The Philippine government is on the right track on improving internet connectivity in the country with the approval of the the P16.1 billion World Bank-financed Philippines Digital Infrastructure Project (PDIP) that is set to construct a public broadband infrastructure network to help increase broadband connectivity in far-flung areas.
But international research organization BMI Research, a unit of the Fitch Group, said the Philippines needs more investments to improve its digital connectivity and lead to a measure that is beneficial to the Filipino people— bringing down the prices of internet in the country.
Currently, the price of internet connectivity in the Philippines is more than double the Southeast Asian coverage as revealed by the 2024 World Bank report which stated that the Philippines' internet connectivity is the most expensive in the Southeast Asian region but is relatively slow compared to Singapore, Thailand, Malaysia, Vietnam, and Brunei.
The World Bank Report is dubbed "Better Internet for All Filipinos: Reforms Promoting Competition and Increasing Investment for Broadband Infrastructure,"
While the Philippines is investing in improving its digital infrastructure, the BMI Research said it may only provide marginal upsides to its outlook at its current rate.
“Execution and project management will be key for the success of the PDIP to boost stronger fiber uptake among Philippine-based households. By extensively co-financing last-mile area rollout, wholesale network providers and internet service providers may be encouraged to further decrease prices on fiber bundles though at the expense of average revenue per user figures,” the BMI report read.
“Renewed government efforts to fiberize the Philippines’ last-mile areas will be beneficial for the players with a large risk-seeking stance. Regardless, wider digital transformation ambitions and the attractiveness of the Philippines’ ICT market are set to benefit from a stronger nationwide backbone and last-mile network density,” it added.
More funds
In a 2023 study conducted by international consulting firm Arthur D. Little titled "Can required digital infrastructure of Southeast Asia be built profitably in the next five years," it showed that the Philippines recorded the second lowest cumulative investment in fiber coverage and targets among Southeas Asian countries.
The study showed that the Philippines needs to spend around $1.1 billion to reach the required target coverage levels, as the country also has the second lowest take-up rate and penetration rate among internet users as of 2022.
In contrast, neighboring countries like Indonesia and Vietnam allotted substantial government investments in internet and broadband infrastructure.
In Indonesia, the 2014-2019 Indonesia Broadband Plan alone required a total funding of 23.2 billion US Dollars (1.12 trillion pesos), 10 percent of which was covered by its government. Vietnam, on the other hand, allocated 820 million US dollars’ (39.7 billion pesos) worth of investment on a 23,000km system submarine cable.
Meanwhile, Singapore is setting aside 2.44 billion US Dollars (142.5 billion pesos) this year for its ICT infrastructures and digital services, at least 60 percent of which is allocated for the modernization and improvement of its digital infrastructures.
More cell sites
Experts said one way to increase internet speed in the Philippines is to add more cell sites in the country and give incentives to telcos, which is supported by several stakeholders in the telecommunications industry.
According to data from the National Telecommunications Commission, the Philippines only has around 23,000 cell sites, while neighboring countries like Vietnam have 90,000 cell towers and Bangladesh has 30,000.
The Philippines needs an additional 60,000 cell sites by 2031 in Geographically Isolated and Disadvantaged Areas (GIDA), according to data from the Asian Development Bank (ADB).
The World Bank said policymakers should focus on reforms and invest more budget to improve the Philippines' broadband infrastructure, as the slow internet connection affects many people and future opportunities.