ONE REALIZATION in the recent Dinagyang Digital celebration was the importance of better internet connectivity and accessibility. It is public knowledge that information and communication technology (ICT) services in the country remain one of the most expensive in the Asia-Pacific region but internet speed is not proportional to the cost.
This problem is primarily caused by the lack of comprehensive policies on ICT development which, in turn, results in unequal distribution of digital dividends or the development effects of ICT.
It also needs emphasizing that 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 and boost its growth, government must invest in building a reliable, accessible, and affordable ICT infrastructure.
According to the International Telecommunication Union’s ICT development index five years ago, the Philippines placed fifth among countries across Southeast Asia in terms of the number of people with access to the internet. Fast forward to 2021, how are we faring? Hopefully, we’re improving, with the people’s increasing access to mobile phones and broadband subscription services. However, policymakers should look beyond widening access. The Philippines’ connection speed must increase. There was a time in the recent past that our average internet connection speed was the second lowest in the Asia-Pacific in terms of average connection speed.
To maximize digital dividends, policymakers must focus on ICT development, widen access, and promote competition and further interconnectedness. Part of ICT development should improve regulations regarding internet exchanges. Telecommunication companies exact fees to let other companies pass through their physical networks; in turn, this racks up the costs of providing connection.
It is generally acknowledged that 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 responsibility lies 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. The government and the private sector have to work together to address the bottlenecks that impede ICT development.
