Press Release
June 23, 2020

Boost ICT competitiveness to help spur PH digital economy - Gatchalian

As the coronavirus 2019 (COVID-19) pandemic forced many countries to rethink their business models and adapt to the digital economy, Senator Win Gatchalian sees the urgency of passing into law key economic reforms that will attract more Information and Communication Technology (ICT) investments.

The Vice Chairman of the Senate Committee on Economic Affairs stresses the need for affordable, reliable and widely available internet services in the country as more Filipinos now rely on digital platforms for work, school, and other day-to-day activities amid the pandemic. Companies have since adopted a work-from-home scheme while schools have been working on implementing blended learning as a precautionary measure against COVID-19.

Gatchalian points out that the Philippines still lags behind its Southeast Asian peers in terms of internet connectivity due to lack of infrastructure. Citing the June 2020 World Bank Report, Gatchalian says 72% of Filipinos can access the country's 4G/LTE mobile broadband network coverage, lower than the ASEAN regional average of 88%. Only 4% of Filipinos are subscribed to fixed broadband services, much lower than the regional average of 10%.

The same report also cites that the Philippines' 3G/4G mobile average download speed of 7 Mbps is considerably lower than the ASEAN regional average of 13 Mbps. In terms of fixed broadband average download speed, the Philippines can download 26 Mbps versus the ASEAN average download speed of 59 Mbps.

Despite having lower download speed, Filipinos pay higher price, making the country the fourth highest cost next to Singapore, Brunei, and Malaysia. Meanwhile, the cost of a fixed broadband plan in the Philippines is close to the cost of similar plans in Singapore and Thailand, the countries which have the fastest speeds in the region.

If the Philippines want to expand and benefit more from the digital economy, Gatchalian stresses the need to address several bottlenecks in the ICT sector such as the lack of ICT infrastructure and weak competition, among others.

"It is now time for the government to really assess on how it plans to grow the country's digital economy. The country's problem right now is we have unreliable and expensive internet services because there's not enough competition in the ICT space and there's not enough infrastructure to cater to the growing demand of digital economy," Gatchalian said.

For this reason, Gatchalian sees the urgency to pass into law key economic reforms that will attract more investments in the country, such as the Foreign Investments Act (FIA) which is now up for interpellation at the Senate. The FIA, for example, will lower barriers and help open up key sectors, like telecommunications, to many investors. At present, Globe Telecoms and PLDT/Smart are the dominant players in the country while the third telco company, Dito Telecommunity Corporation, has yet to roll out its operation.

Gatchalian said the government should invest in the digitalization of public administration and public service functions.

"Our receptiveness to these changes may very well determine whether we can live up to our true economic potential or remain in the doldrums compared to our next-door neighbors," he said.

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Mas malakas na ICT infrastructure isinusulong ni Gatchalian para lumago ang digital economy

Napapanahon na upang isabatas ang mga repormang pang ekonomiya upang makahikayat ang Pilipinas ng mas maraming mamumuhunan na makakatulong sa pagpapabilis at pagpapabuti ng internet service sa bansa.

Ito ang iginiit ni Senador Win Gatchalian bilang tugon sa pinakahuling ulat ng World Bank na ang Pilipinas ay nanatili pa ring kulelat pagdating sa internet service sa rehiyon kung ihahambing sa mga kapitbahay nating mga bansa. Sa pagtala ng World Bank, 72% ng mga Pilipino ang may access sa 4G/LTE mobile broadband network coverage, mas mababa sa ASEAN regional average na 88%.

Ayon sa naturang report, ang Pilipinas din ang may pinakamabagal na internet service kung ikukumpara sa ibang bansa sa Southeast Asia. Ang 3G/4G mobile average download speed sa bansa ay nasa 7Mbps lamang kumpara sa ASEAN regional average na 13Mbps.

Pagdating naman sa fixed broadband average download speed, ang Pilipinas ay may 26Mbps lamang kung ikukumpara sa ASEAN average download na 59 Mbps. Bukod sa mabagal na internet connection, ang Pilipinas pa ang tinaguriang pang-apat sa may pinakamahal na serbisyo ng internet kumpara sa Singapore, Brunei at Malaysia.

Dahil sa sistema ng 'new normal' kung saan napaka importante ngayon ng internet sa trabaho, eskwela at sa iba pang mga aktibidad ng mga Pilipino bilang proteksyon laban sa pandemiya, sinabi ni Gatchalian na 'di hamak na kailangang paigtingin ang imprastraktura ng Information and Communications Technology (ICT) sa bansa para sa mabilis at mas maaasahang internet connection. Lahat ng upisina ngayon ay nagpapatupad ng work-from-home arrangement at halos lahat din ng mga eskwelahan ay hinihikayat na magpatupad ng blended learning upang mapangalagaan ang kalusugan at mapanatili ang kaligtasan ng mga mag-aaral, guro at iba pang kawani ng mga paaralan.

Ayon kay Gatchalian, ang mabagal at mahal na serbisyo sa internet ay dulot ng kakulangan sa ICT infrastructure at kawalan ng tunay na kumpetisyon sa pagitan ng mga internet service providers. Sa kasalukuyan, ang Globe Telecoms at PLDT/Smart ang pinakadominanteng internet and telecommunications provider sa bansa. Samantala, hinihintay pa din ng mga Pilipino ang pagbubukas ng kakumpetensiyang Dito Telecommunity Corporation.

Iginiit ng senador na panahon na para ipasa ang ilan sa mga importanteng panukalang pangekonomiya, gaya ng Foreign Investments Act (FIA), upang tayo ay makapang-engganyo ng maraming mamumuhunan sa bansa. Makakatulong ang FIA aniya na maibsan ang mga balakid para mapalawak pa ang ilang sektor gaya ng telecommunications industry.

"Panahon na para malatag nang husto ng gobyerno ang planong pagpapawalak ng digital economy ng bansa. Ang problema kasi ngayon ay ang hindi maaasahan at mahal na internet services. Dapat mapalawak din ang kumpetisyon sa industriya ng ICT para maserbisyuhan ang lumalaking demand ng digital economy," ani Gatchalian.

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