The World Bank, a staunch supporter of open data access, has pointed out that the Philippines remains the only country in the world that still requires a legislative franchise for the construction and operation of telecommunication networks.
In a policy note issued January 2024, the WB said “compared to its neighbors, the Philippines’ internet connectivity lags in affordability, speed, and access, creating an uneven landscape for digital participation. The price of fixed broadband, for example, is more than four times higher than Malaysia and Vietnam, and two times higher than the ASEAN (Association of Southeast Asian Nations) average.”
In addition, mobile broadband – considered the driver of consumer adoption of e-commerce, financial inclusion, disaster response, and agriculture practices – had active subscribers of 70 per 100 inhabitants in 2022, the lowest among large ASEAN economies. The Philippines apparently represents more than 50 percent of the ASEAN population unconnected to mobile broadband, according to the WB.
It also cited the Affordability Drivers Index policy scores showing that the Philippines is among the least favorable in the ASEAN in terms of policy environment for affordable broadband and is among the slowest in the world in promoting any major reforms for affordable broadband.
“Outdated policy and regulations have long stunted the growth of the country’s broadband industry and expansion of digital infrastructure,” the WB said, noting that inclusive growth through digitalization that benefits all Filipinos requires updating policy to promote competition, encourage investment, and upgrade broadband infrastructure.
Before it adjourned early this month, the 19th Congress had already ratified the Konektadong Pinoy Act, or the Open Access to Data Transmission Act, in a bid to expand internet access across the country, lower costs to consumers, and boost service quality, especially in underserved areas that existing players have failed to address. It is now awaiting the signature of President Ferdinand Marcos Jr. to become law.
If that happens, and the implementing rules and regulations that follow can address the concerns of critics, particularly on the supervision or regulation of new players, it could signal a pivotal reform in the broadband service sector that will benefit small investors, consumers, and the poor.
A law that can give Filipinos internet service that is fast, readily available, reliable, and affordable could be a game changer for everyone, especially if it can be implemented well.*
