PH lags behind SEA countries in digital infra investments, says NGO for public policy reforms

‘This comparison highlights the insufficient government funding allocated to digital infrastructure in the Philippines‘

The Philippines needs to beef up its digital infrastructure investments as it is already behind other Southeast Asian countries in terms of internet speed and coverage, said a public policy reform think tank.

In a column shared on its Facebook page, CitizenWatch PH lead convenor Orlando Oxales said: “The country needs to invest more in digital foundation, as addressing the broadband infrastructure gap between the Philippines and other neighboring countries will help empower people and industries in the internet world.”

Citing findings from Ooklas’s Speed Test Global Index, Oxales stressed that the country’s current broadband speeds are trailing behind Vietnam, Malaysia, Thailand, and Singapore by more than half.

The convenor of CitizenWatch attributed the Philippines’ dismal performance to the lack of investment in digital infrastructure compared to the other countries.

The 2023 budget for the National Broadband Plan under the Department of Information and Communications Technology totaled only P1.9 billion, or $0.032 billion, compared to Indonesia’s $2.06 billion, Malaysia’s $5.1 billion, Singapore’s $2.8 billion, and China’s $1.4 trillion.

According to the 2024 World Bank report dubbed “Better Internet for All Filipinos: Reforms Promoting Competition and Increasing Investment for Broadband Infrastructure,” 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.

In a 2023 study conducted by international consulting firm Arthur D. Little dubbed “Can required digital infrastructure of Southeast Asia be built profitably in the next 5 years,” it showed that the Philippines recorded the second lowest cumulative investment in fiber coverage and targets among SEA countries.

Oxales said the Philippines needs to invest more or at least match neighboring countries’ investment in broadband infrastructure, implement reforms like incentives, invest in education and training, and collaborate better with the private sector to properly leverage the country’s resources and expertise.

“A coordinated approach where both the government and private sector would align their resources and strategies is crucial to enhancing the country’s digital capabilities and ensuring broadband connectivity that meets global standards,” Oxales said.

“By aligning government resources with the aggressive and forward-looking investment outlook of the private telcos, the country can bridge the connectivity gap, and enable local industries to compete and thrive in the borderless global digital economy,” he added.

More investments in telco towers

One way to increase internet speed in the Philippines is by adding more cell sites in the country and giving incentives to telcos, which is supported by several stakeholders in the telecommunications industry.

According to data from the National Telecommunications Commission, the Philippines has only 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, 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.

The Private Sector Advisory Council (PSAC) has earlier urged the present administration to increase its spending on developing the country’s digital infrastructure to give a P60 billion annual budget for DICT to increase the number of cell towers and the penetration rate of internet services in the country.

The NEDA board recently approved a P16.1 billion World Bank-financed Philippines Digital Infrastructure Project which is set to construct a public broadband infra network to help increase broadband connectivity in far-flung areas.