While the Philippines ranked seventh among the leading digital nations, the country received weaker assessments in digital infrastructure and innovation, mobile network operators’ global organization GSMA Intelligence revealed.

Based on GSMA Intelligence’s latest Digital Nations Index, the Philippines—earning an aggregate score of around 63 out of 100—has joined the roster of leading digital nations this year after Singapore (around 88), Australia (around 81), Japan (around 76), South Korea (around 74), New Zealand (around 77), and Malaysia (around 65).

The Philippines also posted higher aggregate scores than its regional peers, such as Thailand (around 62), India (around 52), and Vietnam and Brunei (both below 50).

According to the index, the remaining 10 countries, with scores ranging from 20 to 40, are categorized as emerging digital nations. These include Indonesia, Sri Lanka, Laos, Fiji, Pakistan, Bangladesh, Cambodia, Myanmar, Nepal, and Papua New Guinea.

Despite the Philippines’ relatively strong digital profile, certain components of the index revealed weaknesses in digital infrastructure and innovation, both scoring between 25 and 49. The country performed relatively well in security and people, with scores between 50 and 75, and showed strength in data governance, scoring between 76 and 100.

“Broadly, from an infrastructure point of view, the Philippines has significantly less in place compared to countries like Thailand and Malaysia. Network speeds are below regional peers, and in measures such as base stations per capita, the Philippines ranks lower,” GSMA APAC Head Julian Gorman said during a roundtable discussion with the media on Thursday, Nov. 13.

“Infrastructure is certainly one of the areas holding the Philippines back from rising higher as a digital nation,” Gorman noted.

He explained that despite the Philippines’ larger population compared to Thailand, “the total number of base stations across all operators is probably less than half of Thailand’s.”

On innovation, Gorman said the Philippines has a strong demand for data and was an early adopter of SMS for more than just texting. However, the country still struggles to turn technology and innovation into services that grow the digital economy.

“Translating innovation and technology into services that support the digital economy is an area where the Philippines is somewhat lacking. Much of this comes down to policy and laws, and the country is currently undergoing a significant shift in this regard, which deserves some applause. It’s not an easy process,” Gorman said.

To address the weakness in infrastructure, GSMA said the Philippines should encourage public-private collaboration, especially in areas without digital infrastructure. It noted that new regulations now provide incentives for telecoms to expand networks by reducing fees that previously discouraged building more base stations.

Similarly, Gorman said incentivizing innovation would encourage such a practice among the players. He reiterated that this comes down to policies that incentivize innovation, with government support to stimulate progress in specific areas.

“If we can work with the Philippines, it could set a benchmark and provide a framework for other countries to follow,” Gorman added.