SlideShare ist ein Scribd-Unternehmen logo
1 von 30
Downloaden Sie, um offline zu lesen
Version 20160927
This position paper was prepared for the Mandaue Chamber of Commerce & Industry in aid
of legislation by:
Contents
Executive Summary .............................................................................................................. 1
Introduction ........................................................................................................................... 2
Telecommunication Explained........................................................................................... 2
Internet Explained.............................................................................................................. 2
Broadband Explained ........................................................................................................ 3
Economic Impact of Broadband......................................................................................... 3
Current Legal Framework of Telecommunication............................................................... 4
The Present State of Broadband in the Philippines ............................................................... 7
Cost, Reach and Bandwidth of Existing Broadband Services ............................................ 7
Capacity and Capability of Telecommunications Regulator ............................................... 9
Competitive Environment in the Telecommunication Industry.......................................... 11
Legal Framework for Enforcement, Investment, Competition and Regulatory Oversight.. 12
The Desired State of Broadband in the Philippines ............................................................. 16
Philippine Broadband Services at the Top Rank of Asia Pacific....................................... 16
National Telecommunications Commission as a Credible Regulator ............................... 16
A Competitive Telecommunications Industry ................................................................... 16
A Unified, Cohesive and Comprehensive Legal Framework Addressing National
Development ................................................................................................................... 16
Conclusion .......................................................................................................................... 17
The Program of Action towards the Desired State............................................................... 18
Bringing the Philippine Broadband Services at the Top Rank of Asia Pacific................... 18
Transform the National Telecommunications Commission into a Credible Regulator ...... 18
Develop a Competitive Telecommunications Industry...................................................... 20
Develop a Unified, Cohesive and Comprehensive Legal Framework for National
Development ................................................................................................................... 21
Bibliography ........................................................................................................................ 23
Executive Summary
The Present State of Broadband in the Philippines
In 2013, there's only 22.9 out 100 Filipinos with access to broadband. 2.6 have fixed
broadband and 20.3 have mobile broadband. The Philippines have one of the slowest
average broadband speed in the Asia Pacific at 3.5 Mbps as compared to South Korea
with 29 Mbps. 90% of internet users in the Philippines depend on mobile access but it
has poor connectivity. The Philippines is also the most expensive in terms of broadband
access at around US$7.10 per 1Gb of data. The National Telecommunications
Commission (NTC) has failed to prevent non-competitive practices of dominant players
and have not created the right environment for fresh investments from new players.
Although there are laws supposedly enacted to encourage competition, it has not really
created the climate because of regulatory enforcement failure by the NTC. The cost of
licensing and red tape contribute to the low investments and players in the
telecommunication sector.
The Desired State of Broadband in the Philippines
Stakeholders have almost the same desire for the country's broadband service. They
need faster, cheap, reliable and higher penetration of broadband services. Stakeholders
want the NTC to enforce the law without bias, encourage investments and protect
players against anti-competitive and anti-trust practices. All stakeholders must
participate to make a competitive environment for the telecommunications sector. A
comprehensive, focused, unified, and cohesive legal framework must be designed to
encourage new investments in telecommunications and to sustain a competitive market.
The Program of Action
The program of action aims to: bring the Philippine broadband services at the top rank
of Asia-Pacific; transform the NTC into a credible regulator; develop a competitive
telecommunications industry; and develop a legal framework for national development
and not only for the telecommunications sector that is unified, cohesive and
comprehensive.
Introduction
Internet and broadband are becoming a large part of the telecommunication services
available in the Philippines. Internet is part of what is referred to in the
telecommunications or telecoms industry as "value-added services" or VAS.
There have been many conferences, summits and strategic planning working towards
improving internet access and broadband reach. The Cebu ICT Summit of 2001 and
2006 all emphasize the need to improve broadband technologies as part of its action
agenda making possible gains in attracting business process outsourcing firms to Cebu
City and its other chartered cities. Many nations see the investment in broadband
technologies as a strategic move towards development.
Telecommunication Explained
When we hear about telephones, mobile phones, internet, broadband, and even
television broadcast, we are talking collectively of an industry we refer to as
telecommunications.
The IEEE dictionary (Ref. 2) defines telecommunications as “the transmission of signals
over long distance, such as by telegraph, radio or television”." (Freeman, 1999, p. 1)
"Think of telecommunications as the world's biggest machine. Strung together by
complex networks, telephones, mobile phones and internet-linked PCs, the global
system touches nearly all of us. It allows us to speak, share thoughts and do business
with nearly anyone, regardless of where in the world they might be." (Investopedia)
Section 3 of Republic Act No.7925 defines telecommunication as "any process which
enables a telecommunications entity to relay and receive voice, data, electronic
messages, written or printed matter, fixed or moving pictures, words, music or visible or
audible signals or any control signals of any design and for any purpose by wire, radio
or other electromagnetic, spectral, optical or technological means."
It is by this definition that the National Telecommunications Commission relate, monitor,
and enforce compliance to the law.
Internet Explained
The word internet used to be spelled with a capital "I" was a word we thought we all
knew and understood until we are ask "What is the internet?"
"The Internet is a global wide area network that connects computer systems across the
world. It includes several high-bandwidth data lines that comprise the Internet
"backbone." These lines are connected to major Internet hubs that distribute data to
other locations, such as web servers and ISPs." (TechTerms)
The key words are "global, wide area network connecting computer systems across the
world". So how do computer systems connect across the world?
"In order to connect to the Internet, you must have access to an Internet service
provider (ISP), which acts the middleman between you and the Internet. Most ISPs offer
broadband Internet access via a cable, DSL, or fiber connection. When you connect to
the Internet using a public Wi-Fi signal, the Wi-Fi router is still connected to an ISP that
provides Internet access. Even cellular data towers must connect to an Internet service
provider to provide connected devices with access to the Internet." (TechTerms)
Position Paper: State of Broadband in the Philippines
Page 3 of 30
In the Philippines, internet services are under the category "Value-Added Services" or
VAS. Section 3 of Republic Act No.7925 defines "Value-added service provider (VAS)
as an entity which relying on the transmission, switching and local distribution facilities
of the local exchange and inter-exchange operators, and overseas carriers, offers
enhanced services beyond those ordinarily provided for by such carriers."
Broadband Explained
We always hear telecommunication networks or telecoms advertising their broadband
services but what is really broadband. There are several definitions depending on
availability, access or depth of service:
"ITU and the OECD have defined broadband as a capacity of at least 256 kbps in the
uplink or downlink speed. The Broadband Commission for Digital Development has
defined broadband using a cluster of concepts, as high-speed Internet access which is
always-on and capable of multiple service provision simultaneously." (Biggs, 2014, p.
16)
"The term 'broadband' is a shortened name for 'broad bandwidth'. Broadband, or broad
bandwidth, is what is required for the 'high speed' transmission of data. In the realm of
computers and the internet, this data is in the form of digital information that is
transmitted back and forth between your computer and the internet. So the terms
'broadband' and 'high speed' are actually equivalent terms as used in the context of
internet connectivity, as they both mean the same thing." (DayCom Solutions)
There is no standard definition of broadband in any of our laws not even in Republic Act
7925.
For purposes of this position paper, the concept of internet and broadband will be
mentioned here as a single concept. The internet will not be what it is without the
infrastructure that broadband technologies provide. The whole existence of broadband
evolved because of internet: One cannot evolve without the other.
Economic Impact of Broadband
"In the ASEAN region, other factors being equal, a 1-percentage point increase in
internet penetration rates translates into an additional 0.65 percentage point of GDP
growth, on average. This would mean at least PHP 75 billion more in GDP for the
Philippines based on 2013 values." (Santos, 2016, p.1)
"According to the Organization of Economic Cooperation and Development, the benefits
of broadband access to less developed countries (e.g., Brazil and China) are even
greater. An entry-level connection of 0.5 Megabits per second (Mbps) has been found to
increase household income by $800 per year." (Santos, 2016, p.1)
Almost all studies conducted in many EU and OECD countries have demonstrated the
direct correlation of telecommunication investment to GDP growth. China even during
the most restrictive period in its economies also accrued gains from its investments in
telecommunications.
In a study conducted of 29 regions in China for a 17-year period, 1986-2002, revealed
that investment in telecommunications infrastructure is both statistically significant and
positively correlated to regional economic growth in real GDP per capita. (Ding &
Haynes, 2006)
Position Paper: State of Broadband in the Philippines
Page 4 of 30
It is therefore imperative that stakeholders from both government and the private sector
take the initiative of framing the best mechanism in aid of legislation to improve
investments in telecommunications.
"The economic impact of broadband manifests itself through four types of effects: (Katz,
2012a)
The first effect results from the construction of broadband networks. In a way
similar to any infrastructure project, the deployment of broadband networks
creates jobs and acts over the economy by means of multipliers.
The second effect results from the “spill-over” externalities, which impact both
enterprises and consumers. The adoption of broadband within firms leads to a
multifactor productivity gain, which in turn contributes to growth of GDP.
Third, residential adoption drives an increase in household real income as a
function of a multiplier.
Fourth, residential users receive a benefit in terms of consumer surplus, defined
as the difference between what they would be willing to pay for broadband
service and its price which contribute to GDP growth. This last parameter, while
not being captured in the GDP statistics, can be significant, insofar that it
represents benefits in terms of enhanced access to information, entertainment
and public services.
Current Legal Framework of Telecommunication
The Philippines telecommunication sector is regulated by the National
Telecommunications Commission (NTC). The sector was originally regulated by the
Public Service Commission that was established by Commonwealth Act No. 146 of
1936. "NTC regulated the industry when the Public Service Commission was
abolished."(Espos, 2003, p. 42)
The NTC was created in 1979 by Executive Order No. 546 issued by then President
Ferdinand Marcos on July 23, 1979. The same executive order created the Ministry of
Transportation and Communication under whose supervision and control it was placed.
The Ministry therefore controlled both policy and regulation except for the quasi-judicial
functions of the NTC that could only be appealed to the Supreme Court." (Espos, 2003,
p. 42)
"The Ministry of Transportation and Communication was reorganized again in 1987 into
the Department of Transportation and Communication when the Philippine government
reverted back into the presidential form. NTC remained under the supervision and
control of the Department and its functions remained the same." (Espos, 2003, p. 42)
The first law that specifically responded to the needs of the telecommunication industry
was Republic Act 7925, "An Act to Promote and Govern the Development of Philippine
Telecommunications and the Delivery of Public Telecommunications Services".
RA 7925 designates NTC as the primary administrator of the law. The law defines
among others the following functions of NTC: (Espos, 2003, p. 42-43)
a) facilitate the entry of qualified service providers,
b) adopt a fair and reasonable pricing policy,
c) mandate fair and reasonable interconnection,
Position Paper: State of Broadband in the Philippines
Page 5 of 30
d) ensure quality and inter-operable telecommunication facilities,
e) foster fair and efficient market conduct, and
f) promote consumer welfare.
Note: "The law and its implementing rules and regulations (IRRs) do not define the
terms fair and reasonable." (Espos, 2003, p. 43)
NTC issues certificates of public convenience for “the operation of communication
utilities and services, radio communications systems, wire or wireless telephone or
telegraph systems, radio and television broadcasting systems and other similar public
utilities” (EO 546), manages radio spectrum (Act No. 3846, as amended, and RA 7925);
and performs quasi-judicial functions (RA 7925).
"The law does not prohibit the DOTC under which the NTC remained attached from
interfering with the regulation of the industry. It only reiterates the prohibition contained
in previous laws against DOTC interfering in the Commission’s quasi-judicial functions."
(Espos, 2003)
The enforcement of RA 7925 is outlined in NTC's Memorandum Circular No. 08-09-95,
"Implementing Rules and Regulations for Republic Act No. 7925 Re: An Act to Promote
and Govern the Development of Philippine Telecommunications and the Delivery of
Public Telecommunications Services".
There are other Memorandum Circulars (MCs) supporting enforcement but some are
more prominent than others in forming the core of enforcement, as follows:
NTC MC 09-07-93
Implementing Guidelines on the Interconnection of Authorized Public
Telecommunications Carriers
NTC MC 11-09-93
Implementing Guidelines on the Provisions of E. O. 109
NTC MC 03-03-96
Review, Allocation and Assignment of the Radio Spectrum
NTC MC 14-07-2000
Implementing Rules and Regulations (IRR) for the Interconnection of Authorized
Public Telecommunications Entities
NTC MC_06-08-2005
Frequency Band Allocations for Broadband Wireless Access
NTC MC_07-08-2005
Rules and Regulations on the Allocation and Assignment of 3G Radio Frequency
Bands
NTC MC 01-03-2010
Rules on the Assignment of the Remaining Allocated 3G Radio Frequency Band
Certain statutes are also affecting investments in the telecommunication sectors as
follows:
Position Paper: State of Broadband in the Philippines
Page 6 of 30
Republic Act 7925
An Act to Promote and Govern the Development of Philippine
Telecommunications and the Delivery of Public Telecommunications Services
Republic Act 6849
An Act Providing for the Installation, Operation, and Maintenance of Public
Telephones in Each and Every Municipality in the Philippines, Appropriating
Funds Therefor and for Other Purposes
Republic Act 8799
The Securities Regulation Code
Republic Act No. 7042
(As amended by RA 8179)
An Act to Promote Foreign Investments, Prescribe the Procedures for
Registering Enterprises Doing Business in the Philippines, and for Other
Purposes
Republic Act 10667
An Act Providing for a National Competition Policy Prohibiting Anti-Competitive
Agreements, Abuse of Dominant Position and Anti-Competitive Mergers and
Acquisitions, Establishing the Philippine Competition Commission and
Appropriating Funds Therefor
The above definitions and legal frameworks are meant to contextualize the position
paper that is to follow. This document is organized as such that it starts with the current
state of broadband in the Philippines, followed by broad discussion of the desired state
as perceive by different stakeholders, followed by conclusions of what needs to be
resolve to improve broadband services, and closing with recommendations for certain
program of actions.
The conclusions and recommendations are drawn from studies, research and
consultations of different stakeholders, in the academe, international bodies, and private
entities spanning years of accumulated data from 1998 to first quarter of 2016.
Although, effort was exerted to get the most updated data, due diligence must be
exercise in ascertaining facts by going back to original sources of data from published
references listed in the Bibliography.
The Present State of Broadband in the Philippines
Based on data from OECD countries two studies have evaluated the impact of
broadband on GDP growth. The first study analyzed impact in 25 OECD countries
between 1996 and 2007. The researchers determined that the adoption of broadband
increased per capita GDP, with a ratio of 1.9% to 2.5%. (Katz, 2012b)
In the Philippines the mobile broadband adoption was found out to be contributing to the
GDP at an annual rate of 0.32%. This represents 6.9% GDP growth for the Philippine
economy during the past decade. Philippine GDP grew at a compounded rate of 4.6%.
Since 2005, broadband technology has doubled its impact on GDP reaching 0.61% and
representing growth of 7.3% across the country. (Katz, 2012b)
The existing experience of the country in the use of broadband technologies and access
to the internet is defined by the following:
 The cost, reach and bandwidth of existing broadband services.
 The capacity and capability of the existing regulator, NTC, to enforce the
enabling rules and regulations defined by existing statutes.
 The competitive environment in the Philippine telecommunication industry.
 The legal framework for enforcement, investment climate, pro-competition and
oversight of regulatory administration and enforcement.
Cost, Reach and Bandwidth of Existing Broadband Services
In 2014, 44 million Filipinos out of the 100 million used the Internet either subscribed or
shared. In 2013 broadband access however is much lower with only 22.9 per 100
Filipinos. According to the UN Broadband Commission, there were 2.6 Filipinos for
every 100 have subscribed to fixed broadband. 20.3 Filipinos per 100 have mobile
broadband in the same year. (Santos, 2016).
In the first quarter of 2016, South Korea leads the Asia-Pacific in the fastest average
connection speed of 29 Mbps, Singapore is 16.5 Mbps while the Philippines is at 3.5
Mbps. The global rank of South Korea in this category is No.1, Singapore No. 13 while
the Philippines is ranked No. 113. (Akamai, 2016).
Peak connection speed is led by Singapore at 146.9 Mbps, South Korea at 103.6 Mbps
while the Philippines is at 29.9 Mbps. The global rank of Singapore in this category is
No. 1, South Korea No. 4, while the Philippines is No. 88. (Akamai, 2016).
Based on 2013 estimates, about 90% of internet users depend on mobile access. There
is a huge demand for mobile internet. (Santos, 2016, p. 4)
Even with the rapid increase in the demand for mobile internet growing at a rate of
112% per year, the country still suffers from poor internet connectivity. (Santos, 2016).
"In a 2012 survey, the Department of Education (DepEd) revealed that 79% of public
schools across the country had no internet access in their area, wired or wireless."
(Santos, 2016, p. 4)
Position Paper: State of Broadband in the Philippines
Page 8 of 30
"A recent TechInAsia survey showed that 1 Gigabytes (GB) of data is “very expensive”
in the Philippines (at $7.10) compared to other ASEAN countries. (Santos, 2016, p.5)
A typical Filipino minimum wage earner is estimated to take in $0.69 per hour. To be
able to pay for 1GB of data, he has to log in 10 hours of work. The Philippines is the
second worst country in terms of data cost in the ASEAN. The cost of 1GB of data in
Singapore is $7.11 but the minimum wage per hour is US$4.03. Brunei has a cost of
US$7.09 per 1GB of data but the wage per hour is US$5.76. (Santos, 2016)
Ookla, a business that provides tools to measure network throughput, latency, packet
loss and scan firewall ports, revealed that the Philippines offered the second most
expensive internet service out of the 62 countries ranked. (Santos, 2016)
The Philippines has also the most expensive in terms of wholesale price for business-
grade bandwidth per 1 Gbps in the Asia-Pacific Region. Wholesale price of business-
grade bandwidth per 1Gbps in Hong Kong is in the range of US$1.50 to US$6.00 while
Australia and New Zealand ranges from US$6.00 to US$9.00. Wholesale price for
business-grade bandwidth per 1Gbps in Manila is at the range of US$18.00 to
US$45.00 while Cebu is in the range of US$25.00 to US50.00.
Position Paper: State of Broadband in the Philippines
Page 9 of 30
Capacity and Capability of Telecommunications Regulator
"The NTC is the government agency mandated to regulate and supervise the provision
of public telecommunications and broadcasting services in the country (EO 546) and to
enforce RA 7925. It issues certificates of public convenience for “the operation of
communication utilities and services, radio communications systems, wire or wireless
telephone or telegraph systems, radio and television broadcasting systems and other
similar public utilities” (EO 546); manages radio spectrum (Act No. 3846, as amended,
and RA 7925); and performs quasi-judicial functions (RA 7925). The NTC is under the
Office of the President." (Santos, 2016, p.10)
NTC issues a provisional authority (PA) to operate to the franchise applicant. The PA
defines the conditions for the issuance of the CPCN, as follows: (Espos, 2003, p.45)
a) payment of performance bond,
b) submission of construction schedules and related details,
c) payment of required fees,
d) roll-out schedules,
e) reporting requirements,
f) an indication of the price which the operator could charge for the service based
on the operator’s own cost and revenue projections.
"The provisional authority is valid from 12 to 24 months but is extendable for longer
periods." (Espos, 2003, p.45). Upon compliance of the requirements outlined in the PA
and approval by Congress of the franchise, NTC issues the Certificate of Public
Convenience and Necessity (CPCN) to applicant telco.
"As a cabinet level agency, NTC belongs to the executive regulatory agencies whose
heads are appointed by and whose terms are co-terminus with that of the President. As
an executive branch of the government, the President has control over NTC's rule
making power.” (Aldaba, 2000b).
NTC has suffered setbacks in terms of its credibility as a regulatory agency. A lot of the
decisions that NTC made have allegedly indicated biases towards a particular industry
player. NTC often adopted a hands-off policy and leave the final decision to the
President making the Office of the President a powerful interventionist. The practice of
getting industry practitioners as regulatory officials have also contributed to the loss of
credibility for the Commission. (Aldaba, 200b)
Legal initiatives related to mergers and acquisitions in the telecommunications industry
have not strengthened NTC's position as a regulator considering its ambivalence in
taking action in spite of its mandate to adjudicate in mergers and acquisition.
In the case of PLDT v. NTC (G.R. No. 88404), NTC argued that there are no legal
barriers to approving telco mergers and acquisitions. There are also no set guidelines in
place to help the regulator prove whether a merger or acquisition would be detrimental
to public interest. (Santos, 2016, p. 11)
This argument, however, is not in line with the antitrust mandate provided by RA 7925
and EO No. 546. It is within the NTC’s powers and functions to establish competition
rules and the guidelines required for their effective implementation, similar to what other
sector regulators, such as the Energy Regulatory Commission (ERC), have done.
(Santos, 2016, p. 11)
Position Paper: State of Broadband in the Philippines
Page 10 of 30
In NTC’s decisions to approve the two recent mergers, no official position papers for
public review were circulated. Comments submitted by the oppositors as well as the
final decision of the NTC on the two cases were not made public. In the NTC’s
decisions, it made use of the public-interest criterion in evaluating the two mergers.
However, it did not define what constitutes public interest. (Santos, 2016, p. 11)
NTC’s hands-off policy with regards to interconnectivity have cause the dominant player
PLDT to choke competition by invoking vague references to LRIC in computing
interconnectivity charges, a calculation that NTC may not have taken due diligence to
verify if legitimate. (Espos, 2003)
NTC is handicapped in establishing baselines for costs or investments. The data
required for financial modelling or the calculation of LRIC (long-term incremental cost) is
difficult to gather with industry’s (meaning the dominant telcos) aversion to the
submission of cost and financial information that can be used to align charges with costs
especially when prevailing charges are excessive. (Espos, 2003)
NTC even if it is within its mandate, do not demand the necessary data from telcos to
enable an effective monitoring of telcos operation, investments and operating costs
essential for its own financial modelling or the calculation of LRIC.
"RA 7925 mandates the NTC to “establish rates and tariffs which are fair and
reasonable and which provide for the economic viability of telecommunication entities
and a fair return on their investment considering the prevailing cost of capital in the
domestic and international markets.”
NTC's current mechanisms for setting rates and tariffs deemed "fair and reasonable"
may no longer be responsive to new realities or may not all be "fair and reasonable" in
the context of these new realities.
The rates are still set following a 12 percent return on rate base formula. The formula
had been applied since 1935 when the Supreme Court ruled that a 12% return on
revalued (net) book value of property, plant and equipment plus working capital covering
two months average of operating expenses is a fair return to utility." (Espos, 2003, p.
51)
"The NTC functions and decisions are subject to the review of the courts and limitations
imposed by laws. Its decisions are appealable to the Court of Appeals and the Supreme
Court. Dominant industry players have used this to delay or overturn decisions that do
not favor them.” (Santos, 2016, p. 10)
NTC does not generate its own revenues internally. Although as a regulatory agency it
imposes fees like spectrum user fees, it does not retain them for its own operational
use.
“Spectrum user fees (SUF) collected by the NTC reach about P2.5 billion annually. This
makes up over half of the regulator’s entire license revenues per year. However, the full
SUF collection goes directly to the National Treasury. NTC does not keep any of its
income. NTC’s annual budget in the General Appropriations Act is about P300 million."
(Santos, 2016, p. 11)
Although the enabling law is RA 7925, the penalties imposed for non-compliance is
actually based on Commonwealth Act No. 146 or the "Public Service Act" that was
passed in 1936. To date, violators are fined only PhP200 per day. The range of
Position Paper: State of Broadband in the Philippines
Page 11 of 30
penalties is not sufficient for erring telcos to do the right thing since compliance is
exponentially higher than the cost of the fine which was set 80 years ago. (Santos,
2016)
As a consequence of this lack of funds, it cannot attract the right human resource.
Owing to the dismal pay scale of personnel, NTC do not have high calibre experts and
professionals in its staff. (Espos, 2003)
The agency lost representation in the International Telecommunications Union (ITU) in
2001 because the government failed to pay membership dues. We lost access to
information on international standards, best practices, and prevailing policies in other
countries that are inputs to the formulation of our own regulatory policies. (Espos, 2003)
NTC does not have a separate budget for staff training for skills and knowledge
essential for regulating an industry with more than one player. Historically, there was
only PLDT to deal with. Funds for training are largely source from grants offered by
foreign governments and institutions. (Espos, 2003)
NTC does not even have equipment for its own use to establish monitoring of telco
performance but rely on the existing equipment of telcos. (Espos, 2003)
NTC cannot initiate its own infrastructure project or propose program of development for
capacity building.
Competitive Environment in the Telecommunication Industry
There are two (2) major players in the Philippines: Philippine Long Distance Telephone
(PLDT) Company (with 70% market share) and Globe Telecom, Incorporated (with 28%
market share). PLDT and its main competitor Globe are the two major providers of fixed
and mobile broadband services in the country. PLDT and Globe recorded the highest
earnings before interest, tax, depreciation, and amortization (EBITDA) margins
compared to other telecommunication companies globally. Both PLDT and Globe
achieve EBITDA margins of 60% and 70% respectively in 2010 in spite of very low
average revenue per user (ARPU). In past years, PLDT and Globe have recorded
EBITDA margins from 40% to 45%. (Santos, 2016)
PLDT and Globe are the Philippines' largest internet service providers (ISPs). Both
control and own most of the existing internet infrastructure which includes submarine
cables, the landing stations, the backhaul network referred to as the middle mile up to
the last mile. Both PLDT and Globe dictate access to and the cost and quality of the
internet and broadband service, both fixed and mobile in the whole country. (Santos,
2016)
"The Philippine telecoms market has been tagged as “less competitive” and “effectively
a duopoly” by various analyses. It lags behind in terms of contestability or the freedom
of market entry and exit." (Santos, 2016), p.7)
Philippine experience has shown that the combination of a weak regulatory authority,
vague interconnection rules, and a large, dominant carrier capable of exercising
monopoly power over access to networks have resulted in difficult and slow
interconnection. The failure to implement smooth interconnection has serious adverse
consequences such as unnecessary lengthy delays in competition associated with
welfare losses to telephone subscribers and a high cost imposed to entrants. (Aldaba,
2000b, p. 23)
Position Paper: State of Broadband in the Philippines
Page 12 of 30
Executive Order 59, issued in February 1993, obliged the compulsory interconnections
of all public telecommunications carriers. Republic Act 7925 provided some
interconnection guidelines, however, the rules were not explicitly spelled out and failed
to sufficiently address the industry's interconnection problems. Hence, these
weaknesses in the legislation inhibited true competition. (Aldaba, 2000b, p. 23)
Legal Framework for Enforcement, Investment, Competition and
Regulatory Oversight
The enabling law of regulatory enforcement for the telecommunication is Republic Act
7925, “An Act to Promote and Govern the Development of Philippine
Telecommunications and the Delivery of Public Telecommunications Services”.
The implementing rules for its enforcement is NTC MC 08-09-95, "Implementing Rules
and Regulations for Republic Act No. 7925 Re: An Act to Promote and Govern the
Development of Philippine Telecommunications and the Delivery of Public
Telecommunications Services".
There are still a core of memorandum circulars still in effect that form a body of
enforcement guidelines for the telecommunications industry:
NTC MC 09-07-93
Implementing Guidelines on the Interconnection of Authorized Public
Telecommunications Carriers
NTC MC 11-09-93
Implementing Guidelines on the Provisions of E. O. 109
NTC MC 03-03-96
Review, Allocation and Assignment of the Radio Spectrum
NTC MC 14-07-2000
Implementing Rules and Regulations (IRR) for the Interconnection of Authorized
Public Telecommunications Entities
NTC MC_06-08-2005
Frequency Band Allocations for Broadband Wireless Access
NTC MC_07-08-2005
Rules and Regulations on the Allocation and Assignment of 3G Radio Frequency
Bands
NTC MC 01-03-2010
Rules on the Assignment of the Remaining Allocated 3G Radio Frequency Band
Another set of statutes envisioned to create competition and attract more players are as
follows:
Position Paper: State of Broadband in the Philippines
Page 13 of 30
Republic Act 10667
An Act Providing for a National Competition Policy Prohibiting Anti-Competitive
Agreements, Abuse of Dominant Position and Anti-Competitive Mergers and
Acquisitions, Establishing the Philippine Competition Commission and
Appropriating Funds Therefor
Republic Act 6849
An Act Providing for the Installation, Operation, and Maintenance of Public
Telephones in Each and Every Municipality in the Philippines, Appropriating
Funds Therefor and for Other Purposes
Republic Act 7042
(As amended by RA 8179)
An Act to Promote Foreign Investments, Prescribe the Procedures for
Registering Enterprises Doing Business in the Philippines, and for Other
Purposes
Republic Act 8799
The Securities Regulation Code
In spite of the enactment of the above enabling laws and body of issuance, the legal
framework still has not adequately address the following:
1. An investment climate that is pro-competition and allows greater foreign
investment in the telecommunication sector.
2. The pro-active handling of the prevailing threat of monopoly through mergers
and acquisitions. There are no clear provisions to handle business structure and
conduct of business.
3. Simplicity and transparency in the licensing of telecommunications operators
including the mechanisms of rejecting applications. Current, there are too many
layers for applying for a license from national agencies to local governments
especially for internet service. (see tables)
4. Oversight of NTC in terms of enforcement, accountability, development,
administration, and performance.
5. Strengthening of NTC in terms of technical capabilities, transparency,
infrastructure, funding, and selection of personnel.
6. Addressing the aversion of telcos to compliance. Current laws are not punitive
enough to threaten or hurt violators and forensic capabilities are not in place to
ensure prosecution of violators.
7. Government’s commitment to invest in telecommunications infrastructure to
lessen dependence on private-sector initiatives.
The Desired State of Broadband in the Philippines
After all data, facts and information are absorbed, interpreted and organized, we are left
with the question: What do we need to achieve to get to our desired state?
The desired state should be understandable and more importantly measurable in the
backdrop of a time frame within our national agenda of development.
The following are the desired state most stakeholders have articulated in different
studies, focus group discussions and conferences.
Philippine Broadband Services at the Top Rank of Asia Pacific
The Philippines should achieve lower cost, faster speed and greater national
penetration of broadband services comparable to Singapore, Korea or Australia by year
2020. By the time, this desired state is achieved the technology might have already
changed. It is therefore more expedient to peg our objectives on what other countries
are already trying to achieve. This means benchmarking our broadband services against
our neighbors.
National Telecommunications Commission as a Credible Regulator
The NTC shall be the most credible, transparent, intelligent, effective, and development-
oriented regulatory body. The NTC may have to undertake a deliberate overhaul of its
offices. A human resource inventory should be conducted more on the premise of
competence and integrity than on civil service status. A development program should be
in place for this purpose. A strategic plan represented by a logical framework matrix
should be prepared based on NTC’s responsibilities mandated by RA 7925. An
information, education and communication plan should be prepared for the benefit of all
telecommunication stakeholders.
A Competitive Telecommunications Industry
The only guarantee of a competitive environment for telecommunication players is to
engage all stakeholders in a credible, transparent, and open process of consultation and
conference to agree on the ground rules for the industry. NTC can no longer be a silo,
dominant players cannot be apathetic, Congress and the Office of the President cannot
be intervening, and subscribers can no longer stay on the sidelines. All stakeholders
should ensure that mechanisms for competition, customer and investor protection,
education, information sharing, and regulatory compliance are observed, and that
forensic methodologies are designed and to ensure that non-compliance are detected
and rectified. Deeper engagement with international bodies like the ITU and the
Broadband Commission are encouraged.
A Unified, Cohesive and Comprehensive Legal Framework Addressing
National Development
The legal framework should be designed in such a way that it takes into consider all
stakeholders not just the regulated. It must be in the context of the national development
agenda and not just sectoral or industry to avoid silo or myopic concerns. It must take
into consideration existing parallel, contradicting and supplemental legislation. The text
of the legislation should be in the perspective of enforcement to avoid issues of
confusion, misinterpretation, elite capture and work-arounds. The legislative must
apprise its role from dispensing franchises to oversight.
Conclusion
The Philippines must address the telecommunication agenda in the context of a national
development agenda because development in this sector will affect and is affected by
other economic agenda and the achievement of any positive outcome contributes to real
GDP growth. Literature and results of studies both initiated by local researchers and
international bodies all arrive with the same conclusions.
This position paper forwards the following conclusions as to the state of the
broandband/internet in the Philippines:
1. Broadband in the Philippines is expensive, low penetration and slow.
Data from Akamai, USAID, ADB, ITU, Broadband Commission, OECD and UN
all show the same numbers spread out to almost a decade of studies and data
mining. Even if these studies never came to light, the concerns of our domestic
stakeholders should already be enough to send signals what decades of apathy
has successfully contained.
2. The National Telecommunications Commission has failed in its mandate.
NTC failed to create the environment envision by the framers of RA 7925. The
result is a regulatory environment that favors the dominant players, restrict new
players, expensive entry requirements, and a loss of credibility for NTC. The
leadership of NTC has failed to demonstrate integrity and its actuations and
transactions are devoid of transparency effectively eroding its credibility. It has
failed to prevent the country’s loss of membership in the International
Telecommunications Union (ITU).
3. The Philippine Telecommunications Industry is Restrictive
Contrary to government claims, the telecommunication industry restricts new
players, making entry expensive and tedious. Entry may not be sustainable for
new entrants. There is no fair treatment in the application and the enabling
environment is not supportive of fresh investments. The weak regulator has
made the industry even more restrictive with its decisions, proclamations and
actions. This is further aggravated by dominant industry players that invest so
much resource in ensuring knew players never get a fair share of the market.
4. The Legal Framework although present on paper failed to deliver on its
promise.
The spirit of the laws intended to create the right environment of fair trade, fair
competition, and protection of investments did not manifest in credible dealings
with the government, in efficient processing of new entrants, low cost entry, more
investment opportunities, etc. There is no argument that the laws are already out
there but they are incoherent, scattered, and at times conflicting as a result the
industry players are in a continuous of litigations at the expense of subscribers
and investors.
The Program of Action towards the Desired State
Studies on broadband technologies identified weaknesses and depth in countries in
Europe, Asia-Pacific, and Middle East. Together with these weaknesses are
recommendations as to how to either improve broadband or harness its potential. The
OECD, the United Nations, the ITU, Broadband Commission including our very own
stakeholders, have suggested broad and specific programs of action.
The programs of actions in this position paper are organized under each of the category
of desired states.
Bringing the Philippine Broadband Services at the Top Rank of Asia Pacific
1. Service Providers must be made accountable for quality and depth of broadband
services
a. Service providers must submit accurate and relevant data required by the
regulator regularly and on-time under oath.
b. Service providers must clearly acknowledge sources of data and verifiable
evidence of its existence.
c. All service providers must comply with the Payment Card Industry-Data
Security Standard (PCI-DSS) to protect customer data and must publish
results of the PCI-DSS audit in their website.
d. Require service providers to implement a customer service management
system to enable the regulator to monitor the service providers' response to
customer complaints and service request.
e. Pre-paid customers who register in the service provider's website should
receive the same depth and quality of service as post-paid subscribers to
encourage pre-paid customers to share relevant data and give feedback
about service quality and service response.
f. Service Providers must published information they submit to SEC and to the
PSE in their website. These information should include the fees charge to
other service providers interconnecting with their infrastructure.
2. Review and update the country's ICT agenda taking into consideration the strong
engagement of stakeholders to improve the administration, structural and legal
framework of the program of action.
3. Improve spectrum management (Santos, 2016).
4. Empower consumers to make informed decisions through the development of
online tools to check download speeds, quality-of-service and prices for access
and data plans. (Biggs, 2014)
Transform the National Telecommunications Commission into a Credible
Regulator
1. NTC Commissioners must acquire very technical knowledge and skills in
determining incremental or stand-alone costs. (Bronckers & Larouche, 2008)
2. Increase the adoption of information and communications technology (ICT) by
national and local government units in order to improve the delivery of
government services. Build on the innovation of local governments (e.g.,
Position Paper: State of Broadband in the Philippines
Page 19 of 30
Valenzuela City) and raise the Philippine ranking in the United Nation’s E-
Government Readiness index. (Montenegro & Araral, 2015)
3. Work closely with the technology sector to develop mechanisms for enhancing
cybersecurity, preventing cyberattacks, and creating a robust and trustworthy
ICT ecosystem. (Montenegro & Araral, 2015)
4. NTC or any designated Regulator must not be given the discretion to enforce or
not to enforce the mandatory submission of report, financial data on costs or
investments to allow a transparent computation of FL-LRIC or SAC and
appropriate financial modelling necessary to implement any incremental costs or
stand-alone costs. (Espos, 2003)
5. NTC must ensure public availability of licensing criteria, time periods required to
decide on a license application and terms and conditions of individual licenses.
Reasons are to be given when licenses are denied. (Bronckers & Larouche,
2008)
6. NTC or any regulator as part of transparency must have a user friendly website
similar to Ofcom of the United Kingdom (http://www.ofcom.org.uk/).
7. Strengthen the capabilities of the regulator to set the right regulatory framework,
standards and enforcement mechanisms
a. Licensing criteria and application requirements must be published in the
regulator's website.
b. All republic acts, executive orders and memorandum circulars regulating
telecommunications must be published in the regulator website.
c. All active and adjudicated cases on licensing and enforcement must be
published in a separate web page in the regulator's website.
d. Annual reports of activities, projects, and programs must be presented to the
legislative branch responsible for oversight prior to its publication in the
regulator's website.
e. Regulator must proposed a new operating budget that covers enforcement,
infrastructure development, investigation and surveillance, human resource
development, compensation & benefits for personnel, relevant membership
fees to international organizations related to telecommunications, website
development and management, IEC, etc.
f. Review the qualifications of the commissioners and should include
knowledge and skills in finance and economics related to cost-benefit-
investment calculations and financial modelling culling knowledge from best
practices from the International Telecommunications Union (ITU), Overseas
Economic Co-operation and Development (OECD), and the Asian
Development Bank (ADB) to name a few.
g. The regulator must identify and index all critical technical, operating and
financial data relevant for monitoring, enforcement and forensic investigation.
h. Set aside a calendar for specifically educating the legislative oversight
committee of the relevance of technical, operating, and financial data in
monitoring, enforcement and forensic investigation.
i. Develop protocols for financial analysis, forensic investigation, monitoring,
rules of engagement for enforcement, and preparation of reports to
oversight, and prepare manuals for each.
j. Regulator must formulate a strategic/development plan that should establish
measurable outcomes to cover infrastructure, broadband penetration,
affordability of broadband vis-a-vis per capita of GDP (for example 5% of
Position Paper: State of Broadband in the Philippines
Page 20 of 30
GDP), personnel development, interconnectivity cost, e-governance
penetration, etc.
8. Four urgent tasks were identified that the NTC needs to accomplish as
mandated by RA 7925:(i) assume a proactive regulatory stance on competition-
related issues; (ii) enforce strict reporting requirements on regulatees (industry
players); (iii) strive to restore regulatees’ confidence in the Commission; and (iv)
work with the legislature to introduce changes in the regulatory structure.
(Santos, 2016)
9. In August 2006, the NTC issued a consultative document on significant market
power (SMP) obligations, with funding support from USAID. Under the said
document, certain obligations are proposed to be imposed on carriers with SMP
by using a roadmap, consisting of the following critical processes: (i) defining
markets to be used as basis for regulatory intervention; (ii) determining if one or
several operators in the defined markets have the degree of market power that
merit regulatory intervention; (iii) identifying appropriate SMP obligations to
achieve policy objectives; and (iv) determining conditions that justify withdrawal
of regulation. (Santos, 2016)
10. Adopt an open access model. Instead of a single, vertically integrated network,
an “open access” approach is recommended. Open Access Model is the
separation of the physical infrastructure from service provisioning (Alcatel-
Lucent, 2010). This means identifying the various segments in the infrastructure
and opening them up to more and different players without requiring a
Congressional franchise. (Santos, 2016)
11. Update and upgrade the country’s ICT strategy and plan (Santos, 2016).
Consider the vital issue of enforceability/execution. Who is responsible for
enacting the Plan? Who will monitor progress? How will implementation be
funded? (Biggs, 2014)
12. Monitor the use of traffic management techniques to ensure they do not unfairly
discriminate between market players. (Biggs, 2014)
13. Encourage network and facility sharing through “soft” measures (e.g. cross-
sector mapping of infrastructure that enables the coordination of civil works).
(Biggs, 2014)
14. Work with all stakeholders to reduce or remove practical barriers to broadband
deployment. (Biggs, 2014)
Develop a Competitive Telecommunications Industry
1. Impose local loop unbundling, or the process requiring the incumbent operator to
provide competitors with access to the “local loop” or the telecoms network, is
also mandated. This is done especially in cases where the incumbent has a
large market share in order to give new entrants a fair chance at competing. In
the Philippines, there is no specific policy on local loop unbundling and areas of
regulatory intervention are not clearly defined. (Santos, 2016)
2. Implement additional reforms in the educational system to improve the
competencies and compensation of teachers. This should include stepping up
Position Paper: State of Broadband in the Philippines
Page 21 of 30
science, technology, engineering and mathematics (STEM) education and
enhancing the digital literacy of educators. (Montenegro & Araral, 2015)
3. Lessen the number and cost of permits and clearances imposed by the local
government of each area that will be affected by the construction of telecoms
infrastructure (Santos, 2016)
4. Remove all forms of prohibitive bureaucratic requirements, arbitrary fees and
permits, or simply too much discretion on the part of government officials.
(Santos, 2016).
5. Level the playing field through: (Santos, 2016)
a. Local IP peering. Support the growth of open and neutral internet exchange
points, such as PHOpenIX that allows local IP peering. Non-commercial IXPs
give an alternative for smaller players to buy uplinks (international
bandwidth) as they are allowed to access locally hosted content and cached
data in a local IXP.
b. Shared infrastructure. Promote open access policy for infrastructure through
(i) a shared utility corridor to coordinate one-time civil works and (ii) secure
right of way and LGU permits. Allow and encourage tower co-location in
order to lower cost for smaller players, especially for networks outside urban
centers. This also includes sharing of radio spectrum and allowing the use of
unlicensed frequencies at the community level.
Develop a Unified, Cohesive and Comprehensive Legal Framework for
National Development
1. Update the country's obsolete telecommunications laws. The speed of
innovation favors a light-touch approach and regular review to ensure that laws
remain relevant. New legislation can include sunset clauses to trigger automatic
review, while older legislation that overly restrict competition should be
liberalized. (Montenegro & Araral, 2015)
2. Update laws and regulatory framework to promote investment and innovation in
communications and connectivity. The following legislative agenda are
recommended: (Santos, 2016)
a. Amendments to RA 7925
b. Enactment of the Department of ICT Act
c. Amendments to CA 146
d. Passage of the NTC Reorganization Act
3. Set up an effective, independent, transparent, accountable and unified
government body to oversee the development of ICT and related services. This
body should be resourced properly with people, technology and financing so that
it can build a strong ICT foundation as a pillar of long-term shared prosperity for
all Filipinos. (Montenegro & Araral, 2015)
4. Legislative branch shifts from approval of franchises to oversight and
improvement of legal framework of licensing, regulatory enforcement, pro-
competition investment and transparency in administration.
a. Remove the legislative branch from the application loop by removing the
franchising component of the process to eliminate the perception that the
Position Paper: State of Broadband in the Philippines
Page 22 of 30
process of allowing investments in telecommunications as a political or elite
capture rather than a purely economic agenda.
b. Legislative must convert its role to oversight of enforcement and
administration of the regulator.
c. Legislative must review and update Republic Act No. 7925 and the
regulatory framework of enforcement.
d. Increase the number of commissioners from three to five: one (1) with
electronics and communications background, two (2) with specialization in
economics and two (2) with expertise in finance. The ideal is to have all
commissioners have academic or operating experience in electronics and
communications engineering. All commissioners should have training in
forensic accounting and finance.
e. Legislative must review licensing process with the view of making the
application process pro-competitive, pro-consumer, transparent, and ensure
accountability of all stakeholders.
f. Legislative must review cost-benefit-investment formulas and financial
modelling use by NTC to ensure that it is based on international best-
practices.
g. Improve the flow of investments in telecommunications by reviewing and
updating the legal and structural framework of the country's general
investment climate.
h. Legislators must allow the regulator NTC to retain 70% to 80% of its
collected fees to give it some latitude in fiscal independence and upgrade its
capabilities without having to depend on the Office of the President or the
Legislative for operating funds. This insulates the Commission from political
machinations or pressure.
i. Amend RA 7925 to provide fixed terms for the Commissioners and
restructure competitive compensation similar to agencies like BSP, DBP, etc.
with corresponding upgrading of qualifications.
Position Paper: State of Broadband in the Philippines
Page 23 of 30
Bibliography
Published References:
Abejo, PM. M. (2013). The Philippine ICT Industry Contributions to Inclusive Growth. 12th
National Convention on Statistics. October 1-2, 2013, EDSA Shangri-La Hotel,
Mandaluyong City.
Akamai. Q1 2016 Report. State of the Internet. Volume 9/Number 1.
Akamai. Q3 2015 Report. State of the Internet. Volume 8/Number 3.
Alampay, E. A. (2011). ICT Sector Performance Review for Philippines. Sri Lanka:
LIRNEasia.
Aldaba, R. A.M. (2000a). Case Study: Opening up the Philippine telecommunication industry
to competition. Singapore: World Bank Institute.
Aldaba, R. A.M. (2000b). Case Study: Opening up the Philippine telecommunication industry
to competition (II). Singapore: World Bank Institute.
Bangay, S. M. (2007). Competition Policy Economy Report- Philippines. Philippines
Biggs, P. ( 2014). The state of broadband: broadband for all. Geneva: The Broadband
Commission.
Blake, L. & Lande, J. (1998). Trends in the U.S. international telecommunications industry.
Washington DC: Federal Communications Commission.
Bonoan, E. P. (2015). Infrastructure In-depth: Philippines. 2015 Investment Guide. Makati,
Philippines: R.G. Manabat & Co.
Bronckers, M. & Larouche, P. (2008). A review of the WTO regime for telecommunications
services. The World Trade Organisation and Trade in Services, pp. 319-379.
DOI: 10.1163/ej.9789004162440.1-1024.43.
Cabanda, E. A Comparative Study of Asian Telecommunications Policy Reforms: Japan,
Malaysia, and the Philippines. Australia: Monash University.
Cabarrios, E. V. Competition in the Philippine Telecommunications Sector.
Cariño, L. V. (2002). Paper no. 44 - Regulatory governance in the Philippines: a profile.
Centre on Regulation and Competition Working Paper Series. Manchester: University
of Manchester.
Catindig, T. A. (2001). The ASEAN competition law project: the Philippine report.
Cayanan, A. S. (2016). Deregulation and Its Effects on Telecom Companies’ Financial
Performance. Philippine Management Review 2016, Vol. 23, 1-16. Philippines:
University of the Philippines-Diliman.
Chang, R., Sheng, T., Fong, C., Kah, & Chung, C. (2016). Fundamental Analysis
Department: Telecommunications Industry. Singapore: NUS Investment Society.
Position Paper: State of Broadband in the Philippines
Page 24 of 30
Competition Committee of the Organisation for Economic Co-operation and Development.
(2014). Defining the relevant market in telecommunications: review of selected
OECD countries and Colombia. France: Organisation for Economic Co-operation and
Development (OECD).
DiMinico, C. Telecommunications Infrastructure Standard for Data Centers: ANSI/TIA-942.
MC Communications. Presentation slides.
Ding, L. & Haynes, K. (2006). The role of telecommunications infrastructure in regional
economic growth in China. Australasian Journal of Regional Studies, Vol. 12, No. 3,
2006. Australia: Australia and New Zealand Regional Science Association
International Inc. (ANZRSAI).
Dominquez, RM. M. K. & Acebedo, R. P. (2013). Getting the deal through - telecom and
media: Philippines. Global Competition Review. London: Law Business Research
Ltd.
Economic Governance Technical Assistance Program. (2003). EGTA Assistance to the NYc:
Finding and Clearing the Bettlenecks. Policy Reform Monitoring Report, Issue No.
12/November 18, 2003. Philippines: United States Agency for International
Development.
Espos, E. A. Institutions, regulation and performance: the case of Philippine
telecommunications.Institutions, Regulation and Performance: The Case of
Philippine Telecommunications. London: City University.
Espos, E. A. (2003). Institutions, regulation and performance: the case of Philippine
telecommunications. Philippine Journal of Public Administration. Volume XLVII, Nos.
1-4 (January-October 2003). Philippines: University of the Philippines-Diliman.
Estache, A. & Garsous, G. (2012). The impact of infrastructure on growth in developing
countries. IFC Economics Notes, Note 1. Washington DC: International Finance
Corporation.
EYGM Limited. (2015). Global telecommunications study: navigating the road to 2020.
United Kingdom: Ernst & Young Global Limited.
Gavino, J. Jr. (1992). A Critical Study of the Regulation of the Telephone Utility: Some
Options for Policy Development. Ph.D. Dissertation, University of the Philippines.
Hargittai, E. (1999). Weaving the Western Web: Explaining Differences in Internet
Connectivity Among OECD Countries (Draft). United States of America: University of
California in Los Angeles.
Horne, A., Gomes, C., Rogerson, D., Moir, G., Delylle, W., Ladid, L., & Alden, J. (2014). 4th
Generation Regulation: Driving Digital Communications Ahead. Trends in
Telecommunication Reform, Special Edition. Switzerland: International
Telecommunication Union.
Huang, JH. (2011). Analysis of Telecommunication Markets of India, Singapore and
Thailand and Research Their Global Competitiveness. Stockholm: Telefonica
International Wholesale Services.
Position Paper: State of Broadband in the Philippines
Page 25 of 30
International Telecommunication Union. (2014). ITU Contribution to the Implementation of
the WSIS Outcomes: 2014 (Draft Version 1.1). International Telecommunication
Union World Summit on the Information Society. International Telecommunication
Union (ITU).
Katz, R. (2012). The Impact of Broadband on Economy: Research to Date and Policy
Issues. Broadband Series, April 2012. Switzerland: International Telecommunication
Union.
Katz, R. L. (2012). The economic impact of broadband in the Philippines. Switzerland:
Broadbank Commission for Digital Development.
Kelly, T. & Rosotto, CM. (2012). Broadband Strategies Handbook. Washington DC:
International Bank for Reconstruction and Development.
Krishnan, S. Telecommunication infrastructure, governance, and e-government
development: a global perspective. Singapore: National University of Singapore.
LaBrie, R. C., & Vinzé, A. S. (2003). Globe Telecom: Succeeding in the Philippine
Telecommunications Economy. Canada: Idea Group Inc.
Lu, D. (2000). China’s Telecommunications Infrastructure Buildup: On Its Own Way.
Deregulation and Interdependence in the Asia-Pacific Region, NBER-EASE Volume
8, 317-413. United States of America: National Bureau of Economic Research, Inc.
Massa, N. (2000). Fiber Optic Telecommunication. United States: University of Connecticut.
Medalla, E. M. (2006). Philippines. Competition Regimes in the World - A Civil Society
Report (pp 145-149). India: Consumer Unity & Trust Society (CUTS) International.
Mitra, R. M. (2013). Leveraging Service Sector Growth in the Philippines. ADB Economics
Working Paper Series, No. 366. Philippines: Asian Development Bank.
Montenegro, L. O. & Araral, E. Jr. (2015). Shared Prosperity: An ICT Manifesto for the
Philippines for 2016 and Beyond. Singapore: Lee Kuan Yew School of Public Policy,
National University of Singapore.
Ospina, S. (April 2002). Telecommunications for all: does liberalization help? LSE Working
Paper Series 2002/No. 02-29. London: London School of Economics.
Paragas, F. (2003). Policy, Phone and Progress: Peculiarities and Perspective in the
Philippine Telecom Industry. Philippines: University of the Philippines.
Parlade, C. V. The Philippine IT Plan: Prospects and Problems.
Patalinghug, E. E. & Llanto, G. M. (2004). Competition policy and negotiation in power and
telecommunications. Manila: Philippine Institute for Development Studies.
Patalinghug, E. E. & Llanto, G. M. (2005). Competition policy and negotiation in power and
telecommunications. Manila: Philippine Institute for Development Studies.
Santos, MG. M. (2016). Philippine Broadband: A Policy Brief. Policy Brief No. 4, February
2016. Philippines: American Chamber of Commerce of the Philippines.
Position Paper: State of Broadband in the Philippines
Page 26 of 30
Serafica, R. (1998). Was PLDT a Natural Monopoly? Telecommunication Policy, Vol. 32,
Nos. 4 & 5/359-370.
Serafica, R. B. (2001). Competition in Philippine telecommunications: a survey of the critical
issues. CBERD Working Paper Series 2001-01. Manila: De La Salle University.
Sridhar, K. S. & Sridhar, V. Telecommunications Infrastructure and Economic Growth:
Evidence from Developing Countries.
Stryjak, J., Sharma, A., & Hatt, T. (2014). Country overview: Philippines growth through
innovation. London: GSMA Intelligence.
SyCip Gorres Velayo & Co. (2013). Doing Business in the Philippines. Philippines: SGV.
The Office of Communications. (2014). Infrastructure Report 2014: The Office of
Communications’ second full analysis of the UK’s communications infrastructure.
London UK: The Office of Communications.
The Office of Communications. (2016). Annual Plan 2016/17. London, UK: The Office of
Communications.
The Office of Communications. (2016). Annual Report and Accounts For the period 1 April
2015 to 31 March 2016. London, UK: The Office of Communications.
The Office of Communications. (2016). Ofcom Programme of Work 2016/17 - Q2 Update.
London, UK: The Office of Communications.
The World Bank - Public-Private Infrastructure Advisory Facility. (2005). Philippines: Meeting
Infrastructure Challenges. Philippines: The International Bank for Reconstruction and
Development / The World Bank.
Torlak, M. The Telephone Network: An Engineering Approach.
Online References:
Barreiro, V. Jr. (Browsed September 9, 2016). Average Philippine Internet speed 155th in
world
http://www.rappler.com/technology/news/57037average-philippine-internet-speed
Chandran, T. (Browsed September 9, 2016, 3:54 PM Philippine Time). Top 10 countries with
the fastest internet speeds.
http://gulfbusiness.com/top-10-countries-fastest-internet-connection/
CISCO. (Browsed September 9, 2016). The Zettabyte Era—Trends and Analysis.
http://www.cisco.com/c/en/us/solutions/collateral/service-provider/visual-networking-index-
vni/vni-hyperconnectivity-wp.html
Lee, T. B. (2016). Keeping the Internet Competitive. National Affairs.
http://www.nationalaffairs.com/publications/detail/keeping-the-internet-competitive
Pingdom. (Browsed September 9, 2016, 3:56 PM Philippine Time). The REAL connection
speeds for Internet users across the world (charts).
Position Paper: State of Broadband in the Philippines
Page 27 of 30
http://royal.pingdom.com/2010/11/12/real-connection-speeds-for-internet-users-across-the-
world/
Reyes, MA. Ll. (September 19, 2001 12:00am). NTC issues rules on retail pricing.
Philstar.com, 09/17/2016 2:42pm. Philippines: The Philippine Star.
http://www.philstar.com/business/134209/ntc-issues-rules-retail-pricing/
Tiwari, A. Top 10 Countries Having The Fastest Average Internet Speed. (Browsed
September 2016, 3:51 PM Philippine Time).
http://fossbytes.com/top-10-countries-having-the-fastest-average-internet-speed/
Wikipedia. (Browsed September 9, 2016). Akamai Technologies.
https://en.wikipedia.org/wiki/Akamai_Technologies
Wikipedia. (Browsed September 9, 2016). List of countries by number of broadband Internet
subscriptions.
https://en.wikipedia.org/wiki/List_of_countries_by_number_of_broadband_Internet_subscripti
ons
Wikipedia. (Browsed September 9, 2016). List of countries by number of Internet users.
https://en.wikipedia.org/wiki/List_of_countries_by_number_of_Internet_users
Wikipedia.(Browsed September 9, 2016). List of countries by Internet connection speeds.
https://en.wikipedia.org/wiki/List_of_countries_by_Internet_connection_speeds

Weitere ähnliche Inhalte

Was ist angesagt?

Censorship Powerpoint
Censorship PowerpointCensorship Powerpoint
Censorship Powerpointmmentis117
 
Introduction to Government Documents
Introduction to Government DocumentsIntroduction to Government Documents
Introduction to Government DocumentsKate Dougherty
 
Multiple choice quiz for copyright laws and fair use
Multiple choice quiz for copyright laws and fair useMultiple choice quiz for copyright laws and fair use
Multiple choice quiz for copyright laws and fair useKate Bailey
 
Web 1.0, Web 2.0 & Web 3.0
Web 1.0, Web 2.0 & Web 3.0Web 1.0, Web 2.0 & Web 3.0
Web 1.0, Web 2.0 & Web 3.0tokey_sport
 
Empowerment Technologies Lecture 12 (Philippines SHS)
Empowerment Technologies Lecture 12 (Philippines SHS)Empowerment Technologies Lecture 12 (Philippines SHS)
Empowerment Technologies Lecture 12 (Philippines SHS)John Bosco Javellana, MAEd.
 
WEB 2.0, WEB 3.0 and User Participation in the Web
WEB 2.0, WEB 3.0 and User Participation in the WebWEB 2.0, WEB 3.0 and User Participation in the Web
WEB 2.0, WEB 3.0 and User Participation in the WebRonaLouiseQuitoriano
 
Information ethics
Information ethicsInformation ethics
Information ethicsSTCC Library
 
Position paper
Position paperPosition paper
Position paperTere Gf
 
Finding credible sources
Finding credible sourcesFinding credible sources
Finding credible sourcesjobear04
 
Library Collection Development -- Class 3 - discussion questions for collect...
Library Collection Development -- Class 3  - discussion questions for collect...Library Collection Development -- Class 3  - discussion questions for collect...
Library Collection Development -- Class 3 - discussion questions for collect...Sarah Clark
 

Was ist angesagt? (13)

Censorship Powerpoint
Censorship PowerpointCensorship Powerpoint
Censorship Powerpoint
 
Introduction to Government Documents
Introduction to Government DocumentsIntroduction to Government Documents
Introduction to Government Documents
 
Multiple choice quiz for copyright laws and fair use
Multiple choice quiz for copyright laws and fair useMultiple choice quiz for copyright laws and fair use
Multiple choice quiz for copyright laws and fair use
 
Web 1.0, Web 2.0 & Web 3.0
Web 1.0, Web 2.0 & Web 3.0Web 1.0, Web 2.0 & Web 3.0
Web 1.0, Web 2.0 & Web 3.0
 
Empowerment Technologies Lecture 12 (Philippines SHS)
Empowerment Technologies Lecture 12 (Philippines SHS)Empowerment Technologies Lecture 12 (Philippines SHS)
Empowerment Technologies Lecture 12 (Philippines SHS)
 
Newspaper vs internet
Newspaper vs internetNewspaper vs internet
Newspaper vs internet
 
Information society
Information societyInformation society
Information society
 
WEB 2.0, WEB 3.0 and User Participation in the Web
WEB 2.0, WEB 3.0 and User Participation in the WebWEB 2.0, WEB 3.0 and User Participation in the Web
WEB 2.0, WEB 3.0 and User Participation in the Web
 
Information ethics
Information ethicsInformation ethics
Information ethics
 
Position paper
Position paperPosition paper
Position paper
 
Finding credible sources
Finding credible sourcesFinding credible sources
Finding credible sources
 
Library Collection Development -- Class 3 - discussion questions for collect...
Library Collection Development -- Class 3  - discussion questions for collect...Library Collection Development -- Class 3  - discussion questions for collect...
Library Collection Development -- Class 3 - discussion questions for collect...
 
Part Of A Book
Part Of A BookPart Of A Book
Part Of A Book
 

Andere mochten auch

Four Truths About Moms And Search
Four Truths About Moms And SearchFour Truths About Moms And Search
Four Truths About Moms And SearchRemko Zuiderwijk
 
An Integrated Study of Gravity and Magnetic Data to Determine Subsurface Stru...
An Integrated Study of Gravity and Magnetic Data to Determine Subsurface Stru...An Integrated Study of Gravity and Magnetic Data to Determine Subsurface Stru...
An Integrated Study of Gravity and Magnetic Data to Determine Subsurface Stru...iosrjce
 
Term paper for developmental reading (midterm paper) The Adaptation of Phili...
Term paper for developmental reading (midterm paper)  The Adaptation of Phili...Term paper for developmental reading (midterm paper)  The Adaptation of Phili...
Term paper for developmental reading (midterm paper) The Adaptation of Phili...Rachel Nuylan
 
Values, Organizational Culture
Values, Organizational CultureValues, Organizational Culture
Values, Organizational Culturekamleshn
 
Contextualizing the filipino values
Contextualizing the filipino valuesContextualizing the filipino values
Contextualizing the filipino valuesNoel Jopson
 
Indian Paper Industry
Indian Paper IndustryIndian Paper Industry
Indian Paper IndustryJaspal Singh
 
Filipino cultural values-sociology (PPT)
Filipino cultural values-sociology (PPT)Filipino cultural values-sociology (PPT)
Filipino cultural values-sociology (PPT)Ysa Garcera
 
society and culture_ the filipino values and culture
society and culture_ the filipino values and culturesociety and culture_ the filipino values and culture
society and culture_ the filipino values and cultureDariz Mae Rebate
 
Philippine education presentation
Philippine education presentationPhilippine education presentation
Philippine education presentationCarlo Magno
 

Andere mochten auch (12)

Four Truths About Moms And Search
Four Truths About Moms And SearchFour Truths About Moms And Search
Four Truths About Moms And Search
 
An Integrated Study of Gravity and Magnetic Data to Determine Subsurface Stru...
An Integrated Study of Gravity and Magnetic Data to Determine Subsurface Stru...An Integrated Study of Gravity and Magnetic Data to Determine Subsurface Stru...
An Integrated Study of Gravity and Magnetic Data to Determine Subsurface Stru...
 
Term paper for developmental reading (midterm paper) The Adaptation of Phili...
Term paper for developmental reading (midterm paper)  The Adaptation of Phili...Term paper for developmental reading (midterm paper)  The Adaptation of Phili...
Term paper for developmental reading (midterm paper) The Adaptation of Phili...
 
Values, Organizational Culture
Values, Organizational CultureValues, Organizational Culture
Values, Organizational Culture
 
THE FILIPINO YOUTH TODAY
THE FILIPINO YOUTH TODAYTHE FILIPINO YOUTH TODAY
THE FILIPINO YOUTH TODAY
 
Contextualizing the filipino values
Contextualizing the filipino valuesContextualizing the filipino values
Contextualizing the filipino values
 
Philippine Values
Philippine Values Philippine Values
Philippine Values
 
Indian Paper Industry
Indian Paper IndustryIndian Paper Industry
Indian Paper Industry
 
Filipino values
Filipino valuesFilipino values
Filipino values
 
Filipino cultural values-sociology (PPT)
Filipino cultural values-sociology (PPT)Filipino cultural values-sociology (PPT)
Filipino cultural values-sociology (PPT)
 
society and culture_ the filipino values and culture
society and culture_ the filipino values and culturesociety and culture_ the filipino values and culture
society and culture_ the filipino values and culture
 
Philippine education presentation
Philippine education presentationPhilippine education presentation
Philippine education presentation
 

Ähnlich wie Position Paper - State of Broadband in the Philippines

Mobile Calculating And Pervasive Calculating
Mobile Calculating And Pervasive CalculatingMobile Calculating And Pervasive Calculating
Mobile Calculating And Pervasive CalculatingRachel Davis
 
Big Broadband: Public Infrastructure or Private Monopolies
Big Broadband: Public Infrastructure or Private MonopoliesBig Broadband: Public Infrastructure or Private Monopolies
Big Broadband: Public Infrastructure or Private MonopoliesWayne Caswell
 
Lecture 6 e-cmmerce , e commerce infrastructure,the internet -chapter 3
Lecture 6  e-cmmerce ,  e commerce infrastructure,the internet -chapter 3Lecture 6  e-cmmerce ,  e commerce infrastructure,the internet -chapter 3
Lecture 6 e-cmmerce , e commerce infrastructure,the internet -chapter 3Habib Ullah Qamar
 
Lecture 6 e-cmmerce , e commerce infrastructure,the internet -chapter 3
Lecture 6  e-cmmerce ,  e commerce infrastructure,the internet -chapter 3Lecture 6  e-cmmerce ,  e commerce infrastructure,the internet -chapter 3
Lecture 6 e-cmmerce , e commerce infrastructure,the internet -chapter 3Habib Ullah Qamar
 
Bb report broadband_satelliteregulation-e
Bb report broadband_satelliteregulation-eBb report broadband_satelliteregulation-e
Bb report broadband_satelliteregulation-eIndrama Purba
 
Alternative Communication Systems... During Disasters
Alternative Communication Systems... During DisastersAlternative Communication Systems... During Disasters
Alternative Communication Systems... During DisastersLindsey Campbell
 
Taking A Look At Net Neutrality
Taking A Look At Net NeutralityTaking A Look At Net Neutrality
Taking A Look At Net NeutralityRochelle Schear
 
Chapter 5 - Developments in Multimedia and Internet Licensing - The Licensing...
Chapter 5 - Developments in Multimedia and Internet Licensing - The Licensing...Chapter 5 - Developments in Multimedia and Internet Licensing - The Licensing...
Chapter 5 - Developments in Multimedia and Internet Licensing - The Licensing...Tim Hsieh
 
Backgrounder wtpf-13-ixps-en
Backgrounder wtpf-13-ixps-enBackgrounder wtpf-13-ixps-en
Backgrounder wtpf-13-ixps-enMeshingo Jack
 
B.Tech. Summer Training Report
B.Tech. Summer Training ReportB.Tech. Summer Training Report
B.Tech. Summer Training ReportShashank Narayan
 
The Economic Value of Broadcast Innovation
The Economic Value of Broadcast InnovationThe Economic Value of Broadcast Innovation
The Economic Value of Broadcast InnovationRajiv Hazaray
 
enhancing-access-digital-transformation.pdf
enhancing-access-digital-transformation.pdfenhancing-access-digital-transformation.pdf
enhancing-access-digital-transformation.pdfmegician
 
Measuring digital development - ITU -Development sector
Measuring digital development - ITU -Development sectorMeasuring digital development - ITU -Development sector
Measuring digital development - ITU -Development sectorChristina Parmionova
 
Performance Evaluation Of A Wimax Testbed
Performance Evaluation Of A Wimax TestbedPerformance Evaluation Of A Wimax Testbed
Performance Evaluation Of A Wimax TestbedAlison Reed
 
Lightweight IoT middleware for rapid application development
Lightweight IoT middleware for rapid application developmentLightweight IoT middleware for rapid application development
Lightweight IoT middleware for rapid application developmentTELKOMNIKA JOURNAL
 
Telco Global Connect 11
Telco Global Connect 11Telco Global Connect 11
Telco Global Connect 11Sadiq Malik
 
2016 Broadband Outlook Report, Telecoms.com
2016 Broadband Outlook Report, Telecoms.com2016 Broadband Outlook Report, Telecoms.com
2016 Broadband Outlook Report, Telecoms.comBrian Metzger
 

Ähnlich wie Position Paper - State of Broadband in the Philippines (20)

Mobile Calculating And Pervasive Calculating
Mobile Calculating And Pervasive CalculatingMobile Calculating And Pervasive Calculating
Mobile Calculating And Pervasive Calculating
 
Big Broadband: Public Infrastructure or Private Monopolies
Big Broadband: Public Infrastructure or Private MonopoliesBig Broadband: Public Infrastructure or Private Monopolies
Big Broadband: Public Infrastructure or Private Monopolies
 
BROADBAND
BROADBANDBROADBAND
BROADBAND
 
Lecture 6 e-cmmerce , e commerce infrastructure,the internet -chapter 3
Lecture 6  e-cmmerce ,  e commerce infrastructure,the internet -chapter 3Lecture 6  e-cmmerce ,  e commerce infrastructure,the internet -chapter 3
Lecture 6 e-cmmerce , e commerce infrastructure,the internet -chapter 3
 
Lecture 6 e-cmmerce , e commerce infrastructure,the internet -chapter 3
Lecture 6  e-cmmerce ,  e commerce infrastructure,the internet -chapter 3Lecture 6  e-cmmerce ,  e commerce infrastructure,the internet -chapter 3
Lecture 6 e-cmmerce , e commerce infrastructure,the internet -chapter 3
 
Bb report broadband_satelliteregulation-e
Bb report broadband_satelliteregulation-eBb report broadband_satelliteregulation-e
Bb report broadband_satelliteregulation-e
 
Alternative Communication Systems... During Disasters
Alternative Communication Systems... During DisastersAlternative Communication Systems... During Disasters
Alternative Communication Systems... During Disasters
 
Taking A Look At Net Neutrality
Taking A Look At Net NeutralityTaking A Look At Net Neutrality
Taking A Look At Net Neutrality
 
Tier
TierTier
Tier
 
Chapter 5 - Developments in Multimedia and Internet Licensing - The Licensing...
Chapter 5 - Developments in Multimedia and Internet Licensing - The Licensing...Chapter 5 - Developments in Multimedia and Internet Licensing - The Licensing...
Chapter 5 - Developments in Multimedia and Internet Licensing - The Licensing...
 
Backgrounder wtpf-13-ixps-en
Backgrounder wtpf-13-ixps-enBackgrounder wtpf-13-ixps-en
Backgrounder wtpf-13-ixps-en
 
B.Tech. Summer Training Report
B.Tech. Summer Training ReportB.Tech. Summer Training Report
B.Tech. Summer Training Report
 
The Economic Value of Broadcast Innovation
The Economic Value of Broadcast InnovationThe Economic Value of Broadcast Innovation
The Economic Value of Broadcast Innovation
 
enhancing-access-digital-transformation.pdf
enhancing-access-digital-transformation.pdfenhancing-access-digital-transformation.pdf
enhancing-access-digital-transformation.pdf
 
Measuring digital development - ITU -Development sector
Measuring digital development - ITU -Development sectorMeasuring digital development - ITU -Development sector
Measuring digital development - ITU -Development sector
 
Performance Evaluation Of A Wimax Testbed
Performance Evaluation Of A Wimax TestbedPerformance Evaluation Of A Wimax Testbed
Performance Evaluation Of A Wimax Testbed
 
Lightweight IoT middleware for rapid application development
Lightweight IoT middleware for rapid application developmentLightweight IoT middleware for rapid application development
Lightweight IoT middleware for rapid application development
 
Telco Global Connect 11
Telco Global Connect 11Telco Global Connect 11
Telco Global Connect 11
 
Mongi
MongiMongi
Mongi
 
2016 Broadband Outlook Report, Telecoms.com
2016 Broadband Outlook Report, Telecoms.com2016 Broadband Outlook Report, Telecoms.com
2016 Broadband Outlook Report, Telecoms.com
 

Position Paper - State of Broadband in the Philippines

  • 2. This position paper was prepared for the Mandaue Chamber of Commerce & Industry in aid of legislation by:
  • 3. Contents Executive Summary .............................................................................................................. 1 Introduction ........................................................................................................................... 2 Telecommunication Explained........................................................................................... 2 Internet Explained.............................................................................................................. 2 Broadband Explained ........................................................................................................ 3 Economic Impact of Broadband......................................................................................... 3 Current Legal Framework of Telecommunication............................................................... 4 The Present State of Broadband in the Philippines ............................................................... 7 Cost, Reach and Bandwidth of Existing Broadband Services ............................................ 7 Capacity and Capability of Telecommunications Regulator ............................................... 9 Competitive Environment in the Telecommunication Industry.......................................... 11 Legal Framework for Enforcement, Investment, Competition and Regulatory Oversight.. 12 The Desired State of Broadband in the Philippines ............................................................. 16 Philippine Broadband Services at the Top Rank of Asia Pacific....................................... 16 National Telecommunications Commission as a Credible Regulator ............................... 16 A Competitive Telecommunications Industry ................................................................... 16 A Unified, Cohesive and Comprehensive Legal Framework Addressing National Development ................................................................................................................... 16 Conclusion .......................................................................................................................... 17 The Program of Action towards the Desired State............................................................... 18 Bringing the Philippine Broadband Services at the Top Rank of Asia Pacific................... 18 Transform the National Telecommunications Commission into a Credible Regulator ...... 18 Develop a Competitive Telecommunications Industry...................................................... 20 Develop a Unified, Cohesive and Comprehensive Legal Framework for National Development ................................................................................................................... 21 Bibliography ........................................................................................................................ 23
  • 4. Executive Summary The Present State of Broadband in the Philippines In 2013, there's only 22.9 out 100 Filipinos with access to broadband. 2.6 have fixed broadband and 20.3 have mobile broadband. The Philippines have one of the slowest average broadband speed in the Asia Pacific at 3.5 Mbps as compared to South Korea with 29 Mbps. 90% of internet users in the Philippines depend on mobile access but it has poor connectivity. The Philippines is also the most expensive in terms of broadband access at around US$7.10 per 1Gb of data. The National Telecommunications Commission (NTC) has failed to prevent non-competitive practices of dominant players and have not created the right environment for fresh investments from new players. Although there are laws supposedly enacted to encourage competition, it has not really created the climate because of regulatory enforcement failure by the NTC. The cost of licensing and red tape contribute to the low investments and players in the telecommunication sector. The Desired State of Broadband in the Philippines Stakeholders have almost the same desire for the country's broadband service. They need faster, cheap, reliable and higher penetration of broadband services. Stakeholders want the NTC to enforce the law without bias, encourage investments and protect players against anti-competitive and anti-trust practices. All stakeholders must participate to make a competitive environment for the telecommunications sector. A comprehensive, focused, unified, and cohesive legal framework must be designed to encourage new investments in telecommunications and to sustain a competitive market. The Program of Action The program of action aims to: bring the Philippine broadband services at the top rank of Asia-Pacific; transform the NTC into a credible regulator; develop a competitive telecommunications industry; and develop a legal framework for national development and not only for the telecommunications sector that is unified, cohesive and comprehensive.
  • 5. Introduction Internet and broadband are becoming a large part of the telecommunication services available in the Philippines. Internet is part of what is referred to in the telecommunications or telecoms industry as "value-added services" or VAS. There have been many conferences, summits and strategic planning working towards improving internet access and broadband reach. The Cebu ICT Summit of 2001 and 2006 all emphasize the need to improve broadband technologies as part of its action agenda making possible gains in attracting business process outsourcing firms to Cebu City and its other chartered cities. Many nations see the investment in broadband technologies as a strategic move towards development. Telecommunication Explained When we hear about telephones, mobile phones, internet, broadband, and even television broadcast, we are talking collectively of an industry we refer to as telecommunications. The IEEE dictionary (Ref. 2) defines telecommunications as “the transmission of signals over long distance, such as by telegraph, radio or television”." (Freeman, 1999, p. 1) "Think of telecommunications as the world's biggest machine. Strung together by complex networks, telephones, mobile phones and internet-linked PCs, the global system touches nearly all of us. It allows us to speak, share thoughts and do business with nearly anyone, regardless of where in the world they might be." (Investopedia) Section 3 of Republic Act No.7925 defines telecommunication as "any process which enables a telecommunications entity to relay and receive voice, data, electronic messages, written or printed matter, fixed or moving pictures, words, music or visible or audible signals or any control signals of any design and for any purpose by wire, radio or other electromagnetic, spectral, optical or technological means." It is by this definition that the National Telecommunications Commission relate, monitor, and enforce compliance to the law. Internet Explained The word internet used to be spelled with a capital "I" was a word we thought we all knew and understood until we are ask "What is the internet?" "The Internet is a global wide area network that connects computer systems across the world. It includes several high-bandwidth data lines that comprise the Internet "backbone." These lines are connected to major Internet hubs that distribute data to other locations, such as web servers and ISPs." (TechTerms) The key words are "global, wide area network connecting computer systems across the world". So how do computer systems connect across the world? "In order to connect to the Internet, you must have access to an Internet service provider (ISP), which acts the middleman between you and the Internet. Most ISPs offer broadband Internet access via a cable, DSL, or fiber connection. When you connect to the Internet using a public Wi-Fi signal, the Wi-Fi router is still connected to an ISP that provides Internet access. Even cellular data towers must connect to an Internet service provider to provide connected devices with access to the Internet." (TechTerms)
  • 6. Position Paper: State of Broadband in the Philippines Page 3 of 30 In the Philippines, internet services are under the category "Value-Added Services" or VAS. Section 3 of Republic Act No.7925 defines "Value-added service provider (VAS) as an entity which relying on the transmission, switching and local distribution facilities of the local exchange and inter-exchange operators, and overseas carriers, offers enhanced services beyond those ordinarily provided for by such carriers." Broadband Explained We always hear telecommunication networks or telecoms advertising their broadband services but what is really broadband. There are several definitions depending on availability, access or depth of service: "ITU and the OECD have defined broadband as a capacity of at least 256 kbps in the uplink or downlink speed. The Broadband Commission for Digital Development has defined broadband using a cluster of concepts, as high-speed Internet access which is always-on and capable of multiple service provision simultaneously." (Biggs, 2014, p. 16) "The term 'broadband' is a shortened name for 'broad bandwidth'. Broadband, or broad bandwidth, is what is required for the 'high speed' transmission of data. In the realm of computers and the internet, this data is in the form of digital information that is transmitted back and forth between your computer and the internet. So the terms 'broadband' and 'high speed' are actually equivalent terms as used in the context of internet connectivity, as they both mean the same thing." (DayCom Solutions) There is no standard definition of broadband in any of our laws not even in Republic Act 7925. For purposes of this position paper, the concept of internet and broadband will be mentioned here as a single concept. The internet will not be what it is without the infrastructure that broadband technologies provide. The whole existence of broadband evolved because of internet: One cannot evolve without the other. Economic Impact of Broadband "In the ASEAN region, other factors being equal, a 1-percentage point increase in internet penetration rates translates into an additional 0.65 percentage point of GDP growth, on average. This would mean at least PHP 75 billion more in GDP for the Philippines based on 2013 values." (Santos, 2016, p.1) "According to the Organization of Economic Cooperation and Development, the benefits of broadband access to less developed countries (e.g., Brazil and China) are even greater. An entry-level connection of 0.5 Megabits per second (Mbps) has been found to increase household income by $800 per year." (Santos, 2016, p.1) Almost all studies conducted in many EU and OECD countries have demonstrated the direct correlation of telecommunication investment to GDP growth. China even during the most restrictive period in its economies also accrued gains from its investments in telecommunications. In a study conducted of 29 regions in China for a 17-year period, 1986-2002, revealed that investment in telecommunications infrastructure is both statistically significant and positively correlated to regional economic growth in real GDP per capita. (Ding & Haynes, 2006)
  • 7. Position Paper: State of Broadband in the Philippines Page 4 of 30 It is therefore imperative that stakeholders from both government and the private sector take the initiative of framing the best mechanism in aid of legislation to improve investments in telecommunications. "The economic impact of broadband manifests itself through four types of effects: (Katz, 2012a) The first effect results from the construction of broadband networks. In a way similar to any infrastructure project, the deployment of broadband networks creates jobs and acts over the economy by means of multipliers. The second effect results from the “spill-over” externalities, which impact both enterprises and consumers. The adoption of broadband within firms leads to a multifactor productivity gain, which in turn contributes to growth of GDP. Third, residential adoption drives an increase in household real income as a function of a multiplier. Fourth, residential users receive a benefit in terms of consumer surplus, defined as the difference between what they would be willing to pay for broadband service and its price which contribute to GDP growth. This last parameter, while not being captured in the GDP statistics, can be significant, insofar that it represents benefits in terms of enhanced access to information, entertainment and public services. Current Legal Framework of Telecommunication The Philippines telecommunication sector is regulated by the National Telecommunications Commission (NTC). The sector was originally regulated by the Public Service Commission that was established by Commonwealth Act No. 146 of 1936. "NTC regulated the industry when the Public Service Commission was abolished."(Espos, 2003, p. 42) The NTC was created in 1979 by Executive Order No. 546 issued by then President Ferdinand Marcos on July 23, 1979. The same executive order created the Ministry of Transportation and Communication under whose supervision and control it was placed. The Ministry therefore controlled both policy and regulation except for the quasi-judicial functions of the NTC that could only be appealed to the Supreme Court." (Espos, 2003, p. 42) "The Ministry of Transportation and Communication was reorganized again in 1987 into the Department of Transportation and Communication when the Philippine government reverted back into the presidential form. NTC remained under the supervision and control of the Department and its functions remained the same." (Espos, 2003, p. 42) The first law that specifically responded to the needs of the telecommunication industry was Republic Act 7925, "An Act to Promote and Govern the Development of Philippine Telecommunications and the Delivery of Public Telecommunications Services". RA 7925 designates NTC as the primary administrator of the law. The law defines among others the following functions of NTC: (Espos, 2003, p. 42-43) a) facilitate the entry of qualified service providers, b) adopt a fair and reasonable pricing policy, c) mandate fair and reasonable interconnection,
  • 8. Position Paper: State of Broadband in the Philippines Page 5 of 30 d) ensure quality and inter-operable telecommunication facilities, e) foster fair and efficient market conduct, and f) promote consumer welfare. Note: "The law and its implementing rules and regulations (IRRs) do not define the terms fair and reasonable." (Espos, 2003, p. 43) NTC issues certificates of public convenience for “the operation of communication utilities and services, radio communications systems, wire or wireless telephone or telegraph systems, radio and television broadcasting systems and other similar public utilities” (EO 546), manages radio spectrum (Act No. 3846, as amended, and RA 7925); and performs quasi-judicial functions (RA 7925). "The law does not prohibit the DOTC under which the NTC remained attached from interfering with the regulation of the industry. It only reiterates the prohibition contained in previous laws against DOTC interfering in the Commission’s quasi-judicial functions." (Espos, 2003) The enforcement of RA 7925 is outlined in NTC's Memorandum Circular No. 08-09-95, "Implementing Rules and Regulations for Republic Act No. 7925 Re: An Act to Promote and Govern the Development of Philippine Telecommunications and the Delivery of Public Telecommunications Services". There are other Memorandum Circulars (MCs) supporting enforcement but some are more prominent than others in forming the core of enforcement, as follows: NTC MC 09-07-93 Implementing Guidelines on the Interconnection of Authorized Public Telecommunications Carriers NTC MC 11-09-93 Implementing Guidelines on the Provisions of E. O. 109 NTC MC 03-03-96 Review, Allocation and Assignment of the Radio Spectrum NTC MC 14-07-2000 Implementing Rules and Regulations (IRR) for the Interconnection of Authorized Public Telecommunications Entities NTC MC_06-08-2005 Frequency Band Allocations for Broadband Wireless Access NTC MC_07-08-2005 Rules and Regulations on the Allocation and Assignment of 3G Radio Frequency Bands NTC MC 01-03-2010 Rules on the Assignment of the Remaining Allocated 3G Radio Frequency Band Certain statutes are also affecting investments in the telecommunication sectors as follows:
  • 9. Position Paper: State of Broadband in the Philippines Page 6 of 30 Republic Act 7925 An Act to Promote and Govern the Development of Philippine Telecommunications and the Delivery of Public Telecommunications Services Republic Act 6849 An Act Providing for the Installation, Operation, and Maintenance of Public Telephones in Each and Every Municipality in the Philippines, Appropriating Funds Therefor and for Other Purposes Republic Act 8799 The Securities Regulation Code Republic Act No. 7042 (As amended by RA 8179) An Act to Promote Foreign Investments, Prescribe the Procedures for Registering Enterprises Doing Business in the Philippines, and for Other Purposes Republic Act 10667 An Act Providing for a National Competition Policy Prohibiting Anti-Competitive Agreements, Abuse of Dominant Position and Anti-Competitive Mergers and Acquisitions, Establishing the Philippine Competition Commission and Appropriating Funds Therefor The above definitions and legal frameworks are meant to contextualize the position paper that is to follow. This document is organized as such that it starts with the current state of broadband in the Philippines, followed by broad discussion of the desired state as perceive by different stakeholders, followed by conclusions of what needs to be resolve to improve broadband services, and closing with recommendations for certain program of actions. The conclusions and recommendations are drawn from studies, research and consultations of different stakeholders, in the academe, international bodies, and private entities spanning years of accumulated data from 1998 to first quarter of 2016. Although, effort was exerted to get the most updated data, due diligence must be exercise in ascertaining facts by going back to original sources of data from published references listed in the Bibliography.
  • 10. The Present State of Broadband in the Philippines Based on data from OECD countries two studies have evaluated the impact of broadband on GDP growth. The first study analyzed impact in 25 OECD countries between 1996 and 2007. The researchers determined that the adoption of broadband increased per capita GDP, with a ratio of 1.9% to 2.5%. (Katz, 2012b) In the Philippines the mobile broadband adoption was found out to be contributing to the GDP at an annual rate of 0.32%. This represents 6.9% GDP growth for the Philippine economy during the past decade. Philippine GDP grew at a compounded rate of 4.6%. Since 2005, broadband technology has doubled its impact on GDP reaching 0.61% and representing growth of 7.3% across the country. (Katz, 2012b) The existing experience of the country in the use of broadband technologies and access to the internet is defined by the following:  The cost, reach and bandwidth of existing broadband services.  The capacity and capability of the existing regulator, NTC, to enforce the enabling rules and regulations defined by existing statutes.  The competitive environment in the Philippine telecommunication industry.  The legal framework for enforcement, investment climate, pro-competition and oversight of regulatory administration and enforcement. Cost, Reach and Bandwidth of Existing Broadband Services In 2014, 44 million Filipinos out of the 100 million used the Internet either subscribed or shared. In 2013 broadband access however is much lower with only 22.9 per 100 Filipinos. According to the UN Broadband Commission, there were 2.6 Filipinos for every 100 have subscribed to fixed broadband. 20.3 Filipinos per 100 have mobile broadband in the same year. (Santos, 2016). In the first quarter of 2016, South Korea leads the Asia-Pacific in the fastest average connection speed of 29 Mbps, Singapore is 16.5 Mbps while the Philippines is at 3.5 Mbps. The global rank of South Korea in this category is No.1, Singapore No. 13 while the Philippines is ranked No. 113. (Akamai, 2016). Peak connection speed is led by Singapore at 146.9 Mbps, South Korea at 103.6 Mbps while the Philippines is at 29.9 Mbps. The global rank of Singapore in this category is No. 1, South Korea No. 4, while the Philippines is No. 88. (Akamai, 2016). Based on 2013 estimates, about 90% of internet users depend on mobile access. There is a huge demand for mobile internet. (Santos, 2016, p. 4) Even with the rapid increase in the demand for mobile internet growing at a rate of 112% per year, the country still suffers from poor internet connectivity. (Santos, 2016). "In a 2012 survey, the Department of Education (DepEd) revealed that 79% of public schools across the country had no internet access in their area, wired or wireless." (Santos, 2016, p. 4)
  • 11. Position Paper: State of Broadband in the Philippines Page 8 of 30 "A recent TechInAsia survey showed that 1 Gigabytes (GB) of data is “very expensive” in the Philippines (at $7.10) compared to other ASEAN countries. (Santos, 2016, p.5) A typical Filipino minimum wage earner is estimated to take in $0.69 per hour. To be able to pay for 1GB of data, he has to log in 10 hours of work. The Philippines is the second worst country in terms of data cost in the ASEAN. The cost of 1GB of data in Singapore is $7.11 but the minimum wage per hour is US$4.03. Brunei has a cost of US$7.09 per 1GB of data but the wage per hour is US$5.76. (Santos, 2016) Ookla, a business that provides tools to measure network throughput, latency, packet loss and scan firewall ports, revealed that the Philippines offered the second most expensive internet service out of the 62 countries ranked. (Santos, 2016) The Philippines has also the most expensive in terms of wholesale price for business- grade bandwidth per 1 Gbps in the Asia-Pacific Region. Wholesale price of business- grade bandwidth per 1Gbps in Hong Kong is in the range of US$1.50 to US$6.00 while Australia and New Zealand ranges from US$6.00 to US$9.00. Wholesale price for business-grade bandwidth per 1Gbps in Manila is at the range of US$18.00 to US$45.00 while Cebu is in the range of US$25.00 to US50.00.
  • 12. Position Paper: State of Broadband in the Philippines Page 9 of 30 Capacity and Capability of Telecommunications Regulator "The NTC is the government agency mandated to regulate and supervise the provision of public telecommunications and broadcasting services in the country (EO 546) and to enforce RA 7925. It issues certificates of public convenience for “the operation of communication utilities and services, radio communications systems, wire or wireless telephone or telegraph systems, radio and television broadcasting systems and other similar public utilities” (EO 546); manages radio spectrum (Act No. 3846, as amended, and RA 7925); and performs quasi-judicial functions (RA 7925). The NTC is under the Office of the President." (Santos, 2016, p.10) NTC issues a provisional authority (PA) to operate to the franchise applicant. The PA defines the conditions for the issuance of the CPCN, as follows: (Espos, 2003, p.45) a) payment of performance bond, b) submission of construction schedules and related details, c) payment of required fees, d) roll-out schedules, e) reporting requirements, f) an indication of the price which the operator could charge for the service based on the operator’s own cost and revenue projections. "The provisional authority is valid from 12 to 24 months but is extendable for longer periods." (Espos, 2003, p.45). Upon compliance of the requirements outlined in the PA and approval by Congress of the franchise, NTC issues the Certificate of Public Convenience and Necessity (CPCN) to applicant telco. "As a cabinet level agency, NTC belongs to the executive regulatory agencies whose heads are appointed by and whose terms are co-terminus with that of the President. As an executive branch of the government, the President has control over NTC's rule making power.” (Aldaba, 2000b). NTC has suffered setbacks in terms of its credibility as a regulatory agency. A lot of the decisions that NTC made have allegedly indicated biases towards a particular industry player. NTC often adopted a hands-off policy and leave the final decision to the President making the Office of the President a powerful interventionist. The practice of getting industry practitioners as regulatory officials have also contributed to the loss of credibility for the Commission. (Aldaba, 200b) Legal initiatives related to mergers and acquisitions in the telecommunications industry have not strengthened NTC's position as a regulator considering its ambivalence in taking action in spite of its mandate to adjudicate in mergers and acquisition. In the case of PLDT v. NTC (G.R. No. 88404), NTC argued that there are no legal barriers to approving telco mergers and acquisitions. There are also no set guidelines in place to help the regulator prove whether a merger or acquisition would be detrimental to public interest. (Santos, 2016, p. 11) This argument, however, is not in line with the antitrust mandate provided by RA 7925 and EO No. 546. It is within the NTC’s powers and functions to establish competition rules and the guidelines required for their effective implementation, similar to what other sector regulators, such as the Energy Regulatory Commission (ERC), have done. (Santos, 2016, p. 11)
  • 13. Position Paper: State of Broadband in the Philippines Page 10 of 30 In NTC’s decisions to approve the two recent mergers, no official position papers for public review were circulated. Comments submitted by the oppositors as well as the final decision of the NTC on the two cases were not made public. In the NTC’s decisions, it made use of the public-interest criterion in evaluating the two mergers. However, it did not define what constitutes public interest. (Santos, 2016, p. 11) NTC’s hands-off policy with regards to interconnectivity have cause the dominant player PLDT to choke competition by invoking vague references to LRIC in computing interconnectivity charges, a calculation that NTC may not have taken due diligence to verify if legitimate. (Espos, 2003) NTC is handicapped in establishing baselines for costs or investments. The data required for financial modelling or the calculation of LRIC (long-term incremental cost) is difficult to gather with industry’s (meaning the dominant telcos) aversion to the submission of cost and financial information that can be used to align charges with costs especially when prevailing charges are excessive. (Espos, 2003) NTC even if it is within its mandate, do not demand the necessary data from telcos to enable an effective monitoring of telcos operation, investments and operating costs essential for its own financial modelling or the calculation of LRIC. "RA 7925 mandates the NTC to “establish rates and tariffs which are fair and reasonable and which provide for the economic viability of telecommunication entities and a fair return on their investment considering the prevailing cost of capital in the domestic and international markets.” NTC's current mechanisms for setting rates and tariffs deemed "fair and reasonable" may no longer be responsive to new realities or may not all be "fair and reasonable" in the context of these new realities. The rates are still set following a 12 percent return on rate base formula. The formula had been applied since 1935 when the Supreme Court ruled that a 12% return on revalued (net) book value of property, plant and equipment plus working capital covering two months average of operating expenses is a fair return to utility." (Espos, 2003, p. 51) "The NTC functions and decisions are subject to the review of the courts and limitations imposed by laws. Its decisions are appealable to the Court of Appeals and the Supreme Court. Dominant industry players have used this to delay or overturn decisions that do not favor them.” (Santos, 2016, p. 10) NTC does not generate its own revenues internally. Although as a regulatory agency it imposes fees like spectrum user fees, it does not retain them for its own operational use. “Spectrum user fees (SUF) collected by the NTC reach about P2.5 billion annually. This makes up over half of the regulator’s entire license revenues per year. However, the full SUF collection goes directly to the National Treasury. NTC does not keep any of its income. NTC’s annual budget in the General Appropriations Act is about P300 million." (Santos, 2016, p. 11) Although the enabling law is RA 7925, the penalties imposed for non-compliance is actually based on Commonwealth Act No. 146 or the "Public Service Act" that was passed in 1936. To date, violators are fined only PhP200 per day. The range of
  • 14. Position Paper: State of Broadband in the Philippines Page 11 of 30 penalties is not sufficient for erring telcos to do the right thing since compliance is exponentially higher than the cost of the fine which was set 80 years ago. (Santos, 2016) As a consequence of this lack of funds, it cannot attract the right human resource. Owing to the dismal pay scale of personnel, NTC do not have high calibre experts and professionals in its staff. (Espos, 2003) The agency lost representation in the International Telecommunications Union (ITU) in 2001 because the government failed to pay membership dues. We lost access to information on international standards, best practices, and prevailing policies in other countries that are inputs to the formulation of our own regulatory policies. (Espos, 2003) NTC does not have a separate budget for staff training for skills and knowledge essential for regulating an industry with more than one player. Historically, there was only PLDT to deal with. Funds for training are largely source from grants offered by foreign governments and institutions. (Espos, 2003) NTC does not even have equipment for its own use to establish monitoring of telco performance but rely on the existing equipment of telcos. (Espos, 2003) NTC cannot initiate its own infrastructure project or propose program of development for capacity building. Competitive Environment in the Telecommunication Industry There are two (2) major players in the Philippines: Philippine Long Distance Telephone (PLDT) Company (with 70% market share) and Globe Telecom, Incorporated (with 28% market share). PLDT and its main competitor Globe are the two major providers of fixed and mobile broadband services in the country. PLDT and Globe recorded the highest earnings before interest, tax, depreciation, and amortization (EBITDA) margins compared to other telecommunication companies globally. Both PLDT and Globe achieve EBITDA margins of 60% and 70% respectively in 2010 in spite of very low average revenue per user (ARPU). In past years, PLDT and Globe have recorded EBITDA margins from 40% to 45%. (Santos, 2016) PLDT and Globe are the Philippines' largest internet service providers (ISPs). Both control and own most of the existing internet infrastructure which includes submarine cables, the landing stations, the backhaul network referred to as the middle mile up to the last mile. Both PLDT and Globe dictate access to and the cost and quality of the internet and broadband service, both fixed and mobile in the whole country. (Santos, 2016) "The Philippine telecoms market has been tagged as “less competitive” and “effectively a duopoly” by various analyses. It lags behind in terms of contestability or the freedom of market entry and exit." (Santos, 2016), p.7) Philippine experience has shown that the combination of a weak regulatory authority, vague interconnection rules, and a large, dominant carrier capable of exercising monopoly power over access to networks have resulted in difficult and slow interconnection. The failure to implement smooth interconnection has serious adverse consequences such as unnecessary lengthy delays in competition associated with welfare losses to telephone subscribers and a high cost imposed to entrants. (Aldaba, 2000b, p. 23)
  • 15. Position Paper: State of Broadband in the Philippines Page 12 of 30 Executive Order 59, issued in February 1993, obliged the compulsory interconnections of all public telecommunications carriers. Republic Act 7925 provided some interconnection guidelines, however, the rules were not explicitly spelled out and failed to sufficiently address the industry's interconnection problems. Hence, these weaknesses in the legislation inhibited true competition. (Aldaba, 2000b, p. 23) Legal Framework for Enforcement, Investment, Competition and Regulatory Oversight The enabling law of regulatory enforcement for the telecommunication is Republic Act 7925, “An Act to Promote and Govern the Development of Philippine Telecommunications and the Delivery of Public Telecommunications Services”. The implementing rules for its enforcement is NTC MC 08-09-95, "Implementing Rules and Regulations for Republic Act No. 7925 Re: An Act to Promote and Govern the Development of Philippine Telecommunications and the Delivery of Public Telecommunications Services". There are still a core of memorandum circulars still in effect that form a body of enforcement guidelines for the telecommunications industry: NTC MC 09-07-93 Implementing Guidelines on the Interconnection of Authorized Public Telecommunications Carriers NTC MC 11-09-93 Implementing Guidelines on the Provisions of E. O. 109 NTC MC 03-03-96 Review, Allocation and Assignment of the Radio Spectrum NTC MC 14-07-2000 Implementing Rules and Regulations (IRR) for the Interconnection of Authorized Public Telecommunications Entities NTC MC_06-08-2005 Frequency Band Allocations for Broadband Wireless Access NTC MC_07-08-2005 Rules and Regulations on the Allocation and Assignment of 3G Radio Frequency Bands NTC MC 01-03-2010 Rules on the Assignment of the Remaining Allocated 3G Radio Frequency Band Another set of statutes envisioned to create competition and attract more players are as follows:
  • 16. Position Paper: State of Broadband in the Philippines Page 13 of 30 Republic Act 10667 An Act Providing for a National Competition Policy Prohibiting Anti-Competitive Agreements, Abuse of Dominant Position and Anti-Competitive Mergers and Acquisitions, Establishing the Philippine Competition Commission and Appropriating Funds Therefor Republic Act 6849 An Act Providing for the Installation, Operation, and Maintenance of Public Telephones in Each and Every Municipality in the Philippines, Appropriating Funds Therefor and for Other Purposes Republic Act 7042 (As amended by RA 8179) An Act to Promote Foreign Investments, Prescribe the Procedures for Registering Enterprises Doing Business in the Philippines, and for Other Purposes Republic Act 8799 The Securities Regulation Code In spite of the enactment of the above enabling laws and body of issuance, the legal framework still has not adequately address the following: 1. An investment climate that is pro-competition and allows greater foreign investment in the telecommunication sector. 2. The pro-active handling of the prevailing threat of monopoly through mergers and acquisitions. There are no clear provisions to handle business structure and conduct of business. 3. Simplicity and transparency in the licensing of telecommunications operators including the mechanisms of rejecting applications. Current, there are too many layers for applying for a license from national agencies to local governments especially for internet service. (see tables) 4. Oversight of NTC in terms of enforcement, accountability, development, administration, and performance. 5. Strengthening of NTC in terms of technical capabilities, transparency, infrastructure, funding, and selection of personnel. 6. Addressing the aversion of telcos to compliance. Current laws are not punitive enough to threaten or hurt violators and forensic capabilities are not in place to ensure prosecution of violators. 7. Government’s commitment to invest in telecommunications infrastructure to lessen dependence on private-sector initiatives.
  • 17.
  • 18.
  • 19. The Desired State of Broadband in the Philippines After all data, facts and information are absorbed, interpreted and organized, we are left with the question: What do we need to achieve to get to our desired state? The desired state should be understandable and more importantly measurable in the backdrop of a time frame within our national agenda of development. The following are the desired state most stakeholders have articulated in different studies, focus group discussions and conferences. Philippine Broadband Services at the Top Rank of Asia Pacific The Philippines should achieve lower cost, faster speed and greater national penetration of broadband services comparable to Singapore, Korea or Australia by year 2020. By the time, this desired state is achieved the technology might have already changed. It is therefore more expedient to peg our objectives on what other countries are already trying to achieve. This means benchmarking our broadband services against our neighbors. National Telecommunications Commission as a Credible Regulator The NTC shall be the most credible, transparent, intelligent, effective, and development- oriented regulatory body. The NTC may have to undertake a deliberate overhaul of its offices. A human resource inventory should be conducted more on the premise of competence and integrity than on civil service status. A development program should be in place for this purpose. A strategic plan represented by a logical framework matrix should be prepared based on NTC’s responsibilities mandated by RA 7925. An information, education and communication plan should be prepared for the benefit of all telecommunication stakeholders. A Competitive Telecommunications Industry The only guarantee of a competitive environment for telecommunication players is to engage all stakeholders in a credible, transparent, and open process of consultation and conference to agree on the ground rules for the industry. NTC can no longer be a silo, dominant players cannot be apathetic, Congress and the Office of the President cannot be intervening, and subscribers can no longer stay on the sidelines. All stakeholders should ensure that mechanisms for competition, customer and investor protection, education, information sharing, and regulatory compliance are observed, and that forensic methodologies are designed and to ensure that non-compliance are detected and rectified. Deeper engagement with international bodies like the ITU and the Broadband Commission are encouraged. A Unified, Cohesive and Comprehensive Legal Framework Addressing National Development The legal framework should be designed in such a way that it takes into consider all stakeholders not just the regulated. It must be in the context of the national development agenda and not just sectoral or industry to avoid silo or myopic concerns. It must take into consideration existing parallel, contradicting and supplemental legislation. The text of the legislation should be in the perspective of enforcement to avoid issues of confusion, misinterpretation, elite capture and work-arounds. The legislative must apprise its role from dispensing franchises to oversight.
  • 20. Conclusion The Philippines must address the telecommunication agenda in the context of a national development agenda because development in this sector will affect and is affected by other economic agenda and the achievement of any positive outcome contributes to real GDP growth. Literature and results of studies both initiated by local researchers and international bodies all arrive with the same conclusions. This position paper forwards the following conclusions as to the state of the broandband/internet in the Philippines: 1. Broadband in the Philippines is expensive, low penetration and slow. Data from Akamai, USAID, ADB, ITU, Broadband Commission, OECD and UN all show the same numbers spread out to almost a decade of studies and data mining. Even if these studies never came to light, the concerns of our domestic stakeholders should already be enough to send signals what decades of apathy has successfully contained. 2. The National Telecommunications Commission has failed in its mandate. NTC failed to create the environment envision by the framers of RA 7925. The result is a regulatory environment that favors the dominant players, restrict new players, expensive entry requirements, and a loss of credibility for NTC. The leadership of NTC has failed to demonstrate integrity and its actuations and transactions are devoid of transparency effectively eroding its credibility. It has failed to prevent the country’s loss of membership in the International Telecommunications Union (ITU). 3. The Philippine Telecommunications Industry is Restrictive Contrary to government claims, the telecommunication industry restricts new players, making entry expensive and tedious. Entry may not be sustainable for new entrants. There is no fair treatment in the application and the enabling environment is not supportive of fresh investments. The weak regulator has made the industry even more restrictive with its decisions, proclamations and actions. This is further aggravated by dominant industry players that invest so much resource in ensuring knew players never get a fair share of the market. 4. The Legal Framework although present on paper failed to deliver on its promise. The spirit of the laws intended to create the right environment of fair trade, fair competition, and protection of investments did not manifest in credible dealings with the government, in efficient processing of new entrants, low cost entry, more investment opportunities, etc. There is no argument that the laws are already out there but they are incoherent, scattered, and at times conflicting as a result the industry players are in a continuous of litigations at the expense of subscribers and investors.
  • 21. The Program of Action towards the Desired State Studies on broadband technologies identified weaknesses and depth in countries in Europe, Asia-Pacific, and Middle East. Together with these weaknesses are recommendations as to how to either improve broadband or harness its potential. The OECD, the United Nations, the ITU, Broadband Commission including our very own stakeholders, have suggested broad and specific programs of action. The programs of actions in this position paper are organized under each of the category of desired states. Bringing the Philippine Broadband Services at the Top Rank of Asia Pacific 1. Service Providers must be made accountable for quality and depth of broadband services a. Service providers must submit accurate and relevant data required by the regulator regularly and on-time under oath. b. Service providers must clearly acknowledge sources of data and verifiable evidence of its existence. c. All service providers must comply with the Payment Card Industry-Data Security Standard (PCI-DSS) to protect customer data and must publish results of the PCI-DSS audit in their website. d. Require service providers to implement a customer service management system to enable the regulator to monitor the service providers' response to customer complaints and service request. e. Pre-paid customers who register in the service provider's website should receive the same depth and quality of service as post-paid subscribers to encourage pre-paid customers to share relevant data and give feedback about service quality and service response. f. Service Providers must published information they submit to SEC and to the PSE in their website. These information should include the fees charge to other service providers interconnecting with their infrastructure. 2. Review and update the country's ICT agenda taking into consideration the strong engagement of stakeholders to improve the administration, structural and legal framework of the program of action. 3. Improve spectrum management (Santos, 2016). 4. Empower consumers to make informed decisions through the development of online tools to check download speeds, quality-of-service and prices for access and data plans. (Biggs, 2014) Transform the National Telecommunications Commission into a Credible Regulator 1. NTC Commissioners must acquire very technical knowledge and skills in determining incremental or stand-alone costs. (Bronckers & Larouche, 2008) 2. Increase the adoption of information and communications technology (ICT) by national and local government units in order to improve the delivery of government services. Build on the innovation of local governments (e.g.,
  • 22. Position Paper: State of Broadband in the Philippines Page 19 of 30 Valenzuela City) and raise the Philippine ranking in the United Nation’s E- Government Readiness index. (Montenegro & Araral, 2015) 3. Work closely with the technology sector to develop mechanisms for enhancing cybersecurity, preventing cyberattacks, and creating a robust and trustworthy ICT ecosystem. (Montenegro & Araral, 2015) 4. NTC or any designated Regulator must not be given the discretion to enforce or not to enforce the mandatory submission of report, financial data on costs or investments to allow a transparent computation of FL-LRIC or SAC and appropriate financial modelling necessary to implement any incremental costs or stand-alone costs. (Espos, 2003) 5. NTC must ensure public availability of licensing criteria, time periods required to decide on a license application and terms and conditions of individual licenses. Reasons are to be given when licenses are denied. (Bronckers & Larouche, 2008) 6. NTC or any regulator as part of transparency must have a user friendly website similar to Ofcom of the United Kingdom (http://www.ofcom.org.uk/). 7. Strengthen the capabilities of the regulator to set the right regulatory framework, standards and enforcement mechanisms a. Licensing criteria and application requirements must be published in the regulator's website. b. All republic acts, executive orders and memorandum circulars regulating telecommunications must be published in the regulator website. c. All active and adjudicated cases on licensing and enforcement must be published in a separate web page in the regulator's website. d. Annual reports of activities, projects, and programs must be presented to the legislative branch responsible for oversight prior to its publication in the regulator's website. e. Regulator must proposed a new operating budget that covers enforcement, infrastructure development, investigation and surveillance, human resource development, compensation & benefits for personnel, relevant membership fees to international organizations related to telecommunications, website development and management, IEC, etc. f. Review the qualifications of the commissioners and should include knowledge and skills in finance and economics related to cost-benefit- investment calculations and financial modelling culling knowledge from best practices from the International Telecommunications Union (ITU), Overseas Economic Co-operation and Development (OECD), and the Asian Development Bank (ADB) to name a few. g. The regulator must identify and index all critical technical, operating and financial data relevant for monitoring, enforcement and forensic investigation. h. Set aside a calendar for specifically educating the legislative oversight committee of the relevance of technical, operating, and financial data in monitoring, enforcement and forensic investigation. i. Develop protocols for financial analysis, forensic investigation, monitoring, rules of engagement for enforcement, and preparation of reports to oversight, and prepare manuals for each. j. Regulator must formulate a strategic/development plan that should establish measurable outcomes to cover infrastructure, broadband penetration, affordability of broadband vis-a-vis per capita of GDP (for example 5% of
  • 23. Position Paper: State of Broadband in the Philippines Page 20 of 30 GDP), personnel development, interconnectivity cost, e-governance penetration, etc. 8. Four urgent tasks were identified that the NTC needs to accomplish as mandated by RA 7925:(i) assume a proactive regulatory stance on competition- related issues; (ii) enforce strict reporting requirements on regulatees (industry players); (iii) strive to restore regulatees’ confidence in the Commission; and (iv) work with the legislature to introduce changes in the regulatory structure. (Santos, 2016) 9. In August 2006, the NTC issued a consultative document on significant market power (SMP) obligations, with funding support from USAID. Under the said document, certain obligations are proposed to be imposed on carriers with SMP by using a roadmap, consisting of the following critical processes: (i) defining markets to be used as basis for regulatory intervention; (ii) determining if one or several operators in the defined markets have the degree of market power that merit regulatory intervention; (iii) identifying appropriate SMP obligations to achieve policy objectives; and (iv) determining conditions that justify withdrawal of regulation. (Santos, 2016) 10. Adopt an open access model. Instead of a single, vertically integrated network, an “open access” approach is recommended. Open Access Model is the separation of the physical infrastructure from service provisioning (Alcatel- Lucent, 2010). This means identifying the various segments in the infrastructure and opening them up to more and different players without requiring a Congressional franchise. (Santos, 2016) 11. Update and upgrade the country’s ICT strategy and plan (Santos, 2016). Consider the vital issue of enforceability/execution. Who is responsible for enacting the Plan? Who will monitor progress? How will implementation be funded? (Biggs, 2014) 12. Monitor the use of traffic management techniques to ensure they do not unfairly discriminate between market players. (Biggs, 2014) 13. Encourage network and facility sharing through “soft” measures (e.g. cross- sector mapping of infrastructure that enables the coordination of civil works). (Biggs, 2014) 14. Work with all stakeholders to reduce or remove practical barriers to broadband deployment. (Biggs, 2014) Develop a Competitive Telecommunications Industry 1. Impose local loop unbundling, or the process requiring the incumbent operator to provide competitors with access to the “local loop” or the telecoms network, is also mandated. This is done especially in cases where the incumbent has a large market share in order to give new entrants a fair chance at competing. In the Philippines, there is no specific policy on local loop unbundling and areas of regulatory intervention are not clearly defined. (Santos, 2016) 2. Implement additional reforms in the educational system to improve the competencies and compensation of teachers. This should include stepping up
  • 24. Position Paper: State of Broadband in the Philippines Page 21 of 30 science, technology, engineering and mathematics (STEM) education and enhancing the digital literacy of educators. (Montenegro & Araral, 2015) 3. Lessen the number and cost of permits and clearances imposed by the local government of each area that will be affected by the construction of telecoms infrastructure (Santos, 2016) 4. Remove all forms of prohibitive bureaucratic requirements, arbitrary fees and permits, or simply too much discretion on the part of government officials. (Santos, 2016). 5. Level the playing field through: (Santos, 2016) a. Local IP peering. Support the growth of open and neutral internet exchange points, such as PHOpenIX that allows local IP peering. Non-commercial IXPs give an alternative for smaller players to buy uplinks (international bandwidth) as they are allowed to access locally hosted content and cached data in a local IXP. b. Shared infrastructure. Promote open access policy for infrastructure through (i) a shared utility corridor to coordinate one-time civil works and (ii) secure right of way and LGU permits. Allow and encourage tower co-location in order to lower cost for smaller players, especially for networks outside urban centers. This also includes sharing of radio spectrum and allowing the use of unlicensed frequencies at the community level. Develop a Unified, Cohesive and Comprehensive Legal Framework for National Development 1. Update the country's obsolete telecommunications laws. The speed of innovation favors a light-touch approach and regular review to ensure that laws remain relevant. New legislation can include sunset clauses to trigger automatic review, while older legislation that overly restrict competition should be liberalized. (Montenegro & Araral, 2015) 2. Update laws and regulatory framework to promote investment and innovation in communications and connectivity. The following legislative agenda are recommended: (Santos, 2016) a. Amendments to RA 7925 b. Enactment of the Department of ICT Act c. Amendments to CA 146 d. Passage of the NTC Reorganization Act 3. Set up an effective, independent, transparent, accountable and unified government body to oversee the development of ICT and related services. This body should be resourced properly with people, technology and financing so that it can build a strong ICT foundation as a pillar of long-term shared prosperity for all Filipinos. (Montenegro & Araral, 2015) 4. Legislative branch shifts from approval of franchises to oversight and improvement of legal framework of licensing, regulatory enforcement, pro- competition investment and transparency in administration. a. Remove the legislative branch from the application loop by removing the franchising component of the process to eliminate the perception that the
  • 25. Position Paper: State of Broadband in the Philippines Page 22 of 30 process of allowing investments in telecommunications as a political or elite capture rather than a purely economic agenda. b. Legislative must convert its role to oversight of enforcement and administration of the regulator. c. Legislative must review and update Republic Act No. 7925 and the regulatory framework of enforcement. d. Increase the number of commissioners from three to five: one (1) with electronics and communications background, two (2) with specialization in economics and two (2) with expertise in finance. The ideal is to have all commissioners have academic or operating experience in electronics and communications engineering. All commissioners should have training in forensic accounting and finance. e. Legislative must review licensing process with the view of making the application process pro-competitive, pro-consumer, transparent, and ensure accountability of all stakeholders. f. Legislative must review cost-benefit-investment formulas and financial modelling use by NTC to ensure that it is based on international best- practices. g. Improve the flow of investments in telecommunications by reviewing and updating the legal and structural framework of the country's general investment climate. h. Legislators must allow the regulator NTC to retain 70% to 80% of its collected fees to give it some latitude in fiscal independence and upgrade its capabilities without having to depend on the Office of the President or the Legislative for operating funds. This insulates the Commission from political machinations or pressure. i. Amend RA 7925 to provide fixed terms for the Commissioners and restructure competitive compensation similar to agencies like BSP, DBP, etc. with corresponding upgrading of qualifications.
  • 26. Position Paper: State of Broadband in the Philippines Page 23 of 30 Bibliography Published References: Abejo, PM. M. (2013). The Philippine ICT Industry Contributions to Inclusive Growth. 12th National Convention on Statistics. October 1-2, 2013, EDSA Shangri-La Hotel, Mandaluyong City. Akamai. Q1 2016 Report. State of the Internet. Volume 9/Number 1. Akamai. Q3 2015 Report. State of the Internet. Volume 8/Number 3. Alampay, E. A. (2011). ICT Sector Performance Review for Philippines. Sri Lanka: LIRNEasia. Aldaba, R. A.M. (2000a). Case Study: Opening up the Philippine telecommunication industry to competition. Singapore: World Bank Institute. Aldaba, R. A.M. (2000b). Case Study: Opening up the Philippine telecommunication industry to competition (II). Singapore: World Bank Institute. Bangay, S. M. (2007). Competition Policy Economy Report- Philippines. Philippines Biggs, P. ( 2014). The state of broadband: broadband for all. Geneva: The Broadband Commission. Blake, L. & Lande, J. (1998). Trends in the U.S. international telecommunications industry. Washington DC: Federal Communications Commission. Bonoan, E. P. (2015). Infrastructure In-depth: Philippines. 2015 Investment Guide. Makati, Philippines: R.G. Manabat & Co. Bronckers, M. & Larouche, P. (2008). A review of the WTO regime for telecommunications services. The World Trade Organisation and Trade in Services, pp. 319-379. DOI: 10.1163/ej.9789004162440.1-1024.43. Cabanda, E. A Comparative Study of Asian Telecommunications Policy Reforms: Japan, Malaysia, and the Philippines. Australia: Monash University. Cabarrios, E. V. Competition in the Philippine Telecommunications Sector. Cariño, L. V. (2002). Paper no. 44 - Regulatory governance in the Philippines: a profile. Centre on Regulation and Competition Working Paper Series. Manchester: University of Manchester. Catindig, T. A. (2001). The ASEAN competition law project: the Philippine report. Cayanan, A. S. (2016). Deregulation and Its Effects on Telecom Companies’ Financial Performance. Philippine Management Review 2016, Vol. 23, 1-16. Philippines: University of the Philippines-Diliman. Chang, R., Sheng, T., Fong, C., Kah, & Chung, C. (2016). Fundamental Analysis Department: Telecommunications Industry. Singapore: NUS Investment Society.
  • 27. Position Paper: State of Broadband in the Philippines Page 24 of 30 Competition Committee of the Organisation for Economic Co-operation and Development. (2014). Defining the relevant market in telecommunications: review of selected OECD countries and Colombia. France: Organisation for Economic Co-operation and Development (OECD). DiMinico, C. Telecommunications Infrastructure Standard for Data Centers: ANSI/TIA-942. MC Communications. Presentation slides. Ding, L. & Haynes, K. (2006). The role of telecommunications infrastructure in regional economic growth in China. Australasian Journal of Regional Studies, Vol. 12, No. 3, 2006. Australia: Australia and New Zealand Regional Science Association International Inc. (ANZRSAI). Dominquez, RM. M. K. & Acebedo, R. P. (2013). Getting the deal through - telecom and media: Philippines. Global Competition Review. London: Law Business Research Ltd. Economic Governance Technical Assistance Program. (2003). EGTA Assistance to the NYc: Finding and Clearing the Bettlenecks. Policy Reform Monitoring Report, Issue No. 12/November 18, 2003. Philippines: United States Agency for International Development. Espos, E. A. Institutions, regulation and performance: the case of Philippine telecommunications.Institutions, Regulation and Performance: The Case of Philippine Telecommunications. London: City University. Espos, E. A. (2003). Institutions, regulation and performance: the case of Philippine telecommunications. Philippine Journal of Public Administration. Volume XLVII, Nos. 1-4 (January-October 2003). Philippines: University of the Philippines-Diliman. Estache, A. & Garsous, G. (2012). The impact of infrastructure on growth in developing countries. IFC Economics Notes, Note 1. Washington DC: International Finance Corporation. EYGM Limited. (2015). Global telecommunications study: navigating the road to 2020. United Kingdom: Ernst & Young Global Limited. Gavino, J. Jr. (1992). A Critical Study of the Regulation of the Telephone Utility: Some Options for Policy Development. Ph.D. Dissertation, University of the Philippines. Hargittai, E. (1999). Weaving the Western Web: Explaining Differences in Internet Connectivity Among OECD Countries (Draft). United States of America: University of California in Los Angeles. Horne, A., Gomes, C., Rogerson, D., Moir, G., Delylle, W., Ladid, L., & Alden, J. (2014). 4th Generation Regulation: Driving Digital Communications Ahead. Trends in Telecommunication Reform, Special Edition. Switzerland: International Telecommunication Union. Huang, JH. (2011). Analysis of Telecommunication Markets of India, Singapore and Thailand and Research Their Global Competitiveness. Stockholm: Telefonica International Wholesale Services.
  • 28. Position Paper: State of Broadband in the Philippines Page 25 of 30 International Telecommunication Union. (2014). ITU Contribution to the Implementation of the WSIS Outcomes: 2014 (Draft Version 1.1). International Telecommunication Union World Summit on the Information Society. International Telecommunication Union (ITU). Katz, R. (2012). The Impact of Broadband on Economy: Research to Date and Policy Issues. Broadband Series, April 2012. Switzerland: International Telecommunication Union. Katz, R. L. (2012). The economic impact of broadband in the Philippines. Switzerland: Broadbank Commission for Digital Development. Kelly, T. & Rosotto, CM. (2012). Broadband Strategies Handbook. Washington DC: International Bank for Reconstruction and Development. Krishnan, S. Telecommunication infrastructure, governance, and e-government development: a global perspective. Singapore: National University of Singapore. LaBrie, R. C., & Vinzé, A. S. (2003). Globe Telecom: Succeeding in the Philippine Telecommunications Economy. Canada: Idea Group Inc. Lu, D. (2000). China’s Telecommunications Infrastructure Buildup: On Its Own Way. Deregulation and Interdependence in the Asia-Pacific Region, NBER-EASE Volume 8, 317-413. United States of America: National Bureau of Economic Research, Inc. Massa, N. (2000). Fiber Optic Telecommunication. United States: University of Connecticut. Medalla, E. M. (2006). Philippines. Competition Regimes in the World - A Civil Society Report (pp 145-149). India: Consumer Unity & Trust Society (CUTS) International. Mitra, R. M. (2013). Leveraging Service Sector Growth in the Philippines. ADB Economics Working Paper Series, No. 366. Philippines: Asian Development Bank. Montenegro, L. O. & Araral, E. Jr. (2015). Shared Prosperity: An ICT Manifesto for the Philippines for 2016 and Beyond. Singapore: Lee Kuan Yew School of Public Policy, National University of Singapore. Ospina, S. (April 2002). Telecommunications for all: does liberalization help? LSE Working Paper Series 2002/No. 02-29. London: London School of Economics. Paragas, F. (2003). Policy, Phone and Progress: Peculiarities and Perspective in the Philippine Telecom Industry. Philippines: University of the Philippines. Parlade, C. V. The Philippine IT Plan: Prospects and Problems. Patalinghug, E. E. & Llanto, G. M. (2004). Competition policy and negotiation in power and telecommunications. Manila: Philippine Institute for Development Studies. Patalinghug, E. E. & Llanto, G. M. (2005). Competition policy and negotiation in power and telecommunications. Manila: Philippine Institute for Development Studies. Santos, MG. M. (2016). Philippine Broadband: A Policy Brief. Policy Brief No. 4, February 2016. Philippines: American Chamber of Commerce of the Philippines.
  • 29. Position Paper: State of Broadband in the Philippines Page 26 of 30 Serafica, R. (1998). Was PLDT a Natural Monopoly? Telecommunication Policy, Vol. 32, Nos. 4 & 5/359-370. Serafica, R. B. (2001). Competition in Philippine telecommunications: a survey of the critical issues. CBERD Working Paper Series 2001-01. Manila: De La Salle University. Sridhar, K. S. & Sridhar, V. Telecommunications Infrastructure and Economic Growth: Evidence from Developing Countries. Stryjak, J., Sharma, A., & Hatt, T. (2014). Country overview: Philippines growth through innovation. London: GSMA Intelligence. SyCip Gorres Velayo & Co. (2013). Doing Business in the Philippines. Philippines: SGV. The Office of Communications. (2014). Infrastructure Report 2014: The Office of Communications’ second full analysis of the UK’s communications infrastructure. London UK: The Office of Communications. The Office of Communications. (2016). Annual Plan 2016/17. London, UK: The Office of Communications. The Office of Communications. (2016). Annual Report and Accounts For the period 1 April 2015 to 31 March 2016. London, UK: The Office of Communications. The Office of Communications. (2016). Ofcom Programme of Work 2016/17 - Q2 Update. London, UK: The Office of Communications. The World Bank - Public-Private Infrastructure Advisory Facility. (2005). Philippines: Meeting Infrastructure Challenges. Philippines: The International Bank for Reconstruction and Development / The World Bank. Torlak, M. The Telephone Network: An Engineering Approach. Online References: Barreiro, V. Jr. (Browsed September 9, 2016). Average Philippine Internet speed 155th in world http://www.rappler.com/technology/news/57037average-philippine-internet-speed Chandran, T. (Browsed September 9, 2016, 3:54 PM Philippine Time). Top 10 countries with the fastest internet speeds. http://gulfbusiness.com/top-10-countries-fastest-internet-connection/ CISCO. (Browsed September 9, 2016). The Zettabyte Era—Trends and Analysis. http://www.cisco.com/c/en/us/solutions/collateral/service-provider/visual-networking-index- vni/vni-hyperconnectivity-wp.html Lee, T. B. (2016). Keeping the Internet Competitive. National Affairs. http://www.nationalaffairs.com/publications/detail/keeping-the-internet-competitive Pingdom. (Browsed September 9, 2016, 3:56 PM Philippine Time). The REAL connection speeds for Internet users across the world (charts).
  • 30. Position Paper: State of Broadband in the Philippines Page 27 of 30 http://royal.pingdom.com/2010/11/12/real-connection-speeds-for-internet-users-across-the- world/ Reyes, MA. Ll. (September 19, 2001 12:00am). NTC issues rules on retail pricing. Philstar.com, 09/17/2016 2:42pm. Philippines: The Philippine Star. http://www.philstar.com/business/134209/ntc-issues-rules-retail-pricing/ Tiwari, A. Top 10 Countries Having The Fastest Average Internet Speed. (Browsed September 2016, 3:51 PM Philippine Time). http://fossbytes.com/top-10-countries-having-the-fastest-average-internet-speed/ Wikipedia. (Browsed September 9, 2016). Akamai Technologies. https://en.wikipedia.org/wiki/Akamai_Technologies Wikipedia. (Browsed September 9, 2016). List of countries by number of broadband Internet subscriptions. https://en.wikipedia.org/wiki/List_of_countries_by_number_of_broadband_Internet_subscripti ons Wikipedia. (Browsed September 9, 2016). List of countries by number of Internet users. https://en.wikipedia.org/wiki/List_of_countries_by_number_of_Internet_users Wikipedia.(Browsed September 9, 2016). List of countries by Internet connection speeds. https://en.wikipedia.org/wiki/List_of_countries_by_Internet_connection_speeds