The Philippine Chamber of Commerce and Industry (PCCI) and Better Internet PH (BIP) call on the Marcos administration to pass key Internet connectivity legislation in the next six (6) months that will allow more market players to participate in building the country’s digital infrastructure, especially in the countryside.

 

We laud the campaign promise of President-elect Ferdinand “Bongbong” Marcos, Jr. to make the development of the digital infrastructure a top priority. To accelerate economic recovery and help various industries bounce back from the pandemic, the Philippines needs to have accessible, reliable, affordable, and secure Internet as the foundation of the digital economy.

 

According to Google’s 2021 Economic Impact Report, if fully leveraged, the country “can foster a digital economy that can raise PHP 5 trillion in economic value by 2030.”[1] Of this value, 70% can be generated by technology-led business, including e-commerce and mobile applications for the retail industry “which can facilitate digital transactions and interactions, reduce labor requirements, promote inventory efficiencies, and cut real estate costs, offering productivity gains ranging from 6 to 15 percent.”

 

Despite the press releases about faster download speed, the Filipino people and the business sector continue to suffer from poor Internet service. We urge the new administration to identify as urgent the passage of laws that will expand Internet coverage in the rural areas and provide more connectivity choices for all Filipinos. We recommend enacting the following legislation:

 

1. Open Access in Data Transmission Act introduces a regulatory framework specifically for Internet services. The bill proposes a simple and efficient qualification and registration process for Internet service providers, promotes infrastructure-sharing, and helps fast-track Internet network rollout.

2. Rural Wired Connectivity Development Act aims to expand wired Internet services in the rural areas by giving incentives to industry players who will operate in the rural areas.

3. Spectrum Management Act promotes transparency, equity, and competition in the management and distribution of radio spectrum for wireless services, including Internet connectivity.

4. Better Internet Act requires service providers to comply with a minimum Internet connection speed depending on the location (i.e., rural areas, highly urbanized cities, etc.) and to deliver at least 80% of advertised download speed.

5. Satellite-based Technologies Promotion Act capitalizes on the reform of Executive Order No. 127 s. 2021 and encourages more private-sector investment in satellite Internet as a connectivity option for geographically isolated and disadvantaged areas (GIDA).

 

We believe that the passage of these bills will help the Philippines take advantage of the digital opportunity that advanced countries have harnessed, and their citizens are now enjoying. With better Internet connectivity, the Philippines will achieve the golden age in the digital era!

 

 

[1] PHP 5 trillion or USD 101 million is equivalent to 27% of the Philippines’ GDP in 2020 alone. DICT. (2021 November 10). PH digital economy can create P5 trillion by 2030. https://dict.gov.ph/ph-digital-economy-can-create-p5-trillion-by-2030/

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