The telecommunications landscape in the Philippines has witnessed a significant shift as wireless telecommunications emerges as a potent challenger to the entrenched traditional broadband duopoly.
This transformation reshaped the internet and drove competition in an industry long dominated by a select few.
Historically, the telecommunications sector in the country has been characterized by a duopoly, with two major players controlling the lion’s share of the market.
In a recent Policy note spearheaded by a team from the National Economic Development (NEDA) Office of the Undersecretary for Legislative Affairs, led by Undersecretary Krystal Lyn T. Uy, Philip Amadeus D. Libre, Ma. Liana R. Oliveros, and Jeryl Abong, the insufficiency of data transmission infrastructure has been highlighted as a critical issue impacting multiple sectors such as education, healthcare, business process outsourcing, government services, and various industries.
The study emphasizes the significant rise in internet penetration rates from 67 percent to 73 percent underscores the increasing significance of digital connectivity in today’s world. Despite this growth, the existing market structure, dominated by a few major players, fails to adequately meet the growing demand.
This dominance results in higher costs, slower speeds, and limited coverage compared to global standards that hinder the potential benefits of digital connectivity across sectors.
Untapped Potential
In 2022, the Philippine Statistics Authority (PSA) revealed a pivotal statistic: the digital economy contributed a robust 9.4 percent to the nation’s Gross Domestic Product (GDP), amounting to a staggering PHP2.08 trillion. This marked a significant recovery from the downturn experienced at the onset of the COVID-19 pandemic in 2020.
However, despite this commendable rebound, there’s a noticeable trend indicating a gradual decrease in the digital economy’s share of the country’s GDP. In 2018, it stood at 10.1 percent, showcasing a slight decline over the years. This dip suggests there’s considerable untapped potential within the digital economy landscape, awaiting exploration and realization.
Experts suggest that unlocking this potential lies in implementing strategic policies, such as open access and improved spectrum management. These initiatives are envisioned to foster efficiency, drive innovation, encourage healthy competition, and promote inclusivity within the digital economy ecosystem.
Moreover, the importance of reliable internet access transcends mere economic considerations. It is intricately linked to vital aspects of governance and public service. In a country prone to natural disasters, efficient and resilient data transmission is imperative for emergency communications to ensure swift and effective disaster response efforts.
As well as the transformative impact of telemedicine and e-government services during the pandemic underscores the indispensability of dependable internet access. Seamless connectivity directly influences the speed and efficacy of healthcare delivery and administrative services, thereby amplifying the necessity for a robust digital infrastructure to support these critical sectors.
Digital Divide Deepens
As of November 2023, based on the Ookla data, the country ranks 84th among 145 nations in mobile internet speed and 48th among 181 in fixed broadband speed. While the performance in fixed broadband speed is relatively better, concerns linger over the disproportionately high costs compared to lower-middle income nations.
The findings shed light on a crucial aspect of the country’s digital infrastructure – affordability. Despite strides in expanding internet access, particularly in urban areas, the accessibility of high-speed internet remains a challenge for many Filipinos, especially in rural and remote regions. The high cost of fixed broadband services further exacerbates this digital divide, limiting opportunities for socio-economic advancement and hindering inclusive growth.
The situation underscores the pressing need to address affordability issues in information and communication technology (ICT) services. As highlighted by the data, achieving competitive internet speeds is only part of the equation; ensuring that these services are accessible and affordable to all segments of society is equally essential. The goal is not only to improve rankings but also to enhance the overall quality of life for Filipinos by leveraging the transformative power of digital connectivity.
Consumer wins as DITO Telecommunity Expands
Moreover, based on the Speedtest Intelligence, the Philippines witnessed significant growth in 5G during Q3 2020 that reflects a global trend of rapid expansion in 5G networks. The Speedtest Intelligence data analyzed over 60.5 million Speedtest results, revealing a worldwide median download speed over 5G that was 954 percent faster than 4G. Despite this progress, certain challenges persist, especially in regions where 5G is not yet commercially available. The study identified countries with impressive 5G performance, such as the United Arab Emirates and South Korea, while also highlighting areas with room for improvement like the Philippines.
No More Connectivity Woes
The Philippines isn’t just beaches and balut. We’ve got mountains, jungles, and tiny islands. Traditional broadband struggles to reach these nooks. But with wireless solutions leap over hills and valleys. Case in point: remote schools in Mindanao now beam e-learning modules via 5G. No more, “Ma, walang signal!” and “Can you hear me now?”
Wireless broadband isn’t just about convenience, it’s about transformation. Here’s how it’s reshaping the digital landscape: Ubiquity, wherein wireless solutions transcend geographical barriers. Whether you’re in the Metro or a secluded island, you can stay connected. Next in line is the affordability, wireless broadband eliminates the need for costly cable installations. No more digging up streets or waiting for technicians, but just activate your device and go.
Scalability, as demand grows, wireless networks can swiftly adapt. They’re the lifelines for smart cities, IoT devices, and the digital economy.
Amidst this landscape of telecommunications in the country, emerging players like DITO Telecommunity are making significant strides towards providing accessible and high-speed internet access, particularly in underserved areas.
In a country where traditional broadband options have been limited and often inaccessible to remote or rural regions, the entrance of DITO Telecommunity marks a turning point in bridging the digital divide. By leveraging the latest 5G technology with speeds of 500 megabits per seconds (Mbps), the wireless telecommunication company not only meets the growing demand for faster internet speeds but also expands coverage to areas previously overlooked by major telecom providers.
“Our wireless broadband solution is revolutionizing connectivity in the Philippines. Our innovative approach not only addresses the challenges of traditional wired infrastructure but also empowers communities with the tools to participate in the digital economy and unlock new opportunities for growth and development,” Ret Maj. Gen. Rodolfo Santiago, Chief Technology Officer of DITO Telecommunity said in a statement.
As DITO gains ground, consumers win. More options mean better services, competitive pricing, and a brighter digital future.