very near future.” For someone who takes business or work in the Philippines during a much needed visit, the poor Internet access in some areas of the country is really a misery. The news article also noted that, “Of nineteen Asian countries, the Philippines ranked second with the slowest Internet speed at 3.64Mbps, only ahead of Afghanistan with 2.52Mbps. All other 17 countries are far ahead of the Philippines.”  This is very unfortunate for a country whose people (both young and old) are known to be technology savvies.

The big questions, however, linger while waiting for the service to be fully enforced in the Philippines. Will Telco's deliver the much expected Internet bandwidth and speed? Will there be a reduction in the demand for voice calls and short messages if Internet capabilities are enhanced for the Filipinos? Will the presence of a competitor push for a competitive advantage to be at play?

Lorenz S. Marasigan in businessmirror.com  (September 9, 2015) reports that, with the “..NEW core player in the hotly contested, duopolistic telecommunications market in the Philippines will prove to be a challenge to the incumbent carriers, forcing them to step up their game and provide better and more affordable services.”

According to Marasigan, “…just as the buzz on the possible entry of Telstra Corp. Ltd.—Australia’s largest telecom player—becomes louder, Philippine Long Distance Telephone Co. (PLDT) and Globe Telecom Inc. indicated that they are ready to compete against another mobile-services provider.”  Evidently, the theory of competitive advantage comes to play! Thus, chances are, Internet services may improve in the Philippines, due to the competitive forces at play in the market. So, “should Telco’s be expected to provide the Internet bandwidth and speed that would diminish the demand for voice calls and short message services?” Perhaps, the answers remain to be seen.

One thing for sure though, competition will create the need for the PLDT and GLOBE to improve their services, thus, giving the customers the fair advantage! In his new article, Marasigan extends to the public what the International Data Corp. (IDC) Philippines analyst Alon Anthony D. Rejano said: “a new telecommunications provider will be advantageous to consumers, as it will result in a more competitive market.” Rejano was also quoted saying, “The market will be more competitive. For the consumers, it will be an advantage, because it will give them more options and will lower the price,”

On a similar note, both the National Telecommunications Commission (NTC) Director Edgardo V. Cabarios and Democracy.PH Founder Pierre Tito Galla echoed Rejano’s observation, said that this new level of competition can revitalize the market situation in the Philippines.

What Do Existing Studies on Big Data Indicate?

 "How the industrial internet is changing the competitive landscape of industries" (2016) explains why there is that “new sense of urgency to implement Industrial Internet Solutions fueled by Big Data Analytics.” This article further reveals that current study from GE and Accenture show that “executives across the industrial and healthcare sectors see the enormous potential of the Industrial Internet—the combination of Big Data analytics with the Internet of Things.” Furthermore, their “research reveals that there is a growing urgency for organizations to embrace Big Data analytics to advance their Industrial Internet strategy.”  Based on their study, “The vast majority of respondents believe that Big Data analytics has the power to dramatically change the competitive landscape of industries within the next year. Most are investing accordingly, with the support of their Board of Directors.”

It is believed that with the surge of new technologies like the Internet of Things, Big Data “is on the verge of going mainstream” and more and more companies will be compelled to “proactively adopt big data strategies. Those who continue to operate on a level playing field will never get ahead of the competition. They’ll need to do what their competitors aren’t. Find what they haven’t yet discovered. For example, consider the following big data use cases, and how maximizing their potential would help organizations reach customers and drive sales.”

McGuire, Manyika, & Chui (2012) highlight the historical trends in previous IT investments and innovation and their impacts on “competitiveness and productivity” which largely suggest “that Big Data can have a similar power, namely the ability to transform our lives” due to the fact that “Big Data is spawning new categories of companies that embrace information-driven business models.”

Myrene A. Magabo

References:

Goodbye Slow Internet from Globe, Smart, PLDT: Australia’s Biggest Telco to Enter PH - The Philippine Pride. (2015). The Philippine Pride. Retrieved 16 April 2016, from http://www.thephilippinepride.com/goodbye-slow-internet-from-globe-smart-pldt-australias-biggest-telco-to-enter-ph/

How the industrial internet is changing the competitive landscape of industries. (2016). Accenture.com. Retrieved 16 April 2016, from https://www.accenture.com/us-en/insight-industrial-internet-competitive-landscape-industries.aspx

Marasigan, L. (2015). PLDT, Globe ready to battle with Telstra. BusinessMirror. Retrieved 16 April 2016, from http://www.businessmirror.com.ph/pldt-globe-ready-to-battle-with-telstra/

Shahani, L. (2015). Why is our internet so slow?. philstar.com. Retrieved 16 April 2016, from http://www.philstar.com/opinion/2015/08/24/1491398/why-our-internet-so-slow

McGuire, T., Manyika, J., & Chui, M. (2012). Why Big Data is the new competitive advantage | Ivey Business Journal. Iveybusinessjournal.com. Retrieved 16 April 2016, from http://iveybusinessjournal.com/publication/why-big-data-is-the-new-competitive-advantage/

The National Telecommunications Commission (NTC) reported that the number of internet users in the Philippines is projected to balloon to 69.3 million in 2018 from 53.7 million this year. These numbers show how Filipinos have come to be influenced by this digital phenomenon despite the figures by the 2015 World Economic Forum that we have the slowest internet connection in the world.

In fact, Ookla, the leading organization for global internet metrics, conducted a bandwidth test in May 2015. The test revealed that at “2.5 megabits per second (mbps), the Philippines has the second-slowest Internet in Asia, next only to Afghanistan. Our average Internet speed is slower even than Myanmar (6.54 mbps), let alone Thailand (19.82 mbps), and Singapore (122.43 mbps)”.

With such poor connectivity versus the demand for internet bandwidth, there is now a dire need for telecommunication companies (telcos) to address the problem for them to stay in business and not earn the ire of its consumers.

So far, the Philippine Long Distance Company (PLDT) has launched late last year the fastest fixed broadband in the country at 1 Gigabit per second speed. This carries the fiber optic technology which can download “a 700-megabyte (MB) movie in 19 seconds; a 126-MB TV show episode for two seconds; 100 songs (854 MB) for 27 seconds; and 303 photos (797 MB) for 31 seconds”. But this will not come without high costs for the consumers.

Two of the justifications that NTC has given for the expensive connectivity are the lack of government subsidy and the country’s geographical conditions, which requires interconnection of islands. Currently, infrastructures have to be in place for the 7,107 islands of the country and the government has to interfere for this to be materialized.

For starters, PLDT has affiliated itself with the Open Data Platform to introduce PLDT’s Big Data Services which according to PLDT President Mon Isberto:

“aims to reinforce the competitiveness of our country by leveraging on our continued investments in network infrastructure and technology platforms. This promotes the country’s digital transformation, and the ICT solutions we enable our customers will contribute to the development and sustainability of our business and the economy at large”.

According to the NTC website, it is currently drafting a “national broadband plan” with other government agencies to assess where the government should spend to facilitate faster internet connection. Hopefully, this will pave the way for telcos to provide faster yet affordable browsing, downloading and uploading in the world wide web.

Dear Dr. Sandy:

Analog technology in mobile phone services in the Philippines started in 1991, while GSM standard which introduced digital technology emerged in 1994.1 After two decades, telecommunication services in our country offers state-of-the-art digital services which includes 2G, 3G, and 4G networks. Note though that mobile networks, which offer these data services are privately-owned. In a speed test made by Open Signal, a leading source of insight into the coverage and performance of mobile operators, on two major telecommunications companies in our country shows that their 3G network, where mobile broadband (data) services function, has an average download speed of 1.4 Mb/s and 1.6 Mb/s.2 Both are worse than the global average of 1.8 Mb/s speed, alongside their 4G services which falls 2 Mb/s worse than the global average as well. These data clearly gives us a picture on how poor telecommunication services are in our country. Thus, both networks made massive changes in building their reach, and services across the Philippines.

In a recent report by Desiderio (2016), the average 4G/LTE download speed in the country for both Smart and Globe Telecom Inc. has risen to over 10 Mbps by end of 2015. With this speed, we may be able to hold and sustain reliable data services already. Furthermore, Desiderio (Ibid.) reports, “Globe general counsel Froilan Castelo said while telcos see the need to put up more cell sites to boost Internet connectivity, their work is hampered by the prohibitive environment. “A lot of the infrastructure backlogs in the telecommunications industry could be attributed to challenges in getting LGU (local government unit) permits. This is why Globe has been calling on the government to provide policy support for initiatives to improve Internet infrastructure in the country,” he said.” According to Professor Antonio M. Santos, Director of the National Library, there is no explicit, or existing law or jurisprudence that directly addresses internet access in the Philippines.3 Thus, telecommunication companies cannot be mandated to improve their service, and infrastructure to meet the needs by their subscribers. Along with this line, telecommunications have established Fair Usage Policies (FUP), which actually sets “limits” on speed. Ideally, the FUP is to make sure that a few customers who are heavy Internet users didn't fill up the available bandwidth, making the overall experience bad for others on the same network.4 I think the concern here would be that telecommunications networks failed to study their subscriber bahavior, as well as the demand, and use of 3G and 4G services. Thus, the ‘cap’ of FUP which telecommunications networks have set, may not be applicable at this time anymore, especially with the emerging use of data services for purposive means such as education; distance education, research, online think tanks; and development; blogs, online CoPs, advocacy sharing, social mobilization campaigns.

The telecommunications business is already an established economy. Its significance in providing communication, and diverse means of staying connected is already apparent. Business-wise, it is here to stay. What our Nation needs now is the quality of service which may be provided by the telecommunication networks, alongside government support in addressing gaps such as investment in infrastructure, and open network sharing. Smart Communications for one, revolutionized how they managed to get their pico sites (smaller cellular sites) in remote areas; they placed these on top of coconut trees, with no adverse effect on the tree and the surroundings. To answer the question, should telco’s be expected to provide the Internet bandwidth and speed that would diminish the demand for voice calls and short message services?, my straight answer is a Yes, since this is, and should be part of their services when then introduced 3G and more so, with 4G network. The need for 2G (voice and text messages) will still be there, as these are more reliable, and on-time at this time as not everyone is online. I, for one, always go back to 2G services, as the lines are clearer despite being on unlimited data plan.

Despite the technological advances which our telecommunication providers in the Philippines established, and being able to provide, the need to review their FUP, and keep pace with the changing needs of their subscribers should be prioritized. I think Philippine telcos have the capital to build a better communication infrastructure for our Nation, which would enable us to enjoy, and use unfailingly the services we pay for. However, let us not forget that communication isn’t just about staying connected, it also means having access to information, and people at the right time, and at the right place. And with that, telcos should align their business not just for profit, but more so, for development use.

aiks

Irene Abigail S. Guerrero

1 History of mobile phones in the Philippines. (n.d.). Wiki on Mobile Phones and Poverty in the Philippines. Retrieved from https://sites.google.com/a/upou.edu.ph/mms-100-final-project-topic-4-mobile-phones-and-poverty/Home/History-of-mobile-phones/history-of-mobile-phones-in-the-philippines on April 19, 2016.

2 Globe and Smart Coverage Maps. (2015). Open Signal. Retrieved from http://opensignal.com/networks/philippines on April 19, 2016.

3 Santos, A. (2009). Laws and Policies Regulating Internet Access in the Philippines. Retrieved from https://plaistrlc.files.wordpress.com/2009/07/laws-policies-regulating-internet-access-in-the-philippines1.pdf on April 19, 2016.

4 Fair Usage Policy. (2016). Idea Cellular Ltd. Retrieved from http://www.ideacellular.com/mobile-internet/2g/fair-usage-policy on April 19, 2016.

Desiderio, L. (2016 March 7). Mobile Internet Speed in the Philippines Improving – Study. The Philippine Star. Retrieved from http://www.philstar.com/business-usual/2016/03/07/1560124/mobile-internet-speed-philippines-improving-study on April 19, 2016.

While Telcos service providers in the country are trying their best to improve their services, I don’t think the people would believe them unless the said improvement is felt by many. Saying that the country is among those with most expensive and least accessible data services’, a news article in Freeman newspaper (published in March 2016) seemed to agree with 2015 World Economic Figures. The article, titled ‘Philippine net: Costliest, slowest in Asia’, featured a tourism leader who sounded not happy with the way the internet services in the country work. Joseph, the tourism leader noted that the very pricey and snail-paced internet services in the Philippines is one of the biggest stumbling blocks to tourism growth, most particularly with Cebu’s positioning as a MICE destination. MICE stands for ‘Meetings, Incentives, Conferences and Exhibit’. According to him, no matter how the telecommunication networks defend this problem, the Philippines still has the most expensive and the slowest internet connection in Asia

If private Telcos service providers are accused of dragging their feet when it comes to providing these poor services, then the government should do something about this. If these providers continue to defy what the law requires, then they should not be allowed to provide the Internet bandwidth and speed that would diminish demand for voice calls and SMS services. Instead of providing better services due to potential competition among themselves, these service providers appeared to have taken advantage of the high demand, leaving the subscribers suffer the effects of their poor yet costly services. With this, the government should thoroughly study the right course of action to take in order to serve the interest of the public. Inviting more Foreign Service providers in the country to encourage more and healthier competition could be an answer.

Joseph is only one of the million internet users who suffer the poor services of the TelCos. It’s high time that the government should formulate a more comprehensive communication policy that would respond to this concern.

Reference:

Dagooc, E. (2016). Poor Internet services bad for tourism sector. The Freeman. Updated March 9, 2016. Retrieved from http://www.philstar.com/cebu-business/2016/03/09/1561092/poor-internet-services-bad-tourism-sector

According to international development organization reports, such as Biggs (2012) and Dutta et al. (2015), data services in the Philippines are among the most expensive and least accessible in the world. Local reports, such as Mirandilla-Santos (2014), Serafica (2001) and Cabarrios (n.d.), among others, confirm the sad state of data services in the country.  Moreover, the local Philippine media is rife with reports accusing both the government and private telecommunications service providers for dragging their feet when it comes to improving the quality and lowering the cost of these services (ICSCOMS, 2016).  As someone who had formerly worked for the government in this area and at present involved in professional practice heavily dependent on data services, I would totally agree with their findings and complaints. Several issues were identified that caused the above mentioned problem such as no real competition in the market, high barrier to entry in the Telco industry, lack of interconnection among data service providers, inadequate infrastructure viz-a-viz demand for data services and outdated laws and interconnection rules, among others. The studies cited above prove that indeed there are studies that would support the claim of low quality and high cost of data services in the Philippines.

The right to Internet access and data services is now considered a requirement for people to exercise and enjoy their rights to freedom of expression and opinion and other fundamental human rights, therefore states have a responsibility to ensure that Internet access is broadly available, and that states may not unreasonably restrict an individual's access to the Internet (WSIS, 2003). Along this line, telecommunication companies (telcos) in the Philippines granted with congressional franchises and certificates of public convenience and necessity (RA7925, 1995) are effectively agents of government thus share its burden of ensuring that this right is accorded to the people.  Therefore, telcos, by virtue of law derive from their congressional franchises, are expected to provide the Internet bandwidth and speed that would ensure access to data services that would diminish the demand for costly voice calls and short message services.  With better and cheaper access to the Internet, voice calls and short message services can be converged into relatively cheaper (value added) data services thus precluding the need for these costly separate services. Furthermore, the technology for doing this over the internet is already proven and readily available (e.g., IP telephony, Instant messaging).

References:

Biggs, P. (ed.) (2012). The State of Broadband 2012: Achieving Digital Inclusion for All, A Report by the Broadband Commission for Digital Development, International Telecommunication Union and the United Nations Educational, Scientific and Cultural Organization, September 2012

Cabarrios, E. (n.d.). Competition in the Philippine Telecommunication Sector, Common Carriers Authorization Department, National Telecommunications Commission .

Dutta, S., Geiger, T. and Lanvin, B. (eds.) (2015). The Global Information Technology Report 2015: ICTs for Inclusive Growth, World Economic Forum and INSEAD .

ICSCOMS (2016). Fake Studies on Slow Internet: Poor Internet Connectivity in the Philippines, International Center for Strategic Communications Studies (ICSCOMS) .

Mirandilla-Santos (2014). Competition Issues in the Philippine Telecommunication Sector: Challenges and Recommendations, 1st National Competition Conference, December 9, 2014, Philippine International Convention Center, Manila .

RA7925 (1995). "Public Telecommunications Policy Act of the Philippines", Republic Act No.7925, Congress of the Philippines, March 1, 1995 .

Serafica, R.B. (2001). Competition in Philippine Telecommunications: A Survey of the Critical Issues, CBERD Working Paper Series, Center for Business and Economics Research and Development, De La Salle University .

WSIS (2003). "Declaration of Principles", WSIS-03/GENEVA/DOC/4-E, World Summit on the Information Society, Geneva, 12 December 2003 .

Dear Dr. Flor,

According to the pronouncement from the United Nations, the Internet is a basic human right. A special rapporteur from the UN, Frank La Rue contended that access to the Web is not merely a privilege for the rich and the famous, but is now considered a basic need, as the Internet is an avenue where people can enjoy their rights to freedom of expression and opinion. He pointed out that the Internet, like any other medium, enables individuals to “seek, receive and impart information and ideas of all kinds instantaneously and inexpensively across national borders.”

So, if the Internet is a basic human right and a basic human need, then the Filipinos are being deprived of it. Studies show that the Philippines’s average speed and price are significantly disproportionate, as compared to its ASEAN neighbors. The Philippines has the slowest average broadband speed among the 10 ASEAN nations.

The current situation of the Philippine broadband market, according to Sen. Francis G. Escudero is “unacceptable given that it has a direct impact to many industries, like the business processing outsourcing sector, which currently helps grow the Philippine economy.” He further added that the state of Internet speed in the country is pathetic. Escudero stated that “these telcos have been going to town in the past few years telling their shareholders that they have been earning billions of pesos. But they conveniently forget the millions of subscribers and users who put those billions in their coffers but who continue to suffer from poor service. As of end-June 2015, PLDT and Globe have a combined net income of P27.4 billion. The point is, something needs to be done and done very soon. The problem is that government agencies that are supposed to monitor these telcos and help consumers don’t seem to feel the urgency of the situation,” he said.

Dr. Flor asked if telcos are expected to provide the Internet bandwidth and speed that would diminish the demand for voice calls and short message services. The answer is “absolutely.” Fast and efficient internet service gives people the access to a marketplace of information—a library of ideas and opinions, where people converge and exchange concepts and ideas encompassing basically anything under the sun (Marasigan, 2015).

But why is it that the Philippines has one of the slowest and one of the most expensive data services in the world? Telco giants say bureaucratic red tape hampers infrastructure to improve data services in the country. Globe and the Philippine Long Distance and Telephone Company (PLDT) are raising one major concern: the lengthy processes and exorbitant fees several local government units (LGUs) require them.

Meanwhile, a software executive reported that “neither geography nor poverty is to blame for the Philippines' expensive yet slow Internet connections, but the lack of ‘real’ competition in the local telecommunications business. Competition gives people options. At the moment, people don't have a lot of great options."

In the Philippines there are two major Internet Service Providers (ISPs): Telecom, with around 32 percent of the market share; and PLDT, whose market share of about 68 percent makes it the largest telco in the country.  According to Rhett Jones, CEO of Synacy, a software development house, the solution to better and faster Internet in the Philippines is to create a landscape that encourages competition by approving more telcos and by regulating key aspects of the industry such as bandwidth wholesale pricing.  “It's either you fix the conditions to allow competition to thrive or you accept that that is just the way it is here. I think it's just one or the other. Create a condition where competition will thrive or you accept that you will be the top bottom 10 percent of the world,” he said. Personally, I believe that regulatory care from the National Telecommunications Commission is very much called for. Regulatory measures should encourage, rather than drive away, competition to provide better and faster data services in the Philippines.

References:

1Shahani, L. (2015). Why is our internet so slow? philstar.com.

Retrieved from: http://www.philstar.com/opinion/2015/08/24/1491398/why-our-internet-so-slow

2Marasigan, L. (2015). PHL’s Slow But Expensive Internet Service. Business Mirror

Retrieved from: http://www.businessmirror.com.ph/phls-slow-but-expensive-internet-service/

3Basa, M. (2015). Slow Internet? Blame Red Tape–Telcos. Rappler.

Retrieved from: http://www.rappler.com/business/industries/172-telecommunications-media/82208-slow-internet-blame-red-tape

4Luces, K. (2014). Software Exec: ‘Real’ competition among telcos can fix PHL’s slow, pricey Internet. GMA News Online.  

Retrieved from: http://www.gmanetwork.com/news/story/368398/scitech/technology/software-exec-real-competition-among-telcos-can-fix-phl-s-slow-pricey-internet

Hi Dr. Flor,

My answer to your question is a resounding yes! The Telcos in the Philippines are expected to provide reasonable bandwidth [or at least, take the effort to upgrade to a more suitable transmission line and other measures] to increase the internet speed and ensure quality. My reason is simple – Telcos should provide services that equate to what the people are paying. I believe if one gets a good and quality result out of [quite] expensive services and/or products, then the price is not an issue.

As we have known, the Philippines is one of the countries with lowest internet speed connections in the world. In Asia, it ranked 21st out of 22 countries on internet speed (Garcia, 2015; GMA News, 2015). The country’s average internet speed is 3.64 Mbps, way beyond Singapore’s 122.42 Mbps. Ironically, while the speed is slow, the Philippines has some of the most expensive Internet connections in the world, being the 161st of 202 countries (GMA News, 2015). This internet condition in the country has raged many internet users. For many, the Telcos' services are substandard, and that their advertisements deceive the users. Others see it as a form of taking advantage of the limited Telco options in the Philippines [an issue of monopoly/duopoly]. Still, for others, the Telcos’ business orientation is the culprit [“profit over service” issues]. For some others, a bad internet is equated to bad politics. Although this relationship may not be causal, internet’s success, nonetheless, relies on a self-regulating economy, integrity of the Internet Service Providers (ISP), and policies that support these functions. The slow internet connection has seemed to be a symptom of weak policies that can ultimately be improved (Shahani, 2015).

The private telecommunications service providers are accused dragging their feet on the internet bandwidth and speed issues. While I cannot find literature or studies that straightforwardly accept or deny this accusation, I found some reports and articles that talk about the current condition of the Philippines’ internet system, which may link to the lack of (or inadequate) actions of the Telcos and the government. The senate's hearing in August 2015 discussed the impact of internet speed in the Philippines. Herein, Santos (2015), a research fellow from Learn Asia, presented several factors affecting the quality and cost of internet services in the country, such as: (1) the lack of real competition in the internet market because only two major players (PLDT and Globe) were in control of the infrastructure and pricing, both for wholesale and retail services; (2) the high barriers to entry because of the telecom vertical infrastructure and monolithic whole, congressional franchise and license to build network, and the numerous permits and clearances that the Telcos need to accomplish and submit to various concerned authorities; (3) the lack of interconnection among ISPs; i.e. local traffic between two ISPs gets sent abroad to be exchanged and then routed back, with which each data “hop” costs time, money, and quality; and (4) the outdated laws and regulatory framework. 

With a reference to the high leap of Thailand’s internet service quality from 2011 to 2015, Santos (2015) also noted the Philippine government’s lack of infrastructure investment that supposed to create a carrier-neutral national backbone, which will encourage more competition in the market. The government is reliant to the private operators. In turn, these private operators monopolize the telecommunication industry and control the price of internet services, hence, the high cost. The saddening part, however, is that, while the cost is high, the quality remains low, i.e., the download and upload speed is low, value for money is hardly recognizable as the actual speed is way below the advertised speed, and latency is high, etc. (Santos, 2015). Nonetheless, the National Telecommunications Commission (NTC) said the Telcos were delivering above 50% of their advertised download speed, as reflected in the NTC’s first official test on fixed internet broadband, although the result was inconclusive because of limited  (only 12 subscribers) sampling size (Desiderio, 2016).

Shahani (2015) said the internet should promote openness as it is based on the cooperation between the users and subscribers, the ISPs, and the government; ideally, it should be socio-political and multilateral. The reality, however, is that the internet in the country is often culturally centralized and occasionally government-controlled, compromising openness through the policing of content and restricting the flow of information. Decentralization and openness are more resistant to control and abuse, which is not the case in the Philippines. Shahani (2015) then explained how the internet works in the Philippines. According to her, ISPs like Globe and PLDT, having their own networks, build ‘local roads’ for the internet subscribers. These subscribers with different ISPs then connect to each other by exchanging traffic, either via private connections or shared internet exchange points. When many organizations interconnect their technology, they create the Internet Exchange (IX). Everyone who relies on network traffic benefits from this exchange. Rather than private connection toll booths, subscribers with ISPs connecting in common intersections have lower cost and more highly efficient internet.

However, with the interconnection of subscribers with different ISPs, the ISPs charge each other for passage through their networks. This charging diminishes internet’s ability to remain open – big companies can gain political control of internet pathways. Despite its inefficiency, this practice continues in the Philippines, where PLDT holds the majority of fee-charging IXs (Shahani, 2015). This causes the high cost but low-quality internet service in the country. Despite the availability of an alternative, such as the “Internet Peering” (IP) where the ISPs should freely share platforms to form one connection, PLDT resists dismantling for-profit IXs to maintain private control of connections. According to Agcaoili (2014), Globe has been urging PLDT to either connect with the only government-controlled Internet Exchange or at least direct peering with Globe, but PLDT remained hesitant on the security and adequacy of the technical arrangements of the proposed mandatory peering. Supposedly, the more we peer, the freer and faster our internet will become, but since the country uses the private “toll roads,” our internet system becomes highly congested and remains slow and inefficient (Shahani, 2015). In her column, Shahani (2015) has this to say, “Private sector control endangers the freedom and neutrality of our net. A politically powerful holder of an internet exchange monopoly endangers other competitive ISPs and their subscribers. Thus, the government, by allowing politically powerful companies to control IXs, stifles the entire competitive market—forcing high prices and slow speeds on Filipinos.”

Meanwhile, an Electronics Engineer sees the problem of internet speed in the Philippines as an effect of the Telcos’ slow [or non-] upgrades of their transmission lines. He said many countries are now using the fiber optic cable transmission line (which makes the bandwidth wider) as it is faster than the traditional coaxial cable. Similarly, an engineer who previously worked in one of the telecommunication networks in the Philippines revealed that some of the equipment had lower standards compared to those used in the other countries. The upgrade of this equipment will definitely cost the Telco a lot, which it will later pass on to the subscribers through an increased service price. The NTC, according to Senator Bam Aquino, quoting the basic and value-added services regulation, cannot regulate the internet because it is not a basic service; hence, it cannot impose a standard internet price and minimum speed. What NTC can do, however, is to come up with a regulation that will require the Telcos to become more honest on their advertised speed as to that of the actual service to protect the consumers, thus the existence of the NTC Memorandum Circular No. 07-08-2015.

Thanks.

- Noel-

References:

Agcaoili, L. (2014). Globe Urges PLDT to Allow Exchange of Traffic among ISPs. The Philippine Star Online. Accessed from http://www.philstar.com/business/2014/07/16/1346628/globe-urges-pldt-allow-exchange-traffic-among-isps

Desiderio, L. (2016). Telcos Hit Over 50% Mark in NTC Internet Speed Test. The Philippine Star Online. Accessed from http://www.philstar.com/business/2016/03/19/1564416/telcos-hit-over-50-mark-ntc-internet-speed-test

Garcia, C. A. (2015). 6 Tips to Boost your Internet Speed at Home. Tech Lifestyle: Manila Bulletin. Retrieved online from http://www.mb.com.ph/6-tips-to-boost-your-internet-speed-at-home/

GMA News. (2015). LIST: Philippines Ranks 21st of 22 Asian Countries in Internet Download Speed. GMA News Online. Retrieved online from http://www.gmanetwork.com/news/story/489762/scitech/technology/list-philippines-ranks-21st-of-22-asian-countries-in-internet-download-speed

Santos, M. G. (2015). Where does the Philippines stand in terms of global and regional internet performance? In Senate Hearing on the Impact of PH Internet Speed [August 18, 2015]. Viewed online from https://www.youtube.com/watch?v=tDIDK1a3tnU

Shahani, L. R. (2015). Why is our internet so low? The Philippine Star Online. Accessed from http://www.philstar.com/opinion/2015/08/24/1491398/why-our-internet-so-slow

As in any other business, service or utility, telcos should hold up their end of the deal. It is only right that they should provide the internet bandwidth they promised to their subscribers. I think how subscribers use their internet is irrelevant. Whether they will use it for voice calls, SMS, video calls, browsing, watching videos, listening to music, studying, playing, or even if they will not use it regularly, telcos should be able to deliver the speeds that they promised.

Between the 24 ISPs in the Philippines only around 7 are worth considering. The others mostly just accept corporate accounts or are only operational in certain areas with a very small share of the market. I have not found any recent studies that would support the fact that these private telecom providers are “dragging their feet”. However, there is a multitude of articles, reviews and blogs online that are mostly negative. In social media, many complain about their internet on a regular basis. I am one of them. This gives us a clue that most people who are subscribed to these top 7 ISPs are not happy with the service that they are getting. These 7 ISPs are owned by only 4 companies – PLDT also owns Smart and Sun while Globe also owns BayanTel. The 3rd and 4th companies are Sky and Wi-Tribe.

Usually the telcos promise a certain speed and then in fine print they say something like “up to (value) % reliability”. Sometimes they also use the words “up to” (e.g. up to 3 mbps) when what people would be more interested in are the words “at least” (e.g. at least 3 mbps) which of course never happens. There are around 102 Million+ Filipinos and an estimated 43.5% are internet users. In whatever plan they choose, it seems they are always shortchanged because they almost never get the speed or bandwidth that they paid for.

Internet plans which offer 3 mbps and up can handle voice calls and SMS. With the help of apps such as Line, Viber, Kakao Talk, Facebook Messenger, Google Hangouts, Skype and many more people are able to call and text for free. When the internet speed is consistent, it is also possible to do video calls using a 3 mbps connection. This is based on experience. For around 2 years, I worked for a company based in the UK and my boss called me everyday. Whether people use their phone load to call or text or use data to call and text using apps, the telco to which he or she is subscribed wins.

I found an article based on the latest Asia Network Quality Report of J.P. Morgan Securities that says the mobile internet speed here in the Philippines is improving. Well, maybe. I have yet to experience these improvements that they are talking about because although there are indeed faster packages now, the only people who benefit from them are those who can afford them. I have tried several mobile data promos and plans and I was and still am very disappointed.

References:

Internet in the Philippines. Wikipedia. Retrieved from https://en.wikipedia.org/wiki/Internet_in_the_Philippines

Philippines Internet Users. Internet Live Stats. Retrieved from http://www.internetlivestats.com/internet-users/philippines/

Dersiderio L. (2016). Mobile Internet Speed in Philippines Improving. Philippine Star. Retrieved from http://www.philstar.com/business-usual/2016/03/07/1560124/mobile-internet-speed-philippines-improving-study

The fundamental cause of the snail-like internet connection in the Philippines boils down to two complications: (1) the unqualified greed of some of the biggest telcos in the country and (2) some local government units' (LGUs) inability to allow the building of telcom towers without the companies constantly wading through red tape.

For the former, this is PLDT's deliberate choice to route internet data not through the local IX (known as the Philippine Open Internet Exchange or PHOpenIX) but by way of off-shore IXs such as the Hong Kong eXchange (HKIX). Because of this, data flow becomes slower and broadband cost skyrockets. With PLDT being one of the foremost telcom giants in the country, regulatory bodies such as the National Telecommunications Commission (NTC) has little to no power over such a practice, which leaves this intentionally cumbersome routing of internet data unchecked.

As for the latter, a recent example was Globe's attempt to question Isabela's LGU when it reported that the former's debt to the local government has already ballooned to 5.9 million pesos (unpaid fees for the construction of seven (7) towers). As a result, the appellate court nullified it, stating that such a fee is "oppressive". 

Due to such impositions of local tariffs, the construction of telcom towers across the country usually takes six months; a far cry from how quick they should be built considering that internet connection nowadays is both a basic service (though still technically qualified as a "value-added service" as of press time) and an urgent commodity.

According to Mary Grace Mirandilla-Santos, the World Bank reported that a 10% increase in broadband penetration in a particular country, on the average, would make its economy grow by 1.13%. Also, the OECD (Organization for Economic Co-operation and Development) outlined that countries with less-developing economies could increase household income if only their internet connection, at the very least, would be .5mbps faster. She also later added that Philippine ISPs do not afford users the quality service they pay for, not to mention that the blame was often unnecessarily put on "abusive" users who use BitTorrent.

In the larger picture, the Philippines ranks as the second worst provider of internet services (based on megabyte per second) in Asia, only slightly ahead of Afghanistan. In the ASEAN, on the other hand, the internet speed in the Philippines is trailing Laos, Indonesia, Myanmar, Brunei, Malaysia, and Cambodia. These statistics, when collated, definitely do not bode well with regard to the future of broadband connectivity in the country.

To directly answer the primary question, yes, the telcos should definitely offer speed that would be well worth the subscription fees, but it would not be easy. As with all national issues, the Philippines, in close collaboration with the telcos, would have to endure an uphill climb to solve this one. The possible keys are as follows: transparency of how internet data flows, standardization of speed, the abolition of highly arbitrary LGU fees, and the updating of otherwise very outdated telcom laws. For the record, we have The Public Telecommunications Act (signed in 1995), the Public Service Act (signed way back in 1936!), and the NTC Charter to check on telcom companies' broadband practices. This is actually ironic, considering that the upswing of internet usage and broadband connectivity should obviously entail the equally fast minting of laws that would properly accommodate it.

Recently, Australian telcom company Telstra has made its presence known in the Philippines. With its unprecedented promise to offer internet speed quite unlike anything Filipinos have experienced before, local telcom giants could be forced to rethink their strategies.

Indeed, the entry of such a foreign company would potentially level out the playing field, as more players often result in healthier, more quality service-based competition. Though Telstra's partnership with San Miguel Corporations (SMC) is currently inhibited by potentially bloated spectrum cost, the palpable threat of a faster internet connection offered by a company other than PLDT, Smart, Globe, and Sun could hopefully serve as a wake-up call for the national government and telcom companies alike that Filipinos deserve better this side of connectivity.

SOURCES:

http://www.rappler.com/move-ph/106062-slow-expensive-ph-internet-not-our-fault

http://www.rappler.com/business/industries/172-telecommunications-media/82208-slow-internet-blame-red-tape

http://www.thephilippinepride.com/goodbye-slow-internet-from-globe-smart-pldt-australias-biggest-telco-to-enter-ph/

http://www.techporn.ph/here-comes-a-new-challenger-telstra-to-enter-ph-telco-industry/

https://www.reddit.com/r/Philippines/comments/2aurzq/how_pldt_deliberately_keeps_local_internet

Hi Dr Flor. I think the issue on bad internet service in the Philippines has been going on for a while now. Internet service in our country has been compared to other ASEAN Members and to other countries as well. A study released in May 2015 showed that the Philippines have the second slowest average download speed among 22 Asian countries (GMA News, 2015). A study showed that Philippine internet users are “paying more for less” than the actual service because the “advertised speed” was never met by the service providers (Ager, 2015). Worse, study showed that the service has deteriorated from the actual service according to the data from 2011 to 2014 (Ager, 2015).

I cannot find a specific study that solely blames the private telecommunication service providers for this bad service. There are two specific reasons that usually come up and these are bad internet infrastructure due to lack of government support and the lack of real competition in the telecommunications industry (Ager, 2015). Today, there are only two dominant telecommunications service providers in the Philippines. There is not much competition because there are only two major players. In terms of infrastructure, our country is an archipelago which makes it hard for the telecommunications companies to build appropriate infrastructure, plus, they need to pay the government which apparently charges high fees (De Guzman, 2015).

Because of the reasons cited above, I think we cannot put the blame solely on the service providers. The government, being the sovereign can mandate these providers to improve their service and if not, there are fees in place. However, regulations should also be created or set in order to protect the consumers and at the same time, help and support the service providers in terms of providing infrastructure or certain mechanisms to improve their services. It good that the National Telecommunications Commission (NTC) by conducting internet speed tests and hiring consultants to present recommendations on how to improve the country’s internet situation. There were also discussion between the government and the service providers to get their side on the issue. I think the key in resolving this issue is cooperation between the government, private sectors and others who are key in implementing good service and at the same time, protect the consumers. I guess we just have to wait and see what will happen next.

REFERENCES:

Ager, M. 2015. PH Internet users ‘paying more’ for slow connection speed – study. Inquirer.net. Retrieved from http://technology.inquirer.net/43793/ph-internet-users-paying-more-for-slow-connection-speed-study#ixzz46hgvP965

De Guzman, K. 2016. NTC: Internet speed tests to last until end of 2016. CNN Philippines. Retrieved from http://cnnphilippines.com/news/2016/02/25/ntc-internet-speed-tests-last-quarter.html

GMA News. 2015. LIST: Philippines ranks 21st of 22 Asian countries in Internet download speed. Retrieved from http://www.gmanetwork.com/news/story/489762/scitech/technology/list-philippines-ranks-21st-of-22-asian-countries-in-internet-download-speed#sthash.B4ES8v5f.dpuf.

Jennings, R. 2016. How The Philippines Got Asia's Worst Internet Service. Forbes Asia. Retrieved from http://www.forbes.com/sites/ralphjennings/2016/02/23/meet-asias-internet-laggard-the-philippines/#19ca77e717a4

For the past decade, the Philippine telecommunications industry has experienced more change than in its entire history. Like in the 1990s, only 15 percent of the world’s population had access to a telephone; and at this moment almost 70 percent are now mobile phones users. 

Today, communications all over the world are fragmented across online and telecom services (fixed and mobile voice, SMS, MMS). With that in mind, a series of new and innovative methods have been created to temporarily increase bandwidth during times of emergency. Hence, telecom operators strive to provide seamless and high quality voice, data and multimedia services in a multi-device, mobile environment.

But while Telcos had been quick to react to previous game changing developments such as the internet explosion and the emergence of cellular mobile communications in the 1990s, they seem to have been caught napping in the face of the newest challenge to their revenues (IJST, 2015).

Research shows that Telcos have concentrated on building new networks for the explosion of data they hoped would take over from their declining voice revenues, but they did not engage well with their customers to find out what they really wanted.

Let’s have Philippines as an example, it has been noted that there are many subscribers who’ve been complaining about the speed of broadband services amid the free and unlimited Internet as well. Sen. P. B. Aquino, chair of the Senate committee on trade and commerce, said in a hearing that making broadband a basic service would allow the NTC to regulate it by imposing standards on speed as well as pricing (Philippine Star, 2014).

I think the challenge for the (TelCo) telecommunications companies is to transform and improved themselves from voice-focused operators into general-purpose network intermediaries, trusted and valued by both service providers and service consumers. If they can build an electronic commerce framework for the delivery of new services, and allow costs to be more tightly controlled, they will have a compelling proposition for both consumers and founder of telecom companies.  

REFERENCES:

 “GSMA Leads Mobile Industry Towards a Single, Global Solution for Voice over LTE.” GSMA. February 15, 2010. http://www.gsmworld.com/newsroom/press- releases/2010/4634.htm

Sherr, Ian and John Poirier. “Google to build high-speed Internet network.” Reuters. February 10, 2010. http://www. reuters.com/article/idUSTRE6193XH20100210

Benkler, Yochai. “Next Generation Connectivity.” The Berkman Center for Internet & Society. October 2009. Harvard University.

The Communications Market Report.” Ofcom. 2009; IBM Institute for Business Value analysis.

http://www.indjst.org/index.php/indjst/article/viewFile/62238/48529

For the past decade, the Philippine telecommunications industry has experienced more change than in its entire history. Like in the 1990s, only 15 percent of the world’s population had access to a telephone; and at this moment almost 70 percent are now mobile phones users. 

Today, communications all over the world are fragmented across online and telecom services (fixed and mobile voice, SMS, MMS). With that in mind, a series of new and innovative methods have been created to temporarily increase bandwidth during times of emergency. Hence, telecom operators strive to provide seamless and high quality voice, data and multimedia services in a multi-device, mobile environment.

But while Telcos had been quick to react to previous game changing developments such as the internet explosion and the emergence of cellular mobile communications in the 1990s, they seem to have been caught napping in the face of the newest challenge to their revenues (IJST, 2015).

Research shows that Telcos have concentrated on building new networks for the explosion of data they hoped would take over from their declining voice revenues, but they did not engage well with their customers to find out what they really wanted.

Let’s have Philippines as an example, it has been noted that there are many subscribers who’ve been complaining about the speed of broadband services amid the free and unlimited Internet as well. Sen. P. B. Aquino, chair of the Senate committee on trade and commerce, said in a hearing that making broadband a basic service would allow the NTC to regulate it by imposing standards on speed as well as pricing (Philippine Star, 2014).

I think the challenge for the (TelCo) telecommunications companies is to transform and improved themselves from voice-focused operators into general-purpose network intermediaries, trusted and valued by both service providers and service consumers. If they can build an electronic commerce framework for the delivery of new services, and allow costs to be more tightly controlled, they will have a compelling proposition for both consumers and founder of telecom companies.  

REFERENCES:

 “GSMA Leads Mobile Industry Towards a Single, Global Solution for Voice over LTE.” GSMA. February 15, 2010. http://www.gsmworld.com/newsroom/press- releases/2010/4634.htm

Sherr, Ian and John Poirier. “Google to build high-speed Internet network.” Reuters. February 10, 2010. http://www. reuters.com/article/idUSTRE6193XH20100210

Benkler, Yochai. “Next Generation Connectivity.” The Berkman Center for Internet & Society. October 2009. Harvard University.

The Communications Market Report.” Ofcom. 2009; IBM Institute for Business Value analysis.

http://www.indjst.org/index.php/indjst/article/viewFile/62238/48529

For the past decade, the Philippine telecommunications industry has experienced more change than in its entire history. Like in the 1990s, only 15 percent of the world’s population had access to a telephone; and at this moment almost 70 percent are now mobile phones users. 

Today, communications all over the world are fragmented across online and telecom services (fixed and mobile voice, SMS, MMS). With that in mind, a series of new and innovative methods have been created to temporarily increase bandwidth during times of emergency. Hence, telecom operators strive to provide seamless and high quality voice, data and multimedia services in a multi-device, mobile environment.

But while Telcos had been quick to react to previous game changing developments such as the internet explosion and the emergence of cellular mobile communications in the 1990s, they seem to have been caught napping in the face of the newest challenge to their revenues (IJST, 2015).

Research shows that Telcos have concentrated on building new networks for the explosion of data they hoped would take over from their declining voice revenues, but they did not engage well with their customers to find out what they really wanted.

Let’s have Philippines as an example, it has been noted that there are many subscribers who’ve been complaining about the speed of broadband services amid the free and unlimited Internet as well. Sen. P. B. Aquino, chair of the Senate committee on trade and commerce, said in a hearing that making broadband a basic service would allow the NTC to regulate it by imposing standards on speed as well as pricing (Philippine Star, 2014).

I think the challenge for the (TelCo) telecommunications companies is to transform and improved themselves from voice-focused operators into general-purpose network intermediaries, trusted and valued by both service providers and service consumers. If they can build an electronic commerce framework for the delivery of new services, and allow costs to be more tightly controlled, they will have a compelling proposition for both consumers and founder of telecom companies.  

REFERENCES:

 “GSMA Leads Mobile Industry Towards a Single, Global Solution for Voice over LTE.” GSMA. February 15, 2010. http://www.gsmworld.com/newsroom/press- releases/2010/4634.htm

Sherr, Ian and John Poirier. “Google to build high-speed Internet network.” Reuters. February 10, 2010. http://www. reuters.com/article/idUSTRE6193XH20100210

Benkler, Yochai. “Next Generation Connectivity.” The Berkman Center for Internet & Society. October 2009. Harvard University.

The Communications Market Report.” Ofcom. 2009; IBM Institute for Business Value analysis.

http://www.indjst.org/index.php/indjst/article/viewFile/62238/48529

Philippines’ data service is amongst the slowest not only in Asia but also in the world. What’s worse is that our Internet connection is not just slow but is also very expensive. On an average (or as advertised), Philippines’ speed is at 3MB per second. With this, Philippines ranked 21st out of 22 countries in Asia with just 1MB per second faster than Afghanistan. On the other hand, Philippines ranked 176th out of 202 countries on a global scale. It’s such a shame because with this kind of speed, Philippine Telco’s are charging each MB for at least $18 which is more than triple of the global average cost per MB which is $5 (GMA News Online, 2015).

On the other hand, when we talk about the speed of LTE Technology, Philippines is the 7th lowest with only 6MB per second and with only 43% subscription. Currently, the world is gearing towards 4G connectivity and the sad truth is that Philippines is dragging behind by more than half (with 13MB per second as the global average) (Tordecilla, 2016).

According to reports, the lack of real competition is what’s keeping PH’s Internet at a turtle’s speed. Currently, there is less than 10 Internet providers in the country. The law of supply and demand tells us that when there is an increase in the demand for a certain commodity and the supply is low, prices will also increase. Thus, an increase in supply can bring down the costs of the commodity. However, it is also not that easy here in the Philippines. To be an authorized Internet provider, interested parties must seek for permits and congressional franchise. Unfortunately, most government officials have existing ties with the big players in the industry. So, instead of prioritizing the nation’s interest, these people give priority to their personal gains. Lastly, in case there is somebody who’s brave enough to scold these giants, PH’s outdated laws can only penalize them minimally (Agonoy, 2015).

On the same note, Telco’s won’t push for fast Internet connection because majority of their profit still comes from call and text subscription. Before the year ends, mobile phone subscribers in PH will reach 117 million whereas broadband/Internet subscribers will only reach a little over 10 million (Garcia, 2016).

Moreover, back in 2005, 250 million text messages a day are being sent all over the nation. Since then, Telco’s are charging 50 centavos to 1 peso per text and if the data above is still constant, we can assume that Telco’s are earning 125 million pesos up to 250 million pesos each day. Though this data may be outdated, we cannot deny that once upon a time in the Philippines’ telecommunication history this was a fact and if I were the one earning this much in a day, I would like to keep it that way.

Private companies running the telecommunications industry in the country are profit driven. Thus, if we push for Internet connection that is at par with the global average, it will be a profit loss for them knowing that faster Internet speed means access to free calls and texts via Internet run apps like Viber, WhatsApp, etc. If Telco’s will let this happen, it’s like saying goodbye to Php250M.

However, we should still push and demand for faster Internet connection at a lower price. Various reasons can be cited but I would like to highlight the two important reasons.

First, slow Internet connection results to profit loss. An Internet connection is very much like any road. The Internet speed can be compared to a road’s narrowness or wideness. On the other hand, Internet users can be compared to the motorists.  If roads are narrow and motorists are overwhelming, surely heavy traffic can be observed. Due to this, motorists will spend more time travelling from one place to another especially at rush hours which can cause salary deductions (for employees), unpaid goods (food delivery services), and/or additional costs (delayed flights), etc. Currently, many Filipinos rely on Internet connection to make business transactions. Without a reliable connection, the scenarios mentioned above cannot be avoided.

Second, Internet services also causes poorer connectivity. This is the second reason why we should demand for better Internet connections. Now, more than ever, we should make connectivity a top priority because this will result to better transparency in our country. Likewise, it can help make non-formal and distance education accessible for more people. Most importantly, if they continue to provide poor services, the Philippines’ economy will become better. I think more investors will be enticed to enter our country. Likewise, small businesses can also flourish through better connectivity.

Resources:

Bonalos, P. & Ladrizabal, C. (2015). Slow PH internet hurts businesses. Retrieved from http://cnnphilippines.com/business/2015/11/26/Slow-Internet-connection-Philippines-hurts-businesses.html

Agonoy, J. (2015). Y4iT 2015: slow yet expensive ph internet 'not our fault'. Retrieved from http://www.rappler.com/move-ph/106062-slow-expensive-ph-internet-not-our-fault

GMA News Online. (2015). List: Philippines ranks 21st of 22 Asian countries in internet download speed. Retrieved from http://www.gmanetwork.com/news/story/489762/scitech/technology/list-philippines-ranks-21st-of-22-asian-countries-in-internet-download-speed

Tordecilla, K. (2016). Philippines has 7th slowest LTE speed in the world — report. Retrieved from http://cnnphilippines.com/news/2016/02/08/philippines-lte-speed-slowest.html

Virola, R. (2006). ICT Statistics: Show me the data. Retrieved from http://nap.psa.gov.ph/headlines/StatsSpeak/2006/081406_rav_cja_ict.asp

Internet Live Stats. (2016). Philippines internet users. Retrieved from http://www.internetlivestats.com/internet-users/philippines/

Garcia, C. (2012). PH mobile phone subscribers to hit 117M by 2016. Retrieved from http://news.abs-cbn.com/business/04/09/12/ph-mobile-phone-subscribers-hit-117m-2016

Web speed data across Asia Pacific gathered in 2015 by Ookla’s Net Index showed the Philippines’ internet speed at 3.6 Mbps, the lowest among the ASEAN countries, with Thailand at 19.8 Mbps, Laos at 8.1, Myanmar at 6.1, Indonesia at 6.8, Cambodia at 9.2 and Vietnam at 17.3 (Milward, 2015).

Yet, internet in the Philippines is one of the most expensive, with a monthly average cost of $18.19 (P848.65) per Mbps—over three times the average global cost of $5.21 (P243.07)—ranking 59th in subscription cost at $31.55 (P1471.97). Indeed, internet service in the Philippines is nearly as expensive as 1 Gigabit per second (Gbps) fiber optic connection in Singapore, which is only $36.01 (P1680) a month (Shanani, 2014)

PLDT and Globe Telecom, the country’s biggest telecom players have offered various reasons for such a slow performance. Globe Telecom has claimed that the Philippines’ geographical location and size make it challenging to give customers what they are aspiring for. PLDT public affairs head Ramon Isberto pointed to congestion as the top reason for poor Internet connection in the Philippines.

The fundamental problem, however, as the National Telecommunications Commission (NTC), had pointed out, is the lack of competition in the country’s telecom industry. The two giant telecoms have for years dominated the market. Aldaba (2008) in her article, “Assessing Competition in Philippine Markets”, had noted that weak competition is one of the fundamental factors that explain limited growth, productivity, and employment in the economy. The World Development Report 2005 suggests that removing barriers to competition should be one of the prime considerations for governments, while taking investment climate improvement decisions (Sengupta and Dube, 2008).

It is such a welcome move, then, that President Benigno Aquino III signed into law on July 21, 2015 two bills—the Philippine Competition Act and amended the Cabotage Law- designed to advance the country’s economic progress through improved market competition and a more efficient shipment system. The Philippine Competition Act is paving the way for international investors to improve the Philippine Internet, much like Myanmar where big foreign telcos won contracts to increase Myanmar’s connectivity by 2016.

The Philippine government has for years tried to enact a comprehensive competition or antitrust law not only to level the playing field for investors but also to protect consumers but to no avail because of lobbying to oppose the entry of competitors in the local market (Shahani, 2014).

With the competition act paving the way for the entry of competitors with more efficient processes and lower costs, Filipinos can benefit from world-class telecom services.

This threat of having another player to battle with will force the TELCOs to be more aggressive in terms of pricing and even content.

Telstra Corp. Ltd., an Australian-based telecommunication firm, has signified its interest of offering its mobile-broadband services in Manila through a joint venture with San Miguel Corp., which has significant holdings in telecommunications assets (Marasigan, 2016).

National Telecommunications Commission (NTC) Deputy Commissioner Edgardo V. Cabarios said the possible entry of the new core player will help consumers enjoy better services at lower costs.

Aldaba, Rafaelita M (2008), Assessing Competition in Philippine Markets, Discussion Paper Series No. 2008-32. Retrieved from: http://dirp4.pids.gov.ph/ris/dps/pidsdps0823.pdf

Aquino signs PH Competition Act, amended Cabotage law .http://www.rappler.com/business/economy-watch/99954-philippine-competition-act-shipping-law-aquino .Published July 21, 2015

Editorial:Competition law needed. April 29, 2014. Philippine Daily Inquirer. Retrieved from: http://opinion.inquirer.net/74035/competition-law-needed

Marasigan, L. January 26, 2016 . “Philippine telco giants lag behind peers in Asia Pacific”. http://www.businessmirror.com.ph/philippine-telco-giants-lag-behind-peers-in-asia-pacific-2/.

Milward, S. (2015). Asia’s mobile and broadband internet speeds, in one inforgraphic. Retrieved from: https://www.techinasia.com/asia-internet-speeds-mobile-broadband

Sengupta, R and Dube, C. (2008).Competition Policy Enforcement Experiences from developing Countries and implications for Investment .Session 1.3.: Competition policy. Retrieved from http://www.oecd.org/investment/globalforum/40303419.pdf

Shahani,L. August 24, 2015. Conjugations: Why is our internet so slow? Retrieved from: http://www.philstar.com/opinion/2015/08/24/1491398/why-our-internet-so-slow

I believe that Telco’s should provide the Philippines with greater Internet bandwidth and speed with a more affordable price that would diminish the demand for voice calls and short message services. Access to the Internet is a basic human right and high charges for slow internet speed would, in a way, deprive people especially in the lower classes, to get connected.

“In 2011, a United Nations report declared internet access to be a basic human right, arguing that disconnecting individuals from the internet was a violation of human rights and international law. So: if internet access is a basic human right, shouldn’t Filipinos be more outraged with the quality—or lack—of service we get from our internet providers? (Shahani, 2015).”

According to a report by GMA on May 19, 2015, the Philippines ranks 21st of 22 Asian countries in the average Internet download speed. The report also indicated that “Philippine Internet users spend $18.19 per Mbps, compared to an average of $5.21 per Mbps worldwide. This put the Philippines at 161st of 202 countries.”

I reckon that the culture (especially the politics in the Philippines) is a big factor to these numbers. If capitalist societies continue to reign the country, prices might continue to rise—giving less opportunities to the masses for Internet access as a basic human right. With this scenario, there will be a rise in the need for more voice calls and short messaging services which can also be costly for an average lower to middle class family.

References:

Shahani, L. (2015, Augusr 24). Conjugations: Why is our internet so slow? Retrieved from:http://www.philstar.com/opinion/2015/08/24/1491398/why-our-internet-so-slow.

Philippines ranks 21st of 22 Asian countries in Internet download speed. (2015, May 19). Retrieve from: http://www.gmanetwork.com/news/story/489762/scitech/technology/list-philippines-ranks-21st-of-22-asian-countries-in-internet-download-speed.

In an article in Rappler “PLDT launches PH's fastest broadband yet”, was ann attempt to fix the problem of slow internet speed in the country. But will it really improve the ranking of the country compared to its neighbouring country? In a 2014 report of GMA News, the Philippines has the lowest and annoyingly most expensive data provider among the ASEAN countries. How far have we improved? Well, GMA updated us in another report, “Philippines ranks 21st of 22 Asian countries in Internet download speed”. 

Myanmar and Cambodia even though are struggling economically more than the Philippines has faster internet speed. Singapore is so far the fastest in ASEAN and among the top 10 in Asia Pacific. There was a comparison in an article by TechInAsia, “While Asia beats the global average on broadband speeds, there’s still a huge difference between the haves and the have-nots. Singapore is blazing ahead on an average speed of 118.8 Mbps on broadband, but the Philippines is limping along at 3.6 Mbps. Even worse is that while Singapore’s fixed-line speeds have nearly doubled in the past year, the speed in the Philippines inched up a meager six percent in the past 12 months.”

The data and reports are clear. The Philippine telecommunication companies has to do something about the slow internet speed in the country.

 References:

http://www.rappler.com/business/industries/172-telecommunications-media/110005-pldt-fastest-broadband-service

http://www.gmanetwork.com/news/story/357617/scitech/technology/phl-internet-slowest-in-asean-report

https://www.techinasia.com/asia-internet-speeds-mobile-broadband

Much has been said already about the role of Telcos in the slowness of our internet, so I will jump right into the question: Should they be forced to provide better service? In terms of policy, it would very desirable if such a policy would be in place, but at what cost? Forcing telcos to provide better infrastructure could lead to them passing on the cost to the consumer, further increasing the price of our already-expensive internet (Gonzales 2015). 

An alternative solution is to improve competition among internet service providers (ISP). In the free market, price is expected to decline and service quality to improve. At present, there is no real competition among the telcos. Mary Grace Mirandilla-Santos, vice president for policy of the Internet Society’s Philippine chapter argued that ISPs remain under telco giants like Globe Telecom and PLDT. Their market leadership puts them in a position to stifle real competition. In addition, policies have made it harder for new players to enter. These are aggravated by outdated laws that do not offer much consumer protection (e.g., the Public Telecommunications Act (1995), the Public Service Act signed in 1936, and the NTC charter).

Thus, to improve our internet services, we may need more than just policies. This should be supplemented, if not founded on, a more competitive ISP market so as to allow for market forces to operate, at the same time increasing the infrastructure providers to cope with the increased demand.

Nonetheless, the role of policies is also important in certain aspects. For example, policies encouraging or mandating interconnectivity (e.g. PH OpenIX) will significantly improve internet speeds. These policies place the interest of the consumer first by reducing oligopolies that short-change consumers through costly yet inefficient service.

References:

Gonzales, Y. (2015) “PH Internet 2nd slowest in Asia, one of the most expensive”, Inquirer.net, (May 19, 2015), available: http://technology.inquirer.net/42293/ph-internet-2nd-slowest-in-asia-one-of-the-most-expensive

Santos, M. G. M. (2015) Presented during the 13th Youth Congress on Information Technology, May 17, 2015; Taguig City.

I strongly believe that local Telcos should be able to provide fast internet speed to all of its Filipino consumers.

Though reported as one of the countries with the slowest internet connection, ranking 21st among 22 in Asian countries, many Filipinos rely heavily on the use of internet every day for entertainment, leisure, business, research and education. In comparison to other countries worldwide, Filipino internet users pay the highest with $18.19 per Mbps than the average of $5.21 per Mbps. (GMA News Online, 2015).

One of the main reasons why the Philippines ranks slowest among other countries is the lack of competition among the local Telcos. Currently, Globe and PLDT dominate the telecommunications industry in the country.

Last March 2016, foreign Telco company’s discussion with San Miguel Corporation to venture into the local industry collapsed. According to a study conducted by US-based Fitch Group’s research arm, the Philippines’ weak regulatory environment is a high risk if foreign Telcos are venturing into business in the country (Camus, 2016).

A lot of internet users may have been disappointed by the result of the Telstra discussion to operate in the Philippines, as it was supposed to be one of the possible reasons to improve the quality of internet connection in the country.

Since the regulatory environment is ineffective, local dominating companies will be able to continue controlling the telecommunications market.

Consequently, with only PLDT and Globe on top of the Telco business, many internet users have started to become more concerned on the quality of internet connection being provided to them.

With this public clamor for transparency on the reasons for slow local internet connections in comparison with our ASEAN counterparts, the National Telecommunications Commission (NTC), has been mandating for an Internet Protocol (IP) peering policy, and it has been in the works since the last three years.

According to Francisco Claravall, vice-president for Consumer Broadband Products of Globe, if the country has an effective IP peering policy, the internet connection speed will greatly improve as it will allow local ISPs faster data interchange with a direct route to local content (Agcaoli, 2014).

 Evidently, as soon as there is enough competition among the Telco companies in the country, and the regulatory system becomes efficient, the Philippine economy will soon improve and the ICT industry as well which can provide more investments and even job opportunities for many Filipinos.

Sources:

Agcaoili, L. 2014. Globe urges PLDT to allow exchange of traffic among ISPs. Retrieved from: http://www.philstar.com/business/2014/07/16/1346628/globe-urges-pldt-allow-exchange-traffic-among-isps

Camus, M. 2016. Weak regulation a drag to entry of foreign telcos. Retrieved from: http://business.inquirer.net/209778/weak-regulation-a-drag-to-entry-of-foreign-telcos#ixzz47GH1Rbel

GMA News Online, 2015. LIST: Philippines ranks 21st of 22 Asian countries in Internet download speed. Retrieved from: http://www.gmanetwork.com/news/story/489762/scitech/technology/list-philippines-ranks-21st-of-22-asian-countries-in-internet-download-speed

Poor telecommunications services at a high price; we are not alone in this predicament.  Even America experiences this.  Coming up with Hollywood, Silicon Valley, and the Internet, the Americans like to think they are the world’s leader in communications and entertainment (Cassidy, 2014).   Indeed America is ahead, but it is in terms of payment for broadband Internet access, cable television, and home phone lines, far more than many other advanced countries, even though the services are not any better and often worse (Cassidy, 2014).  Cassidy actually drew information from Pulitzer Prize-winning financial reporter, David Cay Johnston who reveals details of the said problem in his book, “The Fine Print: How Big Companies Use ‘Plain English’ to Rob You Blind”.  In an interview with the National Public Radio (NPR), Johnston said “that telephone and cable companies worked the regulatory process and the legislatures and congress to get the rules written for their benefit” (NPR, 2012). 

Does Johnston’s contention imply the same “affair” in the Philippines?  One may reflect on the House of Representatives Committee on Legislative Franchises’ approval of a measure extending for 25 years the franchise of Smart Communications, Inc. (SMART).  House Bill 5942, “grants SMART any advantage, favor, privilege, exemption, exception or conditions granted under existing franchises, or which may be granted for telecommunications” (GMA News Online, 2015).  A quarter of a century is perhaps way too much of a favor given to SMART, but this is proof of the reality pointed out by Bayan Muna representatives Neri J. Colmenares and Carlos Isagani T. Zarate, that “the problem lies with the country's lack of infrastructures to deliver reliable internet connections as it was left in the hands of private telecommunications companies that would only construct facilities that would be financially viable” (Media Affairs and Public Relations Service, 2016).  Indeed financial viability is priority to any business.  Specifically referring to cellular phone service providers, Lallana (n.d.) stresses that they as businesses are “zealous to increase revenue and profitability.” Specifically for Internet Service Providers (ISPs), this goal of increase in revenue and profitability is ensured by a telephone-style billing wherein they charge each other for network passage, more like a “toll road” connecting two private roads (Shahani, 2015).  Shahani adds that this charging scheme “diminishes the internet’s ability to remain open”, and only big companies that can afford, can gain political control of the internet pathways.

How do we deal with the problem of expensive but slow internet?  In reality the government must step up through passage of house bills and resolutions that are fair to both the telecommunications services providers and the consumers.  Somehow, the reality of house bills and resolutions is sad, because their passage may take time.  If you look at the bills and resolutions listed on the Philippine congress website (http://www.congress.gov.ph/download/?d=billstext) you will see a huge number of them remains “pending”.  An example is HB00890 which reads as follows: 

AN ACT PRESCRIBING REDUCED RATES OF INTERCONNECTION CHARGES FOR VOICE CALLS AND FOR TEXT MESSAGES AMONG TELECOMMUNICATION OPERATORS/NETWORKS/CARRIERS WITHIN THE NEXT THREE (3) YEARS IN ORDER TO BENEFIT OVER EIGHTY (80) MILLION MOBILE PHONE SUBSCRIBERS AND FOR OTHER PURPOSES

This house bill’s status is “pending” since July 24, 2013.

Nevertheless, Colmenares and Zarate believe that the government should lead the creation of a national telecommunications and internet infrastructure in order to interconnect the different islands of the country (Media Affairs and Public Relations Service, 2016).  The representatives point out that this is a very “monumental task and shall need government resources so it would cover areas unprofitable for the telecommunications companies to build its facilities.”  

For Shahani (2015), Internet (IP) Peering may just be the solution.  Internet (IP) Peering means freely sharing platforms to form one connection.  It works opposite to the “toll” system as it allows companies to reciprocally provide access to each other’s customers.  A lowered cost for all stakeholders is recognized by ISP providers in ASEAN countries with high-speed internet.

Subsidy can also be a solution.  Knowing how it works takes premise from its definition as follows: “A subsidy is a benefit given by the government to groups or individuals usually in the form of a cash payment or tax reduction. The subsidy is usually given to remove some type of burden and is often considered to be in the interest of the public” (Investopedia, n.d.).  Therefore a subsidy for the government’s PLDT can be in the form of equipment donated by the private sector as part of their corporate social responsibility (CSR) (Lallana, n.d.).  That can ease the financial burden the government has to carry for telecom services development, leading to actual development of services, and consequently establishing a more reasonable payment plan for consumers.

The few suggestions above to lower the cost of telecommunications services signify internet providers’ accountability to the consumers – that is giving them proper services they deserve for their money’s worth.  After all as Shahani (2015) stresses, internet access is a basic human right according to a United Nations report in 2011. 

References:

Cassidy, J. (2014). We Need Real Competition, Not a Cable-Internet Monopoly.  The New Yorker.  Retrieved from:   http://www.newyorker.com/news/daily-comment/we-need-real-competition-not-a-cable-internet-monopoly

GMA News Online. (2015).  House panel OKs 25-year extension for Smart's franchise.  Retrieved from:  http://www.gmanetwork.com/news/story/532193/money/companies/house-panel-oks-25-year-extension-for-smart-s-franchise    

Investopedia (n.d.).  Subsidy. Retrieved from:  http://www.investopedia.com/terms/s/subsidy.asp

Lallana, E. (n.d.).  SMS, Business, and Government in the Philippines.  Retrieved from:  http://unpan1.un.org/intradoc/groups/public/documents/Other/UNPAN024834.pdf

Media Affairs and Public Relations Service. (2016).  Expand powers of National Telecommunications Commission (Press Release).  Retrieved from:  http://www.congress.gov.ph/press/details.php?pressid=9480

NPR. (2012).  A Close Look at Your Bills’ Fine Print.  Author Interviews. Retrieved from:  http://www.npr.org/2012/09/20/161477162/a-close-look-at-your-bills-fine-print

Shahani, L. R. (2015).  Why is our internet so slow? The Philippine Star.  Retrieved from:  http://www.philstar.com/opinion/2015/08/24/1491398/why-our-internet-so-slow

There are basically two sides of the coin on this issue: one involves a sensitive issue of political rights to information and communication, and the other involving faster flow of communication for business and trade relations. Ideally, the IT Revolution is meant to provide businesses with faster communication systems that will spur growth that otherwise would have been done with traditional means.  Different communication channels save companies millions of dollars in travel and incidental expenses. In Japan for instance, the creation of its Information Network System (INS) in the 1980s offered individuals and businesses an integrated communication system that transformed small suburbs from a small business districts to one commercial hub (Bachnik, 2003).  Under this kind of situation (and given that only a few societies had real access to the Internet then), allowing unrestricted bandwidth will foster economic growth.

On the other hand, mobile technology and applications (apps) have made it possible for ordinary people to gain access to unlimited information through the Internet.  And this accessibility has undoubtedly created a problem of congestion to many countries including the Philippines.  Consider this: according to the Internet World Stats, Asia has the highest percentage of Internet users in the world (48%), followed by Europe (18%), Latin America (10.2%) and Africa (9.8%) (Internet World Stats, 2015).  Just how much of the Internet is actually being used for business? 

For this reason, some countries are in fact taking concrete steps towards curbing this behavior by putting a cap on bandwidth.  In Matthew Lasar’s report in Ars Technica, several countries are already implementing bandwidth caps (Lasar, 2011).  Canada telecoms charge subscribers US$2.65 per GB as a form of disciplining people on internet usage.  Telecoms in the US, UK and Australia have also followed suit by offering different bandwidth packages to consumers.  This practice declogs traffic congestion by making heavy users pay more than the average normal user, making it more equitable in return.

Some users argue that this policy involves serious freedom of information issues.  While I believe their argument is plausible, let us try to look at this argument from a different perspective.  There is also encroachment of freedom of communication whenever the public’s access to information is impeded or restricted by others such as heavy users.  A heavily congested Internet connection deprives normal users of the right to enjoy it. 

Since telecoms are rendering public service, they should as a measure devise means that this feature be accessible to everybody--and for those who use a little more they should be expected to pay more.

Bibliography

Bachnik, J. (2003). Roadblocks on the Information Highway: The IT Revolution in Japanese Education. Maryland: Lexington Books.

Internet World Stats. (2015, November). Internet Usage Statistics: The Internet Big Picture. Retrieved from Internet World Stats: http://www.internetworldstats.com/stats.htm

Lasar, M. (2011, April 4). It could be worse: data caps around the world. Retrieved from Ars Technica: http://arstechnica.com/tech-policy/2011/04/how-internet-users-are-disciplined-around-the-world/

http://arstechnica.com/tech-policy/2011/04/how-internet-users-are-disciplined-around-the-world/

http://www.internetworldstats.com/stats.htm

In 2011, a United Nations report declared internet access to be a basic human right, arguing that disconnecting individuals from the internet was a violation of human rights and international law. So: if internet access is a basic human right, shouldn’t Filipinos be more outraged with the quality—or lack—of service we get from our internet providers?

A recent “State of the Internet” report on Asia Pacific done by Akamai, a cloud data network specializing in monitoring internet traffic in real time, shows the Philippines to have the third lowest average connection speed in the region—2.8 Megabits per second (Mbps) for the first quarter of 2015—much lower than the global average connection speed, which is 5 Mbps. Moreover, the Philippines also ranked fourth in terms of lowest peak connection speed, with 20.3 Mbps—far from the global average of 29.1 Mbps.

The National Telecommunications Commission (NTC) is the regulating agency responsible for such matters. And it is the NTC that Senator Bam Aquino’s Committee on Trade, Commerce and Entrepreneurship is calling to the fore—lately expressing discontent at the NTC’s failure to deliver on its promise to issue a memorandum circular on the quality of internet standards. Interestingly, what the NTC—for the moment—did do was issue a statement that Public Private Partnerships were the most likely solution to our slow-internet woes.

Whether developed locally or with the aid of some foreign corporation, we need a national broadband if we want higher speeds and lower costs. Regulatory care, however, is very much called for. Both the US and China have worrisome internet privacy records. Additionally, regulatory measures should encourage, rather than drive away, start-up competition. Internet start-ups are presently booming worldwide—a boom in which we are not presently participating.

Many of us today use the Internet for a variety of reasons: e-mailing to connect with friends and family, for business and work correspondence, web-browsing for news, research and entertainment, and increasingly for richer media and applications, such as watching online TV, posting videos and photos, as well as creating Internet content through blogs and other interactive fora. Being able to use the Internet has become an important necessity to any social and work life.

Expanding the Internet, including to rural areas, leads to new opportunities for nonagricultural employment, better paying agricultural jobs and greater overall productivity. Access to the Internet also fosters small and microbusiness growth, allows citizens in remote areas to work from home, provides greater access to crop market prices and enables rural businesses to compete more effectively in world markets. Research has shown that this type of Internet use helps to reduce poverty by increasing income and reducing costs for the poor. Internet-enabled technologies such as video-conferencing can also reduce travel and congestion. Thus, creating Internet opportunities for all ensures that the Philippines has an inclusive growth and helps eradicate poverty.

References:

Ramos, L. (2015). Why is our internet so slow? Retrieved online from: http://www.philstar.com/opinion/2015/08/24/1491398/why-our-internet-so-slow

THE PHILIPPINE DIGITA L STRATEGY TRANFORMATION 2.0: DIGITALLY EMPOWERED NATION Retrieved online from: http://icto.dost.gov.ph/wp-content/uploads/2014/06/philippine-digital-strategy-2011-2015.pdf

Should Telco’s be expected to provide the Internet bandwidth and speed that would diminish the demand for voice calls and short message services?

The purpose of this paper is to answer the question posted by Dr. Flor  for the Comm 330 class for the second semester of the AY 2015-2016:  Should Telco’s be expected to provide the Internet bandwidth and speed that would diminish the demand for voice calls and short message services? To be able to answer this question, the mobile phone which is being used in voice call, short messaging and surfing in the internet was looked into.

The worldwide growth of mobile phones had changed not only its features but as well as its use and essence. Mobile phones are not just phones but had evolved into integrated data brokers (Hurlburt, Jeffrey, & W., 2010). They emphasized that“The technology and wide range of application it launches will determine how we conduct warfare, manage disaster, dispense services, provide education, monitor our health, react socially, control our identity and literally live our individual lives in an increasingly cyber public ecosystem.”

            Wajeman (2008) study corroborated with the above argument and  cited several studies that came up with analyses that the  impact of  technological innovation was far from straight forward. New technologies had changed the meaning of tasks and work activities which gave way to new cultural practices. She stressed the following points:

“New technologies reconfigure relationship between people and spaces they occupy, altering the basis of social interaction. The emergence of new media technologies, such as mobile phone and the Internet, creates new kinds of social relationship an a host of new activities and practices” (Wajeman, 2008).

            Moreover, even early on, past studies have proposed that the main issue on the advent of new generations of mobile devices and services were no longer answering the binary question of “who uses mobile telephone” rather the main qualitative and differentiated concern now lies on answering the basic inquiry “How do people use their mobile phones?” (Humphreys, Pape, & Karnowski, 2008)  tested the Mobile Phone Appropriation model and based on their study they identified five pragmatic and and symbolic value and prestige of mobile phone users which are as follows:

1.      The obtrusive multi-user- heavy users that make use of their cell phones practical dimensions, like their units to have fancy accessories and attached great importance to the the symbolic and prestige of their phones. When using their phones, these users disregard those in the immediate surroundings and act somewhat obtrusively.

2.      The relationship manager- “Maintaining relations” and “control” are the most important pragmatic usage dimensions. These users act discretely when using their phones.

3.      The trendy cell-phone-player- Distractions and pastimes are most important to them with social aspects playing a crucial role in cell phone usage. They consider their devices to be fancy fashion accessories, and stress their symbolic value and prestige.

4.      The everyday-life-manager-These users emphasize the pragmatic usage dimensions of “control” and “management of everyday life.” The symbolic dimensions are of little interest, and the users act very discreetly when using their cell phones.

5.      The discreet light use- These respondents rate low on all pragmatic and symbolic usage dimensions and show very discreet behavior when using their cell phones.   

The remarkable growth in the use of mobile phones in the Philippines was very evident. Between 1997 and 2000, Strom (2002) described the limited access to electronic communications in Filipino village or barangay. The mobile phone was also instrumental in shaping the history of the Philippines as it played a great role in the large-scale political change, from the rise of popularity of anti-Estrada text messages, such as hostile slogans and satirical jokes (Katz & Aakhus, 2002) which may have been instrumental on his further popularity that made him elected as the 13th President of the country. While it was also mobile phone which was believed to be instrumental and paved the way in organizing public pressure that forced him, Joseph Estrada, from office in January 2001 (Katz & Aakhus, 2002). Today, the proliferation mobile phones and service providers serving the different echelon of the society is very evident in the Philippines, more so in the urban areas. The wide price range significantly illustrates the digital divide among the Filipino consumers. This is supported by several telecommunication service providers who offer in variety of schemes. Aside from the usual texts and calls, the Filipinos use the Smartphones in watching TV and radio streaming, internet surfing, gaming and social networking (Phoebe, 2013).

Functions of the mobile phone

The rapid growth of the mobile phone from the 1G to 4G made possible a lot more than the make and receive telephone calls, Talk Mobiles, (nd) outlined the following function of mobile phones:

·         SMS. Via Short Message Service or popularly known as texts with the adjective texting. Short messages to other mobile phones and are relatively cheap, easy and extremely popular, with 500 billion texts sent in 2004 alone. Ringtones and logos can be sent by SMS and it can even be used to pay for things in a real world environment - by sending a message to a vending machine for example, the product is dispensed and your bill debited accordingly.

·         MMS. Multimedia messaging service is the 3G enhancement building on 2G SMS Texts. It facilitates fast data transfer speeds of the 3G network. Through MMS, much bigger messages and files which include the usual text, pictures, voice recordings and video.

·         Internet. 2G phones allowed access to the Internet and email via the GPRS and WAP systems, however data transfer was too slow to make it anything but a big turn-off for consumers. The introduction of the 3G network improved the speed performance and access. Mobile games, news flashes, mobile video clips and allowed downloading of all kinds of other mobile video. It also facilitated connection to the different SNS or Social Networking Sites.

·         PDA. Personal data assistant functions come with specific mobile phones, some have large touch-pad screens where you can select icons with an attached pointer or your finger. Address books, diaries, notepads, calendar, calculator and word processing and spreadsheet facilities.

·         Fax. Send and receive faxes on some of the higher end PDA phones. These files can be sent to a printer Via blue-tooth or infrared.

·         Camera Phones. These days it is probably harder to find a mobile phone that does not have a camera than one that does. Aside from taking pictures, some has the capacity to film videos. Some have detachable or rotating cameras or even two cameras to allow video calling.

·         Blue-tooth This is a type of short-range radio signal - in effect a wireless connection that allows the transfer of information between compatible devices such as laptops, cameras and mobile phones. It's a great way to send messages for free over short distances and share photos, videos, ringtones and music between phones without the need for any cables.

·         Infra-red. Again this allows the sharing of information between compatible devices but it is trickier to use (you have to align the devices correctly) than Blue-tooth which is fast replacing it in most cases.

·         MP3 Players. Many phones today double as personal music players. Music can be downloaded from the internet, upload it from your computer or swap it between phones with blue-tooth.

·         FM Radio and Television.  Listen to radio on the move and watch TV , many mobile phones today include these features

·         Video Games. 2G mobiles often included simple black and white games like snake and tetris. With 3G transfer speeds and modern handsets new, full-color titles are released every week and arcade classics such as Double Dragon and Street Fighter II are rendered in all their former glory, albeit on a considerable smaller screen. A new generation of large screen 3G handsets can play special 3-D titles too.

·         Expandable memory If you are going to be taking a lot of pictures, downloading games and music (or uploading it from your computer) you can buy plenty of storage space in the form of small memory chips that can be transferred via the correct converter into a compatible computer, printer or camera.

·         Video calling. Once featured on tomorrow's world as the next great step in the world of human communication, it is now a feature, albeit a largely ignored one, of many modern handsets. The combination of an in built camera and fast data transfer speeds of the latest 3G handset leave land-line phones in the wake of mobiles. Star Trek fans, needless to say are incredulous at the underwhelming reception of real time peer to peer video calling!

Social Networking Sites (SNS)

            Jenkins (2006) emphasized the intersection of the media producer and the media consumer interacting in unpredictable ways. This intersection was made possible by advancement in technology which Jenkins (2006) defined as convergence: “the flow of content across multiple media platforms, the cooperation between multiple media industries, and the migratory behavior of media audiences who will go almost anywhere in search of the kinds of entertainment experiences they want. Convergence is a word that manages to describe technological, industrial, cultural, and social changes depending on who’s speaking and what they think they are talking about.”Despite the sophistication and advancement in technology, convergence does not happen in the media platform, rather this intersection was made possible in the constructs of the consumers through their interactions with one another, making use of the information from other media to create, transform, and circulate into consumable new resources (Jenkins, 2006).

            The convergence described by Jenkins (2006) concurs with the definition of Web 2.0 by O’Reilly (2005) as cited by Fuchs (2011):

“Web 2.0 is the network as platform, spanning all connected device: Web 2.0 applications are those that make the most of the intrinsic advantages of that platform: delivering software as a continually-updated service that gets better the more people use it, consuming, remixing data from multiple sources including individual users, while providing their own data services in a form that allows remixing by others, creating network effects through an ‘architecture of participation’ and going beyond the page metaphor of web 1.0 to deliver rich user experience.”

Hjorth (2009) surmised that based on the previous studies of Wajcman et al. (2009) and Gregg (2007), the primary symbol of Web 2.0 is the Social Network Site that specializes on a user-created content (UCC) enabling self expression, connectivity to one or more social communities, and forming intimacy to online contacts which can be categorized as friends or fans depending on the SNS peculiarity.

Notable increase in attention was given to SNS as the participation and use of this new media has tremendously escalated over the past years. According to Miller, Mundey, & Hill (2013), based on Facebook (2012) report, Facebook has over 900 million users. In 2013, the United States, the homeland of FB, has still the most number of users while the Philippines was in the eighth position (top 10-countries with most facebook users in the world , 2013).

The Philippines, during the Ramos administration, was projected to be the leading country in internet-based commerce by early 2000s. (Shahani, 2015).  While in 2011, the United Nation declared access to the internet as a basic human right (Kravets, 2011).

Despite the increase in the use of mobile phone in the Philippines as a calling, messaging and other connectivity functions. However, according to study on consumer internet speed as of May 2015, the Philippines second to the slowest speed among the 22 Asian countries with Afghanistan ranking as the slowest and ranked 176th out of 202 countries worldwide. The global average broadband download speed of 23.3Mbps is nearly eight times faster than the Philippines. Despite the slow download speeds, the Philippines has some of the most expensive Internet connections in the world (GMA News Online, 2015).

According to Shahani (2015), though there is no causal relationship, bad internet can be equated to bad politics and further argued that internet’s success relies on a self-regulating economy, integrity of our Internet Service Providers (ISPs), and policies that support these functions. Again, this slow internet issue is another aspect that the government must looked into. An issue where policy scientists can spearhead, and  put their mind and heart in pursuit of sustainable development.

References:

Fuchs, C. (2011). Web 2.0, Prosumption, and Surveillance. Surveillance & Society , 288-309.

GMA News Online. (2015, May). Retrieved from http://www.gmanetwork.com/ news/story/489762/scitech/technology/list-philippines-ranks-21st-of-22-asian-countries-in-internet-download.

Hjorth, L. (2009). Web U2: Emerging online communities and gendered intimacy in the Asia-Pacific. Springer Science+ Business Media B.V. , 117-124.

Humphreys, L., Pape, T. V., & Karnowski, V. (2008). Evolving mobile media uses and conceptualization of the mobile internet. Journal of omputer mediated Communication .

Hurlburt, G., Jeffrey, V., & W., M. K. (2010). Mobile applications- the fifth cycle. IT Pro, 56-60.

Jenkins, H. (2006). Where Old and New media Collide. New York: New York University Press

Katz, J. E., & Aakhus, M. A. (2004). Conclusion: Making meaning of mobiles a theory of apparatgeist. In J. E. Katz, M. A. Aakhus, J. E. Katz, & M. A. Aakhus (Eds.), Perpetual contact mobile communication, private talk, public performance. Cambridge University Press.

Miller, B. J., Mundey, P., & Hill, J. P. (2013). Faith in the age of Facebook: exploring the link between religion and social network site memebership and use. Socioloy of Religion , 227-253.

Phoebe. (2013, July). Philippine Smartphone adoption is growing: but users still stick to basic features. Retrieved from Tech in Asia: https://ph.news.yahoo.com/philippine-smartphone-adoption-growing-users-160418991.html

Shahani, L. R. (2015, August 24). Why is our internet so slow? Retrieved from http://www.philstar.com/opinion/2015/08/24/1491398/why-our-internet-so-slow.

Strom, G. (2002). The telephone comes to a Filipino Village. In Katz, J &. Aakhus, M. Perpetual Contact: Mobile Communication, Private Talk,Public Performance (p. 274). 283: Cambridge University Press.

Talk Mobiles. (nd). Retrieved from http://www.talkmobiles.org.uk/functions.html.

Top 10-countries with most facebook users in the world . (2013, May). Retrieved from the countries of: http://www.thecountriesof.com/top-10-countries-with-most-facebook-users-in-the-world-2013/

Wajeman, J. (2008). Life in the fast lane? Towards a sociology of technology and time. The British Journal of Sociology, Vol. 59, Issue 1, 59-77.

With the way things are going with the telecommunication industry in the Philippines, we cannot expect much when it comes to having internet bandwidth and speed that will significantly diminish demand for voice calls and SMS. The necessary requirements to make this possible seem to be not just overwhelming but remote at the moment.

This observation is supported by recent studies conducted. For instance, in Akamai’s report titled “State of the Internet,” the Philippines is reported to have the third lowest average connection speed in the region which is 2.8 Megabits per second (Mbps) only for the first quarter of 2015, much lower than the global average connection speed of 5 Mbps. The Philippines also ranked fourth when it comes to the lowest peak connection speed, having 20.3 Mbps only which is way below the global average of 29.1 Mbps. (Shahani, 2015). Worldwide, the country ranks 176th out of 202 countries in terms of upload speed with 1.53 megabits per second (mbps), which is significantly lower than the global average of 10.59 mbps (Braga, 2015). Despite its being one of the slowest, it’s disheartening to note that internet service in the Philippines is one of the most expensive in the world, with a monthly average cost of $18.19 (P848.65) per Mbps which is over three times the average global cost of $5.21 (P243.07). Internet service in the Philippines is reported to be nearly as expensive as 1 Gigabit per second (Gbps) fiber optic connection in Singapore, which is only $36.01 (P1680) a month (Shahani, 2015).

Assistant Secretary Lila Ramos Shahani, Communications Head of the Human Development and Poverty Reduction Cabinet Cluster, sees the foregoing to be like most social issues that beset the Philippines, equating the sorry state of internet service in the country to bad politics. Shahani (2015) believes slow internet service can be improved when a self-regulating economy, integrity of Internet Service Providers (ISPs), and policies that support these functions are in place. She explains that Internet Exchange (IX) is formed when many different organizations (e.g. access providers, broadcasters, publishers, social networks, etc.) join forces to interconnect their technology. Everyone relying on network traffic benefits from this exchange more than having private connection toll booths doing the job. Subscribers with ISPs connecting in common intersections can benefit from lower cost and more efficient internet.

Aspiring for higher speeds and lower costs, Shahani (2015) pushes for the establishment of a national broadband that may be developed locally or with the aid of some foreign corporations. She cautions, however, on the need for regulatory care that will work for internet privacy records, and encourage internet start-up competitions that are currently booming worldwide but not yet experienced in the country.

REFERENCES:

Shahani, Lila R. (August 24, 2015). | Why is our internet so slow? Retrieved on April 18, 2016 from http://www.philstar.com/opinion/2015/08/24/1491398/why-our-internet-so-slow

Braga, Michael H. (September 28, 2015). Internet connection in Philippines: NTC asked to set speed parameters. Retrieved on April 18, 2016 from http://www.philstar.com/cebu-news/2015/09/28/1504813/internet-connection-philippines-ntc-asked-set-speed-parameters

The Human Rights Council of the United Nations General Assembly recognizes the Internet as a basic human right.

"The Special Rapporteur believes that the Internet is one of the most powerful instruments of the 21st century for increasing transparency in the conduct of the powerful, access to information, and for facilitating active citizen participation in building democratic societies."

"As such, facilitating access to the Internet for all individuals, with as little restriction to online content as possible, should be a priority for all States."

Amidst the global call for access to high-speed affordable broadband connectivity to the internet, data services in the Philippines are said to be among the most expensive and least accessible in the world (according to 2015 World Economic Forum figures). In line with that, on August 18, 2015, during the Senate Hearing on the Impact of Philippine Internet Speed, Independent Telecom and ICT policy researcher (from LIRNEasia) Mary Grace Santos pointed the Lack of Competition and Lack of government investment on IT Infrastructure as the main possible reasons along with the following points:

Liberalization in 1992 paved the way for more players that resulted to innovation as well as improved pricing scheme in mobile phone services. Consequently, when SMS and prepaid were introduced, it resulted to the exponential growth in subscribers of mobile phones in such that by the year 2000, there were more mobile phones compared to fixed-line subscriptions. Another critical juncture was when Interconnection Rules were issued and finally resolved in around year 2001. And although the number of mobile operators were reduced from 8 to 3 in around year 2003 (amidst mergers and acquisitions), there was still real competition in the market and the same mobile operators also became the major internet service providers in the country.

The Philippine Internet however, has a different story. From having more than 100 ISPs in 1997, the number was reduced to less than 10 in 2014 after smaller players were bought out by larger ISPs. Aside from that, only 2 major players are controlling infrastructure which ultimately results to the control of wholesale and retail pricing.

High barriers to entry exist because telecom infrastructure is a vertical and monolithic whole. Also, in the process of infrastructure expansion, there are numerous permits and clearances that are required by national government agencies, LGUs, and homeowners.

The lack of interconnection among ISPs hampers growth. One example is the effect of spending more on “tromboning” (which also results to poorer quality) instead of spending less through IP Peering.

There are also outdated laws and regulatory framework (such as RA 7925, Commonwealth Act 146, and the NTC Charter) that needs to be amended as they are no longer able to address the demands and challenges of the fast-evolving broadband-age.

References:

Make Internet a basic service in PH

https://www.youtube.com/watch?v=pT4QzRvB8QM

Published on May 28, 2014

Senate hearing on the impact of PH internet speed

https://www.youtube.com/watch?v=tDIDK1a3tnU

Published on August 18, 2015

United Nations: Broadband Access is a Basic Human Right

http://broadband.about.com/od/International/a/United-Nations-Broadband-Access-Is-A-Basic-Human-Right.htm

 The first question that must be addressed is that, why are data services in the Philippines slow, delivering only 2.5 megabits per second (mbps), the second slowest internet in Asia (Ookla, May 2015)? Worse, the cost that Filipinos actually pay for an internet package is more than those with better connection. To illustrate, Singapore’s MyRepublic offers 1 gbps speed for the equivalent of only S$50 (around P1,600/month) while PLDT’s current PLAN 1995 boasts of only up to 8 mbps!

Globe Telecom President and CEO, Ernest Cu, asserted that while telecom providers are more than eager to build more capacity with more cellsites, they are hostaged by the bureaucracy of the local government units, or worse, corruption. Philippines has only 15,000 cellsites all over the country in comparison with Vietnam that has 55,000 cellsites; Indonesia, 76,477 cellsites; and Thailand, 52,483 cellsites. Why, even Bangladesh can claim its superiority with 27,000 cellsites.

On the other hand, regional information and communication technology (ICT) policy think-tank LIRNEasia, pinpointed the lack of competition as one of the culprits of the country’s backwardness when it comes to internet services. According to Mary Grace Santos, a research fellow, “There were a lot of internet server providers (ISPs) in the past, but they were slowly bought by major telcos such as Globe Telecom and PLDT. Now, we have less than 10 providers running.” She also identified another reason and that is the lack of interconnection among ISPs .

Now who is really to blame? The telecommunication companies (telcos) or the government?

In the face of the digital revolution that is happening fast in the Philippines, playing the name game will not resolve the issue. Both the government and the telcos must collaborate to ensure the efficiency and reliability of data services in the country.

Telcos are indeed expected to provide bigger Internet bandwidth and faster speed, NOT to diminish the demand for voice calls and short message services, but to keep up with the demand of the people. At present, the internet is already a vital part of the lives of Filipinos. More than uploading selfies, the 44.2 million and counting active internet users in the Philippines (National Telehealth Center, March 2015) go online to communicate both for personal and economic reasons.

Needless to say, the internet facilitates easier transmittal of messages to the target audience in any location, opening more opportunities for interactivity and participation.

The government must then do its part in addressing the country’s connectivity problems by creating pertinent policies; updating The Public Telecommunications Act signed in 1995, the Public Service Act signed in 1936, and the charter of the National Telecommunications Commission (NTC); and  formulating standard parameters and thresholds regarding internet speed.

And in the light of ASEAN integration, improving the data services in the Philippines is indeed mandatory to further strengthen connectivity with other member states so as not be left behind.

References:

Internet connection in Philippines: NTC asked to set speed parameters. By Michael Vencynth H. Braga (The Freeman). Updated September 28, 2015 - 12:00am. http://www.philstar.com/cebu-news/2015/09/28/1504813/internet-connection-philippines-ntc-asked-set-speed-parameters

Reasons why our Internet speeds are so slow. By Bobit S. Avila (The Philippine Star). Updated March 31, 2016 - 12:00am. http://www.philstar.com/opinion/2016/03/31/1567862/reasons-why-our-internet-speeds-are-so-slow

Y4iT 2015: Slow yet expensive PH Internet 'not our fault'. By Jay Agonoy. Published 5:27 PM, September 16, 2015. Updated 11:24 AM, September 17,2015. http://www.rappler.com/move-ph/106062-slow-expensive-ph-internet-not-our-fault

Internet, social media and mobile use of Filipinos in 2015. By Henri Joshua Igna, RN. March 26, 2015 11:25 am           https://telehealth.ph/2015/03/26/internet-social-media-and-mobile-use-of-filipinos-in-2015/

The pathetic state of PH Internet. By: Gideon Lasco. 01:04 AM September 1st, 2015. http://opinion.inquirer.net/88125/the-pathetic-state-of-ph-internet

Hi Dr. Flor,

Today, high speed broadband is not a luxury, it’s a necessity.”

                                                                            - President Barack Obama

The internet’s role has become more significant as it can be used an instrument of economic growth. As a result, slow internet speeds across Southeast Asia will only hinder economic development and advancement. The Philippines has long been facing the challenge of slow internet.

In February 2014, OpenSignal, a company that specializes in wireless coverage mapping, issued a report saying that the Philippines had the poorest and slowest LTE broadband internet access and coverage in the world. In another study made in 2014, only two ASEAN member countries have made it above the global average of 17.7 mbps based on the results of an analysis by ASEAN DNA. Singapore ranked first with a blistering average speed of 61.0 mbps while Thailand (17.7 mbps), nearly making it to the average global speed of 17.5 mbps.  According to the NET Index figures, the Southeast Asia’s average internet speed is 12.4 mbps which is way lower than the global average. Vietnam was able to meet average ASEAN internet speed of 13. 1mbps, however, Cambodia (5.7mbps), Malaysia (5.5mbps) Brunei and Myanmar (4.5mbps), Indonesia (4.1 mbps), Laos (4.0mbps) followed a long way behind and Philippines has the slowest at 3.6mbps.

Another study made by Ookla Speedtest last 2015 confirmed that Philippines has one of the slowest average broadband speeds, not just in Asia, but in the world. As of May 2015, Philippines ranked 176 out of 202 countries based from the  Ookla household download index, which compares and ranks consumer download speeds around the globe. The Philippines' household download speed languishes at the bottom with 3.64 Megabit per second (mbps).

Based from these studies, it has been observed that the wealthiest members of the ASEAN countries have also the fastest internet speeds. Singapore with a highly developed E-commerce and extremely attractive laws for online-related business never changed its rank as the top ASEAN country with the fastest internet speed. Philippines, Myanmar and Laos have the slowest internet speed.

What makes the situation worse in the Philippines is the fact that despite the bad service, it also has some of the most expensive Internet connections in the world.  In a report from Castañeda (2015), Philippine Internet users spend an average of  P1,155.00 per month compared to Singapore and Thailand internet users who pay only P107.00 and 134.00 per month respectively. In an Ookla study, it revealed that Philippine Internet users spend $18.19 per Mbps, compared to an average of $5.21 per Mbps worldwide. Globally speaking, this put the Philippines at 161st of 202 countries. 

For a long time, Philippine Long Distance Telephone Co. and Globe, two major operators who control infrastructure and pricing, have left the public with no choice but to subscribe on their not so worthy plans - high prices for slow, unreliable and below-par broadband internet connections. Reports show that the country’s actual speed never reaches the advertised speed but deceive them taking the money and not providing the service they paid for. Such reports or complaints have to be addressed by them (telcos) to live up to their promised internet speeds, performance, quality and value and consistency.

With all the data presented, it’s crystal clear that telcos in the Philippines are expected to provide fast internet speed with an affordable price where consumers can enjoy what they paid for.

However, several factors affect this long time vision. There’s a problem with geographic location. With the 7,107 islands, rolling-out new technologies nationwide are hard to build as it requires aerial, terrestrial and submarine cable connection. LGUs and government policies are also being blamed. Amojelar (2015) reported that to put-up sites, telcos have to secure at least 25 permits from local government units and national government agencies and even homeowners, and pay exorbitant fees. Moreover, it takes eight months to construct and install a cellsite. Likewise, the lack of adequate infrastructure is another factor for having slow Internet speed. Furthermore, slow adoption of relatively advanced 4G-LTE connections keeps mobile Internet speeds slow since most subscribers stick to 2G and 3G networks. So what can be done to address such complex problems?

In terms of telcos’ failure to live up to their promises, there must be stiffer penalties and harsher consequences implemented. There is also a need to provide the public a tool to regularly check the compliance by telcos and ISPs. More so, a need to enforce proper billing and end unfair and anti-consumer practices, especially the so-called data-capping, "burstable speeds". Weak policies have to be improved. The lawmakers need to review the Public Telecommunications Law and the NTC law specifically the amendment of Public Service Act of 1936, which covers the operations of telecommunications. Under this 80-year-old law, a telco that commits a violation is fined a measly P200 if a consumer is eager to file a complaint as it is a judicial process.

It is also essential to check on the current infrastructure and development plans of telcos and ISPs. Even senators demanded an upgrade and invest more in network infrastructure and services to have access to faster and cheaper Internet in the coming years.  Prioritizing network infrastructure and infrastructure upgrades must take place with the support of the government - one of which is to standardize all requirements needed in putting up cell sites. According to Marasigan (2016), building a single cell site amounts from P5 million to P8 million. Based on a study made by Towerexchange, Philippines, with a combined 15,000 cellsites is one of the lowest in Asia compared to neighboring countries like Indonesia with 76,477 cellsites and Vietnam with 55,000 cellsites. Infrastructures in other counties are mandated, unfortunately, in the Philippines, it is only encouraged. The problem is even if it is encouraged, players do not want infra-sharing. For it to be mandatory, it would require a law. If there is a law which sets all the conditions, including costings then telcos have to take it.

With the Duterte administration coming into play this year, he has directed the newly-created Department of Information and Communications Technology to craft a National Broadband Plan (NBP) to address the country’s internet problems. He also threatened the telcos in the industry for their lackluster internet service. He warned that he will open up the market to foreign entities if the telcos do not shape up which I definitely agree with. It's important that the government opens our economy to whoever who wants to invest in our country. The more investors come in, more competitions in the market will arise. This heralds the possibility of lower prices, greater penetration and access and better and more reliable service to the public.  

On the questions should Telco’s be expected to provide the internet bandwidth and speed THAT WOULD DIMINISH THE DEMAND FOR VOICE CALLS AND SMS? Three questions came to my mind that I would like to point out in answering this question. 1. Will internet really diminish voice calls and SMS? Yes, that has been the plan because they are offering 3G and even 4G services, and as long as the users are connected online, he/she can use various Instant Messaging applications like FB messanger/ Viber to connect to anyone. As a matter of fact, this has been the plan of telcos in Singapore this 2017. According to Channel News Asia (2015), the spectrum currently used for 2G voice, messaging and data services, can be used to provide faster, more advanced 3G and 4G services to cater for consumers' increased demand for mobile data and faster access speeds. 2. Can Internet take place of voice call and SMS? Yes, let’s take for instance the use of Instant Messaging. The popularity of IM will continue to hold in the region, with Filipinos finding it a convenient option for chatting with friends and family overseas. According to Deloitte, (2015), Global Mobile Consumer Survey, "the usage gap between IM and SMS has been widening – with IM usage increasing, and SMS decreasing across the board." 3. Can the Philippines provide proper Internet access? Absolutely possible, as long as the concerned government agencies do something concrete to address the factors affecting the problem coupled with telcos initiatives to expand and upgrade its access and transport networks, including infrastructure enhancements will definitely help improve internet services in the Philippines. Both the government and telcos must step up the pace of innovation to increase the speed of economic progress and to meet the demands of the information age.

-MA. LEONEZA B. RIGONAN

REFERENCES:

Amojelar, Darwin G. (2016). Telecoms blame LGUs, govt policy for slow Internet. http://thestandard.com.ph/business/200859/telecoms-blame-lgus-govt-policy-for-slow-internet.html

ASEAN Briefing. (2014). Internet Speeds Across ASEAN. http://www.aseanbriefing.com/news/2014/04/24/internet-speeds-across-asean.html

Castañeda CM. (2015). The Cost of Internet in the ASEAN +3 Region. http://www.moneymax.ph/blog/the-cost-of-internet-in-the-asean-3-region/

Channel News Asia, (2015). Telcos to end 2G services in Singapore in 2017.

http://www.channelnewsasia.com/news/singapore/telcos-to-end-2g-services/1916108.html

Corre, J. (2016). UPDATED: Why the Internet in the Philippines is So Slow?

http://www.internetmarketingreach.com/why-the-internet-in-the-philippines-is-so-slow/

Deloitte Southeast Asia. (2015). Global Mobile Consumer Survey Southeast Asia edition December 2015. https://www2.deloitte.com/content/dam/Deloitte/global/Documents/Technology-Media-Telecommunications/gx-tmt-2015-global-mobile-consumer-survey-southeast-asia-edition.pdf

GMA News Online. (2015) LIST: Philippines ranks 21st of 22 Asian countries in Internet download speed. http://www.gmanetwork.com/news/story/489762/scitech/technology/list-philippines-ranks-21st-of-22-asian-countries-in-internet-download-speed

Marasigan, LS. (2016). NTC eyes mandatory infra sharing for telcos. http://www.businessmirror.com.ph/ntc-eyes-mandatory-infra-sharing-for-telcos/

Mirandilla-Santos (2014). Competition Issues in the Philippine Telecommunication Sector: Challenges and Recommendations, 1st National Competition Conference, December 9, 2014, Philippine International Convention Center, Manila http://www.slideshare.net/gmirandilla/competition-issues-in-philippine-telecommunications-sector-challenges-and-recommendations-ncc-dec-9-14-final.

Shahani, LR. (2015). Why is our internet so slow?

http://www.philstar.com/opinion/2015/08/24/1491398/why-our-internet-so-slow

In an information-based and globalized society, the telecommunications infrastructure is very important in ensuring that everyone gets to communicate large data in the easiest, quickest and most secure way. Regardless of the location and the class status of the mobile or internet users, information and communication should be made accessible to them. This is essential especially in keeping up with a fast-changing world where jobs usually rely on technology.

The Internet and other technologies that carry data and voice connect people no matter where they are. Companies with satellite offices and BPOs are able to do business successfully through them. More and more people also choose working at home for numerous benefits they could get from it, and because today's mobile technology allow it. As a global platform, transactions of high value happen within it which then affects our economic development. However, in the Philippines, a common complaint continually persists; that is the very slow service of telecommunication companies.

The Internet in the Philippines is said to be one of the slowest in Asian countries, this is despite the rapid increase of internet users. The geographic nature of the Philippines could be one of the reasons for this. It is hard to establish infrastructure in far-flung areas and is expensive to maintain one. As telecommunication companies in the Philippines are purely private, the government cannot impose to them especially if it would affect their business’ profit. Unlike with other countries, Philippines do not have a say where do telcos build their infrastructures.

In 2015, Ookla Speedtest, one of the world's leading internet speed testing company that ranks and index the download speed around the globe, released a report which listed down the Philippines as the second lowest in terms of speed in Asia and 176th out of 202 countries. According to the report, the average speed in the Philippines was at 3.64 mbps.

In another report called 2015 Measuring the Information Society Report, the International Telecommunication Union (ITU) provided an ICT development index (IDI) in 2013 and 2014 for 167 countries. The IDI measures access, use and skills to monitor and compare developments in ICT among countries over time. The Philippines ranked 95 in 2015, slightly better than its 108th ranking from 2014. This is despite the increase of nearly four times from 2005 to 2015 in fixed broadband subscription.

The Philippines has the most expensive Internet too. A survey conducted by TechAsia in 2015 named the Philippines as the ASEAN country with the highest price for 1GB of data. A policy brief launched by the Joint Foreign Chambers (JFC) of Commerce under the Arangkada Project in the same year cited several explanations: the presence of barriers to entry, anti-competitive practices, inadequate infrastructure, weak and ineffective regulation, prohibitive bureaucratic requirements in building infrastructures, and the lack of interconnection.

PLDT and Globe are the largest telcos who own and control most of the infrastructure. It is difficult, if not impossible, for others to grow and compete. According to the Constitution and rules set by the Foreign Investment Negative List, a telco should comply with the 40% foreign ownership cap. This limits the potential for competitions which foreign players can provide. Another blockage is the fact that an ISP cannot build its own network and has to rely on a telco’s infrastructure in order to connect to the internet. Generally, internet service in the country is dominated and not regulated.

The government may not have direct power on telcos but they can craft policies that would create a market condition which could meet the demand of the consumers at the cheapest price. There are different agencies that could work together to develop the capacity to investigate and prosecute violations to competition and privacy laws. They can also invest in building infrastructures and in internet connectivities to compete with private telcos. Consumers could benefit from competitions as prices would be lower, and standards and quality of service would be higher. They can also standardize permit processing among local government units so building cell sites would not be difficult and telcos wouldn't have an excuse not to provide access to all citizens in all areas.

With the number of smartphone service subscriptions exceeding the total population, high-speed Internet will continually be demanded. According to the 1936 Public Service Law, NTC can only fine telcos P200 per day for the erring behaviors which includes not ensuring that they provide fast internet connection. There’s a call from the NTC to raise this to P1 million per day to force the telcos to work faster.

With the booming of the use of feature-rich smartphones, social media websites, as well as instant messaging services, are instantly replacing the traditional call and text. This could have decreased the revenues the telcos earn, but the opposite happened with Globe Telecom who has seen this emerging trend early on. It has offered free use of Facebook to its subscribers, though with limited features. If this was the case, then there is indeed no excuse not to give consumers the high-quality service they deserve. Other countries were able to do it, the Philippines could do the same, if not better. 

References:

American Chamber of Commerce of the Philippines (2016). Broadband. Retrieved from http://www.investphilippines.info/arangkada/wp-content/uploads/2016/02/ONLINE-BROADBAND-POLICY-BRIEF1.pdf

International Telecommunication Union (2015). Measuring the Information Society Report. Geneva, Switzerland: ITU. Retrieved from http://www.itu.int/en/ITU-D/Statistics/Documents/publications/misr2015/MISR2015-w5.pdf

LIST: Philippines ranks 21st of 22 Asian countries in Internet download speed (2015). Retrieved from http://www.gmanetwork.com/news/story/489762/scitech/technology/list-philippines-ranks-21st-of-22-asian-countries-in-internet-download-speed

Santos, Grace (2016). The curious case of Philippine broadband (Part 1). Retrieved from http://www.telecomasia.net/blog/content/curious-case-philippine-broadband

Santos, Grace (2016). The curious case of Philippine broadband (Part 2). Retrieved from http://www.telecomasia.net/blog/content/curious-case-philippine-broadband-part2

Santos, Matikas (2014). PH Internet slowest in Asean. Retrieved from http://technology.inquirer.net/37815/ph-slowest-internet-speed-in-asean

Good day sir Sandy:

For me, I think it is also worth asking why aren’t we provided with quality internet services in the first place? If digital connectivity is important for the success of ASEAN Integration, why aren’t we improving our communication system in the country?

No doubt that the advent of internet services have significantly improved our communication system not just within the national borders, but also across countries. It was because of this that the ten member countries of the ASEAN believed in the possibility of bringing their people together as one community.

According to Shahani, Lila (2015), UN declared internet access to be a basic human right, arguing that disconnecting people from internet is considered a violation of human rights and international laws. Today, it is not surprising that majority of the population all over the world owns a mobile device that is considered to be an essential extension of a person’s body. Through these devices, messages and information are easily shared, transmitted and stored. But internet access remains to be problematic especially in the Philippines, earning the country the distinction of being second to have the slowest internet speed in Asia next to Afghanistan (Gonzales, 2015).

There are two prominent concerns that I would like to point out in connection to the topic: (1) the country suffers a slow internet speed, but has the most costly service, and (2) due to its cost, internet is non-accessible to areas who could not afford it. I may not be an economist, but as a consumer, I know that I have a right to a quality service that I paid for. In my experience as a distance learner in UPOU, a strong and fast internet connection is very important. But due to a slow and, often times, intermittent internet connection, it is difficult to access the UPOU website and emails, or the general search engines.

To conclude, it is important to note that these Telcos’ are privately owned companies whose policies are usually centralized. I believe that the government, being the mandated officials to regulate the country’s development, should step up and create strong policies on internet bandwidth and speed.

REFERENCES:

1.   http://www.philstar.com/opinion/2015/08/24/1491398/why-our-internet-so-slow

2.   http://technology.inquirer.net/42293/ph-internet-2nd-slowest-in-asia-one-of-the-most-expensive

I strongly believe that Telco companies must provide fast and reliable Internet bandwidth and speed that would pave the way to an improved voice call and SMS experience. The latest technology in Australia, through the biggest Telco company called Telstra, provides Voice over LTE (VoLTE) service that enables a person to do a voice call that is integrated into the 4G LTE data stream rather than the previous arrangement of reverting back to 3G. In this process, the voice and data stay on the same part of the network hence the fast data access is maintained and it provides a super-fast call set up times. This is suitable to many multi-taskers! A 4G capable device and internet connection are needed for this hence I think the voice calls and short message services should not be eradicated yet because these are still vital especially in areas without 3G or 4G coverage in the Philippines and to non-smart phone users. As per Gil Genio, the Globe Telecom Technology and Information Officer, this is still an important concession as only half of subscribers in the country have smartphones and access to apps. Moreover, PLDT Executive Vice President Ernesto Alberto also agreed when he (Genio) also said that "Most of our subscribers who still use conventional voice calls tend to be in the lower strata, so cost is an important consideration for them."

As of November 29, 2016, the two leading Telco’s in the Philippines namely Globe and Smart agreed to cut charges for inter-network calls. The new interconnection charge worth ₱2.50 per minute will take effect on January 1, 2017 instead of ₱4.00 per minute for mobile-to-mobile and ₱3.00 per minute for mobile-to-landline voice calls charges. The voice call usage has dropped drastically this year since consumers have been shifting to calls via mobile data thru voice over internet protocol apps. Thus, the voice revenue for Smart dropped to 15 percent and nine percent for Globe during the third quarter report this year compared to their 2015 report.

Internet is undeniably a basic need nowadays and we cannot improve as a country without this. According to the latest survey conducted by Akamal’s State of the Internet Quarter 2 2016 Report, Philippines has an average of 4.3 mbps for broadband and 8.5 mbps for mobile while South Korea reached the highest rank among Asian countries with 27 mbps for broadband and 11.1 mbps for mobile.

Furthermore, there should be amendments to the Public Telecommunications Act signed in 1995 and the charter of the National Telecommunications Commission (NTC) that would reflect standard parameters and thresholds in the internet speed that Telco’s must provide to its consumers. However, Globe Telecom CEO Ernest Cu they need the cooperation of the local government units so they can put into action their plans of putting up fiber optic wires to 20,000 barangays which would translate to two million homes in 2020. He mentioned that it takes a minimum of 25 permits before any cellsite can be approved in the local government unit.

Another factor that is being sighted on the slow internet speed in the country is the lack of competition in the market. Now that President Rodrigo Duterte has plans of welcoming foreign players in the industry, do we think this can resolve the bandwidth and speed issues? Are we ready for the possible advantages and disadvantages if this happens?

Sources:

Asia’s mobile and broadband internet speeds, in one inforgraphic. By Steven Millward. November 2, 2016-8:15 PM. https://www.techinasia.com/asia-internet-speeds-mobile-broadband

Duterte warns telcos: Shape up or face foreign competition. By Rex Remition (CNN Philippines). May 24, 2016-08:32 PM. http://cnnphilippines.com/business/2016/05/23/Duterte-to-telcos-improve-Internet.html

Globe , Smart cut charges for inter-network calls. By Claire Jiao (CNN Philippines). November 29, 2016- 07:31PM. http://cnnphilippines.com/business/2016/11/28/globe-smart-telecom-cut-charges-internetwork-calls.html

Internet connection in Philippines: NTC asked to set speed parameters. By Michael Vencynth H. Braga (The Freeman). Updated September 28, 2015- 12:00AM. http://www.philstar.com/cebu-news/2015/09/28/1504813/internet-connection-philippines-ntc-asked-set-speed-parameters

Reasons why our Internet speeds are so slow. By Bobit Avila (the Philippine Star) | Updated March 31, 2016 - 12:00am. http://www.philstar.com/opinion/2016/03/31/1567862/reasons-why-our-internet-speeds-are-so-slow

The Next Generation of Voice Calling Starts Today-Telstra VoLTE. By Mike Wright. Updated September 16, 2015. https://exchange.telstra.com.au/2015/09/16/next-generation-voice-calling-starts-today-telstra-volte/

We will notice that developed nations like Hong Kong who has about 74% of its population as internet users ranks 2nd in the world with the highest internet bandwidth at 3721 kb roughly 25 times better than the global average 151 kilobits reported in 2016, while the Philippines ranks 79th with 27 kb. The Philippines no doubt has a very high rate of internet users at 43% despite the inefficient internet bandwidth not to mention extremely expensive service where the country ranks 38th in terms of internet cost and Hong Kong at 66th place. This says a lot in terms of economic growth especially with ICT, Communication regardless of the channel regular voice call, text messages or video call is a necessity especially for developing countries. While it may appear unmerited to compare the Philippines to Hong Kong, we may want to take lead at how Hong Kong is supporting its ICT. They have created a competitive environment for internet service providers, hence cheaper and faster service is achieved.

Yes. This innovation, may eventually make voice calls and text messages obsolete a change which is inevitable and I would say also necessary for developing nations like the Philippines. It is no different to the time when regular mails almost became obsolete when email happened. In this Information driven age, it is imperative to have fast and accessible communication. Our business more so our economy relies on this technology to provide efficient service to us consumers, and if we want to be competitive then we do business the way global leaders would.

Reference:

Choi C. South China Morning post. 25 January 2013. Hong Kong has Fastest Peak Internet in the World. (http://www.scmp.com/news/hong-kong/article/1135480/hong-kong-has-fastest-peak-internet-speed-world). Retrieved 16 February 2017

The Global Economy website. (n.d.). Internet Bandwidth – Country Rankings. (http://www.theglobaleconomy.com/rankings/Internet_bandwidth/). Retrieved 16 February 2017

The Internetlivestats website. (n.d.). Internet Users by Country. (http://www.internetlivestats.com/internet-users-by-country/). Retrieved 16 February 2017

Telcos must provide the bandwidth necessary for people to interact and communicate effectively and swiftly. Failure to do so is akin to hampering development. 

One study from ADB illustrates how a reliable IT infrastructure can fast track development across major sectors and themes in society (Olivier Serrat, How Information and Communication Technology Can Fast-Track Development, available at https://www.adb.org/publications/how-ict-can-fast-track-development).

Internet broadband connectivity is also a key driver of economic growth, job creation, and social inclusion, as discussed by a study by World Bank in MIddle East and North Africa supports (Available at: http://www.worldbank.org/en/region/mena/publication/broadband-networks-in-mna).

Many of us here in the Philippines already know that many call centers  make use of the Voice over Internet Protocol (VOIP), which enables people to use the Internet as the transmission medium for telephone calls. If telcos refuse to provide the necessary bandwidth, they are effectively delaying development in this sector, and are actually excluding small players in the growing BPO industry in the country. As stated by Alava (Updates on the Philippine Call Center Industry: the Issue of Sustainability, University of the Philippines, Diliman, available at http://cba.upd.edu.ph/docs/DP/0602_ALAVA.pdf), "A call center’s

primary technological backbone would be composed of network and telecommunications infrastructure technologies owned by the call center as well as technologies available to the public, i.e. the national telecommunications infrastructure, and technologies available from local suppliers, i.e. voice over Internet protocol (VOIP) equipment and software. The extent that such technologies are available and easily accessible to local businesses affects the competitiveness of the Philippines in the global call center industry."

The telecommunication industry in the Philippines has been tagged as among the most expensive yet poorest in terms of service provision for the Filipino users. This is a fact that unintentionally kills the big possibility of earning from a habit that is innately Pinoy – chatting and talking. With the onset of the extensive use of the internet, voice calls and short messages (SMS) should have been claimed by a strong and fast bandwidth of the internet websites or the growing submission to social media. This is not the case, however.

                People have been clamoring for stronger cellphone signals. Globe and Touch Mobile, Smart and Talk & Text and Suncellular have exhausted every possible way to promote their “best” services, yet the consuming public are still disgustedly informed that we are at par with Vietnam in terms of speed and consistency.

                There have been numerous steps taken, and some government leaders have included this issue as among their priority projects once elected, and yet, the consumers are waiting for the promises to be kept while still agonizing over the poor services.

                The most recent development with Telco to welcome new players in the industry is timely and hopeful . New service providers are joining the game, and being a known fact in economics, more competitors means less cost and better service, thus giving the consumers the final benefit. These new telco players are Avocado Broadband Telecoms Incorporated (Republic Act No. 10895), Ama Telecommunications Incorporated (RA No. 10897), Infinivan Incorporated (RA No. 10898), Metro Connections and Telecom Corporation (RA No. 10902), as well as Megamanila Telecom Corporation (RA No. 10903).

                With the open competition bringing in awesome changes for the industry, telco users will be given the opportunity to choose the best bandwidth at the least cost. The radical change will, of course, meet objections and controversies, plus poor patronage at their initial stages of service provision, but their mere presence will send a warning shot to the big players that these new entrants in the industry are “among the disgusted clients who will make sure that what they have experienced with the pioneers will no longer be suffered by the clients”.

                Telco industry, especially in the Philippines is representative of the beat of this generation when people are submitting themselves to extensive social media, and a good internet bandwidth is just all they need to make their lives “a lot happier”.

                The earlier claim that good bandwith will soon take the place of voice calls and SMS is a confronting fact that needs to be addressed. We live in a world and a generation when people are seriously taking the internet as a necessity. Being a need, therefore, it has to be something that will be worth every centavo.

Data demand is causing a big shake-up in telecom firms’ business models

With the growing use of smartphones to access Internet, social media and news, telecom firms are optimizing their multiple networks and investing in IT tools to improve services

Faster speeds, better internet access in 2017 for laggard Philippines: government

Filipinos can bid slow internet speeds goodbye in 2017, the Department of Information Communications and Technology (DICT) said on Monday.

"Next year will be the start of us making the internet faster," DICT Secretary Rodolfo Salalima told CNN Philippines' The Source.

To make this reality, the newly minted department is spearheading a telecoms summit in January 2017 to discuss how to improve internet speed and connectivity in the Philippines, considered to be one of the slowest in Asia.

"From the summit, we'll only be able to see the possible solutions," said Salalima. Pressed for a figure on what faster internet speeds can be expected, he declined to give one.

"I would leave that to the regulator. But definitely you will experience a speedier internet once we have that summit," he said.

In its latest State of the Internet Report for the first quarter of 2016, the Philippines ranked 14 out of 15 countries in the Asia Pacific region, with an average Internet speed of 3.5 Mbps (megabits per second), said U.S.-based content delivery network Akamai Technologies Inc.

The Philippines' average speed is below the global average of 6.3 Mbps and way below the global topnotcher South Korea, with an average speed of 29 Mbps, the Akamai report added.

To prepare for the January summit, telecom regulators were measuring Internet speeds of the top telecom service providers, Salalima told The Source.

"At the same time also we will call the telcos and ask their problems and we will meet head on their problems," he said.

He said he also expected Internet speed to increase following the purchase by telecoms giants Globe Telecoms and Smart Communications of San Miguel Corp.'s telecom assets which included the prized 700 MHz spectrum.

The 700 MHz spectrum is preferred by telecom providers because it has greater range of coverage and can easily pass through obstacles such as walls or trees.

"I understand that bumilis na 'yung speed ng Internet [I understand that Internet speed is faster] in some areas where the telcos are ruling out their cell sites using the 700 megahertz which they are able to acquire from the San Miguel group," he said.

Less red tape key to better Internet service

On top of zeroing in on telecoms' problems and needs, a key move was to lessen the red tape required to build cell sites across the country, the telecoms chief said.

There are only 15,000 cell sites nationwide, Salalima said, compared to Southeast Asian neighbor "Vietnam which started mobile operations only after us but they have triple or four times than that."

The secretary blamed tedious permit procedures and building constraints for the lack of cell sites.

A draft executive order is being drawn up to cut red tape by bringing down to seven or less the number of days required in total for all levels of government, from local to national, to issue a permit to construct a cell site.

"In that executive order, I am putting about three to seven days only within which the LGUs (local government units) or agencies outside the national government must issue the permit," he said. 

In a senate hearing held in January 2015 to improve Internet service in the Philippines, telecom providers testified that it took anywhere from one to six months to secure more than two dozen permits to construct one cell site.

Salalima noted that in August, a memorandum was signed by Salalima's department, and the Departments of Trade and Industry and the Interior and Local Government to speed up the issuance of business permits in the country.

"For permits which are not complicated, only one day. For permits which are little complicated, two days. And for renewal of permits, only one day," the telecoms department chief said.

Hampering cell site construction were protests from private villages fearing that radiation from these sites would affect their health. 

He rebutted these claims, saying that the Court of Appeals had already ruled otherwise and declared cell sites safe from harmful radiation.

Nationwide Wi-Fi

The government also plans to put up its own free nationwide broadband connection. The connection will cater to areas and people without access to major networks.

Extended Wi-Fi spots around the country are also in the works. Salalima said the government is eyeing as many as 1,300 Wi-Fi sites for 2016 and 100,000 sites for 2026.

These measures are in line with the government's efforts to broaden people's access to telecommunication, which the United Nations has deemed a human right.

"Telecommunications – the right to communicate – is a basic human right," Salalima said.

"It is the duty of the government to see to it that the people who have no access to the telecommunication system be given the opportunity to exercise the right to telecommunicate," he added.

Room for more competitors

Salalima said that there is still room for more telecom players in the Philippines, while acknowledging that the country's two telecom giants, Smart Communications and Globe Telecoms, were indeed a duopoly.

"Although there are so many telecommunications firms in the country, there are actually two dominant ones. So in a sense you will call it duopoly," he said.

While Smart and Globe have purchased two-thirds of the 700 MHz spectrum, the Government still holds one-third of that spectrum. "That one-third is open for a third player," Salalima said.

"There is nothing in our law that will prevent a third player… The more the competition, the better for our consumers," he said.

However, he also admitted the difficulties a new company competing with the two telecoms giants would face.

"You have to take into consideration that in order for you to compete, you not only have to have the necessary capital… Even if your service is better than the two existing, marketing is a difficult one," he said.

http://www.livemint.com/Industry/0WjgFgaog2u43QaANMpLpN/Data-demand-is-causing-a-big-shakeup-in-telcos-biz-models.html

http://cnnphilippines.com/news/2016/11/07/faster-speedsbetter-internet-access-in-2017-for-laggard-philippines-government-rodolfo-salalima.html

In an ideal world, internet must be accessible to all. Wei Qiang (2016) stated that connectivity increasingly brings market information, financial services, health services to remote areas, and greatly change people’s lives in unprecedented ways. This should be the ideal scenario for Philippines too. The power of internet should pave the way for growth and development.

However, the plight of telecommunication service in the country is one of the slowest rates among the other countries in the Asia Pacific region (Rappler, 2016).

From the perspective of a subscriber, telecommunication companies should provide strong internet connection for every Filipinos. Currently, we do not enjoy the perks of connectivity and the positive effects of technology revolution. 

In this digital age where connections are at the tip of our hands, providing good bundles for internet will do good especially in building and promoting development projects. It will be a sight to behold if Filipinos will no longer use text messaging in communicating because the internet connection is sufficient.

Currently, enjoying a good internet connection comes with a price. You need to avail their most expensive bundle to get their most reliable connection. Though, networks innovations on promos for text messaging which comes with free mobile data is a welcome development.

People nowadays utilize Messenger (as it is for free) when communicating with others. But the free usage comes along the text promo.

The government continuously sees the problem. They intend to bid slow internet speeds goodbye in 2017, with the creation of the Department of Information Communications and Technology (DICT). Further, policies like faster application in building cell sites will be implemented by local government units. On top of zeroing in on telecoms' problems and needs, a key move was to lessen the red tape required to build cell sites across the country (CNN Phillipines, 2016).

Local telecommunication companies, being private enterprises, often sacrifice service in favor of profit to keep their business alive.  Will we not have a better country if telcos main purpose is to provide genuine care and service for all Filipinos? This must be first extended to the marginalized sector of the society who sometimes are the last to feel the benefits of the latest development in technology.

References:

Wei Qiang, C. Z. (2016). Information for Communications and Technology Development. Retrieved from http://live.worldbank.org/information

Average internet speed in PH slightly declines in Q3 2016 (2016). Retrieved from Rappler.com

Faster speeds, better internet access in 2017 for laggard Philippines: Government. (2016). Retrieved from www.cnnphilippines.com

I shall be anchoring from policy sciences, economics, and e-commerce to answer the question stated above.

Primarily, the expectation as to whether or not telecommunication companies should provide the internet bandwidth and speed is governed by country’s laws and regulatory agencies (e.g. National Telecommunication Commission, Department of Information Communications and Technology [DICT]).  At present, the law which is directly associated to telecommunication is Republic Act No. 7925 (An act to promote and govern the development of Philippine telecommunications and the delivery of public telecommunications services).  I have observed the seemingly lacking anticipatory policy element of RA 7925 as it fails to cover the recent developments in telecommunication such as “internet”, “broadband” and “cellphones”. CNN had reported last 7 November 2016 that DICT Secretary Rodolfo Salalima announced that by 2017 the Filipinos will experience a faster internet speed. From the same article, Salilama was quoted saying that the government plans to install a free nationwide broadband connection to broaden people’s access to telecommunication. He pointed out that “telecommunications – the right to communicate” has been identified by the United Nation as a basic human right and so the people should be given access to telecommunication system and be given the right to telecommunicate.

With these statements from Salilama, I cognize that telcos should be expected to provide the internet bandwidth and speed for all Filipinos to have equal access to telecommunication, a right that has to be exercised.  Telcos should be expected to provide the internet bandwidth and speed not to diminish the demand for voice calls and short message services but rather, to serve as a tool in building a digital Philippines. If telcos are to increase the country’s bandwidth and speed, it should be on the premise of helping us connect on various levels (local, national, global), but not to diminish the demand for voice calls and SMS.

The Philippines is known to be the “most social nation” and so I suppose that even if the country will have faster internet speed, the alternative apps for texting and calling cannot serve as an effective “substitute service” and cannot diminish the demand for voice calls and SMS because of the following reasons:

a.    Consumers’ demographic profile. The age, gender, economic statuses, level of IT skills, are the major factors that dictate the demand of a service.  While Philippines is known to be the “fastest-growing” smartphone nation in Southeast Asia (Medenilla, 2016), it is a fact that not all Filipinos can afford to buy smartphones which can download social media apps, alternative apps/ mobile messaging/ “chat apps” (Facebook Messenger, Whatsapp, Viber, WeChat). Also, even if they already own a smartphone, the network connectivity problems will also persist due to the increasing smartphone-using populace.

b. Marketability of Voice Call and Text Messaging Vs. Messaging Apps. Although IP-based messaging services are becoming popular, there are still Filipinos who rely on the use of text messaging as primary means of communication. It must be noted though that in GSMA-sponsored online survey across Spain, India, China and the US, major differences in marketability was depicted. In Spain, for example, only 23% said they still use SMS daily, compared with more than 75% in the other three markets. Moreover, video calls are much more popular in China and India than in Spain and the US.

c.  Ease Text Messaging. Guerena (2014) pointed out the advantages of text messaging over chat apps messaging. Since text messaging is pre-installed on every cellphone the user will no longer need the internet connection, app store download software update and compatibility to send a message. While group chat sometimes causes us to “lose track of who is saying when switching between different channels”, text messaging is “tidy and streamlined”.

d.    Reliability in Text Messaging. Text messaging depends on satellite signals that provide coverage in the absence of data connection. Unlike chat apps where your message will only be delivered once you have a stable internet connection, a text message is oftentimes sent and received within a couple of seconds (Guerena, 2014).

e.    Messaging apps are prone to hacking. Usually, the app user is required to agree to letting the app access the location, contacts, photos and other private information prior to successfully downloading the app. These make the user’s data even more susceptible to hacking.

f.     Affordability and Functionality. The cost of sending an SMS is inexpensive while voice calls are offered at reasonable prices. The functionality of both SMS and voice calls are also suitable for today’s fast-paced society (Tolentino, 2015).

If telcos are expected to provide the internet bandwidth and speed, its purpose should be for nation-building and establishing a better connection between individuals all over the world. The demand for voice calls and SMS as core services will not be totally diminished despite the faster internet speed as the two plays a key role in connecting most modern technologies and is still preferred by the people because of its ease of usage, reliability, safety, affordability and functionality.

References:

GSMA Report for Shanghai. Retrieved 24 March 2017 from http://www.gsma.com/newsroom/wpcontent/uploads/18083_GSMA_Report_for_Shanghai_LR.pdf

Guerena, E. (2014). Benefits of Text Messaging vs. Mobile Messaging Apps. Retrieved 24 March 2017 from https://www.mobilecommons.com/blog/2014/09/benefits-text-messaging-vs-mobile-messaging-apps/

Medenilla, K. (2016). Philippines: ‘fastest-growing’ smartphone nation in Southeast Asia. Retrieved 26 March 2017 from http://asianjournal.com/news/philippines-fastest-growing-smartphone-nation-in-southeast-asia/

Tolentino, J. (2015). Why are people still using SMS in 2015?. Retrieved 24 March 2017 from https://thenextweb.com/future-of-communications/2015/02/16/people-still-using-sms-2015/#.tnw_7uUpX11J

Hi Prof. Sandy,

I strongly believe that TELCO should focus more on increasing the internet bandwidth and speed a.k.a data plan services for its consumers if the Philippines is to move greater leap forward to the full implementation of 3G, 4G technology or emerging advanced mobile communication technology  nationwide enhancing more mobile-data driven industries and in the process improving the lives of every Filipino in the smartphone era.

Such move though already being integrated in the TELCOs latest offerings is commonly challenged by the need for more robust ICT infrastructure and the scattered geographical locations. I suppose at this moment TELCOs are generating huge revenues with its creative and diversified voice calls and short message services as attested by their balance sheets and latest offerings at the expense however of the consumers wanting for more and/or better services looking for more data plans. The need for more TELCO players who would invest in such technology and the intervention of the government for a national broadband project are most pressing in order to usher more competitions and enhanced services in the mobile communication or internet business.

Why do increasing more data plan than voice calls and text message better for the industry and the consumer? I’ll take my recent travel to Singapore, a developed country in the Southeast Asia, as an example. The moment I reached its airport, the first thing I had to secure in order to explore the City is to get connected is by subscribing for a TELCO service. I get to choose between a data plan SIM and data plan with call and text SIM. The former is cheaper of course than the second. I got the data sim and my wife got the latter. After activation, I was able to immediately install the important apps I need for directions and places in the city. These include gothere.sg and Grab, essential apps for traveler. The apps are powered by the mobile data with plenty of plans and rates to choose from as provided by the TELCOs. Communicating for my wife has never been easy, anywhere I go I could simply talk to my wife via FB messenger or Skype. I could easily book a Grab car for a reasonable price than a taxi and, of course, guiding my trips or destinations are Google maps or Waze so I know the length of time and my real-time location in all my explorations.

What’s my point here? When I availed the data plan, I was not only using it for multimedia communication (unlike the voice and/or call only), I am becoming part or important consumer of another industry or even more, in my case, the Grab car, driver and/or operator are also generating profit. Thus, all of the experiences with the data plan are worthy it. I get to maximize and use my time well in the city, travelling effortlessly, not bothering whether the taxi driver is doing something nasty. I get to go to the places I need to go on time. I could Google anything in my fingertips for important information and a lot more. In short, I get good return on the money I spent on the data plan and paid for other services mediated by this technology or services. Just imagine when this kind of scenario is fully implemented in strategic locations in the Philippines more so even in the rural areas. What could mobile internet provide more than the call and text services? How about the industries that TELCOs partnering in the process, not only they are generating huge income but they are even more boosting marketing and other services (in government, private etc.) local and elsewhere in the process.

TELCOs should do it now more than ever because this is a way to a better living, learning and earning in the mobile age. However, they can’t do this alone. They need greater competition, intervention, and collaboration from all sectors in all levels local and abroad.

All the best,

Reynald

In 2011, the United Nations officially recognized internet access as a human right – underscoring the internet’s potential to promote economic, social and political progress through the rapid and inexpensive flow of capital, information, knowledge and curricula across national borders.

It was reported by Akamai that in 2014, the The Philippines has the third-slowest Internet speed in locations surveyed in Asia and the Pacific. In 2016, the average internet speed was at relative standstill which is slightly down from 4.3 Mbps in the 2nd quarter to 4.2 Mbps.

In November 7, 2016, Department of Information Communications and Technology (DICT) Secretary Rodolfo Salalima told CNN Philippines' The Source that “Telecommunications – the right to communicate – is a basic human right and assured the Filipino public that internet will be faster by this year, 2017. The said growth will be through the expansion of technological infrastructures that support Internet and mobile connections in coordination with the Telcos. Salalima also mentioned their plan of asking directly the Telcos their problems and will met their problems immediately.

With the integration of ASEAN member states into the ASEAN Economic Community in 2015, the internet’s role as a driver of economic progress and coordination will only become more salient. According to most analyses, lagging internet speeds and an increasing trend towards censorship across Southeast Asia will only hinder economic development and advancement.

Last January 26, 2017, We Are Social and Hootsuite published comprehensive report indicating that 60M (58%) Filipinos out of 103 M of the total population are active internet users. There are 129.4M mobile subscriptions which means 126% vs the total population of the country are using more than one sim. Interestingly enough internet use, social media use, mobile subscription and mobile social users in the country has consistently increased and that Filipinos spend nine ( 9) hours each day using the internet either via PC of tablet. Another interesting fact is that the most commonly accessed messaging apps or VOIP are FB Messenger, Skype, viber and webchat.  These behaviors are just some of the evidences that there are strong demands for quality internet services from the Telcos and these are expected to continue for more years to come.

So what is the Philippine government doing now to address such concerns? In 2016, President Duterte had tasked the newly established Department of Information and Communications technology (DICT) to carry out a National Broadband Plan (NBP), citing the intended results of free public WiFi access, as well as the improvement of the country’s overall Internet speed. 

Below are interesting details shared by Anne Mari Ronquillo of Rappler.com on how NBP will address the issue of internet connection quality in the Philippines.

Over the course of 10 years (2017 - 2027), the NBP will have produced 4 parallel outcomes through its overall strategy of staging interventions within the Information and Communications Technology (ICT) industry. These are:

Accelerated Investment

Market players, such as existing and upcoming Internet and telecommunications providers, will be given the opportunity to penetrate underserved and unserved areas, particularly the ones outside of industrial zones and major cities.  

Mobilized and Engaged Public and Private Sector

The government will be working with both public and private institutions relevant to the improvement and deployment of broadband technologies. The crux of this strategy is coordination among all involved institutions to minimize implementation costs as well as public disruptions from physical construction. 

More Places Connected 

All government facilities, public schools, health institutions, and MSMEs will adopt current technologies and benefit from Internet connectivity. In addition to broadband infrastructures, the government will also utilize other technologies namely spectrum frequencies and satellites for wider distribution of broadband access.

The establishment of the Philippine Integrated Infostructure (PhII) will enable the same facilities to utilize ICT services. Integration with existing infrastructure installed by big providers like PLDT, Globe, and the National Grid, will play a part in keeping costs down.

Increased Take-Up Rate 

As broadband access is melded into public institutions and services, the government will actively promote its use while assessing and adjusting to the needs of newer users, specifically in the rural areas.

Local content developers can expect government support in creating and promoting their applications by implementing policies and providing incentives. There will also be outreach programs that will help the adopting public understand the practical benefits of broadband access, anywhere from educational to commercial.

This proposed architecture will ensure that unserved and underserved rural areas in the country will be given access points to the Internet at affordable costs. The goal is to provide connections of at least 10 Mbps to subscribers by 2020. 

How exactly will the NBP address the country’s current issues on Internet connectivity? 

There are several policy reforms proposed, one of which is at the constitutional level, that will help fast-track investment and operations in the ICT sector. Currently, telecommunications companies need to secure a legislative franchise prior to operations, which eats up the same amount of time as getting a law passed. The processing of permits required to erect cell towers will be reviewed and streamlined to avoid any redundancies and delays.

An Open Access and Peering Policy will foster competition in the ICT industry by having service providers allow access to each other’s facilities on reasonable terms. This will help lower costs because new providers will not have to invest in physical infrastructure, for instance, laying down more cables when there are existing ones.

Internet Exchange Points (IXP), like the Philippine Open Internet Exchange (PhOPENIX), allows network interconnection, which makes for efficient routing and traffic. Peering arrangements between service providers and telcos will address the country’s speed issues, and the government has set to open a new exchange point that any network can connect to. 

Establishing a Universal Access Fund will help direct funding to rural areas that need help adopting the new technologies. This, along with using existing facilities and the suggested open access frameworks and models are poised to enable smaller economies to thrive. 

Feasibility studies will be conducted to ensure proper scope, goal, and cost setting. Once the targets have been defined, there will be a competitive bidding process that will award the projects to the most suitable providers.  

Who will be involved in the implementation of the NBP?

The DICT will establish a Project Management Office to see the NBP through. The Office is said to be accountable to the development and outcome of the NBP, and will be creating its own internal policies and plans. 

National and local governments will be key influencers in carrying out the NBP, especially on the regulatory front. The government also has the power to stage interventions in necessary areas through the said policy reforms and investor relations.

Service providers, such as telecommunications companies and ISPs are also key participants in the building and integration of the proposed infrastructures. As the deliverers to individual consumers, they will need to start improving the quality and cost of services offered.

Local communities and groups have the essential role of effecting change on a micro level. These groups will have to work on programs that will engage new users, especially on the countryside, to welcome new technology and pursue its benefits.

As more and more are becoming ‘digital migrants’ and the new generation being ‘digital natives’, YES, Telco’s should definitely improve the quality of their services in terms of speed, reliability and price. Aside from the strong demand and need, faster internet connection will help the economic progress and development of the country in the light of ASEAN integration. Besides, it is already considered as a basic human right. Hopefully the government’s initiative through DICT’s National Broadband Plan policy will ensure a faster, cheaper and more efficient internet services from now on.  

Sources:

CNN Philippines Staff. ( 2016, November 7). Faster speeds, Better Internet Access in 2017 for Laggard Philippines: Government. CNNPhilippines.com. Retrieved from http://cnnphilippines.com/news/2016/11/07/faster-speedsbetter-internet-access-in-2017-for-laggard-philippines-government-rodolfo-salalima.html 

Dezan, S. (2014, April 24). Internet Speeds Across ASEAN. ASEAN Briefing. Retrieved from http://www.aseanbriefing.com/news/2014/04/24/internet-speeds-across-asean.html

Kemp, S. (2017, February 16). Digital in Southeast Asia in 2017. Wearesocial.com. Retrieved from https://wearesocial.com/uk/blog/2017/02/digital-southeast-asia-2017. 

Gonzales, G. (2016, December 23). Average Internet Speed in PH Slightly Declines in Q3 2016-Report. Rappler.com. Retrieved from http://www.rappler.com/technology/156415-average-internet-speeds-philippines-q3-2016-akamai

Ronquillo, A.M. (2017, March 26). What is the National Broadband Plan?. Rappler.com. Retrieved from http://www.rappler.com/technology/features/164718-what-is-the-national-broadband-plan

UNESCO. (2016, May 12). UNESCO launches its publication on Internet and Freedom of Expression. Retrieved from http://www.unesco.org/new/en/media-services/single-view/news/unesco_launches_in_panama_a_publication_on_internet_and_fre/

McLuhan (1962) states in the Technological Determinism Theory that media technology shapes how we as individuals in a society think, feel, act and how society has operated as we move from the technological age to another. This means, that we have the control in dominating the cyber world to enhance communication. Technology has to evolve because people dictate the provider based on the need of the society to communicate with one another.

In an article (“Telecommunications companies’ reinvention, 2011”) states that Telcos as communication service providers can no longer rely on just providing access to an underlying wire-line or wireless network’s resources. Moreover, the Telcos need to consider how they can encourage and support value added services as well as the connection; otherwise they will simply become easily replaceable ‘bit pipes’. However, they do have a key asset, which is often underexploited—the relationship with customers—and this could hold the key to their on-going success (“Telecommunications companies’ reinvention, 2011”).

Furthermore, (“Telecommunications companies’ reinvention, 2011”) states that telecommunications providers can open a richer commercial dialogue with their customers and add value to content and service creators. The amount of tailoring and shaping used to hone the user experience may vary, but done well, it can make it easier to stimulate communication and ultimately increase loyalty, without making customers feel trapped or cornered.Operators are in the perfect position to deliver on this promise; they have all the information to hand, it just needs to be used effectively and consistently (“Telecommunications companies’ reinvention, 2011”).

In the Philippines, the service on call and short message services is being eliminated little by little since the Telcos are offering free data, wherein the people can communicate with one another using the Facebook Messenger. But since the data are just free, the connection is very slow and the Telcos are still thinking of their own good. The Telcos should provide a good Internet bandwidth to attract more people because as my experience and based on the rants of the people, most of the Telcos are giving us no options.

References:

Mass Communication Theory: from Theory to Practical Application (n.d.) Retrieved from https://masscommtheory.com/theory-overviews/technological-determinism/

Telecommunications companies’ reinvention (2011). Retrieved from www.oracle.com/us/products/applications/atg/quocirc1-voice-eservice-520363.pdf

It is no longer a question of expectation but a question of time and a matter of survival for the Philippine telcos especially now that their markets are increasingly moving away from voice calls and short message services to internet platforms such as Facebook, Viber, and Whatsapp among others.

Globe and PLDT-Smart disclosed that their earnings have been consistently declining. In an Inquirer interview, PLDT confirmed that in in the first nine months of 2016, “voice service revenues fell 18 percent to P28.3 billion, while Globe saw a 9-percent drop to P25.4 billion. By contrast, mobile internet revenues rose 34 percent for Globe and 45 percent for PLDT (Camus, 2016).”

With an average internet speed of 3.6Mbps in the Philippines compared to the world’s internet standard of 6.5MBPS, it is but necessary for both telcos to improve internet services which are also deemed intermittent, expensive, and generally unreliable.

In an Inquirer interview, Ericsson Philippines and Pacific Islands president and country manager Sean Gowran (as cited in “PH telco’s capex, 2017) stated that “migration to newer technologies such as LTE is the key to providing an efficient network and better customer experience to subscribers and that service providers must also capitalize on various business industries’ digitalization revenue opportunities.”

Apparently, the suggested new technology is not so new anymore. Multi-billion dollar companies such as Google, Amazon, and Facebook are now working on providing internet access which will inevitably affect and even displace other local and international telcos. For example, instead of building cell towers, Google Fiber is shifting toward wireless Internet over fiber-optic cables which would let your phone use the best signal available at any moment.

 Finley (2016) explained that “traditional roaming won’t let you switch to another carrier’s stronger signal. Google-Fi offers the best signal, period, no matter where you are by building a service that would let people connect to public Wi-Fi using a common login. This could change the economics of wireless service. Instead of signing up with a single carrier, there will be a mobile virtual network provider to choose and use the best network available. Today’s carriers would become invisible wholesalers competing to offer access at the cheapest rates. That could save you big money while providing superior service…Amazon, Facebook and Google have long built their data centers and leased or bought unused fiber-optic infrastructure–so-called “dark fiber”–to connect them, bypassing traditional telcos. Since Amazon runs the world’s biggest cloud hosting service, untold numbers of apps and websites rely upon this service to carry their data. Traditional telcos have no part of that.”

A more radical move was initiated by Facebook with its internet-beaming and solar-powered drone named Aquila to provide internet access in remote parts of the world. Zuckerberg (as cited in Newton, 2016) declared that “it’s a linchpin of the company’s plan to bring the internet to all 7 billion people on Earth…doing so will lift millions of people out of poverty, improving education and health globally along the way. But it will also enable the next generation of Facebook’s services in artificial intelligence, virtual reality, and more. This next era of tech will require higher bandwidth and more reliable connections than we have today, and drones can help deliver both.”

The success of these initiatives can quickly weaken the telcos in the Philippines and other countries. Since Facebook and Google are starting to invest heavily not only on multimedia platforms over the internet but also on internet accessibility, such competition would push Philippine and other country’s telcos to upgrade their internet services or they will become obsolete by the competition that these two giants will soon represent.

Finley (2016) emphasized that as “new technologies and expanded access to the wireless spectrum drive down the cost of operating cell services, Google and other wireless brokers will be able to create nationwide–even worldwide–networks.” He added that, “Google-Fi, Amazon’s rumored Internet service and Facebook’s open source hardware could spur greater innovation from entrenched telcos. The risk, of course, is that those tech companies simply replace telcos as the new oligopoly.”

References:                              

Camus, M. (2016, May 31). PLDT, Globe buy SMC telco for P69B. Philippine Daily Inquirer. Retrieved from http://business.inquirer.net/210708/pldt-globe-buy-smc-telco-for-p69b.

Finney, K. (2016). How Amazon, Google, and Facebook will bring down Telcos. Wired. Retrieved from https://www.wired.com/2016/12the-end-of-telcos/.

PH telcos’ capex among the highest worldwide. (2017, March 27). Philippine Daily Inquirer. Retrieved from http://business.inquirer.net/226856/ph-telcos-capex-among-highest-worldwide.

Newton, C. (2016). Inside the test flight of Facebook’s first internet drone. The Verge. https://www.theverge.com/a/mark-zuckerberg-future-of-facebook/aquila-drone-internet

As I was strolling in different malls, I observed how different mobile phone companies are aggressive in marketing, promoting and advertising their product. Different brands of phones were being offered to consumers. Each product having features that will attract buyers to give in. What I see in the market is that more and more products are being offered and new features of such technologies are being introduced. Innovations of such features are being updated from time to time. A fast change and a fast market is present.

 The question is, are our telecommunication providers geared up for these innovations? Can they serve the demands of the consumers as well as the demands of innovations?

 “PH telcos’ existing positions are now challenged by surge in ICT demand. The Philippines, from having been known as the ‘texting capital of the world’ has now taken the global lead in social media usage with the average Filipino spending 4 hours and 7 minutes per day on social media sites, according to the Digital Report in 2017 by  Hootsuite and We Are Social. This high rate of usage, however, stands in contrast to currently available Internet speeds. As of Akamai Q3 2016 report, PH has the second slowest fixed line broadband Internet speed in the world.” (http://www.dict.gov.ph/the-state-of-ph-telecoms-service/)

 People need to communicate, it is natural for humans to communicate and express thoughts/ideas.The need to give and receive information is necessary for a person to grow, it also builds relationship as well as maintain it. For the Philippines, as a nation and as a member of regional and global organizations, need its telco industry grip up with the phase of other nation. “While the telecom sector in the Philippines has witnessed considerable investment and business activity since deregulation, the market has continued to fall short of its full potential “ (https://www.budde.com.au/Research/Philippines-Telecoms-Infrastructure-Operators-Regulations-Statistics-and-Analyses).

 At present there are few players in the Telecommunication market, as an article in Philippine Daily Inquirer would consider it as duopoly of the industry pertaining to PLDT-Smart and Globe Telecoms. And they should be able to meet the demands of the market especially that there is a growing number of use of internet as well as social media. According to Rappler, “staying connected is a fundamental need for Filipinos” (http://www.rappler.com/brandrap/profile-internet-users-ph).

 The telecommunications company should provide the Internet Bandwith needed as well as an increase in speed so as to cope up with other nations’ present Internet situations. I remember when I went to Thailand, the speed of its internet is very fast that I totally wanting to stay there because compared to the speed here in the Philippines is way too slow. As Philippines build its industries and its economy, it would need a faster delivery of its communication be it local or outside the country. Most businesses are geared towards online business transactions, the country should demand for an upgraded Bandwith and speed of communication.

 Filipinos love to be entertained that they looked for options where they can have easy and fast access to it with less cost. If there are many market players, we have many options just like the mobile phone brands where we can choose which brand and model we want. However, since there are few players in the telco industry, we may be trapped in whatever service they can only provide. As an article of PDI mentioned earlier stated that both telcos “needed to improve internet services, which have been criticised for being both “slow and expensive” compared to regional peers” (http://newsinfo.inquirer.net/788546/only-govt-can-be-3rd-force-in-telco-ang.).

 The government should also take its stand on this they should invite more market players in the telecommunications market so as to create competitions that may make services improved as well as affordable to Filipinos. In a CNN Philippines interview, DICT Secretary Rodolfo Salalima said that "There is nothing in our law that will prevent a third player… The more the competition, the better for our consumers"( http://cnnphilippines.com/news/2016/11/07/faster-speedsbetter-internet-access-in-2017-for-laggard-philippines-government-rodolfo-salalima.html).

 The Internet can serve as an educational space for different Universities and Colleges. Most academic institutions are being aggressive in making linkages with different universities both local and international. The use of Internet is very important in sharing best practices as well as communications in case they have partnership in programs and research. A slow speed and an inappropriate Bandwith can lessen the success of such linkage. This can be related to Chapter 6 of Dr. Alexander G. Flor’s Development Communication Praxis about information generation and information utilization. In the Internet, there are plenty of information and researches uploaded and available for all who has access in the Internet. A slow internet access of a university may hinder them in utilizing these information and research. An information needed by a professor or a student, if their Internet in the university is slow, would take half day just to download it or at times it would not open, an opportunity to use the information or literature will come to waste.

 Philippine telecommunication companies should consider the demands and sentiments of the Filipinos and its institution as well as the demands of ASEAN and the global community as well. The government should act and provide policies and measures so as to help these companies as well as invite other players. Providing structures are not just mere problems here, an improved and efficient networking should be taken in consideration as well. “In order to speed up the Internet in the country, there is a need to activate more cell sites, according to most telco providers, but the bureaucratic red tape gets in the way of network deployment. The tedious process of securing permits from many local governments, national government agencies, barangays and subdivisions impedes construction, thus affecting the availablity of service in certain areas” (http://www.dict.gov.ph/the-state-of-ph-telecoms-service/) . A better and unifying policies in providing permits to construct and operate should be formulated as well as monitoring strategies should be implemented.

 References:

 Philippines TELECOMS Summit 2017: Telecommunications for Nation Building: National Consensus and Solutions for Progress.  Retrieved from http://www.dict.gov.ph/the-state-of-ph-telecoms-service/

 Philippines Telco Infrastructure Operators, Regulations, Statistics and Analysis. Retrieved from (https://www.budde.com.au/Research/Philippines-Telecoms-Infrastructure-Operators-Regulations-Statistics-and-Analyses)

A Profile of Internet Users in the Philippines. Retrieved from http://www.rappler.com/brandrap/profile-internet-users-ph

 Faster Speeds, Better Internet Access in 2017 for Laggard Philippines: Government. Retrieved from http://cnnphilippines.com/news/2016/11/07/faster-speedsbetter-internet-access-in-2017-for-laggard-philippines-government-rodolfo-salalima.html

 Flor, Alexander G. Development Communication Praxis. University of the Philippines Open University

Should Telco’s be expected to provide the Internet bandwidth and speed that would diminish the demand for voice calls and short message services?

Data services in the Philippines are among the most expensive and least accessible in the world according to 2015 World Economic Forum figures. Private telecommunications service providers are often accused of dragging their feet when it comes to providing these services. Are there studies or big data that would support or debunk this claim?.

The United Nations Human Rights Council passed a resolution declaring that internet access is a basic human right (McKenney, 2016). However, with the private nature of these telcos, they are not expected to legally provide faster Internet bandwidth and speed unless the Philippine government mandates these companies to do so.

Philippines with more than 7000 islands and Telco services. 

According  to  We Are Social study,  as  of   January  2017, the Philippines has the third slowest internet speed with 4.2 mbps versus fastest in the globe, which is South Korea at 26.3 mbps. If we will compare the internet situation of the Philippines versus South Korea, it will show that the telcos are not entirely to blame for the slow speed of the country’s internet. According to Penalosa (2015), there are six factors that contribute to the slow internet speed of the country: First, the Philippines’ archipelago poses constraints to the expansion of the Telcos’ infrastructure. Infrastructure in far-flung areas are expensive and revenue projection in rural markets is low. Second, the lack of a National Broadband Plan hinders development in infrastructure. The South Korean government has encouraged its citizens to get computers and to hook up to high-speed Internet connections by subsidizing the price of connections for low-income and traditionally unconnected people (Sutter, 2010). South Korea has set a priority in the 1990s that it would be a highly connected country with a high degree of Internet literacy and continues to invest a lot of money in their infrastructure. As stressed by Penalosa (2015), private investment is not enough. Third, the congestion in the National Network introduces a lot of traffic on the network, which slows down the Internet. The rise of the internet users in the Philippines and proliferation of smartphones and tablet add to the network traffic. Fourth, R.A. 7925  or the Public Telecommunications Policy Act of the Philippines is outdated. The wordings of R.A. 7925 does not include “internet,” “broadband,” “cellphones” or “computers” and it is focused more on telephone networks and services and mobile radio systems. Thus, NTC cannot regulate Telcos, because internet is considered as value added service and not basic service. Fifth, telcos should collaborate through internet exchanges or IP peering. A number of governments, including South Korea and Japan and several European countries, have experimented with or embraced infrastructure-sharing as a way to get new companies to compete in the broadband market. With this, countries create a way for companies to enter the broadband market without having to pay for huge amounts of infrastructure (Sutter, 2010). Penalosa (2015) further added that competition law is necessary to prohibit acts and practices from stifling the competition or preventing new players into the telecommunication industry. Lastly, the application of Infrastructure Permits in LGUs is delaying development. There is no uniformity in the processing of permits and fees in different local government units causing delay and difficulty in the building of cellsites. NTC Commissioner Gamaliel Cordoba showed in a presentation at the public hearing on Smart Communications’ franchise that an average of 25-30 permits from LGUs are required for the construction of one cell site, processed in a span of eight (8) months. He also emphasized the lack of uniformity in processing fees in different LGUs. http://www.dict.gov.ph/the-state-of-ph-telecoms-service/

With this, we cannot totally fault the telcos of dragging their feet when it comes to providing better services, since the Philippine government participation and involvement is a prerequisite in achieving faster services as shown by the South Korea government. 

There probably should be a team work and coordination between the public government and private sector to provide better services, facilities and prices for telecom products, and proactive initiative should come from both parties to speed up improvements to benefit all. The government can initiate tax break and other incentives, speed up processes and approvals; whilst the private sector can efficiently speed up solution and recommendations to improve telco services. Objectives to achieve are to create a win-win situation for the telco companies, the government, and the end users. This improvement in efficiency in Telco services and costs can make the country more competitive vs. other nations, and to help in progress and in achieving various national and worldwide goals.

References:        

Business Mirror (2015).  PLDT, Globe ready to battle with Telstra.  Retrieved from http://www.businessmirror.com.ph/pldt-globe-ready-to-battle-with-telstra/

Department of Information and Communications Technology. (2017). The State of PH Telecoms Service. Retrieved April 26 2017, from Department of Information and Communications Technology Web Site:http://www.dict.gov.ph/the-state-of-ph-telecoms-service/

Forbes (2016).  How The Philippines Got Asia's Worst Internet Service.  Retrieved from https://www.forbes.com/sites/ralphjennings/2016/02/23/meet-asias-internet-laggard-the-philippines/#e0b377e3df7a

GMA Network (2015).  LIST: Philippines Ranks 21st of 22 Asian countries in Internet Download Speed. Retrieved from http://www.gmanetwork.com/news/story/489762/scitech/technology/list-philippines-ranks-21st-of-22-asian-countries-in-internet-download-speed

GMA News Online (2016).  Globe, PLDT "support" call for faster internet after Duterte warning. Retrieved from http://www.gmanetwork.com/news/money/companies/567343/globe-pldt-support-call-for-faster-internet-after-duterte-warning/story

Inquirer.Net (2015).  PH Internet 2nd slowest in Asia, one of the most expensive.  Retrieved from http://technology.inquirer.net/42293/ph-internet-2nd-slowest-in-asia-one-of-the-most-expensive

International Telecommunication Union (2015). Measuring the Information Society Report. Geneva, Switzerland: ITU. Retrieved from http://www.itu.int/en/ITU-D/Statistics/Documents/publications/misr2015/MISR2015-w5.pdf

McKenney, K. (2016). The UN Declares Internet Access A Basic Human Right. Retrieved April 26, 2017, from Paste Magazine Web Site: https://www.pastemagazine.com/articles/2016/07/the-un-declares-internet-access-a-basic-human-righ.html.

Penalosa, R. (2015). The Philippines Telecom Status & Situation. Retrieved April 26, 2017, from Institute of Integrated Electrical Engineers of the Philippines Web Site: http://iiee.org.ph/wp-content/uploads/2015/12/FR4_IIEE-_The-Philippines-Telecom-Situation.pdf

Philippine Star (2016).  Philippine Internet is Improving but still the Slowest in the World.  Retrieved from http://www.philstar.com/technology/2016/10/10/1631885/philippine-internet-improving-still-slowest-world

Rappler (2016).  Average internet speed in PH slightly declines in Q3 2016 – report.  Retrieved from http://www.rappler.com/technology/156415-average-internet-speeds-philippines-q3-2016-akamai

Sutter, J. D. (2010). Why Internet Connections are Fastest in South Korea. Retrieved April 26, 2017, from CNN Web Site: http://edition.cnn.com/2010/TECH/03/31/broadband.south.korea/

Sun Star (2016). Newly formed agencies to aid Duterte in improving PH's internet service.   Retrieved http://www.sunstar.com.ph/manila/local-news/2016/09/29/newly-formed-agencies-aid-duterte-improving-phs-internet-service-475633

Should Telco’s be expected to provide the Internet bandwidth and speed that would diminish the demand for voice calls and short message services?

In addition to my earlier posting, if Telcos can provide the internet bandwith and speed to diminish the demand for voice calls and sms messages, this can help solve many communication problems and even be able to bring education efficiently to all parts of the Philippines. Students may not have to travel, traffic and energy consumption can be less, and education and communication will be available and affordable for all.

In June 2011, UNESCO has recognized that Internet access is a basic human right compliant with Article 19, paragraph 3 of the International Covenant on Civil and Political Rights.

To this date, however, the country’s law on public service, the Public Service Act of 1936, has yet to be updated to recognize Internet service as “basic service” and not simply a “value added service.”

There is good news, however. Although the country’s laws badly need updating to keep up with technological developments and market trends, recent government policy and actions indicate that Internet access is now recognized as a “basic service.” Last May 2016, the government earmarked nearly Php1.8 billion to provide free WIFI access in key public places.

I welcome this development because I know for a fact that Internet access using data services provided by telecommunications companies is very expensive. Sure, they have made Facebook access free or cheaper to some extent but access to other websites is not only slow but too expensive as well.

Now, the question is: Should telecommunication companies be expected to provide the Internet bandwidth and speed that would diminish the demand for voice calls and short message services? Is there big data to support the claim that telcos hesitate to provide adequate Internet bandwidth and speed for data services?

I believe the question above is framed on the context that bandwidth is not infinite and that voice calls and SMS would be negatively affected if telcos allot more bandwidth for data services, thus reducing the amount of bandwidth allotted to voice and SMS. With limited bandwidth, congestion do happen and it is no secret that telcos often do allocation of bandwidth as well, resulting in slow access in some parts and fast access in other parts at certain times of the day.

For the first question, my answer is a resounding, “YES!’. Voice and video calls over IP and SMS services (i.e. messenger app) now run on the Internet. Making voice and video calls via Facebook Messenger to anywhere in or outside the country, for example, is easy and, if there’s government sponsored free Wifi access in your area, it is free!

But there is a big BUT to the above. I also recognize that what I want does not matter much because this decision is a business decision for the telcos to make. The government is legally constrained when dealing with telcos. Although supposedly regulated by the National Telecommunication Commission, telcos are private companies and the law on Public Service Act of 1936 has yet to be amended.

Now, is there big data to support the claim that telcos hesitate to provide adequate Internet bandwidth and speed for data services? I believe, there is no big data to support this but there is an explanation as to why the problem persists, why telecom are still not ready to make data connection affordable and readily available or accessible to everyone. And these are cost and congestion.

Below is a lift from an Rappler article which came out in May 2014:

"In a hearing of the Senate trade committee on Wednesday, May 28, Legarda pressed officials of telecommunication companies Globe and Smart to explain why she has to pay for a service that is expensive but unreliable. She said she spoke not just as a legislator but a consumer.

“As we speak, there is no Internet in my office,” Legarda said. “Internet is either absent or excruciatingly slow which is so exasperating, frustrating. I don't like high-tech answers, please. I am not high-tech. Gusto ko maintindihan. Ang mahal ng singil, bakit ganoon? (I want to understand. You charge so much, why is that?)

Officials responded that the top reason for poor Internet connection in the Philippines was congestion.

“You can have a network with more than adequate capacity but you can have congestion in a specific area. The common example is a concert. Tens of thousands are in one area. All have cellphones; many taking selfies. It’s hard to design a network that can handle that capacity,” said Ramon Isberto, head of the public affairs group of Smart Communications.

Isberto said that to solve the problem, telcos have to invest in their networks by building more cell sites or adding equipment to existing ones “but it will entail capital expenditure.”

In reality, the telcos have not stopped making investments or capital expenditures on data connection. Only last year, they have already started offering LTE technology, a 4G mobile communications standard with data speeds of up to 10 times faster than the current 3G network, albeit in some select areas only.

Sadly, however, all capital expenditures made by the telcos will eventually have to be shouldered by the consumers. Unlike in some countries including Singapore, the country is not ready to financially support capital expenditure for data connection. More capital expenditure spells higher data connection cost that consumers will also have to bear.  

References

Kravets, D. (3 June 2011) UN Report Declared Internet Access a Human Right. Available at: https://www.wired.com/2011/06/internet-a-human-right/

Macaraig, Ayee. (28 May 2014). ‘Make Internet a basic service in PH’. Rappler. Available at: http://www.rappler.com/nation/59144-senate-hearing-slow-expensive-internet

Philippines - Telecoms Infrastructure, Operators, Regulations - Statistics and Analyses Available at: https://www.budde.com.au/Research/Philippines-Telecoms-Infrastructure-Operators-Regulations-Statistics-and-Analyses

Penalosa, R. (n.d.) “The Philippines Telecom Status & Situation”. Available at http://iiee.org.ph/wp-content/uploads/2015/12/FR4_IIEE-_The-Philippines-Telecom-Situation.pdf

Rappler. (26 July 2015). Prioritize free Wi-Fi in hospitals, airports, trains – Recto. Available at: http://www.rappler.com/nation/100520-ralph-recto-prioritze-free-wifi-hospitals-airports-trains

Rappler. (4 September 2016) P1.76B earmarked for free Wi-Fi in proposed 2017 budget Available at: http://www.rappler.com/business/governance/145175-philippines-free-wifi-public-areas-dict-2017-budget

Living in an Information society brings loads of advantages. Personally, I’m thankful for google maps and waze for telling me the most efficient way to get from where I am to my destination. I also get the latest news from rappler and twitter. Being an online student, I rely on Internet connectivity in order to research, interact, and do my graduate school successfully. If I can do these (and more other activities that I have not mentioned yet), given the expensive and rather slow and unreliable data services in the country, imagine what more we can do if services are faster and more accessible. In terms of voice calls and SMS, I am part of the millions of subscribers who use smart phones for Internet services, instead of the traditional call and text.

Since many are clamoring for improved telecommunications in the country, Telcos are definitely expected to provide better Internet services. But they cannot do it alone. Both the government and the civil society should act as well.

In 1994, the Public Telecommunications Policy Act of the Philippines" (RA7925) was legislated. In this telecom policy, the Internet is a value added service, instead of a basic service (Albert, Serafica & Lumbera, 2016). Fortunately for us, the Department of Information Communications and Technology, a newly established agency, is working on improving Internet speed and connectivity in the country (CNN Philippines, 2016). According to the same news report, the government’s move to reduce the red tape in the process of securing permits for building cell sites is called for in order for telecoms to improve their service.

Accusations that telecoms lack the will to improve their services have basis. This seems to stem from their present context – lack of competition because there are only two major players in the telecomm industry – Globe and PLDT. Despite the attempt of some companies to join the Philippines’ telecom industry, the duopoly which pervaded the scene for so long is hard to penetrate. Political and legal risks hamper them from doing so. An article from telcomasia also reported that there is no longer mobile frequency for new players except for what’s left after PLDT and Globe bought shares in San Miguel’s telecom business. We can see here that for these big corporations to be permitted to maintain their hefty share of the broadband spectrum, government regulations are lacking.

Competition and transparency in the industry is needed to spur a more inclusive telecommunication service. A report from the Philippine Institute for Development Studies (PIDS) states that the Philippine Competition Commission is established, and it has to “develop the capacity to investigate and prosecute complex violations to competition law.” Philippines also has to seek guidance from high-income countries who succeeded in their drive to promote competitive environments, along with economic activity.

From the same PIDS report, the proposal is for the government to set a policy framework that imposes quality standards and improves accountability measures. The private telcos are said to be doing its part in investing in telecom infrastructures. But high quality broadband is made available only in BPO and techno hubs concentrated in central areas. The periphery areas where the rest of the population are, remain neglected.

Overall, the policy-making efforts must take into account the varied interests and concerns of the stakeholders, and most importantly, the consumers’ clamor for reliable, fast, and cheap data services. Narrowing the digital divide will definitely help narrow the economic divide.

References:

Albert, J. R. G., Serafica, R.B., and Lumbera, B.T. (2016). Examining Trends in ICT Statistics: How Does the Philippines Fare in ICT? Philippine Institute for Development Studies. Retrieved from http://dirp3.pids.gov.ph/websitecms/CDN/PUBLICATIONS/pidsdps1616.pdf.

CNN Philippines. (2016). Faster speeds, better internet access in 2017 for laggard Philippines: government. Retrieved from http://cnnphilippines.com/news/2016/11/07/faster-speedsbetter-internet-access-in-2017-for-laggard-philippines-government-rodolfo-salalima.html.

Does the Philippines need a third telco? (2016). Retrieved from https://www.telecomasia.net/blog/content/does-philippines-need-third-telco.

Capitalism among Telecommunication Companies in the Philippines is exclusively the main reason that we are included among the most expensive internet services in the world. The demand of internet capitalizes the opportunity for business. Here, the business owners are in the win-win situation leaving the consumers on losing side.

It is regarded by many consumers that the amount they are paying for the internet fee is not equated on the services they are expecting to receive. Commercials of the internet service providers promise to offer a strong internet connection for availing a promo which cost for around 600 Php to 2000 Php depending on the desired bandwidth or bytes exclusively to be used for a month. However, experiencing poor internet connections is common among the consumers. Despite this, considering that the consumers are on the losing side, they are still availing the internet services because they have no choice.

In the New Information Age, internet plays a very important role in transmitting information of various files unlike transmission through voice calls and short message. Though at present, other internet providers are giving free Facebook Data that allows users to exchange information through the Messenger App of the social media account. However, the function is only limited to exchange of text messages and photos. Sharing of files like documents, video, audio, and other multimedia messages can be applicable should a consumer avail of the internet services. The good thing about it, it lessens expenses on part of the consumer instead of sending messages using a regular text message in handheld devices.

On the other hand, not all areas are reached by the bandwidth of the internet because of limited number of cell sites in outreach areas in the country to think that there are isolated islets and mountainous areas surrounding the country. Hence, the need to strengthening the bandwidth is really a call. It might be expensive, and sound so ideal, but other countries like Indonesia (with 91 Million internet users and has similar geographical location like of the Philippines) has able to improve its internet services. Policy implementation matters and law should be strengthened in order to force the capitalist businessmen in the country to foray the need of strengthening the internet connection in the country.

Recently, there is a proposal initiated by the government through Department of Science and Technology to make the country an internet-free zone. Other cities like Manila and some areas in the Philippines have already started to make their respective areas an internet-free zone. Since there are many who are accessing the internet, slower connection is expected. The problem lies actually on the weak bandwidth to support the increasing demand of internet.

Should this plan be pursued, greater opportunities will be lie ahead in terms of information dissemination. This will be of greater advantage among the students and professionals. However, I think that there is still a mass demand for regular text message and voice calls since it has been part of the Information practices.

Internet users have grown rapidly over the past decade. International Telecommunication Union has reported that two-fifths of the world’s population is online. Consumers depend on the Internet to connect with friends and family, shop, and perform online banking using smartphones. This digital reliance ranges from 1 to 4, see attachment. (Menon et al., 2015, pp. 4; 9)

In spite of the demand for Internet services, the Philippines underperform on mobile broadband, network availability, and digital innovation (Menon et al., 2015, p. 21, see attachment). Inquirer reported that the Philippines has been in bottom list when it comes to Internet speed rankings in Southeast Asia over the past two years while speed has increased at 1 Mbps from 2015 to 2016 (Venus, 2016). Moreover, it is also one of the most expensive in the region. According to Senator Bam Aquino on Newsbytes Philippines (2014) “…the country may be left behind in the battle for the information and communications technology (ICT) market”.

What are the reasons behind high cost and dwindling speed of the Internet? It is predicted that telecommunications industry will lose a combined $386 billion between 2012 and 2018 from customers using over-the-top (OTT) services (i.e. delivery of video, audio and other media from third party providers on the Internet such as voice over IP, video streaming, and chat apps for messaging) due to loss of revenue on international calls and on roaming fees. Increasing demand for data usage will push consumers to take smaller voice and text plans either by the pricing of internet speed or flat rate data bundles. According to Forrester’s analyst Dan Bieler, simple flat rates “…open the door to OTT providers and data free riders, where a small percentage of users consume an over proportional percentage of data traffic” (Heinrich, 2014) which impacts telcos’ network speed particularly with video streaming—causing 66% of the total data traffic, and will eventually require them to invest heavily and charge a high operating cost for keeping the quality of service. Government tax revenue is also lost in OTT services. (Sujata et al., 2015, pp. 146-147; 152-153; 159)

In response, telcos may be blocking OTT, bundling with OTT, partnering with OTT, or developing their own services (Sujata et al., 2015, pp. 157-159) to survive in the market. Telcos will be providing internet bandwidth and speed for more lucrative data services such as 4G LTE (Reardon, 2014) in lieu of voice calls and short message services.

References:

Heinrich, E. (2014). Telecom companies count $386 billion in lost revenue to Skype, WhatsApp, others. Retrieved at http://fortune.com/2014/06/23/telecom-companies-count-386-billion-in-lost-revenue-to-skype-whatsapp-others/.

Menon, N. et al. (2015). The ASEAN digital revolution. Pp. 1-41. Retrieved at https://www.atkearney.com/innovation/asean-innovation/asean-digital-revolution/full-report/-/asset_publisher/VHe1Q1yQRpCb/content/the-asean-digital-revolution/10192.

Newsbytes Philippines. (2014). Bam: PH needs faster Internet for Asean integration in 2015. Retrieved at http://newsbytes.ph/2014/04/24/bam-ph-needs-faster-internet-for-asean-integration-in-2015/.

Reardon, M. (2014). 6 reasons why you'll eventually want voice over LTE. CNET Magazine. Retrieved at https://www.cnet.com/news/6-reasons-why-youll-eventually-want-voice-over-lte/.

Sujata, J. et al. (2015). Impact of over the top (OTT) services on telecom service providers. Indian Journal of Science and Technology; 8(S4): 145–160. Retrieved at http://www.indjst.org/index.php/indjst/article/viewFile/62238/48529.  

Venus, C. (2016). PH internet growth slowest in past 2 years—report. Inquirer.net. Retrieved at http://technology.inquirer.net/49120/philippine-internet-speed-slowest-improvement-southeast-asia-akamai-report.

Broadband has become a key priority of the 21st Century. Its transformative power as an enabler for economic and social growth makes it an essential tool for empowering people, creating an environment that nurtures the technological and service innovation, and triggering positive change in business processes as well as in society as a whole (Sanou, 2012).  

In a study conducted by International Telecommunication Union (ITU) and Broadband Commissions for Digital Development (2012), results show that during 2000-2010, the fixed broadband market in the Philippines was relatively thin and was not found to affect the wider economy. Nevertheless, the more dynamic and popular sector of mobile broadband was estimated to contribute an annual 0.32% to GDP during the past decade. This represents 6.9% of all GDP growth for the economy, given that GDP grew annually at 4.6%. Since 2005, this impact almost doubled reaching 0.61% of GDP, thus accounting for 7.3% of all economic growth in the country. The policy implications of these results are self-evident. The private telecommunication sector has been able to address the country’s rudimentary fixed line infrastructure through wireless price reductions and wide coverage. 

Compared with most of its Asian neighbors, the Philippines has moved slowly on the adoption of internet. OOKLA Speed test Survey List of the fastest to the slowest internet  speeds in Asia, Philippines ranked 21 out of 22 countries in download speeds as of May 2015; with broadband speed of 3.64 Mbps, way below the global average of 23.3 Mbps (Penalosa, 2015)  Nevertheless, this situation is changing rapidly. More than 80% of all internet connections were broadband-based services, representing a major shift in the broadband presence in the Philippines in recent years. The more recently launched mobile broadband services were providing a major and much-needed boost to the expansion. The mobile broadband subscriber market in the Philippines has grown strongly over the past few years. Further strong growth in predicted over the next two years to 2018. The expansion of mobile broadband services is now providing more opportunities for the technology sector (BuddeCom, 2017).  

These reports show that private telecommunications are not dragging their feet when it comes to providing these services. In fact, in 2015, incumbent players Philippine Long Distance Telephone Co. and Globe Telecom have had a record spending in a bid to keep up and deliver better services to data-hungry consumers. Capitalizing on their key strength which is access to a country of about 100 million people, where smartphone service subscriptions are exceeding the total population, Telcos are even following similar paths such as partnerships forged or investments infused by both in the internet and TV space. Finally, both Telcos recognize the need for greater spending and made it clear that the bulk of their respective budgets would be spent on upgrading their data networks given the insatiable clamor for high-speed mobile internet (Camus, 2016).

References:

BuddeComm. 2017. Philippines- Fixed Broadband, Digital Economy and Digital Media- Statistics and Analyses Retrieved April 30, 2017 from https://www.budde.com.au/Research/Philippines-Fixed-Broadband-Digital-Economy-and-Digital-Media-Statistics-and-Analyses

Camus, R. 2016. Telcos seen facing tougher times ahead. Philippine Daily Inquirer. Retrieved on April 30, 2017 from http://business.inquirer.net/205851/telcos-seen-facing-tougher-times-ahead

International Telecommunications Union (ITU) and Broadband Commissions for Digital Development (2012). The economic impact of broadband in the Philippines. Retrieved on April 30, 2017 from https://www.itu.int/ITU-D/treg/broadband/BB_MDG_Philippines_BBCOM.pdf

Penalosa, R. 2015. The Philippines Telecom Status & Situation. Retrieved on April 30, 2017 from http://iiee.org.ph/wp-content/uploads/2015/12/FR4_IIEE-_The-Philippines-Telecom-Situation.pdf

Sanou, B. 2012. The economic impact of broadband in the Philippines (Foreword). Retrieved on April 30, 2017 from https://www.itu.int/ITU-D/treg/broadband/BB_MDG_Philippines_BBCOM.pdf

Here is the complete list of ISPs in the Philippines and some information about each:

PLDT – The biggest telecom company in the country, PLDT provides both service reliability and the largest area coverage for their fiber, DSL, or LTE broadband home or business packages.

Globe – One of the largest mobile telecom provider in the country, Globe offers home or business internet solutions in a variety of plans suitable for work or leisure.

Sky Broadband – Leading cable TV provider that also offers broadband cable internet connection, conveniently bundled with their HD cable TV subscription.

Eastern Telecom – Offers dedicated Internet direct service running on leased line technology and also offers DSL Internet suitable for smaller offices or for work from home employees.

Converge ICT – Provides home, SME, or enterprise broadband Internet based purely on fiber optic connectivity.

Infinivan – Through partner cable TV operators, they offer high speed copper, fiber, and wireless Internet access geared towards business or enterprise accounts.

Rise – Offers fiber Internet packages mostly aimed at small businesses and enterprise or corporate clients.

Edgecomm – Specializes in satellite Internet services.

We Are IT Philippines – Provider of wireless broadband services, intranet broadband services and mobile and fixed satellite Internet networks.

PT&T – A long time, leading national telegram service provider, they have now transitioned to delivering wireless dedicated or shared broadband access on an all fiber core network.

Textron – Targeting the corporate market, they offer fully dedicated wireless broadband Internet service.

iXS – Mostly focused on enterprise customers, providing dedicated leased-line Internet service.

Radius – A subsidiary of MERALCO, they pride themselves on running a 100% pure fiber network.

NexLogic – Provides both residential and business Internet connectivity through their cable TV operator-partners.

You might consider different things when evaluating Internet Service providers in the Philippines. I have read a blog that if you are concerned with price, Sky should be your provider of choice. That if you are more concerned with coverage, PLDT should be number one on your list. That if speed is your determining factor, look no further than Globe. That if you do not want to sacrifice speed for price, check out PLDT’s current promotion, where you could save 50 percent on broadband for the first year. Regardless of what motivates you, make sure you first determine how you plan to use the Internet. That is how it is in the Philippines. Unlike Korea the internet speed is already a given thing. The foregoing considerations will help you make the best possible decision for yourself and your wallet, and leave you with the most satisfaction.

In my own personal experience, still our internet condition in the Philippines isn't good enough as compared to other countries. It is still considered very expensive even to middle class. There's no need to find proof how ISPs play their cards in this industry. They still rule as far as my own experience and friends' are concerned.

Telstra could have been the answer to our need. There was an speculation that Telstra was going to venture in the Philippines but it seems powerful telecommunication companies have overruled. Telstra is Australia’s leading telecommunications and technology company, offering a full range of communications services and competing in all telecommunications markets. Telstra could have offered the fastest and the cheapest internet service in the Philippines. In Australia they provide 17.4 million mobile services, 6.8 million fixed voice services and 3.5 million retail fixed broadband services and the prices are reasonably cheap.

In a study titled “Impacts of mobile Internet use intensity on the demand for SMS and voice services of mobile network operators: An empirical multi-method study of German mobile Internet customers,” it has been found out that “mobile use intensity significantly negatively affected both number of SMS sent and received” which means that Internet use almost has no effect on the demand in voice calls and SMS. From this study, we can say that telecommunication companies may provide the Internet bandwidth and speed without being suspected of not improving the Internet speed due to the possibility of diminishing the demand for voice calls and SMS.

In the Philippines, slow Internet connection has become a problem. The country’s average Internet spped is only 3.5 Mbps, way below the average speed of 29 Mbps of South Korea according to Akamai’s State of the Internet Report for the first quarter of 2016. Moreover, the Philippines ranked 14 out of 15 countries in the Asia-Pacific region in terms of Internet speed.

This situation has resulted to calls for a stricter competition among telecommunication companies which is currently a duopoly of Globe Telecoms and Smart Communications, a subsidiary of PLDT, Inc.—the country’s leading telecommunications and digital services provider. In 2015, there have been news that another player in the telco industry will enter the market which spurred hopes that it can aggressively compete with the major players and provide a better and faster Internet speed. However, in 2016 Telstra backed out of the $1 billion equity investment in a wireless joint venture with San Miguel Corporation citing “lack of an acceptable risk-reward balance.”

Meanwhile, the chief of the newest department in charge of the country’s information and communications technology—the DICT said that the Philippines is expecting to improve its Internet speed and connectivity but DICT Secretary Rodolfo Salalima did not further elaborate on how this can be done.

Now, I personally think that the problem lies heavily on the will of our government to invest on ICT infrastructure and make it easier for other telecommunication companies to open up their business here and compete with major players. In that way, Internet connectivity and speed won’t be compromised.

SOURCES:

CNN Philippines. (7 November 2016). Faster speeds, better internet access in 2017 for laggard Philippines: government. Retrieved from http://cnnphilippines.com/news/2016/11/07/faster-speedsbetter-internet-access-in-2017-for-laggard-philippines-government-rodolfo-salalima.html

Gerpott, T. (2010). Impacts of mobile Internet use intensity on the demand for SMS and voice services of mobile network operators: An empirical multi-method study of German mobile Internet customers. University of Duisburg-Essen. Retrieved from http://isiarticles.com/bundles/Article/pre/pdf/20892.pdf

Marasigan, L. (9 September 2015). PLDT, Globe ready to battle with Telstra. Retrieved from http://www.businessmirror.com.ph/pldt-globe-ready-to-battle-with-telstra/

Reichert, C. (13 March 2016). Telstra backs out of $1b Philippines wireless joint venture. Retrieved from http://www.zdnet.com/article/telstra-backs-out-of-1b-philippines-wireless-joint-venture/

A report by Akamai (2016) regarding the state of the internet all over the world shows that the Philippines, along with India, had the slowest internet connection speed among Asia Pacific countries for the last quarter of 2016. Yet India was closely following Vietnam in terms of doubling its speed compared with the same period of the previous year at 99% increase while the latter had an impressive 115% increase.  The Philippines registered 44% increase.

Despite the dismal ranking of the Philippines in connection speed, the fact that it performed 44% better than last year shows that telcos are also making efforts in improving their services.

There are also other reports and information that will debunk the claim that private telcos are dragging their feet to increase internet bandwidth.

First, the Duterte administration is giving priority to faster internet connection nationwide. The government has cut the red tape when it comes to building cell towers, provided free wi-fi nationwide, and organized a summit that will help find ways to improve internet connectivity and speed (CNN Philippines, 2016).

Second, telecom giants PLDT and Globe are increasing their investments in network expansion and technology upgrades for better and faster services. In fact, PLDT and Globe purchased the telecommunications assets of San Miguel Corporation in order to increase the speed of their data offerings (ABS-CBN.com, 2017). The added assets, according to an ABS_CBN report (2017), boosted the average global connection to 7 Mbps. The Akamai (2016) report likewise stated that the upward trend is “encouraging”, making businesses create and deliver more and better services.

According to PLDT, it spent P2 billion in 2013 to develop a new technology that would enhance the Philippines internet experience through ready access to multimedia services like social media, movies, games, and music (Manila Times, 2017). Called Long Tem Evolution (LTE), the technology’s two variants-- the LTE-FDD for mobile networks and TD-LTE for fixed wireless broadband services--  ensure sufficient capacity for mobile and fixed broadband services.

These reports show that connection speed in the country is now being addressed by both government and private telcos. With connection speed identified by the government as one of its priorities, it is now being addressed by the private telcos.

References:

ABS-CBN.com. “Philippines has slowest internet in Asia Pacific study.” Available at: http://news.abs-cbn.com/business/03/09/17/philippines-has-slowest-internet-in-asia-pacific-study

Akamai.State of the internet Q4 2016 report. Available at:https://www.akamai.com/us/en/multimedia/documents/state-of-the-internet/q4-2016-state-of-the-internet-connectivity-report.pdf

CNN Philippines.com. “Faster speeds, better internet access.” Available at: http://cnnphilippines.com/news/2016/11/07/faster-speedsbetter-internet-access-in-2017-for-laggard-philippines-government-rodolfo-salalima.html

Manila Times.net. “PLDT, Globe in race to modernize networks.” Available at:http://www.manilatimes.net/pldt-globe-in-race-to-modernize-networks/91760/

At first glance, the speed of Internet bandwidth is just an issue of technological proficiency or efficiency.  However, empirical studies say otherwise.  It is multifaceted, so it cuts across economic, social, and cultural dimensions, which policy makers need to carefully consider.  Big studies in China, Thailand, and India provide valuable inputs.

According to Pan et al. (2011), many are captivated by the Internet as a new medium because of its features: “openness, interactivity, temporal and spatial connectivity, decentralized content production, and empowering features,” but, just like any other technology, it does not enable everyone or every social group to the same extent” (p. 116).  Its use is determined by policies or regulatory mechanisms and unequal distribution of resources necessary to access and use this new medium.

They add that as early as 1990s, many scholars already believe that Internet reproduces and perpetuates social inequality as revealed by researches that followed the knowledge gap, diffusion of innovation, and uses and gratifications as theoretical explanations.  Pan et al. (2011) introduce the concept of communicative potentials with three components: “access, utility expectancy, and utilization capacity” (p. 117).  These were the variables considered in a 2009 survey conducted in Shanghai, being China’s most economically advanced and cosmopolitan city. 

Findings reveal that social inequalities of the transitioning Chinese society are embedded in the uneven distribution of Internet access and use.  They recommend that the contributions of Internet be assessed using equality, justice, and inclusiveness and not just speed.

 Further, a related study by Zhou (2011) looked into the concept of subjective social status or an “individual’s perception of his/her position in the status hierarchy” (p. 134).  Findings show that new media has an effect on the formation of subjective social status, and Internet, being new media and a form of capital, is a symbol of economic, cultural and overall status.

Moreover, Fei and Kuo (2013) report that the Internet success in China and modernization in general resulted in the “decay of communities, communication, and participation of community members” (p.62).  These are rationalized by what they refer to as communication grey zones or “areas or groups having no or limited access to information or possessing unbalanced information” (p. 60) with the following dimensions:

1.      The blind areas in location representing the less-developed areas in China where television signals and Internet access are not available

2.      The blind point in information acquisition or the phenomenon wherein people know national and international issues but barely know about local and community affairs

3.      The short of information through which an individual is supposed to generate ideas to improve himself/herself (knowledge production or generation)

Meanwhile, Magpanthong (2013), through document analysis and historical approach, studied the communication policy of Thailand and its application of Internet resources using three perspectives: “economic welfare, national security, and public interest” (p. 2).  She found out that the more accessible Internet becomes, the stricter is the policy that controls its utilization.  This certainly dismays the Thai netizens.  This demonstrates how a nation’s political context determines the channels of communication and its use.

Another interesting case is that of India, the “world’s largest democracy and with the second-highest population after China” (p. 26).  Murthy (2010) investigates the official websites of the Indian Government and those of the federal states that maintain websites for their respective ministries. He historicizes that this is a mechanism that is supposed to manifest the “promise of absolute transparency and the free flow of information” embodied in the Right to Information Act of 2005 (p. 27). 

Using multiple methods of inquiry, he found out that “the websites are not informative, not reflective of any interaction with the public through the Internet, and do not reach the rural segments of India” (p. 25).  Worse, corruption is prevalent. These contradict the hopes that Internet will provide a venue to expose it and that it will increase citizen’s participation in democratic processes.   

Information and communication technologies (ICT) that feature voice calls and short message services are deeply embedded in the ongoing communicative and cultural transformations of Filipinos both here and overseas in this so-called information or digital age.  For instance, these bind the family members of overseas Filipino workers, instigate remarkable political movements such as EDSA 2, facilitate the management of crises and disasters such, pacify tribal wars in Kalinga and bridge villages in conflict, and a lot more.  An act either of Congress or the Senate cannot easily take these away.    

REFERENCES:

Fei, J. and Kuo, H. (2013). Community media in China: communication, digitization, and

relocation. The Journal of International Communication 19, 1, pp. 59-68.

Pan, Z., Yan, W., Jung, G., and Zheng, J. (2011). Exploring structural inequality in Internet use

behavior. Asian Journal of Communication 21, 2, pp. 116-132.

Magpanthong, C. (2013). Thailand’s evolving Internet policies: The search for a balance

between national security and the right to information. Asian Journal of Communication

23, 1, pp. 1-16.

Murthy, C.S.H.N. (2010). Imperatives of citizen-centric Web 2.0 political networks for an

effective democracy: A case study of websites of Southern Indian states. The Journal of International Communication 16, 2, pp. 25-41.

Zhou, B. (2011). New media use and subjective social status.  Asian Journal of Communication

21, 2, pp. 133-149

Every time I go back home, one of my common headache is INTERNET. Be it by phone, Wifi or Lan connection. To my 15 year old niece she said she would find it hard to survive back home because of the slow internet connection(an exaggeration from a kid perhaps, but this will be the trajectory of those born in the information age).

The Philippines lags behind the Southeast Asian ranking on internet speed. The country composing of 7,100 islands would practically find it hard to build fixed networks. IHS Technology senior analyst Fiona Vanier laments, government charges high fees for any start-up foreign investors in Telcos. Adding to these, PLDT monopolized most of the infrastructure charging higher fees for slower bandwidth speed(Jennings, 2016). Last year the government however promised a more speedier connection following the acquisition by giants Globe and Smart of San Miguel Corporation’s 700MHz spectrum. However, the benefits are still to be felt.

While some countries are busy upgrading to 4G, upgrades on back-end system, network-monitoring tools, billing software, customer experience management (CEM) solutions, etc.(Gupta, 2016) in order to boost up their value-added services, the Philippines’ is still debating on who is responsible for the internet sloth.

The plain old voice telephone popularized back in the 70’s and 80’s are already gone. With the increasing demand for video calls, voice messaging, multimedia etc., Telcos should be able to adapt urgently to these changing needs. Having information as part of our needs, more and more people from businesses, government to personal matters are depending on the internet. This calls for a more robust policy framework to hasten the development process and stay connected!

References:

CNN Philippines (2016). Faster speeds, better internet access in 2017 for laggard Philippines: government. Retrieved from: http://cnnphilippines.com/news/2016/11/07/faster-speedsbetter-internet-access-in-2017-for-laggard-philippines-government-rodolfo-salalima.html

Gupta, S.(2016). Data demand is causing a big shake-up in telecom firms’ business models. Retrieved from http://www.livemint.com/Industry/0WjgFgaog2u43QaANMpLpN/Data-demand-is-causing-a-big-shakeup-in-telcos-biz-models.html

Jennings, R.(2016). How The Philippines Got Asia's Worst Internet Service. Forbes Asia. Retrieved from: https://www.forbes.com/sites/ralphjennings/2016/02/23/meet-asias-internet-laggard-the-philippines/#6d7053bc3df7

In an increasingly knowledge intensive global scenario, telecommunication is a key driver in achieving economic and social development. Affordable and quality telecommunication services and sustained adoption of technology would offer viable options in overcoming developmental challenges in education, health, employment generation, and other socio-economic conditions.

During the Philippine Telecoms Summit 2017, the Department of Information and Communications Technology (DICT) recognized that key telco stakeholders are instrumental in achieving the goal of using Telecommunications as a tool in building a digital Philippines. The summit aimed to address the public outrage over “cost, speed and coverage” of services by identifying underlying issues on telecom infrastructure and building consensus over possible solutions. Telco major players PLDT-Smart, Globe and PCTO, consumer groups and NTC, as major stakeholders, were invited to the summit to sort out the issues identified. The Philippines, from having been known as the ‘texting capital of the world’ has now taken the global lead in social media usage with the average Filipino spending 4 hours and 7 minutes per day on social media sites, according to the Digital Report in 2017 by Hootsuite and We Are Social. However, this high rate of usage stands in contrast to currently available Internet speeds. As of Akamai Q3 2016 report, the Philippines has the second slowest fixed line broadband Internet speed in the world.

According to most telco providers, in order to speed up the Internet in the country, there is a need to activate more cell sites, but the bureaucratic red tape gets in the way of network deployment. The tedious process of securing permits from many local governments, national government agencies, barangays and subdivisions impedes construction, affecting the availability of service in certain areas. There is also lack of uniformity in processing fees in different LGUs. These barriers discourage new players from entering in the telco market. Internet Society-Philippines Chapter Chairman Winthrop Yu stated that real competition that could provide consumer choice driving significant improvements in cost and quality. The Philippine Telecommunications Summit 2017 will set the stage for change toward a digital future through collaboration and consensus among all telco stakeholders. The threats of digitization can become huge economic growth opportunities when addressed in a transparent and ethical way. Formulating a clear policy regime creates an investor friendly environment for attracting additional investments in the sector.

Sources:

https://www.akamai.com/us/en/multimedia/documents/state-of-the-internet/q3-2016-state-of-the-internet-connectivity-report.pdf

http://www.dict.gov.ph/the-state-of-ph-telecoms-service/

Almost every Filipino in the country owns a smart phone even in remote areas where you least expect. With millions of their friends and families scattered all over the globe, the internet is a necessary tool that each and every Filipino should use and maximize.

With the emergence and rise of social media at this juncture jiving with intensive smartphone applications in the market with advanced features for enhanced voice and video call experience at a free cost, it is high time that Telco’s in the country should not only be expected but demanded to provide the necessary bandwidth and speed. Providing this demand will be the highest form of customer service they can give to their consumer given that the cost of internet in our country is notably high from the rest of the world.

It is obvious that voice calls are expensive particularly calling other networks even if these Telco’s offer promotions such us unlimited calls and short messaging service. These promotions still have expirations and can only be enjoyed for a very short period of time thus it’s not giving their customer the value for their money.

If this expected bandwidth and speed will materialize, it will indeed diminish the demand for voice calls and short messaging services because customer would opt to avail of the vast communication application on their smart phones available in the market depending on their preference and need. This will be a new level in terms of communication though this is already being experienced now yet still a huge number of our population has limited access to the internet. By providing these bandwidth and speed , it will benefit everyone not only by giving efficient and fast communication but also in will give advantage in areas of business, education and other services specially to far- flung areas who are still using unstable network signal.

It’s true that coping up with technology which is available in this internet age is necessary to survive. In business your number one concern should be satisfying your customer first before profit. If these Telco’s will not expedite to provide this brewing demand, in no time a new Telco player will enter and will offer this much needed service, it will be too late for them as people will be switching to this new player leaving them out in the equation.

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“Filipinos deserve better Internet services. Advocates say breaking up the monopoly of telecommunication companies is the way to do it”. This, noted Orante (2016) was as the battle-cry of Rappler's advocates when the Pilipinas 2016 vice presidential debate turned to connectivity. The discussion on the power of telecommunication companies over the country's internet connectivity, in particular, drew strong reactions from them, and prompted them to offer different solutions. Their solutions were divided into two: make telecommunication companies state-owned or increase competition by allowing more telecommunication companies. Social media reactions to the Senate hearing on the matter called out telecommunication companies for their poor service. The question therefore begs whether telecommunication providers in the Philippines are ‘guilty’ of this accusation that in effect is thwarting efforts on gains availed through equity in access to information and communication technologies in this day and age.

Ronquillo (2017) cites statistics from the United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP) which indicates that some 40% of the Philippine population is Internet users as of 2015. “Yet, two years later, Filipinos are still able to witness a page loading” (Ronquillo, 2017). As of 2017, there were about 60 million, or 58% of the total population who have access to the Internet with the number of users growing by 27% in the past 12 months of 2017, second only to Indonesia (Rappler, 2017). The most popular social media platform in the Philippines is Facebook while the top chat apps are Facebook messenger, Skype, and Viber (Rappler, 2017). Despite not being among the top chat apps, the Philippines had an estimate 9.5 million Twitter users in 2012 (Montecillo, 2012). Optimist is however high for Twitter usage in the country. According to Camus (2018), social-media platform Twitter is on a growth path per estimate at the start of 2018 buoyed by rising numbers in the Philippines and the rest of Southeast Asia. Citing Twitter’s average global audience growth of 12%, Arvinder Gujral, Twitter’s managing director and senior business director in the region, noted Southeast Asia and the Philippines were “way ahead of that in percentage terms.” Popular use of Twitter among Filipinos were in three major areas: entertainment, which includes television shows and beauty pageants; sports (mainly basketball); and public service announcements, such as government warnings when powerful storms hit (Camus, 2018).

Despite these optimistic trends, the country's slow Internet has been a major problem for the country in recent years despite efforts by the government at pegging the minimum broadband speed at 256 kilobits per second (kbps) (Orante, 2016). This is an odd circumstance considering that the country also has a competitive BPO industry that employs more than a million people whereas more industries are increasing their reliance on the Internet, but connectivity issues hamper advancements. Barreiro (2017) cites a report released Wednesday, May 31, 2017 by Akamai Technologies' Global State of the Internet Report showing that the Philippines continues to have one of the slowest internet connection speeds across the Asia Pacific, whilst taking into consideration a number of different metrics for the Asia Pacific, as well as for other geographic regions worldwide. The metrics measured were average connection speed (IPv4), average peak connection speed (IPv4), 4 Megabits per second (Mbps) broadband adoption (IPv4), 10 Mbps broadband adoption (IPv4), and 15 Mbps broadband adoption (IPv4). The Philippines falls short of the global average with an average connection speed is just 5.5 Mbps. Barreiro (2017) notes from the Report that in terms of average peak connection speeds, the Philippines is second lowest, just above India. While India has an average peak connection speed of 41.4 Mbps, the Philippines has an average peak connection speed of 45 Mbps. In terms of broadband adoption across the Asia Pacific countries and regions surveyed, the Philippines has room for improvement on all fronts (Barriera, 2017).

Are Telcoms to entirely blame for the ICT scenario in the Philippines? In 2015, companies blamed government red tape for this poor service urging urged the government to remove such bureaucratic hindrances in order to streamline the process of securing rights to build cell sites. Globe Telecom Incorporated has called for the amendment of the Local Government Code to expedite issuance of all relevant permits for all telecommunication facilities at the local level. Bureaucratic red tape causes significant delay in securing various permits from the local government units concerned relating to the construction of telco infrastructure such as cell sites with Globe having a backlog of 3,000 cell sites due to permit issues (De la Paz, 2017). PLDT and Smart Communications chief information and technology have echoed similar sentiments. Currently, telecommunications companies need to secure a legislative franchise prior to operations, which eats up the same amount of time as getting a law passed Ronquillo (2017). Calls for further liberalization of the telco sector have been expressed as a means to reduce costs and expand services widely. The Philippines has only 3 major telcos operating: SMART-PLDT, Globe Telecom Incorporated, and the National Grid. Lessons can be inferred from Singapore on the benefits of the liberalization of the sector needs to be cited as the country exhibits best-practice in field.

According to news reports, Singapore has some of the fastest Internet speeds in the world, both on mobile and broadband (Channel News Asia, 2017). Singapore logged an average fixed broadband download speed of 180.61 Mbps and average mobile download speed of 44.37 Mbps, second in the world only behind Norway. Singapore’s fixed broadband and mobile speeds are continuing to improve, with 18.1% and 16.4% increases respectively, over the same period the year before. Channel News Asia (2017) reports that the country also has the fastest average mobile upload speed at 17.46Mbps. It plans to add a fourth mobile carrier, TPG Telecom, and the addition of an undersea cable network between Singapore and Australia to further improve consumer experiences and create more connectivity opportunities. At present, the telco sector in the country is served by SingTel, StarHub, ViewQwest and M1. ViewQwest, which started offering residential fibre in Singapore in 2012, had the fastest download speeds at 899.35Mbps, while M1 had the fastest upload speed over broadband at 692.85Mbps. Singtel was ranked the slowest Internet service provider (ISP), with the slowest download and upload speeds over broadband (Channel News Asia, 2017). The core lesson on Singapore’s success story is that government agencies are launching initiatives to boost innovation, technology and research, where “consumers will continue to see more growth both on the broadband and mobile fronts” (Channel News Asia, 2017).

“Competition is good”, quips Cassidy (2014) who writes on the context of the USA where the telco sector is ‘monopolised’ by one Comcast Corporation, America’s biggest cable company, its biggest internet-service provider, and its third-biggest home-telephone provider. As the owner of NBCUniversal, the company is also one of the largest producers of programming for film, cable, and television. Cassidy (2014) notes that Comcast Corporation is not just big by American standards; it is the largest media company in the world generating $13.6 billion in operating income and $7.1 billion in net profits in 2013 alone. This company seeks to expand further by taking over Time Warner Cable, the second-biggest cable company in the country (Cassidy, 2014). This example of market monopolization has been Americans paying far more for broadband Internet access, cable television, and home phone lines than people in many other advanced countries, coupled with relatively poor services. Cassidy (2014) citing statitsics from “The Fine Print: How Big Companies Use ‘Plain English’ to Rob You Blind,” by David Cay Johnston, a Pulitzer Prize-winning financial reporter, illustrates that the “triple-play” packages-cable, phone, and high-speed Internet access-that tens of millions of Americans buy from companies like Comcast and Time Warner Cable is far more expensive that the same in France where the monthly cost of these packages is roughly $40 a month—about a quarter of what Americans pay. And, unlike in the United States, France’s triple-play packages include free telephone calls to anywhere in the world. Moreover, the French get faster Internet service: ten times faster for downloading information, and twenty times faster for uploading it. In Seoul, Sout Korea, Cassidy (2014) shows that the triple-play packages start at about $15 a month, whereas in Zurich, otherwise a pretty expensive place to live, they start at $30. When it comes to stand-alone services, in Britain, for example, monthly cell-phone charges start at about $15; unlimited broadband starts at about $25 a month. And, if you one buys a television that was built since 2008, one gets access to Freeview, a digital television service that provides more than sixty television channels, about thirty radio channels, and about a dozen streaming Internet channels, all at no cost (Cassidy, 2014).

Why are things so different, and so expensive, in the United States? Cassidy (2014) attributes such costs to competition and competition policy. In countries like the U.K., Cassidy (2014) illustrates, regulators forced incumbent cable and telephone operators to lease their networks to competitors at cost, which enabled new providers to enter the market and inadvertently brought down prices dramatically. In the US on the other hand, vigorous competition is almost non-existent. In some big cities, broadband consumers have a choice between a cable operator, such as Comcast, and a telephone provider, such as Verizon. But that’s practically no choice at all. Although the cable and telephone companies spend huge sums of money on advertising trying to lure each other’s customers, they rarely compete on price (Cassidy, 2014). The blame on the American situation is placed on its Congress “bowing to the monopolists, or quasi-monopolists, and allowing them to squelch potential competitors” (Cassidy, 2014). It is claimed that Americans pay so much because “they don’t have a choice,” Cassidy (2014) cites Susan Crawford, a former adviser to President Obama on science and innovation, and the author of the book, “Captive Audience: The Telecom Industry and Monopoly Power in the New Gilded Age. Deregulation of the telco sector to provide high-speed internet access since 2004 has in effect witnessed “enormous consolidation and monopolies… Left to their own devices, companies that supply internet access will charge high prices, because they face neither competition nor oversight.”

To avert such trends and enhance ICT services in the Philippines, plans are afoot to implement the National Broadband Plan. Ronquillo (2017) notes that the National Broadband Plan was developed to address the longstanding issue of Internet connection quality in the Philippines. In line with the Philippine Digital Strategy, also developed by DICT, the NBP zones in on the actual broadband technology solutions the country needs. Hence over the course of 10 years (2017 - 2027), the NBP is expected to have produced 4 parallel outcomes through its overall strategy of staging interventions within the Information and Communications Technology (ICT) industry. These are namely:

1. Accelerated Investment

Market players, such as existing and upcoming Internet and telecommunications providers, will be given the opportunity to penetrate underserved and unserved areas, particularly the ones outside of industrial zones and major cities.

2. Mobilized and Engaged Public and Private Sector

The government will be working with both public and private institutions relevant to the improvement and deployment of broadband technologies. The crux of this strategy is coordination among all involved institutions to minimize implementation costs as well as public disruptions from physical construction.

3. More Places Connected

All government facilities, public schools, health institutions, and MSMEs will adopt current technologies and benefit from Internet connectivity. In addition to broadband infrastructures, the government will also utilize other technologies namely spectrum frequencies and satellites for wider distribution of broadband access.

4. The establishment of the Philippine Integrated Infostructure (PhII) that will enable the same facilities to utilize ICT services. Integration with existing infrastructure installed by big providers like PLDT, Globe, and the National Grid, will play a part in keeping costs down.

This enhanced network via the National Broadband Plan (NBP) is expected to host a national portal and other online government services, as well as to connect remote areas of the country that are underserved by existing broadband providers.

How exactly will the NBP address the country’s current issues on Internet connectivity?

De la Paz (2017) notes that there are several policy reforms proposed, one of which is at the constitutional level,that will help fast-track investment and operations in the ICT sector. An Open Access and Peering Policy will foster competition in the ICT industry by having service providers allow access to each other’s facilities on reasonable terms. This will help lower costs because new providers will not have to invest in physical infrastructure, for instance, laying down more cables when there are existing ones. Internet Exchange Points (IXP), like the Philippine Open Internet Exchange (PhOPENIX), allows network interconnection, which makes for efficient routing and traffic. Peering arrangements between service providers and telcos will address the country’s speed issues, and the government has set to open a new exchange point that any network can connect to. Establishing a Universal Access Fund is also expected to help direct funding to rural areas that need help adopting the new technologies. This, along with using existing facilities and the suggested open access frameworks and models are poised to enable smaller economies to thrive.

De la Paz (2017) adds that national and local governments will be key influencers in carrying out the NBP, especially on the regulatory front. The government also has the power to stage interventions in necessary areas through the said policy reforms and investor relations. Service providers, such as telecommunications companies and ISPs are also tagged as key participants in the building and integration of the proposed infrastructures. As the deliverers to individual consumers, they will need to start improving the quality and cost of services offered. Local communities and groups have the essential role of effecting change on a micro level. These groups will have to work on programs that will engage new users, especially on the countryside, to welcome new technology and pursue its benefits. This is the promise of DICT's creation of a "north to south" broadband plan, which would cost around P77.9 billion, as stated in its draft blueprint (De La Paz, 2017). In his plan, priority will be given to high population density areas where access to broadband internet is very limited or not present, reads the draft blueprint. To serve these needs, the Philippine Integrated Infostructure (PhII), which consists of international submarine cable landing stations, national government backbone, and the last mile access network. The last mile covers countryside connectivity and access networks to government sites, public schools, state colleges and universities (SUCs), public hospitals and rural health units, disaster risk and reduction and management offices, peace and order units, among others. Considering the investment needed for the infrastructure, DICT may enter into a public-private partnership or a consortium-type arrangement (De La Paz, 2017). This proposed national broadband network is seen to "entice existing and new market players to invest in unserved and underserved areas" (De la Paz, 2017).

Critical Discussion

According to Pennings (2016), a report released by IDATE DigiWorld on the future of Internet and telecom markets delivers four development scenarios for the digital economy along with a quantitative forecast up to 2025. Highlighted key trends are developments that have clearly emerged and for which it is possible to assume, with reasonable certainty, how they will play out over the years ahead. Pennings (2016) notes that for instance, with respect to technologies, one element that is quite certain is that network technologies will deliver better performance ten years from now than they do today. With trends shifting to 5G, there is expected better delivery of higher bandwidth, lower latency and better efficiency in terms of energy and spectrum usage than previous standards. In terms of usage, the trend towards mobile will surely last.

The adoption of smartphones, tablets, wearables and other connected devices (including cars) will continue to be on the rise and make mobile by far the dominant way to access the Internet. On the other hand, business models and regulatory trends are also to some extent predictable. The value chain will continue to evolve with digital products cutting traditional players out of the loop. Regulation is very likely to shift towards more ex-post control and more symmetric obligations between players at the same layer of the value chain, but across layers, as with OTTs and telcos. On the latter aspect, the planned Philippine NBP is heading towards this. Looking forward to the trend, Pennings (2016) highlights the following 4 most plausible future scenarios:

· “Mall” scenario: Digital economy players adopt a strong focus on retail and customer owner-ship, seeking to be the one-stop user shop for all things digital, including content and devices. There is full-blown competition between Internet players and the telcos, each of them aggregating and marketing a branded bouquet of digital products and services.

· “Open” scenario: This digital economy ecosystem features seamless inter-operability and openness: open access, open innovation and open data. The Internet market is richly innovative and competitive. With token loyalty, users migrate to other innovative applications or services. Telcos focus on providing retail and whole-sale connectivity, with specialised services.

· “Automated” scenario: Sales, service production and customer care become largely softwarised. Customer requests configure service patterns automatically. Sophisticated data analytics are used mainly for internal purposes. Players leverage open standards and generic solutions to implement low-cost production.

· “Trust” scenario: This scenario comes to challenge the digital world as we know it, with rising insecurity and cyber-surveillance. Users rely on only a handful of players able to provide them with high levels of security and data protection, thanks in large part to technologies developed in-house. Business models based on targeted advertising and the public cloud both lose ground, while security solutions and paid services are on the rise.

For the forecast of telcos in the Philippines, the probably points towards the “Open” scenario where the Internet market will become richly innovative and competitive with telcos focusing on providing retail and whole-sale connectivity, with specialized services. The “Mall” scenario is equally possible, competition between Internet players and the telcos, each of them aggregating and marketing a branded bouquet of digital products and services. These trends will hopefully positively impact on the populace in allowing a full-scale shift the New World Information and Communication Order per the recommendations outlined in the MacBride Commission (1980) about a transformation in the world’s communication patterns, flows and infrastructure, to benefit the developing world and the ‘‘free flow of information’’ and hence achieve the espoused goal enshrined in the ‘‘Right to Communicate’’ through access to the internet and mobile cellular phones, allowing those who possess these technological innovations to seek information and to receive information as well in the Philippines (Buchanan, 2015).

With such systems in place, Telco’s in the Philippines will be expected to provide much efficient Internet bandwidth and speed, however what does that portend on the demand for voice calls and short message?

Meffert & Niko (2017) contend that as digital proliferates the telecommunications industry, incumbent telcos find themselves in the middle of a paradox; first, “thinking digital” is deeply embedded in their business models as they not only providers of their own digital products and services but also enablers for other sectors, by providing the essential connectivity infrastructure for functioning and growing in the digital economy, which results in a growing demand for broadband access. Secondly, it is forecast that the number of digital customers will skyrocket globally, and intensity, with respect to time spent using digital platforms as a means of communicating, will increase over the next few years. For illustrative purposes, Meffert,& Niko (2017) note that there are two-and-a-half billion digital customers globally who are under 25 years of age. What characterizes this group is the fact that they are “always on” and that they show a different usage behavior compared to that of the traditional “analog” consumer. On average, these young digital users spend 315 minutes online each day (versus 126 minutes for customers over 25 years). More than two-thirds of this group is on YouTube daily, and where 41% of 18- to 32-year-olds in the United States alone use video-messaging-service Snapchat for 25 to 30 minutes per day. At the same time, consumer behaviour regarding traditional communication services is changing, and the total consumer spend on these services is expected to decline even while overall communications activity grows.

Just a few years ago, observe Meffert & Niko (2017), messaging, fixed voice, and mobile voice services from over-the-top (OTT) telco players accounted for 9, 11, and 2% of relevant revenue, respectively. In the most aggressive scenario, the share of messaging, fixed voice, and mobile voice provided by OTT players could be at 60, 50, and 25%, respectively, by 2018 in an all-IP environment. Wring in 2015, Labbi (2015) noted that revenue for voice services was saturating, and on a gradual decline with the developments of mobile communication in the past decade. However at the same time, mobile broadband was entering a golden age of development, bringing human society to a new height of ubiquity. Currently, an open ecological environment that includes “terminal, network, and service” which centered on broadband experience is in an early form. With the challenges of traffic and cost being overcome, it is predictable that mobile broadband will become the most significant force to promote industry development (Libbi, 2015). As those service offerings are being built on innovative business models, they will be available to users at a much lower price than traditional telcos are able to offer. This development will likely result in a drop in spending on traditional communication services further pushing incumbent telcos to the margins of voice and data provision (Meffert & Niko, 2017).

Hence to remain relevant in an increasingly digital space, incumbent telcos, even those in the Philippines, are advised to consider two strategic moves and, if appropriate, take immediate action: 1) make the core business “super slim,” cost efficient, and more agile and, 2) identify new growth areas in the space that combines the great potential of digitization and telcos’ existing core competencies (Meffert & Niko, 2017).

References

Barreiro, Victor, Jr. (2017). PH has slowest average internet speed in Asia Pacific-report. Rappler. June 1. Retrieved from https://www.rappler.com/technology/news/171680-philippines-akamai-broadband-adoption-internet-speed-rankings

Buchanan, Carrie (2015). Revisiting the UNESCO debate on a New World Information and Communication Order: Has the NWICO been achieved by other means? Telematics and Informatics 32 (1), pp. 391–399.

Camus, Miguel, R. (2018) Healthier Twitter looks to Philippines for boost. Philippine Daily Inquirer. March 8. Retrieved from http://business.inquirer.net/247267/healthier-twitter-looks-philippines-boost

Cassidy, John (2014). We Need Real Competition, Not a Cable-Internet Monopoly. The New Yorker. February 13. Retrieved from https://www.newyorker.com/news/daily-comment/we-need-real-competition-not-a-cable-internet-monopoly

Channel News Asia (2017). Internet speeds in Singapore among world's fastest: Report. Chanel New Asia. May 24. Retrieved from https://www.channelnewsasia.com/news/singapore/internet-speeds-in-singapore-among-world-s-fastest-report-8879516

De La Paz, Chrisee (2017). 'Faster, cheaper' internet via DICT's national broadband plan. Rappler. March 10. Retrieved from https://www.rappler.com/business/163808-national-broadband-plan-dict-salalima

Dakroury, A. (2009). The baron of the right to communicate: Jean d’Arcy (1913–1983). In: Dakroury, A., Eid, M., Kamalipour, Y.R. (Eds.), The Right to Communicate: Historical Hopes, Global Debates, and Future Premises. Kendall Hunt, Dubuque, IA, pp. 21–42.

Libbi, Zubair (2015). Looking at Telecom industry trends by 2020 and beyond

August 10. Capgemini. Retrieved from https://www.capgemini.com/2015/08/looking-at-telecom-industry-trends-by-2020-and-beyond/

MacBride Commission (1980). Many Voices, One World. United Nations Educational, Scientific and Cultural Organization, Paris.

Meffert, Jürgen & Mohr, Niko (2017). Overwhelming OTT: Telcos’ growth strategy in a digital world. McKinsey and Communication. January. Retrieved from

https://www.mckinsey.com/industries/telecommunications/our-insights/overwhelming-ott-telcos-growth-strategy-in-a-digital-world

Montecillo, Paolo, C. (2012). ‘Philippines has 9.5M Twitter users, ranks 10th’. Philippine Daily Inquirer. August, 9. Retrieved from http://technology.inquirer.net/15189/philippines-has-9-5m-twitter-users-ranks-10th

Orante, Bea (2016). Internet users to VP bets: Break up telecom monopoly. Rappler. April 10. Retrieved from https://www.rappler.com/move-ph/128971-internet-users-vp-debate-telecom-monopoly

Pennings, Christopher (2016). Digital Economy 2025: The future of telecom and Internet ecosystems. IDATE Digiworld. January. https://en.idate.org/digital-economy-2025-the-future-of-telecom-and-internet-ecosystems-2/

Rappler (2017). ‘PH spends most time online and on social media–report’. Rappler. January 30. Retrieve from https://www.rappler.com/technology/features/159720-ph-spends-most-time-online-and-on-social-media-report

Ronquillo, Mari, A. (2017). What is the National Broadband Plan? Rappler. March 27. Retrieved from https://www.rappler.com/technology/features/164718-what-is-the-national-broadband-plan

Living in a wired world

We live in a wired world, where time-and-space issue has been diminished exponentially for people to communicate and to collaborate.

This landscape is attributed to ICTs (Information Communication Technologies), as well as to the Internet (which connects computer users to other users that comprise a global network).

ICTs and economy

Following the ideas that Thomas Friedman shares in The World Is Flat, ICTs possess that level-the-playing-field ability. That has spun information-related professions, labor markets, new ways of working and new social class disparity (information rich and information poor that Alexander Flor explained lengthily in his volume.)

Using Alvin Toffler’s The Third Wave as a premise, then we are in a post-industrial society or information society, wherein, as we all know, information is power and electronic technology also defines “survival.”

In his paper on carving ICT niches, Flor says: “The higher the HDR rank, the higher the ICT indicator values. The higher the human poverty index, the lower the number of ISPs, telephone lines, PCs and TV sets per 1000 persons. The higher the value of ICT indicators (as in the case of Singapore, Brunei and Malaysia), the lower the poverty index.” Note: HDR stands for Human Development Report.

Therefore, the Philippine government should improve its ICT capability and the Internet speed. This shifts to the perception that private telecommunications drag their feet in providing better services.

Select reports on Phl’s Net speed

According to an ABS-CBN News report posted October last year, industry monitor Speedtest Global said that the Phl’s Internet speed improved and this might be attributed to President Rodrigo Duterte’s calls for telcos to improve their services. The filed report stated that the country ranked 94th from 99th for mobile and placed 88th from 91st for fixed broadband in the world. Speedtest added that consumers — in less than 10 minutes — could download a one-hour and 40-minute long movie.

The Manila Times story written by Ma. Lisbet Esmael reported PLDT and Globe’s point of view that the slow Internet is due to the permits system required by the government. Esmael quoted Ernet Cu, Globe executive, saying, “Our biggest hurdle in delivering consistently good internet (service) is the cumbersome number of permits and right-of-way issues that prevent us from building the last mile connectivity that would allow world-class internet services to be enjoyed by the ordinary household or any person using a mobile phone.”

Globe SVP for corporate communications Yoly Crisanto reiterated the same concerns (“It takes 25 permits and eight months to put up one cell cite”) in an opinion article published by Inquirer.net. She wrote that the Philippines suffers from a severe lack of ICT infrastructure and compared the efforts made by the national government to other countries like in the areas of (putting up) cell towers, submarine cable systems, and fiber optic cables. Crisanto shared that Vietnam has 70,000 cell sites, China has more than a million cell sites, while the country has 16,400 cell sites funded by the private sector.

Referencing the working draft for National Broadband, one can say that the government is doing its best to address the slow Internet. The National Broadband introduction supports the intention of President Du30 and states about accelerating the use of fiber optic cables and wireless technologies to improve the Internet speed. The documents speaks of the importance of broadband as “a key enabler of economic growth and competitiveness of nations that can contribute to social and cultural development,” and having a broadband Internet access (with such characteristics as open, pervasive, inclusive, affordable and trusted) as a means to empower every Filipino’s lifestyle.

How is Philippines fairing in the Speedtest Global Index (dated February 2018)? The website says the country ranks 93 +1 and 87 + 3 for mobile and fixed broadband, respectively.

Although these reports may be servicing or supporting certain ideas or perspectives, a sustainable answer to improve Internet service or data services rendered by telcos relies heavily on the mutual cooperation between the government and telecommunications companies --- big or small players. They should put public welfare at the center of their service.

References

Esmael, Ma. Lisbet. PLDT, Globe blame red tape for slow internet. Accessed from http://www.manilatimes.net/pldt-globe-blame-red-tape-slow-internet/368927/

Flor, Alexander. Carving ICT Niches Within the ASEAN in a Globalized Educational and Knowledge Environment. Accessed from www.up-ou.academia.edu/AlexanderFlor.

National Broadband (Working Draft). Accessed from http://www.dict.gov.ph/wp-content/uploads/2017/03/Draft-National-Broadband-Plan-for-commnets-until-5PM_24March2017.pdf

Ph internet speed improves after Duterte call: Speedtest. Accessed from http://news.abs-cbn.com/business/10/18/17/ph-internet-speed-improves-after-duterte-call-speedtest

Speedtest Global Index (February 2018). Accessed from http://www.speedtest.net/global-index

‘The truth about internet speed inx Ph.’ Accessed from http://opinion.inquirer.net/106393/truth-internet-speed-ph

Should telcos be expected to increase bandwidth and internet speed that will diminish voice calls and short messaging?

The Needs Scenario

Fact is, people deserve a better connectivity infrastructure commensurate to their current needs, regardless what means, regardless who provide it. When almost everything in people’s lives from food, to education, to recreation, to jobs, to relationships can happen through digital access, wi-fi has acquired a value like oxygen is to the human lungs. When we are unconnected, we feel lost and paralyzed , like the events of our days will either not materialize or life itself , either shared with others or in solitude would not be savored as much.

In this highly globalized era, the form of connectivity demanded by our current lives has changed with the advent of 3G/4G technology.

For instance, as per Globe’s research in the Philippines, median age is 24—these are the millenials who grew up as digital natives. The mobile internet penetration rate is growing at a rate of 1.5x or3)M users every year. According to Globe data, Philippines consumes 150k terabytes of data annually. Of 101M pop, there are 119M mobile phone subscriptions (117% penetration rate) , 95% prepaid, 55% with mobile broadband , 80% subscribed to 1-3Mbps, >10% have broadband subscription. Internet users have grown from 8.27% in 2009 to 47.13% in 2015. Average time spent online is 3.2 on mobile and 5.2 on desktop and tablet: 47% on social media, 29% on online shopping, 19% on videos, 15% on online and mobile games, 13% on location –based search. There are 47M active FB accounts . PH is the greatest growing app market in Southeast Asia. E-commerce is gaining ground : 5 in 10 have recently bought something through their phones (games, music, apps, services & goods. Media streaming services such as Netflix, spotify and HOOQ are also fast gaining popularity. Filipinos are fond of using Uber, Grab and Airbnb. We want less of domestic voice calls, unless it is “unli.” We have so many OCW relatives working abroad whom we talk to lengthily through FB messenger, Viber , Skype, or Google. We transmit bigger and bigger files, watch more Netflix movies & videos, play games endlessly, and surround ourselves with Spotify music even in our work or study. For Filipinos, this connectivity culture transcends economic status and perhaps run very uniquely across the entire world.

Yet with such cultural realities and the highest digital population , Philippines has the slowest speed and lowest bandwidth in the world. Akamai Technologies' Global State of the Internet Report showed that the Philippines has the slowest connection in SE Asia, with its average connection speed just 5.5 Mbps as of 2014. ICT is crucial to development of a nation. Among the ASEAN member nations , internet usage is more than 195 million users. The same source indicates that internet penetration is high in 7 out of 10 Member States with 73% in Singapore, 65% in Malaysia, 59% in Brunei Darussalam, 39% in Viet Nam, 36% in Philippines, 35% in Thailand and29% in Indonesia. With IT, falling short of the global average internet connection speed of 7.2 Mbps , it plays a crucial role towards our development as a nation. In the current and next decades, our biggest challenges in education, transport, health and basic services can all be solved by internet access and big data. The Philippine government has a lot to do in terms of redefining its role, taking the lead in the mandate, relationship with private and foreign sectors and using policy tools and action plans, even crafting new laws.

Efforts among the Players

Control of basic services such as connectivity thus should be in the hands of the government. But it must play its cards well with all players. There are 2 major private telcos in the country; the PLDT-Smart and the Ayala-Globe and our sole energy sector operated by Meralco. Both industry and the government implement ways to improve it and are even all open to other foreign players. Meanwhile, Globe urges the government to cut red tape so it could speed up the implementation of its network rollout plan. Despite the limitations everywhere, each camp is without effort to upgrade things.

PLDT-Smart

PLDT's recent efforts have started to pay off such us rolling out of more fiber-to-the-home (FTTH) and LTE facilities. PLDT's network rollout and upgrade took a big bulk of its ramped-up capital expenditure program of P42.8 billion for 2016, which included the utilization of new frequencies freed up with the acquisition of San Miguel Corporation assets. It has invested around P300 billion over the past 10 years to roll out fixed and wireless network infrastructure, which now has 150,000 kilometers of fiber optic cables.

Ayala’s GLOBE

Globe's P69.1-billion deal to buy out SMC's telco assets is now being reviewed by the courts, which recently affirmed its validity. Globe had progressively increased its capex spending since 2015. For every peso booked as revenue, the company earmarked 31 centavos for capital outlays. On the $850-million capex budget for 2018, full-year capex-to-revenue ratio is estimated at nearly 34 percent. Higher 3G and LTE are now more available both on a regional and nationwide basis. For the 9 months of 2016 and 2017, its mobile data network carried more than 2.4 times the traffic of competition. Apart from providing fast internet service to more households, a good portion of this year’s capex will be used to deploy massive Mimo (multiple input, multiple output) technology, thereby expanding and enhancing its LTE network. Mimo enables a mobile network to multiply the capacity of a wireless connection without requiring more antennas. It also increases wireless throughput, accommodating more users at higher data rates with better reliability while consuming less power. In the case of home broadband, speed and range benefits of Mimo allow customers to have reliable data connection especially for video streaming. Globe now derives the bulk of its revenue from data services. In the first 9 months of 2017, data-related revenue accounted for over 53 percent of the total revenue for the period. It is reported that data-related revenue amounted to nearly P51 billion, up by 6 percent year-on-year.

Current Government Efforts

The government has geared up its arm with the crafting of the National Broadband Plan, which addresses the clamor for universal, faster and affordable Internet Access and has 3 major broad strategies, namely: 1) establishment of policy and regulatory reforms; 2) government investment in broadband infrastructure; and 3) support for the stimulation of broadband demand. As re infrastructure, it does not only call for increasing cell-sites and fiber but investing on an internet super hi-way. The Department of Information and Communications Technology (DICT) has revived the proposal for national broadband network which is seen to provide at least 10-Mbps connection to all households by 2020 at a much lower cost than today's average of P1,299 per month.

The government’s role to foster competition in the telecom market calls for opening up the market to more players and leveling the playing field between incumbents and entrants, between big and small players. This translates to more choices, better quality, and affordable services to consumers. Mere review of mergings and acquisitions are worth above P1 billion. And this calls not only for commitment but change of the very 1987 Constitution. Under the 1987 Philippine Constitution, only companies owned at least 60% by Philippine nationals or corporations may operate as a public utility. Allowing foreign investors to set up a telecommunications or power company without partnering with a local firm would need amending it. Japan-based NTT Group has been a strategic partner of PLDT since 2000, owning 20.35% of PLDT’s common shares as of end-September 2016; Singapore-based Singtel, meanwhile, owns 20.13% of shares in Globe Telecom as of end-September 2016.

This government intervention plan must be done with a long perspective in mind, thus the need for a law that can roll out with continuity across presidents. First , masterplanning ICT must really be in the hands of the national government guided by principles of global collaboration and public-private partnerships for mutual benefits to the citizenry. The government has to take part in all processes of developing a national Infrastructure as a control tower from planning to implementation. On demand-side policies, many can be initiated like e-education/learning, e-health, e-transport, e-government )agency has an IT infrastructure and so the utilization of the market was maximized) , and e-commerce , implementation of security measures for use of personal information, promotion of e-working through reduction in restriction on working time and physical work space, and the creation of Education Broadcasting system services providing education programs over the internet. It must actively support the business community building the network by creating the regulatory framework and making a lead investment. It must bear the market risks and such leadership should attract the businesses, both foreign and local, to quickly adopt and diffuse newer and newer technologies as they become available. As concrete support for telcos, its policies must include infrastructure subsidies, provision of loans for the construction of high speed internet networks in rural areas and extensive internet education programs targeted previously unreached groups such as housewives, elderly and disabled.

Systematic research showed that the success factors of Korea with 94% connectivity promoted broadband expansion hinged on the government’s long-term strategic planning, liberalization of the telcos market , creation of a highly competitive internet, and enhancement of demand-side drivers including pricing. Even support for cluster housing infrastructures helped. It should however be warned that this high competitive environment resulted in large losses for many broadband providers in the early stages of market development and even went into a crisis in 2009. It must really entail some getting worse first before it could get better, some sacrifices here and there, before we can attain over-all eventual betterment of our connectivity woes.

Role of Civil Society

Culture change as well is largely called for. If we are again to learn lessons from South Korea, these are 2-fold: (2) the government ‘s intervention at several nodes including research, infrastructure, competition, industry structure, user awareness and ICT education. (2) the sectoral growth based on long-term interventions focused predominantly on opportunity generation more than direct public investment. (3) importance of direct and infrastructure-based competition in the development process.

For example, South Korean government has encouraged its citizens to get computers and to hook up to high-speed Internet connections by subsidizing the price of connections for low-income and traditionally unconnected people. One program, for example, hooked up housewives with broadband and taught them how to make use of the Web in their everyday lives. Parents in Korea, who tend to place high value on education, see such connections as necessities for their children . These cultural factors spelled much difference to drive the market demand. That demand, in turn, encourages telecommunications companies to provide those connections. Socio-political culture has much more to do with it, Koreans would say. Do we have it among very heterogenous and divided Filipinos ? Maybe we could , this time, unite, in the name of connectivity.

REFERENCES

http://www.dict.gov.ph/wp-content/uploads/2017/03/PTS-17-DAY-2-03-Sean-Gowran-Investment-and-Bandwidth-Management.pdfhttps://www.rappler.com/brandrap/profile-internet-users-ph

Profile of internet users in PH (2016) https://www.rappler.com/brandrap/profile-internet-users-ph

NoteKoreaICT.com.

http://business.inquirer.net/243703/globe-sets-2018-capex-850m#ixzz5DEdGk46L

https://www.rappler.com/business/153475-pldt-globe-meralco-telco-energy-duterte-foreign-players

Telecommunication Company in their stance as partners for national development is expected to deliver large bandwidth connection. Large bandwidth connection makes possible the recognition, creation, preservation, dissemination and utilization of content instantaneously at a very low cost. According to research study, there is a strong correlation between the development of network infrastructures, access prices and the growth of local content (Internet Society et al., 2013).

However, in the Philippines, considering its archipelagic nature, the responsibility of building high Internet speed demands government participation. It requires a joint effort between government and private companies to build Internet service infrastructures. As of this writing, the Philippines lack national broadband plan and has an outdated law pertinent to telecommunications i.e. R.A. 7925 or Public Telecommunications Policy Act of the Philippines (Penalosa, 2015). Perhaps, suffice to say that the Philippine government do not see telecommunication domain as a priority matter. In the context of sustainable development, the participation of government, business and civil society in pushing projects is important. Hence, in this issue, I opined all must take part to improve the state of internet connectivity in the Philippines.

References:

Internet Society, Econocmic Co-operation, United Nations Educational; Scientific and Cultural Organization, Oecd, Isoc, & Unesco. (2013). The Relationship Between Local Content, Internet Development and Access Prices. OECD Digital Economy Papers, 217(217), 141. https://doi.org/10.1787/5k4c1rq2bqvk-en

Penalosa, R. (2015). The Philippines Telecom Status & Situation.

Reaching out to other people whether personal or work-related is important and it was made easy because of having easy access with the help of technology. At first, we had the telephone line, commonly known as landline where workers are already contented before. As year goes by, another innovation was introduced and this is the use of mobile phones. A person can be reached anywhere and anytime of the day since it is a mobile phone it is expected that an individual is bringing his/her mobile phone. Some companies even provide mobile phones for their employers so that they can easily call their employees if they need to relay a new task to the person.

Then here comes smartphones, a mobile phone that cannot only make call and SMS but can also be connected to internet services via wi-fi or data service provided by the network where the individual is a subscriber. By connecting the smartphones to the internet, a person can send and received messages through a messaging app and in addition, can also use the application for email to send a more formal or important message immediately if needed.

Having said all of those, it is naturally expected for telecommunication companies to provide more to its customers. The Philippines still behind when it comes to speeding the internet, therefore, people still use voice calls and SMS to have their message reach the person they need to talk to especially if it is an urgent matter.

In a research Philippine Broadband: A Policy Brief it was stated that there are two telcos that are dominating the Philippines, these are the PLDT and Globe Telecom. An estimate of 44 million Filipinos are using the internet but these access that they enjoy is still much slower compared to its ASEAN neighbors (Santos, 2016).

Both Globe Telecom and PLDT claim they are providing good services and even updating their system to provide more for the customers. However, their respective subscribers do not feel any relief as their internet at home or on their smartphones (using data services) is not operating according to their needs.

Based on ASEAN data, the Philippines’ internet speed (3.6 megabytes per second) lags behind Laos (4.0 mbps), Indonesia (4.1 mbps), Myanmar and Brunei (4.9 mbps), Malaysia (5.5 mbps) and Cambodia (5.7mbps). Vietnam has a speed of 13.1 mbps and Thailand, 17.7 mbps. (Manila Times, 2014).

Meanwhile, in the 2016 State of the Internet Report, which was reported by CNN in 2016, the Philippines still has 3.5 mbps internet speed, the same with 2014 report. Obviously, the speed did not improve despite of the telecoms claim that they are improving everything.

Department of Information Communications and Technology (DICT) Secretary Rodolfo Salalima hopes that there is no corruption so that the projects for improving the services of telcom will push through. He admitted that it was tedious task just to secure permit in able to build cell sites on different provinces.

Personally, if there will be political will and proper coordination with everyone involved, the internet service in the Philippines will be good. But it should not diminish the services for voice calls and SMS because there are still some people especially the elderly who are not interested in using the internet, those who are not technologically gifted who are only after simple communication just to reach a love one. Telcos should not forget about them.

Improve the service by speeding the internet so workers and students can do their tasks properly but do not diminish the voice calls and SMS for the benefit of those who are technically challenge. After all, this is a business where these companies benefitting well.

References:

Mary Grace Mirandilla-Santos. (2016) Philippine Broadband: A Policy Brief. Retrieved April 26, 2018 from http://www.investphilippines.info/arangkada/wp-content/uploads/2016/02/ONLINE-BROADBAND-POLICY-BRIEF1.pdf

http://www.broadbandcommission.org/Documents/reports/bb-annualreport2014.pdf

PLDT, Globe in race to modernize networks. (2014). Manila Times. Retrieved April 26, 2018 from http://www.manilatimes.net/pldt-globe-in-race-to-modernize-networks/91760/

Faster speeds, better internet access in 2017 for laggard Philippines: government (2016). CNN Philippines. Retrieved April 26, 2018 from http://cnnphilippines.com/news/2016/11/07/faster-speedsbetter-internet-access-in-2017-for-laggard-philippines-government-rodolfo-salalima.html

Voice calls and SMS have, for the longest time, been the goose that lays the golden egg for telecommunications firms worldwide. But recent developments in the field of IT, like applications that utilize the Internet for voice calls and SMS, are slowly killing the goose.

In this dynamic day and age, one cannot remain static for a long period. Businesses, telcos included, have to find ways to remain relevant by lessening their dependence on the voice calls and SMS market. Telcos are in a Catch 22 situation. The entry of cable providers in the Internet bandwith market is giving telcos a run for the money, even as a strong Internet connection is a bane to the continued cable TV subscriptions (given the increasing popularity of sites like Netflix or Youtube).

Telcos, if they have not done so, must also realize their moral responsibility in the development of society. An ADB study (2016) showed “how a reliable ICT infrastructure underpins all ICT-related services”. It also stressed how the development of ICT infrastructure “must go hand in hand with ICT-related national or regional strategies, policy and regulatory frameworks, and reliable power supply”, noting how many countries “have yet to reap digital dividends” from “collaboration, efficiency, inclusion, and innovation”.

With the giant telcos providing the ICT infrastructure, they help accelerate the development of modeling systems to adapt to climate change, pedagogical platforms for the education sector, green technology solutions for the environment, e-governance, etc. (Serrat/ADB).

Telcos must compete or perish. If we have to catch up with the world, the race is for those who can provide the fastest yet most affordable and open broadband or fiber Internet service, to especially accommodate those who cannot afford or don’t have access. Telcos should spend on infrastructure -- the lifeblood of their business, or we run the risk of widening the gap of the digital divide. “If broadband is to a degree a public good like roads, then it is fair to demand that the heaviest users subsidize some of those costs, just as trucks pay more for road upkeep than cars,” said author-consultant Karabell.

References:

Karabell, Zachary (2017). Why Tech Giants and Telecoms Should Join to Build an Internet for All. In Wired. Dec. 20, 20107/

https://www.wired.com/story/why-tech-giants-and-telecoms-should-join-to-build-an-internet-for-all/

Serrat, Olivier/Asian Development Bank (2016). How Information & Communication Technology can Fast- track Development, Issue 70, November 2016. https://www.adb.org/sites/default/files/publication/213206/how-ict-fast-track-development.pdf

Mobile service is predominantly the telephone method of communications in the Philippines. Its voice calls and short message services are telecom features utilized from mobile technology. The Philippines became the 13th country in the world with high mobile market and emerged as the largest in South East Asia and the highest in terms of nation’s mobile density (Minges).

Telcos can not seem to diminish these demands over internet as they are not capable (or not willing) to provide high internet bandwidth and speed at cost that will diminish the voice calls and short message services. A study on internet in the Philippines presented the factors of the rapid mobile growth: First, the country has a large number of full service operators that made the Philippines the most competitive market and the lowest tariff in the region. Second, the penetration strategy, mobile service created an attractive proposition in terms of availability and ease of subscription. And last, the price component of short message service and the coverage of almost 70 percent of the population. What made the telcos operate and implement such offering of services in mobile service category that the entire population can avail? To think that the telcos are the same players and providers in the internet service category. Why there is such a digital divide that the service features in mobile service in terms of coverage has greatly conquered?

The answers to these are: One, the structure of internet market, the structure of internet market in the Philippines is hierarchical. At the top of the pyramid are the telecommunication operators with international bandwidth and telecom franchise license, some with their own internet subsidiaries, on the next tier are the ISPs who retail internet service in the downstream players in the provinces. Second is the internet connection issues, There is no legal requirements for ISPs to interconnect with each other. ISPs can connect to three exchanges for swapping their national internet traffic, but it is estimated that 90 percent of the estimated internet traffic is destined abroad, since there is no single internet exchange to which all ISPs are connected, there are situations where national internet traffic will be transited abroad to return to the Philippines. This is the third issue affecting the internet service is pricing. Because of interconnection issue, this add up to the international interconnectivity costs. There has been no telco player interested to play as neutral internet exchange in which all ISPs can connect (Ibid).

These predicaments with telcos and ISPs will translate in this scenario: “A small telco players that had expressed interest in investing in the country can actually put up connection in the Philippines with pass-on rates at only $4 per megabyte, however, these small telcom players would need to pay about $8 to PLDT or Globe for connection” (Arado).

We can not expect ISPs to provide internet service comparable to other countries in terms of bandwidth, speed, accessibility, and price because the cost of infrastructure covering the vastness of Philippine archipelago will not be viable for a telco to cover and to consider as a business decision (Ibid).

The hope for ISPs and internet users are presented in policy brief for broadband. The recommendations include:

(1) adopting an open access model, where segments of the internet infrastructure will be opened up to more and different players both local and foreign;

(2) updating and upgrading laws and policies, which includes amendments to the Public Telecommunications Policy Act and the enactment of the bill creating a Department of ICT;

(3) leveling the playing field by promoting open and neutral internet exchange points (IXPs) and encouraging infrastructure sharing;

(4) updating the country’s ICT strategy and plan, including the development of a national broadband plan;

(5) improving spectrum management; and

(6) ensuring and protecting the competitiveness of the telecommunications industry ( Santos).

References:

Arado, J. Philippine Internet ‘Can Be Faster But At A Cost’. Sun Star Philippines. Retrieved From: http://www.sunstar.com.ph/article/403046/

Minges, M.,et.al. ITU. Pinoy Internet: Philippine Case Study. International Telecommunication Union. Geneva Switzerland. Retrieved From:

http://www.itu.int/ITU-D/ict/cs/philippines/material/phl%20cs.pdf

Santos, M. Philippine Broadband: A Policy Brief. USAID. Policy Brief No.4. February 2016. Retrieved From: http://www.investphilippines.info/arangkada/wp-content/uploads/2016/02/BROADBAND-POLICY-BRIEF-as-printed.pdf

Let’s face it. The world is on the brink of the so-called digital age , the prolific use of technology in almost all aspects of human activity. Social, economic and political activities and processes in the midst of this information era are driven by application of ICT or digital technology.

One of this computer age’s greatest milestone is the internet, defined as, “ a global computer network or system providing a variety of information and communication facilities, consisting of interconnected networks using standardized communication protocols”. In other words, the internet allows computer users to connect with computers all over the world. The social media, perhaps the most popular internet service connects people all across the globe, making the world a lot smaller for the netizens. The Philippines being part of this world is no exempt, as it continues to cope with this technological advancement in order to meet the demands of a globally competitive environment… or is it?

Reportedly, ICT services in the Philippines is one of the most expensive in the Asia Pacific region. The greater agony that Filipino internet users are slapped with is the fact that the internet speed in the country is not proportional to its costs.

The Philippine Institute for Development Studies (PIDS) in its recent study concluded that this problem is primarily caused by the lack of comprehensive policies on ICT development, which, in turn, results in unequal distribution of digital dividends or the development effects of ICT.

Relevantly, the same study asserted the direct relationship between ICT access and economic growth. This is supported by a World Bank study which revealed that a 1.3 % increase in economic growth is noted for every 10% increase in high-speed internet connection.

No wonder, telecommunications company (Telco's) in the country – PLDT and Globe for this matter are beefing up its services for the accrual of economic gains, not to mention that internet penetration across the country has gone wider and wider, as mobile phones and broadband subscription services become more accessible.

But as to the question, should Telco’s be expected to provide the Internet bandwidth and speed that would diminish the demand for voice calls and short message services? My stance would be a yes. We are actually going there. Wi-Fi calling has ushered into the scene after all. Wi-Fi calling allows users to send and receive phone calls and text messages without using the mobile phone network, e.g. – FB messenger, Skype, among others. Who needs a mobile signal with a separate expense for voice calls and text messages plus the fusses of the so-called black spots (no network coverage) when these can be addressed simply via an internet connection.

If diminishing the demands of voice calls and SMS would increase internet utilization and hence, subscription, telcos probably would gear up toward that direction. It should be noted that SMS and voice call remain expensive to date for typical telco network subscribers, that they would always opt for something cheaper, yet accessible.

Internet speed, should Telcos go for this target, must first be enhanced. Poor quality connection yet paid at a high cost impede the country’s quest for an optimum ICT development. The pressure however must not be solely pressed on Telcos, but government must also do its part. The lack of comprehensive policies call for government’s prompt action. Existing policies must be effectively and efficiently implemented to address possible barriers slowing down internet connection. Lamentably, these remain unheeded by Telcos. Studies urge policymakers to target ICT development, widen access, and promote competition and further interconnectedness to maximize digital dividends.

In the midst of this digital age, the Philippines is in a “state of no return”. While there are disadvantages, the multiple benefits of ICT development in society can never be discounted. ICT has brought us closer to the world in terms of business and economy. We need to progress, we need to catch up, we need to speed up. It takes two (government and private sectors) to tango.

References:

http://www.thefiscaltimes.com/2014/12/05/Multiple-Benefits-Our-Digital-Age

https://www.pids.gov.ph/press-releases

https://www.ukessays.com/essays/media/impact-of-the-digital-age.php

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The question revolves around providing internet data for audio calls and short messaging, as an alternative to using the regular call and sms channels. The question is not about providing internet data for other uses (watching movies, emails with huge attachments, cloud backup, etc.).

An article by Mark Johnson, http://www.tele-datasolutions.com/internet-speed-bandwidth-impact-voip-phone-system/, gives a simple explanation of the concepts of internet bandwidth and speed, by comparing them with highway width (or number of lanes) and speed limit.

In that article, the author suggests that “it is a best practice is to always separate the computer network [from] the VoIP or voice network”. So in this question, we are concerned only with the voice network part (whether wired in offices, or wireless using celphones), not with the computer network part (for internet uses in general, multimedia, cloud storage, gaming, etc.). SMS uses very little data, so it can be assimilated in the voice data allotment without futher problems.

In the article, we can see that for simple voice calls and sms, we do not really need a very high internet bandwidth and speed. It is like making deliveries in a small town, where a single lane would be enough for the delivery tricycle to reach its destination without any difficulty. We do not need a four-lane highway in this town to deliver goods using tricycles.

In the same way, a single caller would be very happy with 3MBps up and downspeeds, while ten simultaneous users, 5-10 MBps. This means that even if, based on others’ replies in this post, Philippine speeds of around 5MBps are second to the last in Asia and among the last in the world, voice and sms users would already be happy.

We can initially conclude then that Philippine Telco’s are indeed already providing enough “internet bandwidth and speed that would diminish the demand for voice calls and short message services”, at least for the normal citizen Juan de la Cruz, and for SOHO’s (Small Office / Home Office) with up to 10 simultaneous users. Even mid-sized businesses that make calls in different moments anyway, not simultaneously all the time, would already be satisfied by subscribing to several internet lines. (Gamers, multimedia users, web designers, etc. would of course be frustrated, but this is not the issue being discussed in this post.)

However, the force of this initial conclusion is weakened if we consider that the Philippine speed of around 5 MBps refers to the average available for everyone. Some people would have slower connections (and thus be frustrated), and others faster (the big businesses who can afford, but would then need to pay more). From this perspective, the final conclusion then is a definite yes, the Philippine Telco’s should provide more internet bandwidth and speed: to improve voice and sms services for those below the average (since the average is already sufficient for voice and sms), and to make these services more affordable for everyone.

(Since replies in this forum have to be concise but substantive, I just limited myself to some very concrete items, to help complete the picture a bit more. I definitely agree with the others’ replies and data on the need for the Telco’s to improve their services, and need not repeat them here.)

According to the Department of ICT, “Digitization has two faces in the current state of PH telco—first, as a threat; second, as an opportunity.

PH telcos’ existing positions are now challenged by surge in ICT demand. The Philippines, from having been known as the ‘texting capital of the world’ has now taken the global lead in social media usage with the average Filipino spending 4 hours and 7 minutes per day on social media sites, according to the Digital Report in 2017 by Hootsuite and We Are Social. This high rate of usage, however, stands in contrast to currently available Internet speeds.

As of Akamai Q3 2016 report, PH has the second slowest fixed line broadband Internet speed in the world.

In order to speed up the Internet in the country, there is a need to activate more cell sites, according to most telco providers, but the bureaucratic red tape gets in the way of network deployment. The tedious process of securing permits from many local governments, national government agencies, barangays and subdivisions impedes construction, thus affecting the availablity of service in certain areas.”

I am thinking that there might be another side to this question. Why don’t the government take full operations of telcos and make good the promise of public places in the Philippines to have free internet access granted by the national government, now that the Philippine President already signed Republic Act 10929, also known as the Free Internet Access in Public Places Act. But this time to actually allocate the budget for enough infrastructure to facilitate access to the digital highway even in the privacy of homes free of charge, thereby providing constant communication access that delivers call and messaging services through the net. If the Filipino is thus empowered, wouldn’t it be interesting to know what kind of cultural creative he can manage to become?

The advent of technology has changed lives of people all over the world specifically the Internet and the World Wide Web use which paved the way for faster communication and transaction (Hill, 2010 as cited in Tungcab & Lacab, 2014). However, in the Philippine setting, we are lagging behind other neighboring countries due to poor telecommunications infrastructure and late adopter of new technology (Tungcab & Lacap, 2014). In terms of broadband speed, the country has continuously been outperformed by its counterparts in the ASEAN-5, according to the State of the Internet Connectivity Reports 2015-2016 of Akamai. Though the average speed of the internet in the Philippines is steadily increasing, still a big gap our country needs to close to remain at par with the other ASEAN-5 Countries (DICT, 2017 Executive Summary).

Ironically, despite the poor telecommunications infrastructure and poor service, telecommunication companies in our country have the courage to charge users more than the type of service they provide. As a fixed broadband internet subscriber of _ , I must say that I deserve the quality service matching my monthly bill. Sadly, more often than not I am not satisfied with its internet speed.

Having DICT as the administrative entity of the Executive Branch of the government that will plan, develop, and promote the national ICT development agenda, I remain hopeful that faster and cheaper internet service will be within every Juan’s reach real soon. Having this realized, economic transformation, productive efficiency, improved public administration and service delivery, social inclusion, unlimited opportunities for personal development and acquisition of new skills (DICT, 2017) and more are expected to promote economic growth and competitiveness of our nation.

For the meantime, existing Telcos that cannot provide the connection speed and reliable service as promised must charge users lower than their normal rate, after all, they are too quick to charge overdue bills.

Reference:

Tungcab, A. & Lacap, J. (2014).Strategic Business Model for Telecommunication Companies in the Philippines. Retrieved from http://www.euacademic.org/UploadArticle/963.pdf on April 28, 2018.

National Broadband Plan. (2017). Retrieved from http://www.dict.gov.ph/wp-content/uploads/ 2017/09/ 2017.08.09-National-Broadband-Plan.pdf on April 28, 2018.

Ralph Jennings wrote about how to get Philippines got worst internet connection. Below is his article:

A traveler to the Philippines knows the dance too well. You check into a hotel that advertises Wi-Fi. Turns out it’s only available in the lobby, and only in the daytime. Then you learn of a freak service outage in the lobby. When you do eventually connect, no websites come up. On better days, each website takes a minute or two to load. Yes, on any kind of device.

The Philippines is Asia’s outlier for Internet sloth, but why?

Occasionally the answer is local. Your host might be afraid of keeping the router going 24 hours, for example. Or the hotel lacks money to extend Wi-Fi coverage to guestrooms. But more common explanations in the Southeast Asian country popular with foreign tourists are linked to economic development pains and awkward relations among providers. Obviously the issue isn’t limited to tourists. Gum in the Internet slows business for the nation of 102 million people. Oh, and apparently help is not on the way.

The Philippines is made up of about 7,100 islands, making fixed networks particularly hard to build. Permits may be issued only at the smallest level of local government, and one by one. The government also charges “high fees,” a deterrent to any start-ups or foreign investors in broadband, said Fiona Vanier, senior media analyst with market research firm IHS Technology. Dominant broadband provider Philippine Long Distance Telephone Co. controls much of the infrastructure, allowing it to charge fees higher than elsewhere in Asia despite a relatively poor population. The phone company goes on to charge other providers for traffic through its network as well, Vanier said, and the Philippines lacks Internet peering, which slows broadband speeds.

Most fixed-line Internet users still use old systems such as xDSL rather than newer fiber-to-the-home (FTTH) technology, reducing speeds, says market research firm IDC’s Southeast Asia senior telecom research manager Alfie Amir. Last year, IDC says, just 2% of fixed Internet connections in the Philippines were FTTH, compared to 33% across Asia excluding Japan.

High-speed service costs about $57 per month, more than in the United States, estimates Manila-based software technology entrepreneur Valenice Balace. After food, rent and education, that Internet bill “seems like a luxury,” she says. “Clearly, price would be the number one barrier for availing good internet speeds in the Philippines, since most people can’t afford it.”

Slow adoption of relatively advanced 4G-LTE connections keeps mobile Internet speeds slow. Most subscribers stick to 2G and 3G networks, Amir said, with just 1% on LTE networks despite the Asia average of 12%. Again there are big guys on the block. Philippine conglomerate San Miguel Corp. wants to enter the market and was assigned 90% of an "attractive," available 700 megahertz spectrum, IHS senior research analyst Seth Wallis-Jones says. But the country's two current wireless providers, Philippine Long Distance Telephone Co. and Globe Telecom, oppose that allocation. They are vying for a share of that spectrum "through the courts and by lobbying the president, which is adding some uncertainty and delay," he says.

Finally come the flukes and scams. Pockets of the capital Manila cannot get Internet speed upgrades because providers for their addresses simply don’t offer it, Balace says. In villages that comprise the Puerto Galera coastal tourist area, the installer of landlines “actually put in wireless connections to routers on the landline on the nearest main road,” one frustrated off-the-road resort operator says. “Within a very few years they took these ‘landlines’ away anyway and so there are virtually no landlines in Puerto Galera,” the operator says.

Solution of Slow Internet Connection

(excerpt of the article)

The broadband service provider that has the best overall coverage is PLDT. At the moment, PLDT is still the leading telecommunications service provider in the country with over 70 percent market share. Over 1.3 million residents subscribe to PLDT’s services, and this number is expected to increase as time goes on. Ariel Fermin, EVP of PLDT Home states, “We are proud to announce that PLDT HOME continues to dominate the broadband arena with its top-class communication solutions that deliver the best, reliable service. The numbers prove that PLDT HOME is the broadband consumers choose and trust.”

In addition to its popular PLDT HOME product, PLDT has the largest and most extensive fiber optic network, which reaches over 2.5 million homes across the nation. This extensive fiber optic network can provide you with lag-free Internet service. PLDT has invested over ₱300 billion to create this extended network, and shows no signs of slowing down. Ask around, and you will probably hear reference of PLDT’s dependable coverage, and fast browsing speeds.

Based on my experience, PLDT has a faster connection so far. But overall, should TelCo would be able to resolve this? Yes, only if the government, NGOs and other sector of the government contribute each other's knowledge.

Reference:

https://www.imoney.ph/articles/best-internet-provider-philippines-2017/

Hello Dr. Flor,

A Telco should be expected to provide the Internet bandwidth and speed that would diminish the demand for voice calls and short message services through a government telco with 5G offering and subsidized cost to its subscriber as National Food Authority offered a cheaper rice with same quality. Data is the new lifeblood. With this, it will be cheaper for voice calls and short message at the same privilege, with a more than 4G LTE offering.

Fisher (2018) wrote about bandwidth. Bandwidth is a lot like plumbing… Plumbing provides a great analogy for bandwidth. Data is to available bandwidth as water is to the size of the pipe. As bandwidth increases so does the amount of data that can flow through in a given amount of time, just like as the diameter of the pipe increases, so does the amount of water that can flow through during a period of time.

The Key Role of 5G provides a cost-effective, high-speed and energy-efficient manner. Its connectivity is on everything from smart home devices to self-driving cars and robots. (DotEcon Ltd and Axon Partners Group, 2018)

Inspired by the idea of Boracay showed to all what political will can do and what public-private sector partnership can build to solve a problem. Let it be telecom-neutral and technology-neutral, with towers provided by government. Adopt a phase in-phase out procedure where government is the catalyst and pulls out once the platforms are in place allowing the telecom companies use it. Government intervention will get prices down, services up, to serve better. (Tiquia, 2018)

It will be a better telco service.

References:

DotEcon Ltd and Axon Partners Group. (2018). Study on Implications of 5G Deployment on Future Business Models (BoR (18)23). Retrieved from https://berec.europa.eu/eng/document_register/subject_matter/berec/reports/8008-study-on-implications-of-5g-deployment-on-future-business-models

Fisher, T. (2018, August 29). What Is Bandwidth? [Blog Post]. Retrieved from https://www.lifewire.com/what-is-bandwidth-2625809

Tiquia, M.L. (2018, October 23). Govt should be the third telco. The Manila Times. Retrieved from https://www.manilatimes.net/govt-should-be-the-third-telco/455726/

Yes, Telcos should be required to provide the Internet bandwidth and speed required for a more competitive Philippines.

The Akamai Technologies' Global State of the Internet Report 2017 showed that Singapore led the Asia Pacific region and the world with an average peak connection speed of 184.5 Mbps. The gap between average peak connection speeds in the Asia Pacific is wide (143 Mbps). Singapore and Thailand have average peak connection speeds above 100 Mbps, while the rest are below 70 Mbps. [1]

Unfortunately, data for Brunei Darussalam, Lao PDR, Cambodia and Myanmar are not available in the report.

Global Rank | Country (Peak Mbps)

1 | Singapore (184.5 Mbps)

8 | Thailand (106.6 Mbps)

43 | Indonesia (66.1 Mbps)

50 | Malaysia (64.1 Mbps)

61| Vietnam (59.0 Mbps)

88 | Philippines (45.0)

However, the State of the Internet Report also stated that although the Philippines ranks low, “it may see improvements to its infrastructure in coming years, as Philippine President Duterte approved a plan to deploy a national broadband network at an estimated cost of $1.5 billion to $4.0 billion (77 billion to 200 billion pesos).”[2]

Internet Access

Country | % of population using internet

Brunei Darussalam | 90.0%

Cambodia | 32.4%

Indonesia | 25.5%

Lao PDR | 21.9%

Malaysia | 78.8%

Myanmar | 25.1%

Philippines | 55.5%

Singapore | 84.5%

Thailand | 47.5%

Vietnam | 46.5%

The above data shows that in terms of internet access, Brunei Darussalam (90%) and Singapore (84.45%) have the higest connectivity rate while Myanmar (25.07%) and Lao PDR (21.87%) trail behind.[3]

References:

[1]Akamai’s State of the Internet Report Q1 2017, available from https://www.akamai.com/us/en/about/our-thinking/state-of-the-internet-report/global-state-of-the-internet-connectivity-reports.jspaccessed on 1 November 2018

[2]Akamai’s State of the Internet Report Q1 2017, available from https://www.akamai.com/us/en/about/our-thinking/state-of-the-internet-report/global-state-of-the-internet-connectivity-reports.jspaccessed on 1 November 2018

[3]The World Bank. Individuals using Internetavailable from https://data.worldbank.org/indicator/IT.NET.USER.ZS?locations=BN-KH-ID-LA-MY-MM-PH-SG-TH-VNaccessed on 31 October 2018.

Should Telco’s be expected to provide the internet bandwidth and speed that would diminish the demand for voice calls and short message services?

I suppose the context of this question is Philippines. Until 1993, the Philippine telecommunication sector was completely dominated by a single, privately owned company: the Philippines Long Distance Telephone Company (PLDT). It provided 95% of all telephone service in the Philippines (LaBrie & Vinze, 2003). The record of service is relatively low which left the nation with just 1.1 phone lines per 100 residents. The backlog of over 800,000 requests can take as much as a five year wait.

The question seems to call for discussion on the presence of merit increasing the internet bandwidth and speed at the expense of voice calls and short message services (SMSs). This would require us to go deeper into the demand of each service. Is internet bandwidth important? With a higher bandwidth, one can access the internet faster and download or consume more content than before. This is important to students who are on a distance learning basis on MOOCs platform. They need to download or watch videos in order to learn the materials effectively and efficiently.

Given that Philippine is a large country which can be divided into Metro Manila and other less developed region, will other parts of the Philippines require such a higher internet bandwidth? The rural region has been using voice calls and short message service for simple communication. It is unlikely that they will pay a premium often associated with better internet bandwidth. However, if more and more people in the country are using mobile data, the average cost of supplying the same bandwidth may drop. This translates to good news for consumers who will be paying a lower price for better service. It is critical in the app era where popular chat app such as Whatsapp or Wechat perform better functions than voice call and SMSs.

However things are going to change. The two dominant players in the telecommunication industry PLDT and Globe Telecom is set to face challenges (Writer, 2018). The country is inviting bids for a third telecommunication license. This will likely improve the telecommunication infrastructure in the country especially internet bandwidth and speed which is becoming more important in the inter-connected world. With higher internet bandwidth, the citizens of the Philippines can then take advantage of the improved internet connectivity for online learning and conduct better business services across the internet.

References

LaBrie, R. C., & Vinze, A. S. (2003). Globe telecom: Succeeding in the philippine telecommunications economy. Annals of Cases on Information Technology, 5, 333. doi:10.4018/978-1-59140-061-5.ch022

Writer, S. (2018, September 21). Philippines looks to lure new telecom provider by November. Retrieved from https://asia.nikkei.com/Business/Business-Trends/Philippines-looks-to-lure-new-telecom-provider-by-November

Nowadays, Telco companies have been providing such service to their consumers allowing them to use their internet to communicate via different communication platforms and applications. Given that here in the Philippines there are only few telco players, consumers have limited choices and options. They have been calling upon increasing the bandwidth to support the speed and reliability of the services these telco players are providing. Even the government has been actively involved and recently became open to having other players to enter the telco market. The Department of Information and Communications Technology (DICT) has been giving these telco companies ultimatums and orders regarding their offerings and their rates. They have called upon these companies to do measures to provide consumer-friendly rates and fees.

Increased smartphone usage and availability of wireless broadband has driven the use of Internet based platforms and services that often compete with similar services based on older technologies. For example services like Facebook, Skype, WeChat, Viber and WhatsApp that offer voice or video calls over the Internet compete with traditional SMS and voice calls over telecom networks. Such platforms have gained in popularity particularly in developing countries because calling over the Internet is far cheaper than making calls on telecom networks. 

Although here in the Philippines, network coverage is still a challenge for many. Some are still using SMS and voice calls since not everyone is comfortable using the internet to communicate and especially when there are dead spots or the signal is not reliable in the area. There are even isolated areas in the islands or mountains that are not yet connected as well. But then again, given the rising demand in connectivity, Telco companies should not be complacent on what they are providing now. Given the influx of new and latest devices and mobile applications, it would be best for these telco companies to revisit and know the opportunities that are right in front of them.

References:

Camus, M. DICT moves to lower text, call rates of telcos. https://business.inquirer.net/250763/dict-moves-lower-text-call-rates-telcos-dict-telcos-interconnection-cellphone-rates-ntc

Jennings, R. How the Philippines Got Asia's Worst Internet Service. https://www.forbes.com/sites/ralphjennings/2016/02/23/meet-asias-internet-laggard-the-philippines/#84996643df7a

The Telco companies in the PH is still a long way off for us to be able to complete eliminate SMS and voice calls. Here is an excerpt from forbes.com which I think very aptly described what internet connectivity in the Philippines is like.

A traveler to the Philippines knows the dance too well. You check into a hotel that advertises Wi-Fi. Turns out it’s only available in the lobby, and only in the daytime. Then you learn of a freak service outage in the lobby. When you do eventually connect, no websites come up. On better days, each website takes a minute or two to load. Yes, on any kind of device.

The Philippines is Asia’s outlier for Internet sloth, but why?

Occasionally the answer is local. Your host might be afraid of keeping the router going 24 hours, for example. Or the hotel lacks money to extend Wi-Fi coverage to guestrooms. But more common explanations in the Southeast Asian country popular with foreign tourists are linked to economic development pains and awkward relations among providers. Obviously the issue isn’t limited to tourists. Gum in the Internet slows business for the nation of 102 million people.

For us to be able to complete transition to broadband and internet based platforms for calls and messaging – the Philippines must be able to build reliable internet coverage nationwide. Our telco companies are very limited as well. Reception sometimes is a struggle still especially during bad weather conditions. I think the ICT masterplan – IF implemented and embraced in the PH – can change the telco industry completely. But as far as eliminating voice calls and SMS completely, I do not see this happening in the next 20 years.

An article in inquirer says: “Taken together, 2G phones are still used by around 40 million subscribers in the Philippines. The rest have shifted to 3G and 4G, which allows high-speed mobile internet browsing.”

---

References:

https://business.inquirer.net/250763/dict-moves-lower-text-call-rates-telcos-dict-telcos-interconnection-cellphone-rates-ntc

https://www.forbes.com/sites/ralphjennings/2016/02/23/meet-asias-internet-laggard-the-philippines/#3d02557e3df7

https://www.networkworld.com/article/2459515/voip/how-cellphone-calling-is-going-all-internet.html

In the Philippines, since then the slow internet is a huge problem, complained most notably by the Netizens. Today, the internet is essential for the people to find it easier the things they need on the internet, more convenient I should say, like social media where most Filipinos spend all the time, online shopping, and also online education.

On the other hand, I think the ISPs(Internet Service Providers) should find a solution for the slow internet connection in the Philippines by repairing the majority all of the cell towers. Generally, the ISP is very slow in implementing the advanced 4G LTE connections in the country which it keeps most internet connection speed slow.

Further, our government also should a lot budget on helping find a solution to this problem, since most of us today are using the Internet. Hence, they should be aware all the flow and the system that our ISP is doing so that they would know the reason why our internet connection is so slow even if we apply for a fast connection like 10-100mbps which is very costly.

However, according to report Speedtest Global show that there’s an improvement to our internet speed, the Philippines average mobile internet speed has improved to 11.95 Mbps on September 2018, compared to 8.18 Mbps in September last year.

President Rodrigo Duterte’s repeated appeals to TELCO companies to improve their services to upgrade their infrastructure.

Considering, let us not forget that globally, the factors that affected internet speeds were after several repairs on underground cables were that were damaged. While this repairs should be done in a short period.

In the emerging of apps that depend on the use of internet such as Facebook messenger that uses both voice call, video call and chat which is most used in the country, as well as Viber, Skype and Line had made a significant impact in terms of communication. Therefore this would, later on, lessen and eliminate the use of regular voice call and short message service (SMS). Thus, our internet speeds may frustrate us most of the time, but these small developments give us some hope that one day we will be on par with our ASEAN neighbors when it comes to connectivity.

reference:

http://www.speedtest.net/

Dear Dr. Flor,

Ideally, yes, telcos should be expected to provide Internet bandwidth and speed that would diminish the demand for voice calls and short message services. However, no legislation would allow the National Telecommunications Commission, the agency mandated to regulate telcos in the Philippines, to demand from them to adhere to certain standards. I would like to share though that the Department of Information and Communications Technology has done this to the incoming third telco. In a rare instance, the Department used the Highest Committed Level of Service (HCLoS) basis in choosing the 3rd telco. This means that the company that promised to provide the best service to the widest number of subscribers and customers in the shortest time possible was chosen as the new major player. In a recent interview, DICT Acting Secretary Eliseo M. Rio, Jr. revealed that the new telco’s services will be evaluated on a regular basis to make sure that they deliver the quality of service that they committed during the bidding.

I would be glad to secure a copy of the TOR sir, and send it to your inbox, if you wish.

Great Day Dr. Flor!

For this question, this is a YES for me. Over the past decade, Internet access and connectivity shifted from dial-up to broadband. Higher data speeds through Digital Subscriber Line (DSL), cable modem and fiber access technologies enable users to communicate in more innovative ways. Today, communications are fragmented across online services (peer-to-peer, social networking, e-mail, instant messaging, blogs, forums, and more) and telecom services (fixed and mobile voice, SMS, MMS). While non-traditional communication services in advanced markets have grown overall, outgoing call minutes from traditional telecoms have remained relatively flat.

Here in the Philippines, it's true that we have expensive Internet access and yet the least accessible in terms of connection and mostly the slowest internet connection up to the point that there is no signal.

Increasingly, the source of new infrastructure competition will be external: from government, municipality, local housing associations and utility companies. As of this time, GLOBE TELECOM have already launched the first 5G enabled services, and hopefully this will be much faster like the internet speed in Korea or in Japan. This will be a great platform for the Philippines and we can be in pace with other modern countries with high technology rate in terms of internet connection.

In reality, today's telecommunication companies do include internet connection percieved as Over-The-Top (OTT) service which creates an 'inequality' or disparity to actual service intended for their consumers. Such technological differences so to speak put regular dial-up phone service and basic text messaging at a disadvantage in favor of a wireless connection that, again, is perceived as OTT or on the top layer of network connection. The continued uptake of internet speed as a factor in a consumer's preference to a telecom company indeed puts demand for regular phone and text messaging almost unimportant. Why? So many applications such Messengers, Skype, etc. have video and audio calls plus regular texting all packaged within an internet. Therefore, the faster the internet speed, the faster video/audio applications will serve customers.

However, the argument can be turned around in favor of basic phone service in telecom. Explained as a utility like water, the marginal utility or extra unit or drop of water diminishes with every use of water but when our faucet has no water, we complain. This is the 'basic necessity' issue attached to water as a utility. The same argument applies in a basic phone service that has lower marginal utility with every use because consumers now have preference like internet applications. But, when phone service is halted, we complain to BAYANTEL or DSL. Meaning to say, its presence is always expected no matter how seldom we use it.

In many cases, telecommunication companies, due to competition, tend to have broader package apart from faster internet speed such as a cable network attached to it in order to sell their product. There is no company that I know that increases its competitiveness by offering a better phone service - clear, uninterrupted line, for example, which again is related to the diminishing marginal utility principle explained earlier.

Lastly, internet is advertised as something abundant, almost airborne as opposed to a telephone line that can be in scarcity. In fact, wireless connections are widespread nowadays but basic telephone lines are somewhat scarce in supply.

Towards this end, it makes good sense to say that faster internet speed should juxtapose with basic phone service as well as texting service regardless of their unpopularity as they are basic to any network connection. It is not even a question of which one is preferred, rather, the two should be co-dependent with each other.

I am probably one of those people who enjoy using social media as a primary method of communication, be it through chat, voice or video calls. I would just resort to the traditional telephony whenever the person I ought to reach isn’t part of my virtual list or when I’ve got no Internet connection.

Gerpott (2010) claimed that “Mobile Internet (MI) could substitute the established short message service (SMS) and (circuit-switched) mobile voice calls sold at high prices by Internet Protocol (IP)-based packet-switched traffic, which generates lower prices per service unit and consequently reduces mobile network operators’ (MNO) profit contribution margins. Demand for SMS or mobile voice calls simply could decrease because customers have a limited time and monetary budget for telecommunication activities and spend more time and money on MI access and applications”. VoIP and social media are viewed to be among the viable alternatives.

Having lived in another country, it is really frustrating to deal with the Philippines internet bandwidth and cost. In Italy, I usually would get 10 GB of mobile internet, unlimited calls and text to all networks for just €8 for a month which is more or less Php 470.00. Whereas in the Philippines this is the closest deal that I found - Php 499.00 for 2.5GB mobile data and 1GB mobile data for app of your choice valid for just 15 days (Globe, 2019). Add up the minimal to no signal coverage in my area. Exasperating.

Like in most countries, telecommunication companies in the Philippines are expected to deliver quality affordable services. We deserve the finest deal out of our hard earned money just like the rest of the world. If our neighboring countries are hitting the mark, then why can’t we?

The impact of ISP Duopoly

According to Statistica.com, the Philippines had 69.6 million internet users in 2017 and is projected to grow to 93.7 million internet users in 2023. Sustained adoption of mobile broadband services is an extremely important driver of economic growth.

Apparently, there are a heap of outburst and tirades concerning the Philippine ISP but noticeably a scarcity of data/study available for revision.

Vera (2017) claimed that one factor that heavily influences mobile broadband consumption is the country’s internet service provider (ISP) market controlled by two major companies - Philippine Long Distance Telephone (PLDT) Company and Globe Telecom Inc.. In his study under Stanford University, uncompetitive ISP markets in the Philippines have often been cited as the culprit of poor broadband adoption due to the amalgamation of underwhelming connection speeds, disproportionately high service prices, and unreliable network coverage linked to the existence of the Philippine ISP duopoly.

As noted earlier, Philippine broadband is amongst the slowest and most expensive across Asia. However, this has not stopped rapid adoption. Instead of reprimanding duopoly firms by choosing not to purchase mediocre connections, Filipinos acquiesce to slow speeds and even reward ISPs by paying high fees. This further cements a set of societally-damaging incentives where ISPs are permitted and even encouraged with monetary reward to offer poor services which only indicates that consumers’ internet demand is so strong that they are willing to pay high prices for slow speeds. (Vera, 2017)

Moreover, he magnifies that two particularly relevant traits in finding elucidations to this concern– large firm’s slow adoption of new technology and competition-reducing inclinations. Currently, the Duterte administration opted to give precedence to the latter by attracting a 3rd Telco from China which divulges the importance of foreign innovations in driving better mobile broadband progression.

In conclusion, the issue of diminishing the demand for voice calls and short message services through providing better Internet speed and bandwidth is just a serving of the platter of the Philippine Telco paradox. It is flawed and needs to undergo restructuring through policy intervention. The state and policy makers could have the greatest authority to recuperate the milieu.

References:

Esmael, Ma. Lisbet. PLDT, Globe blame red tape for slow internet. Accessed from http://www.manilatimes.net/pldt-globe-blame-red-tape-slow-internet/368927/

Gerpott, T. (2010). Impacts of mobile Internet use intensity on the demand for SMS

and voice services of mobile network operators: An empirical

multi-method study of German mobile Internet customers. Accessed from: https://pdfs.semanticscholar.org/95a5/0648138e7b4a59a3b9aea59fba776b6ba061.pdf

Inquirer. Net (2017).‘The truth about internet speed in PH. Accessed from: https://opinion.inquirer.net/106393/truth-internet-speed-ph

Medilo, L. (2019). Complete List of Globe Promos for Text, Call and Internet 2019. Accessed from: https://techpilipinas.com/globe-promos-text-call-internet/

Statistica (2019).Number of internet users in the Philippines from 2017 to 2023 (in millions). Accessed from: https://www.statista.com/statistics/221179/internet-users-philippines/

Vera, A. (2017).The Impact of the Philippine ISP Duopoly on Mobile Broadband Adoption . Accessed from: https://economics.stanford.edu/sites/default/files/publications/vera_anton_honors_thesis_3-13-17.pdf

The State of Telecommunications in the Philippines

In the State of the Internet Report by US-based content delivery network provider, Akamai Technologies in the first quarter of 2017, the Philippines’ internet speed averaged at 5.5 Mbps which is below the global average of 6.3 Mbps and way below the global top notcher South Korea, with an average speed of 29 Mbps. (Subido, 2017) .

I can really experience this disparity since I’ve been working in South Korea for a while, where WIFI is on-point and when I’m taking my vacation in the Philippines, where is WIFI is an on-off thing. The road to digitization takes more than fancy technology. The Department of Information and Communications Technology (DICT) sees that key Telco stakeholders such as Telco major players PLDT-Smart, Globe and PCTO, consumer groups and NTC, can make or break the goal of using Telecommunications as a tool in building a digital Philippines.

More cell sites, less red tape to a better Internet Service

In order to speed up the Internet in the country, there is a need to activate more cell sites, according to most telco providers, but the bureaucratic red tape gets in the way of network deployment. The tedious process of securing permits from many local governments, national government agencies, barangays and subdivisions impedes construction, thus affecting the availability of service in certain areas. Hence, less red tape for a better Internet service.

Currently, the country's two telecom giants, Smart Communications and Globe Telecoms are dominating the Internet Service Provider (ISP) market, a duopoly, since the purchase of San Miguel Corp.'s telecom assets which included the prized 700 MHz spectrum. The 700 MHz spectrum is preferred by telecom providers because it has greater range of coverage and can easily pass through obstacles such as walls or trees.

Nationwide Wi-Fi

There are improvements to the Internet in the coming years with President Duterte’s “national broadband network plan (Republic Act 10844, Philippine Digital Strategy (PDS) 2011-2016, a blueprint in the acceleration the deployment of fiber optic cables and wireless technologies),” where there is free nationwide broadband connection that will cater to areas and people without access to major networks. Extended Wi-Fi spots around the country are also in the works with as many as 1,300 Wi-Fi sites for 2016 and 100,000 sites for 2026.

The network will be used to host a national portal and other online government services, as well as to connect remote areas of the country that are underserved by existing broadband providers.

Room for more Telco players

There is still room for more telecom players in the Philippines though the country's two telecom giants, Smart Communications and Globe Telecoms are in a duopoly. While Smart and Globe have purchased two-thirds of the 700 MHz spectrum, the Government still holds one-third of that spectrum so there is a room for a third player. The more the competition, the better for the consumers.

My parting shot

With all these opportunities and options available for the consumers, Telco companies in the Philippines need to re-evaluate their status in the ISP market. Challenging the current duopoly is a good wake up for Philippine Telco companies to provide better Internet bandwidth and speed to the Filipino people.

Let me end with the Department of Information and Communication Technology (DICT) Director Salalima’s wise words. “Telecommunications – the right to communicate – is a basic human right. It is the duty of the government to see to it that the people who have no access to the telecommunication system be given the opportunity to exercise the right to telecommunicate.”

References:

Barriero, V. (2017) Philippines Akamai broadband adoption Internet speed ratings, Rappler. Retrieved from https://www.rappler.com/technology/news/171680-philippines-akamai-broadband-adoption-internet-speed-rankings

Faster speed, better Internet access in 2017 for laggard Philippine government (2016, November 07), CNN Philippines. Retrieved from http://nine.cnnphilippines.com/news/2016/11/07/faster-speedsbetter-internet-access-in-2017-for-laggard-philippines-government-rodolfo-salalima.html

Internet in the Philippines (n.d.). Retrieved April 1, 2019 from https://en.wikipedia.org/wiki/Internet_in_the_Philippines

National Broadband Plan (2017). Retrieved from http://www.dict.gov.ph/wp-content/uploads/2017/03/Draft-National-Broadband-Plan-for-commnets-until-5PM_24March2017.pdf

Subido, K (2017). Ph Internet speed most improved in Asia but still the slowest., Entrepreneur. Retrieved from https://www.entrepreneur.com.ph/news-and-events/ph-internet-speed-most-improved-in-asia-but-still-the-slowest-a00200-20170601

Telecommunications in the Philippines. Retrieved April 1, 2019. Retrieved https://en.wikipedia.org/wiki/Telecommunications_in_the_Philippines

Yes. Over the past few years, both in personal and professional life, people that I regularly interact with respond faster when it is coursed through Facebook messenger. Communication between relatives from the Philippines to other countries have become cheaper with the use of Viber and Whatsapp. Some business establishments or new business startups have mobile numbers instead of the regular landline, and most often, they offer their Facebook Pages as mode of communication or connect with them through the internet-based way of messaging.

The Philippines continue to be the social media capital of the world with an average of 10 hours and 7 minutes on average according to the recent reports. Ironically, we also have a slow internet speed in spite of the number of demand for faster internet speed service. In the near future, voice calls and short messages would serve just as a back up and landlines would only be needed as support for the internet line.

In order to avoid going out of business, Telecommunications companies should adapt to the changing times and provide internet bandwidth service as the country continue to be dependent on the internet. This way, prices for internet service would go down as there would be more suppliers to meet the demands. The already established landline, mobile phone call service and text messaging would be secondary or serve as back up because from the way communication is going, internet-based calls and messaging is now the priority.

References:

https://wearesocial.com/blog/2019/01/digital-2019-global-internet-use-accelerates

https://asiafoundation.org/2018/10/24/internet-inaccessibility-plagues-social-media-capital-of-the-world/

https://www.opensignal.com/reports/2018/02/state-of-lte

Telecommunication companies are expected to provide the Internet bandwidth and speed that diminish for voice calls and short message services by fortifying and expanding a fixed and wireless networks. With the increasing mobile teledensity, consumers no longer use their mobile phones for voice calls, instead are using them for short message services, which is said to be the source of half of Telco’s revenues (Salazar, et.al, 2008). However, with the new technologies such as 2G and 3G technologies that significantly are becoming drivers for the development of telecommunication sector in the country, the increased Internet penetration has shifted consumers’ demand for digital data services. Through the Internet access, consumers can get daily information and communicate without having to use voice calls and SMS. There is an increasing mobile data demand, and the increased Internet penetration and broadband wireless services are potential supply that will need to be fortified and expanded by Telcos. The liberalized telecommunications sector has played crucial role in social development by providing connectivity to millions of OFWs, like me, that enabled them to utilize social media channels to connect with their families in the country using Internet.

The recent global index by speed monitor Ookla, Philippines ranked 97th out of 125 in mobile speed, positioning the country in the lower tier relative to the rest of the world (Gonzales, 2018). However, the government under Duterte’s Administration has employed initiatives that resulted to changes and improvement of internet speed in the country. The search for third Telco to shaken duopoly that commenced in 2018 will compel competition-fueled landscape for private Telcos services, the “Free Internet Access Program” signed into law in August 2017, the installation of free WIFI internet in almost 400 public places through National Broadband Plan 2017, and the goal of 5G technologies by 2020, are all set not just to provide Internet access to many people but boost a fast speed internet connectivity for the entire country.

References:

Estopace, Eden. (2016). In gov't mandated move, Philippine telcos reduce interconnection rate for voice calls. Retrieved April 6, 2019 from https://www.enterpriseinnovation.net/article/govt-mandated-move-philippine-telcos-reduce-interconnection-rate-voice-calls-155846297

Salazar, Lorraine, et.al. Digital Review of Asia Pacific. (2008). Retrieved April 5, 2019 from

https://books.google.co.kr/books?id=wSlOkuwWKo4C&pg=PA269&lpg=PA269&dq=telco%27s+philippines+to+diminish+voice+calls&source=bl&ots=0yJfvOdrfe&sig=ACfU3U0T3UzG-C_5V_tLrCvYWi7w8VU6AA&hl=en&sa=X&ved=2ahUKEwi2m9TVxLbhA

Gonzales, G. (2018) Duterte Year 2: The Broadband picture. Retrieved April 6, 2019 from https://www.rappler.com/technology/features/206159-internet-services-philippines-duterte-administration-second-year.

Telecommunication operators are generally for-profit driven so there will always be this tendency for them to restrict bandwidth so as not to diminish the demand for voice calls and SMS where they could profit from. Ideally, it would be better for the public to have better Internet services by increasing bandwidth so as to save from the costs of voice calls and SMS. However, there should be a balance on equitable resource distribution for us to consider how telecommunications company could earn and sustain its operations while it generate jobs and get revenue out from such services.

The best example of such a balance is the existing policy in the UAE which blocked the use of free VoIPs such as Skype. In return, the UAE enjoys high bandwidth services for other Internet-related usage for the public to enjoy. There were recommendations on lifting the ban on VoIP and in return increasing monthly fees for Internet use but such remains controversial. Similarly, licensing is often given as the reason to block services. However, many analysts have said that commercial reasons such as loss of revenue to state-controlled telecoms providers, and security concerns, because of the use of encrypted communications, are more likely to be the reasons (Bardsley, 2018). Hence, there should be a compromise on both parties to get a win-win solution to such bandwidth debate.

Reference:

Bardsley D. (2018). Skype ban in the UAE: what the future may hold for VoIP services. Available from: https://www.thenational.ae/uae/skype-ban-in-the-uae-what-the-future-may-hold-for-voip-services-1.726275

It has already diminished the requirement of voice calls. My latest, must read article published on 6th April 2019. Please cite it if you are working on telecom or OTT Companies.

Article Impact of Over-the-Top (OTT) Services on the Telecom Compani...

Alexander G. Flor Richmond Austria Aziz R. Nurul Kristine Araguas Ma Hazel Bersales Ramos

This coming May 2019 elections, it would be good to consider what running politicians intend to do with our country’s data services which are among the most expensive and lousiest in the world.

Sustainable Development Goal 9 calls for the establishment of information and communication technologies as basic infrastructure. In this goal, ICT is placed on equal importance with roads, sanitation, electrical power, and water supply as necessary for inclusive and sustainable industrialization (United Nations Sustainable Development, 2018). The Philippines’ ICT policy seriously needs revamp as the duopoly of service providers PLDT and Globe Telecom have not only lagged our Internet use but more seriously our economy. How can our country solve the digital divide if Internet access is so expensive?

According to the UN International Telecommunications Union, there are 120 countries with cheaper mobile cellular prices, 125 countries with cheaper fixed broadband, and 130 countries with cheaper mobile broadband postpaid compared to the Philippines, and poorer countries like Vietnam, Pakistan, Yemen, Sudan, Bangladesh, and Bolivia provide cheaper Internet service than the Philippines (Tiglao, 2017).

Diplomat and The Manila Times Columnist Rigoberto Tiglao (2017) gives a thorough analysis of why our country’s telecommunication services will never be world class or at least at par with our neighbors in Southeast Asia, unless we identify first the obvious causes. First of all, PLDT and Globe are owned by foreign stockholders who pocket the much of the companies’ earnings instead of leaving more to reinvest in their infrastructure services. Based on company reports, PLDT and Globe gave at least 75% of their profit to foreign owners from 2005 to 2016. The companies therefore resorted to loans for their operations and expansion, with interests from these loans charged to the Filipino consumers.

He also points out that all Asian countries, except the Philippines, follow the Asian policy of state-ownership of public utilities, like telecom. China, for example, has three state-owned Internet service providers with profits going back to the state for the development of its infrastructure. Korea, Singapore, and Japan allowed very little shares of their domestic telecom market to foreign investors.

Presently, a third player is being selected to enter our very profitable telecom industry. I think this is just part of the problem’s solution. Sustainable ICT development needs a thorough review and reform of our ICT policies, not just a third player that could also be as greedy as those we have and take advantage of our weak ICT policy. Where should regulation come in? Government should regulate Telco’s priority on service instead of profits (Tiglao, 2017).

It’s election time, and it’s time for Filipino data users like me to make Telecommunication policy an electoral issue.

Tiglao, R. (2017, October 30). Why our telecoms will never be world-class with this

kind of telco owners. The Manila Times.Retrieved from

https://www.manilatimes.net/telecoms-will-never-world-class-kind-telco-

owners/359549/

Tiglao, R. (2017, November 6). PH telecoms not only the lousiest, but also the

most expensive. The Manila Times. Retrieved from

https://www.manilatimes.net/ph-telecoms-notlousiest-also-expensive/360948/

United Nations Sustainable Development (2018). Goal 9: Build resilient

infrastructure, promote sustainable industrialization and foster innovation.

Retrieved April 9, 2019 from

https://www.un.org/sustainabledevelopment/infrastructure-

industrialization/

Dear Dr. Alexander G. Flor ,

As time passes by, telecommunication companies are expected to increase their internet bandwidth and speed and have their prices down so that patrons can purchase them at ease. But diminishing the demand for voice calls and SMS? I think they’re here to stay. Philippines were once coined as “The texting capital of the world” in 2010 and now as the “Social Media capital of the world” in 2018, why don’t we accept that we love texting, we love making calls, we love socializing on the internet. However, there are still many Filipinos do not have access to the internet, don’t use internet because it’s not their primary need and they only need SMS and calls, and some even do not own a mobile phone for them to call someone or to send their message to another person.

Philippine ICT Development in 21st Century

The creation of Department of Information and Communications Technology (DICT) under the Republic Act 10844 paved the way for the planning, development, and promotion of the country's ICT agenda in support of national development.

Under DICT Secretary Salalima’s term, the government will establish broadband infrastructures from the northern to the southern parts of the country. This aims to deliver telecommunications services to government agencies and areas in the countryside without access to the internet. They have three options to implement it: (1) build a passive network infrastructure to be leased and operated by telco companies; (2) build a broadband infrastructure operated by DICT; or (3) build a network and enter as a complete telco player.

Additionally, he also wants to utilize the existing 5,000 to 10,000-kilometre fibre optic cables of the National Grid Corporation of the Philippines (NGCP) to make it easier for them to implement the plan, and reduce the cost of the project. But this project of building a national broadband will likely cost PhP 77 billion to PhP 199 billion to execute and will be fully operated and implemented in three to four years’ time.

ASEAN Telecommunication Services Competition

If we are going to compare the Philippines to other SEA nations, we are the second to the last on the list with average 4G speed of 9.49Mbps (63.73% available 4G network). Tops on the list is still Singapore with average 4G network of 44.31Mpbs (85.58% available 4G network) and making Indonesia with 8.92Mbps (72.39% available 4G network but Myanmar is at the last of the list in terms of availability of 62.52%) as the other bookend.

Why is the Philippines almost the last of the list? They are saying its lack of competition. That’s why the government wanted to have a third player to come to the country to break the duopoly of Globe Telecom and Smart Communications. Aside from the Philippines who has a duopoly of telecom companies, Brunei Darussalam they have two telco companies also namely Datastream Technology Sdn Bhd, and B-Mobile. In Cambodia, they have five – Metfone, Smart Axiata, Cellcard, Cambodia Advance Communications (qb), and Yes Seatel; Same also with Indonesia, they have five telecom companies – Telkomsel, Indosat Ooredo, XL Axiata, Three, and Smartfren; Unitel, LaoTelecom, Beeline, ETL, and Sky Telecom are from Laos; Malaysia has eight – Digi, Maxis, Celcom, U Mobile, Yes 4G, Unifi Mobile, Altel, and Redtone, and ten Virtual Mobile Network Operators (VMNO); four in Myanmar – MPT, Telenor, Ooredoo, and Mytel; five from Singapore – Singtel, StarHub, M1, TPG, and GRID, and six VMNOs; five from Thailand – AIS, TrueMove H, Dtac, MY, and TOT, and nine VMNOs; and six from Viet Nam – Viettel Mobile, MobiFone, Vinaphone, Vietnamobile, Gmobile, and S-Fone.

What’s the problem in the Philippines on why the duopoly of telecom companies never cease? Before this duopoly of Smart and Globe started, there’s tri-poly of telco companies in the Philippines – PLDT-Smart Communications, Globe Telecom, and Digitel-Sun Celluar. In 2011, PLDT bought majority stake of Digitel (Php74.1 billion for 51.55% shares) which operates Sun Cellular, nullifying a very aggressive 3-player telco competition. Many have opposed the move of PLDT but the National Telecommunications Commission approved the sale. One reason why PLDT bought Sun Cellular was because of their revenue is shrinking due to fierce competition. They are hoping that by buying Sun, they will consolidate and strengthen their position as the majority telecom provider in the country.

“The country needs a third, even fourth or fifth telco [service provider]. It needs the presence of challengers that will put the dominant telcos on their toes again…”,Grace Mirandilla-Santos, said on her online article in telecomasia.net.

Challenges for the Philippine Cyberspace

The Philippines has largely adopted mobile devices at a far greater pace than computers and laptops. This trend has only been exacerbated by the emergence of mobile broadband - access to the internet no longer required a computer of wired internet subscription, technologies that were never popular to begin with.

Almost 60 million mobile internet subscribers were projected to have in the Philippines in 2019 because of the rising number of people getting their footprints visible online. Filipinos use the internet at a high rate. In whole ASEAN region, the Philippines tops the average time spend on the internet at about 6 hours per day in 2015 and it went up to 10 hours per day according to Digital 2019 report.

That’s why from my DEVC202’s Second TMA’s research it’s a no wonder that from 87 participants that I’ve surveyed, 56% or 49 respondents owned a smartphone. However there were nine respondents who answered GSM as their phone. This kind of phone only caters calls and SMS with no internet browsing. Their reasons why they do not own a smartphone are (1) smartphones are too complicated for them to use; (2) screen is blurry for their eyesight; and (3) they are only for SMS and calls. Even so, they are still using an ICT product. However with the 15 (17%) respondents who answered smartphone, their challenge was that internet browsing is slow and sometimes it doesn’t connect to the internet even they have already credited their phone.

In order to be able to fully harness the emancipatory power of ICT to uplift oneself socioeconomically, one needs to not only (a) have access to the requisite ICT tools/ resources, but also (b) know how to use these in an appropriately empowering manner, (c) and actually integrate (do) them meaningfully into one’s life, learning, and work.

On Personal Take

My parents would still prefer to have both channels of communication – internet communication and GSM-based communication. If we are not online on Facebook, my family would call me from our landline to my mobile phone to deliver right away their message if they wanted me to buy something for them or to check our security when we are still outside at night. My mom would still ask my sister to call me thru landline to ask my whereabouts when it’s already late at night and I’m not yet home.

On the other side, if we do not have someone’s phone number, for example, a relative and we’re connected on Facebook, we simply message them asking their phone number so that it would be easier for us to connect to them thru calls and sms. Most of our relatives do not own a social media account but we can simply ask their family member to have their phone number so that we can easily connect to them. That’s why I remembered Nokia’s slogan – Connecting People. So SMS and call services will still be here to stay even there’s another communication channel that we also use, the internet.

___________

References:

https://en.wikipedia.org/wiki/Department_of_Information_and_Communications_Technology

https://www.cio.com/article/3276324/dict-secretary-rodolfo-salalima-shares-his-plans-to-digitalise-philippines

https://www.senate.gov.ph/lisdata/101878719!.pdf

https://www.entrepreneur.com.ph/news-and-events/only-one-asean-country-s-mobile-internet-is-slower-than-ph-s-can-you-guess-which-a00200-20180221

https://en.wikipedia.org/wiki/List_of_mobile_network_operators_of_the_Asia_Pacific_region

https://www.yugatech.com/telecoms/why-we-want-a-third-telco-player

https://www.telecomasia.net/blog/content/will-third-telco-save-ph-internet

https://edition.cnn.com/2019/02/01/health/philippines-highest-internet-use-scli-intl/index.html

https://scholarworks.gvsu.edu/colleagues/vol6/iss1/10

Bauzon, A. G. (2018). Inclusive Innovation: The Significance between Information and Communication Technology Usage to Marginalized Groups in the Philippines: Tutor Marked Assignment #2 for DEVC 202, 2018-2019, Development Communication Concepts. University of the Philippines Open University.

In a recent report by CNN, the Philippines was among the lowest ranked countries in internet speed and availability. Results of the “State of the LTE Report” for November 2017 showed that the country ranked 74th out of 77 counties in 4G speed. “LTE is a type of 4G technology that delivers the fastest internet download and upload speeds, which could peak at 100 Mbps (megabytes per second) (Marcelo, 2018).”

Back in 2015, the Philippines’ Internet was also tagged as the 2nd slowest in Asia, and was also found out to be one of the most expensive (Gonzales, 2015).

In other news, it was reported by GMA (2015) that the Philippines ranked 21st of 22 Asian countries in the average Internet download speed. The report also indicated that “Philippine Internet users spend $18.19 per Mbps, compared to an average of $5.21 per Mbps worldwide. This put the Philippines at 161st of 202 countries”

These data all the more support the claim that data services in the Philippines are among the most expensive and least accessible in the world as reported by the World Economic Forum figures in 2015.

In light of this, it is a must that Telco’s should provide the Philippines with greater Internet bandwidth and speed with a more affordable price that would reduce the demand for voice calls and short message services. Access to the Internet is a basic human right and high charges for slow internet speed would, in a way, curtail opportunities for many Filipinos—especially those who are underprivileged. “In 2011, a United Nations report declared internet access to be a basic human right, arguing that disconnecting individuals from the internet was a violation of human rights and international law. So: if internet access is a basic human right, shouldn’t Filipinos be more outraged with the quality—or lack—of service we get from our internet providers? (Shahani, 2015).”

With PLDT-Smart and Globe dominating the telecommunications sector, data services are still expensive. But recently, the welcoming of a 3rd telco player would spell competition—which would hopefully reduce data services cost in the country (Balisong, 2018). Moreover, if elite and capitalist groups continue to steer the country, prices might continue to rise—hindering the average Pinoy to gain more opportunities, especially in taking full advantage of Internet access as a basic human right.

References:

Balisong, K. (2018). PLDT-Smart, Globe welcome entry of 3rd telco player. Retrieved from: http://nine.cnnphilippines.com/business/2018/11/07/pldt-smart-globe-telecom-welcome-3rd-telco.html

Gonzales, Y. (2015). PH Internet 2nd slowest in Asia, one of the most expensive. Retrieved from: https://technology.inquirer.net/42293/ph-internet-2nd-slowest-in-asia-one-of-the-most-expensive

Marcelo, V. (2018). Report: PH among lowest ranked countries in internet speed, availability. Retrieved from: http://nine.cnnphilippines.com/news/2017/11/03/philippines-lowest-rank-internet-speed-availability.html

Shahani, L. (2015, August 24). Conjugations: Why is our internet so slow? Retrieved from:http://www.philstar.com/opinion/2015/08/24/1491398/why-our-internet-so-slow.

Philippines ranks 21st of 22 Asian countries in Internet download speed. (2015, May 19). Retrieve from: http://www.gmanetwork.com/news/story/489762/scitech/technology/list-philippines-ranks-21st-of-22-asian-countries-in-internet-download-speed.

Hi Dr. Flor and DEVC242 classmates,

Here's my take on the posted question:

With the advent of different messaging Apps like Viber, Whatsapp, Facebook Messenger, iMessages, Instagram Direct, and SnapChat to name a few, there’s no doubt that majority of the people nowadays use them more, than the usual text messaging or sms and voice calls. In the Global Mobile Market Report published in September 2018, the Philippines got the 12th spot with 44.9% (47.858M) of the total population, on the top 50 countries by Smartphone users and penetration. According to the “Digital in 2018”, a report on global digital trends by social media agency We Are Social, 67 million Filipinos are active on social media, of which 2 types of platforms dominated, the social networking platforms, and messaging and chat applications. Facebook and Youtube led the list with 57 percent and 56 percent of Filipino social media users, Messenger was a close third with 49 percent, Skype with 28 percent and Viber getting 21 percent. Anubhav Nayyar, head of business development in Asia-Pacific for Viber, stated in the Digicon 2018 that "those statistics are already going in favor of messaging apps globally". He mentioned “today, messaging apps are not only growing in absolute numbers, but if you look at the time that is being spent and also in terms of the frequency in which it is being opened, it’s higher than social media networks.” Based on their company’s research (Viber), the Generation Z or those born in the late 1990s and mid 2000s spend three hours a day in messaging apps.

With the growing demand of data usage in the Philippines, as shown in the above statistics, it is the Telcomm service providers’ responsibility to maintain and improve their facilities which will be able to provide a wider bandwidth for the consumers. On the other hand, with the decreasing demand in voice and sms usage, they can resize their backend facilities and reallocate the budget to improve the data facilities.

In the OpenSignal's State of LTE report in November 2017 showing the comparison between 6 ASEAN countries on their respective 4G LTE speeds, the Philippines ranked the slowest with the average speed of 8.24Mbps, transcended by the neighbouring developing countries - Cambodia, Thailand and Indonesia. Although there were reports that connection speed in the Philippines has improved for the past few years, the development is still considered very slow compared with the rising demands. In the article published by ABS CBN news on November 8, 2018, Manny Pangilinan, PLDT chairman and CEO, cited that the entry of the 3rd telco player would be of modest impact to PLDT. MVP mentioned that “the impact would not be significant... We read that the third telco principally will be a mobile player…” In this statement, he implicitly admitted that although PLDT will not be significantly impacted due to its diverse business positions, the mobile business will be affected. As one with the many Filipinos who are hoping that the inclusion of this 3rd telco player will boost up a healthy competition, the services will improve and suffice the needs of the mobile end-users.

References:

https://newzoo.com/insights/rankings/top-50-countries-by-smartphone-penetration-and-users/

https://www.entrepreneur.com.ph/news-and-events/messaging-is-the-new-medium-how-ph-businesses-are-using-messenger-and-viber-to-deliver-services-a00200-20181015

https://news.abs-cbn.com/business/11/08/18/entry-of-third-telco-player-poses-modest-impact-on-pldt-manny-pangilinan

https://www.rappler.com/technology/news/187862-internet-speeds-asean-countries

Telecommunication infrastructure refers to the backbone of the communication system upon which various broadcasting and telecom services are operated. This can be built from copper cable, fiber or wireless technologies. The word infrastructure added into it implies that it is a core component connecting upstream production such as voice, data and audiovisual services with downstream consumers. Bandwidth is a key concept in many telecommunications applications, and it is defined as the capacity of a wired or wireless network communication link to transmit the maximum amount of data one can receive per second. Synonymous with capacity, bandwidth describes the data transfer rate. Rouse explains that the more bandwidth a data connection has, the more data it can send and receive at one time. Bandwidth can be compared to the amount of water that can flow through a water pipe. The bigger the pipe, the more water can flow through it at one time. Bandwidth works on the same principle. So, the higher the capacity of the communication link, or pipe, the more data can flow through it per second.

A greater capacity of the link or a higher bandwidth will allow the end user to use the Internet to communicate online, including social networking, chat and voice calls or VoIP. VoIP (Voice over Internet Protocol), allows the end user to have telephone service through the internet connection. Some services also let the users do video conferencing, such as Skype and Facebook Video Calling. Message exchanges also occur online thru available applications. Many of these services are free or very inexpensive, and some people use them as a replacement for a landline, or just to save minutes on their mobile phones. However, in order to do so, the user should subscribe to a higher bandwidth because in a VoIP phone system, bandwidth will be shared between computers and phones. If the bandwidth is not enough to support both, performance will be slow. The end users should also note that VoIP are real time and call quality problems occur due to bandwidth concern.

In this regard, the telecommunication companies should provide the end users the expected bandwidth and speed, however, one should also expect the domino effect of it because at the end of the day, telecommunication businesses require revenue, remember, the greater the capacity of the link, the more expensive it becomes, and the end user pay for the capacity of their network connection.

Thus, providing the Internet bandwidth and speed expected of Telco companies will not diminish the demand for voice calls and message services because communication over the Internet may not be financially accessible to all.

Philippine Telecommunications Infrastructure Industry Retrieved from: http://boi.gov.ph/wp-content/uploads/2018/02/Telecommunications-Infrastructure-January-2018.pdf

Rouse, M., Bandwidth https://searchnetworking.techtarget.com/definition/bandwidth

A Guide to Bandwidth and VoIP Systems and Optimization Retrieved from: http://www.totalcomm.ca/guide-bandwidth-voip-systems-optimization/

Practically speaking, it is quite impossible for Telco’s to diminish the demand for voice calls and short message services. I am basing this answer from my own experience here in the US which is considered to be one of the top countries that provides fast internet service. Here, it is still practical to use unlimited voice calls and SMS because your mobile data (Internet service) can be used up by other services like social media apps, games and video streaming. In an article by Stacey Higginbotham for fortune.com, it was mentioned that this is a battle that breaks out every few years between savvy mobile users who want access to data wherever they are, and mobile operators who are providing faster and faster mobile broadband networks while also charging relatively high prices for that connectivity, or blocking services that they perceive to compete with their own. Caught in between are consumers and developers who don’t necessarily understand the economics of carrier networks and who don’t trust the carriers to avoid meddling with the ecosystem to their own advantage.

Though Apple has already started with Imessage where you can send SMS for free using your phone data, the limitation of this is that it is exclusive only for Apple users. As with Apple's iMessage system, if the intended recipient does not have a Chat-compatible device, messages will be sent via the old SMS system instead. The rise of social media apps like Facebook Messenger where you can do voice and video calls for free through your mobile data is also getting to be a big advantage. However, the limitation for this is that unlimited mobile data use is still a big challenge when it comes to the cost in some third world countries like the Philippines. Even in countries that has the fastest internet service like Singapore, voice calls and SMS are still part of the package from their Telcos because not everyone can actually afford the still expensive mobile data plans.

It is actually not the question of speed and bandwidth; it is more of making mobile data more affordable to the general public like those in the middle class who only has access to data services that’s according to their budget.

Reference:

HIGGINBOTHAM, STACEY. “Here's Why Cell Carriers Freak out When You Use Your Unlimited Data.” Fortune, 17 Sept. 2015, fortune.com/2015/09/17/cellphone-unlimited-data/.

Based on a report by Sanchez (2018), noting Akamai State of the Internet report, the Philippines ranked 100th globally with an average connection speed of 5.5 Mbps which was noted to be the lowest average connection in Asia Pacific Region. Similarly, Santos (2017) in the first Philippine Telecoms Summit reported that the country posts a low value for money when it comes to the value users get from Philippine Internet; “highest kbps per peso attained was 1kbps/PH peso.” The report also added that the decreasing value for money per ISP; consumers are paying more for less.

In the same report by Santos (2017), the need to review the necessity of bandwidth capping to maintain service quality was also put forth as a consumer concern. Today, service providers continue to notify public about bandwidth capping even with consumers who are subscribed to high/unlimited data usage.

At the current state of internet speed and reliability, it would be a far reality for now for telco’s to provide connectivity which would diminish voice calls and SMS, especially when the latter are the only immediate and reliable communications means that users have. Considering the rapid integration of IoT, it would also pose a significant challenge to telco’s to provide even faster connectivity; especially when almost everything would probably demand the internet.

References:

Sanchez, E. (2018). Philippine Telecommunications Infrastructure Industry. Retrieved from http://boi.gov.ph/wp-content/uploads/2018/02/Telecommunications-Infrastructure-January-2018.pdf

Santos, M. (2017). Top Issues of PH Telecoms Consumers. 1st Philippine Telecoms Summit. Retrieved from http://www.dict.gov.ph/wp-content/uploads/2017/03/Consumer-Perspective_Santos-March-9-2017-Telecoms-Summit_v2.pdf

Telcos are expected to provide a service to their consumers which both Smart and Globe have been striving for. Speaking to the employees of both these companies, I have learned of the pursuit to achieve 100% connectivity with both mobile data and Internet penetration. During an interview, a senior Globe official has disclosed that their company already has its own infrastructure in place to ensure the bandwidth and speed of data and Internet in the Philippines, however, it is government permits that usually delays these projects. Some government officials in the LGUs require multiple permits and fees in order to install data and Internet in their cities and municipalities and also refuse to have the proper cell sites built in these areas.

Previous Philippine administrations were supposed to provide the proper infrastructure for this through programs, though some were mismanaged such as the NBN ZTE deal of 2004. The current administration also celebrated the National Broadband Plan in 2017. Both Globe and Smart have announced the roll out of the 5G implementation plans. These will provide consumers with faster Internet bandwidth and speed.

I have not been able to find online sources for studies that would prove or debunk the idea that Telcos are dragging their feet when it comes to providing the proper service to consumers but I do believe it is expected of the Telcos to remain competitive and productive at all costs as they are a business. I also believe that what is also expected is that Government provide support to these plans, through efficient building of infrastructure and granting of permits without political gain. These should be priority as this will help improve the Philippine economy.

Stay abreast of the latest Telco news in the Philippines here:

https://www.telegeography.com/products/commsupdate/lists/country/philippines/

Technological changes in our midst have affected how we run our daily lives. The changes made us more productive, connected and knowledgeable, thus, creating a community of the information which the whole population benefited.

 I believe that Telecommunication companies should evolve, advance and be compatible with the existing technology, that is,  it should have the widest reach as far as its ability is concerned.  Since technology is improving, the demand for voice calls and short message services (SMS) might diminish. The demand for voice calls and short message services must be supported since this technology proves more useful especially in far-flung communities.  Telcos are expected to provide better internet bandwidth and speed but the telecommunication infrastructures are still costly.

News reports in early 2019 reveal that Southeast Asia tops the world internet usage index, with 3 countries (Philippines, Thailand, and Indonesia) among the top 5 countries that spend the most number of screen time everyday. This trend was observed despite the fact that most ASEAN countries (except for Singapore) "are far behind when it comes to the ever-evolving nature of mobile connectivity."

As per the ASEAN ICT Masterplan 2015, ICT is expected to transform ASEAN to become "an ideal region for economic activities", and so establishing better Internet bandwidth and speed is only necessary. Right now, Southeast Asia is among the fastest growing internet regions in the world, and "internet economy [in the region] is predicted to exceed $240 billion by 2025 as affordable mobile internet drives rapid growth in sectors such as e-commerce and ride-hailing." Indeed, Internet has been contributing to the significant improvements in the region's economy.

But this doesn't mean that ASEAN telcos should diminish the demand for voice calls and short message services. In a December 2016 article by ecommerceIQ, it was explained that there still is a huge demand for basic voice calls and SMS services in the region. "Southeast Asia has quickly become a 'mobile-first' region with nearly 800 million mobile connections which constitutes to 124% penetration of the general population," according to the article.

The article continues that there are 4 ways on how ASEAN countries benefit from capitalizing on these basic phone services:

As the ASEAN ICT Masterplan aims to make the region "an ideal region for economic activities", it is only fitting that telcos should consider maximizing all ICT options -- both Internet connection and traditional SMS/voice call technology -- to ensure achieving this vision.

References:

• https://theaseanpost.com/article/aseans-poor-mobile-internet-connectivity
• https://www.cnbc.com/2018/11/19/google-temasek-report-mobile-internet-is-driving-sea-internet-economy.html
• https://ecommerceiq.asia/phone-numbers-marketing/

Indeed, Telco’s should provide the internet bandwidth and speed, but not necessarily to diminish demand for voice calls and short message services, but instead to be able to carry these services without the need for users to subscribe to two or three different services – internet, voice calls, and SMS. For instance, I am subscribed to a Telco’s call and text messages paying an average of P1000 per month (whether or not I use it). At the same time, I am subscribed to the same Telco’s broadband service so I can have internet access, paying an average of P1500 per month. Although I have some free data service in my call and text subscription, it is but a small amount of data and I use it for when outside the home so I can still have access to the internet. I cannot depend on it when it comes to heavy internet usage such as research and video and voice calls over the internet (VOIP). There are also other members of the family who need to connect to the internet. If voice calls and text messaging could all be carried by internet bandwidth, then there will be no need to subscribe to call and text services. This will increase access to internet services while decreasing the cost for voice calls and texting services. The question for me is, will it happen soon?

The Department of Information and Communication Technology (DICT, 2017) reports that despite some notable progress in the Philippines’ overall internet performance, we still “lag behind its peers in terms of affordability, availability and speed of internet access”. The Global Information Technology Report (GITR) 2016 of the World Economic Forum (WEF) shows that the Philippines is not at par with other ASEAN-5 countries in terms of affordability, infrastructure, policy and regulatory, environment, and business and innovation environment of information and communication (ICT) Services.

Despite being tagged as the “social media capital of the world”, the country also falls behind in terms of internet penetration. The UN Broadband Commission (in DICT, 2017) reported that the Philippines “ranks 110th in terms of fixed broadband penetration, 89th in mobile broadband penetration,64th in percentages of households with internet, and 111th in percentages of individuals with internet”.

In terms of speed, the Akamai State of the Internet Connectivity Reports 2015-2016 (in DICT, 2017) reports the Philippines also falls behind its ASEAN-5 neighbors. The international wireless analyst OpenSignal (2018), reports that the Philippines’ 4G speed has somehow improved against that of Indonesia in 2017. However, the Philippines is still far even from the middle of the ranking, placing as the fourth slowest among 88 countries, only better than Indonesia, Algeria, and India.

In addition, OpenSignal (in DICT, 2017) measurement reveals that Filipinos were connected to the Wi-Fi rather than cellular networks 44.14% of the time. This could mean that there is a diminished demand for voice calls and texting services, but it could also mean that they are connected to cellular networks about 55% of the time because there is no reliable internet connectivity.

Pablo (2018) explains that one of the reasons for the Philippines’ poor performance is its geography, as we are an archipelago of more than 7,100 islands. However, the Asia Foundation (in Pablo, 2018) has recently found that “outdated laws and policies have blocked the deployment of technologies that could bring the Philippines fully into the digital age”. Hence, aside from infrastructure, policies must also be reviewed. Among those mentioned by Pablo that need revision are the Public Telecommunications Policy Act of 1995 to remove the requirement of a landline installation for entry into the telecommunications and broadband markets and the Public Service Act of 1936 to allow foreign ownership and investments. She contends that these laws are analog-era policies that mismatch digital technologies.

With several factors affecting internet connectivity, from affordability, “infostructure”, speed, and policy, we might have a long way to go before we can have the necessary bandwidth and speed to ease the demand for voice calls and short messaging services.

References:

DICT. (2017). National Broadband Plan: Building Infostructures for a Digital Nation. Retrieved from http://www.dict.gov.ph/wp-content/uploads/2017/09/2017.08.09-National-Broadband-Plan.pdf

OpenSignal. (2018). The State of LTE. Retrieved from https://www.opensignal.com/reports/2018/02/state-of-lte

Pablo, M.C. (2018). Internet Inaccessibility Plagues “Social Media Capital of the World”. Retrieved from https://asiafoundation.org/2018/10/24/internet-inaccessibility-plagues-social-media-capital-of-the-world/

Access to affordable and fast internet services should be part of those services that are guaranteed in the constitution since the United Nation declared it is as one of the basic human right. In the Philippines were most Filipinos are still using voice calls and SMS as mode of communication to connect specially with loved ones working overseas. Several studies have looked into the texting habits of Filipinos (Pulse Asia Inc., 2003) were sending news and family greetings among the top reasons why Filipinos use the SMS and OFWs use of mobile phones and its SMS feature (Caasi, 2012) as an extension of parenting (i.e., sending SMS to check the status of assignments their children, or if the balikbayan boxes have arrived, or calling if someone from the family is sick and needed immediate attention, or how much money is needed for a month’s budget, calling if “bunso” is doing well in school, etc.).

Fast forward 2019, this communication needs of Filipinos have change dramatically. We no longer use mobile devices simply to greet and communicate but we now use it for doing business, e-commerce, entertainment, information as well. We are currently at the rock bottom in terms of internet speeds in the Asia Pacific according to the study conducted by Akamai Technologies. The bad news is that the longer for the telco industry to provide stable and affordable internet speed the more difficult it is for us to catch-up with the rest of the world.

Sources:

https://www.philstar.com/lifestyle/business-life/2003/11/17/228286/family-texts-together-stays-together

https://www.rappler.com/technology/news/171680-philippines-akamai-broadband-adoption-internet-speed-rankings

https://www.researchgate.net/publication/316927581_Communication_Experience_and_the_Perception_of_Media_Richness_among_Parents_Working_Overseas_and_Their_Children_Left-Behind_in_the_Philippines?_sg=0Cz9p3Dfeiziar20QMlqEC1JcTSeElRvB2CsPmfbtzaqLlr2f7ksRwNJIquVJDqO5scsN9EvzVNw1A.3RGvmN7ubeke2qeN7xnExqAN4oooJ3cQKP3IP6qYRhxb3k2nZFSaXLFbcDNtZeCegBU7C-BnbPFe3g6DcIhz_w&_sgd%5Bnc%5D=0&_sgd%5Bncwor%5D=0

“Should” implies mere recommendation, wherein the suggested action still lies on the doer. With a largely unregulated telecoms space, telecoms have much leeway in what and how they provide their services. Government bodies supposedly responsible in overseeing their operations are largely unable to compel such private operators to provide decent and acceptable services to their respective consumers.

Essentially, simply improving telecommunication services are never end goals to meet by themselves for these telecom space players. Rather, the convenient, efficient, and value-add services are all for-a-golden-fee. Service fees include interconnection charges between telecoms, separate rates for calling from landline to mobile phone (vice versa), expiring credits, subpar data speeds, and lower than average SLAs to enumerate a few. It is particularly disappointing especially when the cost of such services in the country is among top tiers in the region, but the quality of service remains among the lowest.

Telecom companies have been perennially criticised for lacklustre services but are largely uncompelled to do any better due to the existing duopoly as well as the government’s empty bravado in delivering its so-called “change.”

In countries such as Singapore, their telecoms already provide “unlimited” services for calls & SMSes (i.e. capped at 10,000 each) to certain mid-tier plans without even needing to charge extra to enable such services. Data allocations have also risen in the last couple of years even providing options for unlimited data for a reasonable fixed-rate. This has given consumers flexibility to choose which part of their telecoms service to utilise best. Some consumers would prefer to use data to make phone calls or send messages instead of the regular voice & SMSes due to the in-app convenience to switch between messaging & voice/video chatting. Others will still opt for the regular voice & SMS services due to having subscribed to smaller data allocations.

Such changes, although not expected, were not just outcomes of the vibrant competition between rival telecoms but are continually catalysed by the government-led initiatives through its regulatory mandate.[1]

Elevating the country’s expensive and uninspiring data services that could replace “legacy” voice & SMS to the levels comparable to developed countries in the region might be a challenge. However, if the government could play a more active if not entirely an aggressive role in building up and fostering a vibrant telecoms industry, such comparable myriads of service options and flexibility, all through reasonable prices, could be delivered without having to ask if they should in the first place.

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[1] Infocomm Media Development Authority of Singapore, “Telecom Code Revisions to Further Enhance Competition”. November 17, 2017, https://www.imda.gov.sg/about/newsroom/archived/ida/media-releases/2003/20061106183040 (access May 12, 2019).