INFORMATION and communication technology (ICT) services in the country remain one of the most expensive in the Asia-Pacific. Worse, internet speed is not proportional to the costs. A study by the Philippine Institute for Development Studies concluded that this problem is primarily due to the lack of comprehensive policies on ICT development.
There is a direct relationship between increased ICT access and economic growth. A World Bank study concluded that for every 10-percent increase in high-speed internet connection, economic growth increases by 1.3 percent. ICT, especially the internet, promotes inclusion. Micro and small firms can connect with potential buyers in another country through internet and social media. They can also gain knowledge and skills to trust a new business partner based on information gained from the internet.
For the Philippines to sustain its good economic performance, government must invest in building a reliable, accessible, and affordable ICT infrastructure.
According to the International Telecommunication Union’s ICT development index, the Philippines placed fifth among countries across Southeast Asia in terms of the number of people who have access to the internet. Globally, the Philippines improved its performance ranking in the ICT ranking from 105th in 2014 to 98th in 2015. This can be attributed to the increase in access to mobile phones and broadband subscription services. However, policymakers should look beyond widening access.
The Philippines’ connection speed according to the Akamais State of the Internet Report on Asia Pacific is at 2.8 megabits per second (Mbps), the second lowest in terms of average connection speed. The global average is 5.2 Mbps.
Despite the high cost paid by consumers for poor quality connection, there is little action from government. Effective implementation of rules and regulations is also lacking; thus, telecommunication companies have gotten away with providing a lot less speed than advertised.
The responsibilities lie with the National Telecommunications Commission and the Department of Trade and Industry. They need to reform some regulations and rectify penalties that are no longer effective to prompt better competitive practices.
