THE Philippines is advancing its fiber optic network to boost connectivity and lower internet costs, aiming to make online services more affordable nationwide.
President Ferdinand "Bongbong" Marcos Jr. has delivered his third State of the Nation Address on July 22, 2024, highlighting his administration's commitment to digitalization and streamlined processes. He emphasizes how these efforts have significantly enhanced efficiency and convenience for various sectors, including micro, small and medium enterprises and agricultural workers.
As digital transformation accelerates, the importance of connectivity in socioeconomic development becomes clear. Despite these advancements, gaps in access and affordability persist, especially in rural areas. Addressing these challenges requires a unified strategy to improve affordability, speed and demand-side factors along with transparent and collaborative policy implementation.
National Fiber Backbone phase 1 launch
Marcos and Department of Information and Communications Technology (DICT) Secretary Ivan John Uy have inaugurated the National Fiber Backbone (NFB) phase 1 at Sofitel Philippine Plaza Manila on April 19, 2024.
The NFB phase 1 features a 1,245-kilometer cable network, extending from Laoag, Ilocos Norte, to Roces, Quezon City. The network includes 28 nodes and offers an initial 600 gigabits per second (GBPS) optical spectrum capacity, aimed at enhancing internet connectivity across Northern and Central Luzon, Metro Manila, four Bases Conversion Development Authority eco-zones, and two National Government Data Centers.
"This backbone links us together. It serves as the economic spine that supports our growth and development. To help Filipinos reach their full potential, we must invest in fast and reliable internet," Marcos says during the launch.
Uy highlights the project's transformative impact, saying: "Phase 1 of the [NFB] represents a significant leap forward in our journey [toward] a digitally empowered society. With the activation of these nodes, we are bringing high-speed internet across to underserved communities, unlocking opportunities for education, health care and economic development."
DICT plans to leverage the high-speed connectivity from the NFB to support critical last-mile initiatives, including the National Government Portal and the Broadband ng Masa Program.
By the completion of the remaining phases in 2026, DICT expects to increase internet penetration from 33 percent to 65 percent, reaching 70 million Filipinos. This initiative is also anticipated to reduce internet costs to as low as $5 per megabit, making connectivity more affordable.
"The next phases of the NFB will focus on expanding network coverage, extending connectivity across regions and providing broadband access to government institutions and public spaces. By broadening our digital infrastructure, we are creating equal opportunities for all Filipinos to engage in the digital economy," Uy says.
The National Privacy Commission (NPC) fully supports the NFB project, highlighting the administration's commitment to creating a digital Philippines with fast, reliable and affordable internet services.
DICT's National Broadband Program has implemented NFB project phase 1, benefiting national and local government offices, communities and individuals by enhancing connectivity and operational efficiency. This phase aims to extend internet access to approximately 750,000 beneficiaries in Regions 1 (Ilocos Region), 3 (Central Luzon) and the National Capital Region with the project set for completion by 2026.
Privacy Commissioner John Henry Naga affirms the NPC's support: "The NPC is committed to supporting the Marcos administration and the DICT in improving the quality of life for Filipinos through enhanced internet connectivity. NPC will continue to support the DICT in subsequent phases of the project, focusing on digital inclusivity and strengthening the digital economy while ensuring that the data privacy rights of Filipinos are protected."
The advancement of digital infrastructure, such as the NFB project phase 1, requires strong measures to protect personal information in an interconnected world.
Providing effective service
The NFB project's initial phase boasts a 600 Gbps optical spectrum capacity and spans 14 provinces in Northern and Central Luzon. It includes plans to connect 346 national and local government offices to GovNet.
Marcos emphasizes that the NFB is the first and only government-owned infrastructure of its kind in the country. It will provide digital connectivity to over 3,000 free Wi-Fi sites.
Bulacan Gov. Daniel Fernando, a beneficiary of the project, notes its potential to improve the economy and public services: "On behalf of the people of our province and the nation, I extend my gratitude to President [Ferdinand] Marcos Jr. This project will enhance internet accessibility for citizens, businesses and government institutions, reducing the digital divide and improving government service delivery through accessible digital platforms."
BOI-registered submarine cable project
Marcos highlights the importance of private sector collaboration, stating, "Reliable and affordable internet services are crucial for the Filipino people." He led the lighting-up ceremony for the Express Route of the Philippine Domestic Submarine Cable Network (PDSCN), initiated by InfiniVAN on Feb. 15, 2024
Accompanied by Japan Ambassador Kazuhiko Koshikawa, Executive Secretary Lucas Bersamin Jr., Uy and InfiniVAN Chairman Koji Miyashita, Marcos praises the project's impact.
InfiniVAN, with 40-percent Japanese ownership, has invested P649 million in the Visayas and Mindanao network rollout, a part of which is the domestic subsea cable project, approved by the Board of Investments (BOI) in December 2023.
BOI Chairman and Department of Trade and Industry Secretary Alfredo Pascual remarks: "I congratulate InfiniVAN for this truly innovative project, as it can help open opportunities in various regions in the country and can provide faster internet for the Filipino people. This is a testament that investments from the foreign trips of the President are coming to fruition. Rest assured that many projects in the pipeline will boost the country's economy and provide employment for Filipinos."
InfiniVAN has activated services in Iloilo, Bacolod, Boracay, Caticlan, Pinamalayan, Surigao, Palanas, Bulan and Placer.
Miyashita expresses confidence in the project, stating, "The completion of our PDSCN project reaffirms our conviction and is a testament that 'coopetition' works, having done it with erstwhile competitors Eastern and Globe Telecom."
Miyashita also notes future plans, including investments in fiber optic infrastructure and new submarine cable landing stations, supported by the amended Public Service Act (PSA).
"With the amended PSA taking effect, we have lined up additional investments in fiber optic backbone infrastructure along toll roads, PNR (Philippine National Railways) routes and the Metro Manila Subway Project among others. We are also looking into building new submarine cable landing stations for international cables as well as facilitating the launch of a Philippine flagship satellite," Miyashita adds.
Marcos acknowledges Japan's role, saying, "It is also a testament not only to Japanese ingenuity and technological advancement that we strive to emulate but also to the strong bonds of friendship that connect our two countries forever."
According to the Bangko Sentral ng Pilipinas, Japan has been the largest source of net foreign direct investment in the Philippines from January to November 2023 with $667.58 million. This underscores the Philippines' growing potential as an investment hub in Asia.
Internet solutions
The rollout of fiber internet is making waves, promising to bridge the digital divide and provide equitable access to all.
Private sector solutions are also addressing affordability and accessibility challenges. Converge's Surf2Sawa and Bida Fiber are notable examples of flexible and affordable internet options, designed to meet diverse needs.
Surf2Sawa, a prepaid internet service by Converge, offers top up options, ranging from P50 for a one day service to P700 for a 30-day unlimited plan. This flexibility allows users to manage their internet usage based on their budget.
Converge Chief Executive Officer Dennis Anthony Uy says, "We understand that not everyone can commit to a fixed monthly expense. Surf2Sawa provides the freedom and flexibility our customers need."
The Surf2Sawa modem supports up to six devices simultaneously and delivers an average speed of 25 megabits per second (Mbps), making it suitable for small households or individuals needing reliable internet for work, study or entertainment.
"In Metro Manila, we are pleased to see Surf2Sawa becoming the preferred home broadband product in dense communities," Uy adds. This reflects how urban areas are leveraging its pure fiber connectivity to enhance their livelihoods and meet their various needs.
Digital literacy and challenges
While younger generations are quick to adopt new technologies, older Filipinos may struggle with digital literacy. The government and private sector need to provide training and support to help older adults understand and use the internet effectively.
Many Filipinos, particularly in rural areas, may not have access to the devices needed to take full advantage of fiber internet. Ensuring affordable access to smartphones, tablets and computers is essential to bridging the digital divide.
Despite infrastructure advancements, challenges persist. A study by the Philippine Institute for Development Studies (PIDS), titled "Making broadband universal: A review of Philippine policies and strategies", shows that while mobile data affordability has improved, internet speed in the Philippines still lags behind Southeast Asian counterparts.
Authored by PIDS Senior Research Fellow Ramonette Serafica, Research Fellow Kris Francisco and Research Specialist Queen Cel Oren, it examines the achievements and challenges that are faced in the country's pursuit of universal broadband access. The report has been published on Jan. 30, 2024.
"Mobile data affordability has improved, making it more accessible for many Filipinos. However, network performance, particularly speed, still lags behind [Southeast Asian] counterparts," the authors note.
The 2022 Global System for Mobile Communications Mobile Association Connectivity Index ranks the Philippines as the third lowest in mobile data affordability, scoring 47.01 out of 100.
Despite near universal 4G coverage at 99 percent and promising 5G penetration at 70 percent, the Philippines' mobile broadband speeds are behind regional leaders. An Ookla report from August 2023 shows average fixed broadband speeds of 6.21 Mbps for uploads and 25.47 Mbps for downloads, compared to Singapore's 81.41 Mbps download speed.
The study also highlights significant disparities in internet access and speed between urban and rural areas.
"Access and internet speed fall sharply in rural regions, leaving many communities disconnected from the online world's opportunities," the PIDS authors explain.
Regions with lower development, such as Region 8 (Eastern Visayas) and the Bangsamoro Autonomous Region in Muslim Mindanao (Barmm), experience slower internet speeds. For instance, Region 8's fastest fixed broadband speed is around 40 Mbps while Barmm's average mobile download speed is barely 10 Mbps.
To address these disparities, the PIDS study recommended several measures. "Lowering device and data costs and improving network speeds are crucial," the authors state. "Online content should also be tailored to local needs."
Comprehensive surveys such as the National Information Communication and Technology Household Survey are vital for understanding internet access in the country. "Better data and insights can guide the government towards targeted solutions," the authors add.
The study acknowledges the government's efforts to bridge the digital divide through initiatives like the National Broadband Plan and recent reforms such as the entry of a third telecommunications company and satellite service liberalization.
"It is important to foster partnerships among government, private sector and civil society through comprehensive sharing agreements and robust monitoring and evaluation frameworks," the authors advise. Effective program and policy implementation requires improved monitoring and evaluation to ensure success.
Transparency and collaboration are also crucial. Establishing a national broadband map, similar to the United States model, could help track progress and identify coverage gaps.
Additionally, addressing the lack of electricity in certain areas is essential for deploying ICT infrastructure. The study suggests using electric poles for network deployment as a cost-effective alternative to underground fiber optic lines.
As the NFB project advances and affordable internet becomes more accessible, addressing remaining challenges is crucial for equitable digital transformation. Government and private sector collaboration will be key.
Additionally, boosting digital literacy and training will help bridge the digital divide, enabling full participation in the digital economy. Together, these efforts will foster a more connected and inclusive Philippines.