North Luzon Monitor

North Luzon

Internet and the Philippines

JP Villanueva
Latest posts by JP Villanueva (see all)

One of the things that irritates me with balikbayans is the comparisons they make on things here in the Philippines with those in the country where they come from. Statements like, “Hay naku, ang trapik dito sa Pilipinas, di gaya sa <country>, maluluwag ang mga daan, walang trapik!” Or “Anu ba yan, ang init naman dito sa ‘pinas, sa <country>, presto ang hangin, malamig!”

For someone who works in another country, I have to constantly remind myself not to compare anything whenever I come home to the Philippines. However, some things are just too glaring not to mention. Top of my list is the internet speed.

The moment the plane landed at the airport I was immediately connected to the 5G network of my roaming global number. I wanted to update my friends that I have landed (especially that my flight got bumped several times, but that’s a different story altogether) but could not send messages. It was just “sending” for quite a while. Only after I was able to retrieve my luggages that these messages were sent.

I registered for a mobile data promo that allowed me 4GB of data. It was quite reliable for me to book a grab car and get to my hotel. I was on a video call with friends on the way to the hotel, when I received text messages from the mobile network warning me that I have consumed this much data already. After a few minutes, the video call froze, which meant that the 4GB had been fully consumed, after not more than 12 hours since I first landed at the airport.

I had to register for another mobile promo to enjoy another 4GB of mobile service. I thought this mobile promo would be good for me as I travel to Baguio and then, Sagada. As I was doing my rounds in Baguio City before my trip to Sagada, service was so bad that I could not even open my Facebook or Tiktok. The trip to Sagada was worse. Service was intermittent until I reached our accommodation where there was no service at all. Good thing, there was the Starlink service which allowed me to use the internet to send this piece to my editor.

Aside from the really bad service, it is also expensive. I paid P140 for the first mobile data promo. Assuming I have the same consumption everyday, P140 times 30 days, that would be P4,200.

Forgive me for comparing but in Taiwan where I work, I pay for a month’s subscription amounting to NT$999, if converted to Philippine Peso, it would be around P1,750. This subscription allows me unlimited 5G service 24/7. I can watch Netflix without buffering.

With this expensive internet access in the Philippines, what could be the disadvantages of having slow internet access to the economy of the Philippines?

First is impaired productivity. Slow internet speeds hinder productivity across industries such as business process outsourcing (BPO), remote work, e-commerce, and digital services. Employees spend more time waiting for pages to load or files to download, which reduces overall efficiency and output.

Another is limited business opportunities. Businesses relying on fast internet for operations, such as online retail, tech startups, and freelancing, may face limitations in scaling their operations. This restricts their ability to compete globally and attract international customers.

It presents educational inequality. Slow internet affects access to online learning materials and resources, disadvantaging students in both urban and rural areas. It hampers distance education programs and limits the quality of digital learning experiences, widening the education gap between those with and without reliable internet access.

It inhibits innovation and digital transformation. Slow internet can deter investment in digital technologies and innovation. Companies may hesitate to adopt advanced digital tools and services, hindering overall economic growth and modernization.

It has an impact on tourism and hospitality. Slow internet affects tourism and hospitality sectors that rely on online bookings, customer reviews, and digital marketing. Poor connectivity can deter potential tourists and impact visitor experiences, affecting revenue for local businesses.

It also frustrates consumer engagement. Slow internet diminishes customer satisfaction in industries like e-commerce, digital entertainment, and online services. Users are less likely to engage with websites or apps that load slowly or have frequent interruptions, leading to lost sales and reduced customer retention.

And finally, financial services limitations. Slow internet can impede access to online banking services, financial transactions, and digital payments. This restricts financial inclusion and limits the efficiency of digital banking platforms.

Addressing these economic disadvantages requires improvements in internet infrastructure, such as expanding broadband coverage, enhancing network reliability, and increasing internet speeds. Policy initiatives aimed at promoting competition among internet service providers and encouraging investment in digital infrastructure are crucial steps towards mitigating these disadvantages and fostering economic growth in the Philippines.

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