Globe President and CEO Ernest Cu, head of the Private Sector Advisory Council’s connectivity plan task force, said the industry is ready to support government efforts in connecting over 7,000 barangays without internet access.
Big picture
Because of low feasibility, private internet and telecommunications providers cannot reach remote areas, leaving about 25 million Filipinos without basic internet access.
By implementing a public-private partnership (PPP) scheme, telco operators would be more inclined to invest in crucial infrastructure, such as cell towers, in Geographically Isolated and Disadvantaged Areas (GIDAs).
Initial 1,500 locations
This project is expected to involve the construction of thousands of new towers.
An industry insider revealed that the first phase involves the construction of 1,500 towers, although the exact distribution among the three major players, Globe, Smart Communications, and DITO Telecommunity, has yet to be determined.
The cost of building this new infrastructure will be covered by the telco players.
Government subsidies under PPP
The telcos will also distribute government-subsidized SIM cards with data plans to unconnected Filipino households until 2028.
Each SIM will offer 50GB of monthly data for one year, which is sufficient for a typical five-member household.
This will also boost access to education, healthcare, business, and government services.
Management’s view
“The telco industry is fully dedicated to leveraging our partnership within the industry and with the government to reach underserved areas where the private sector has been unable to build because of the negative cost to business,” Globe president and CEO Ernest Cu said.
“Once the government lays a bigger stake in our push for inclusive connectivity and invests in our proposal, this will mark a milestone in our collective aspiration for a Digital Philippines. Together, we will be able to create pathways to opportunities and essential services that can significantly improve lives,” he added.
Innovative solution to an old problem
“Using the PPP model to build ICT infrastructure in geographically isolated and disadvantaged areas is an innovative proposal that merits serious consideration,” said Juan Paolo Colet, managing director at leading investment bank China Bank Capital Corp.
“PPPs have worked well for building and operating infrastructure that solve the problem of physical connectivity, so it’s high time to explore how such partnerships can bridge the digital connectivity gap in the country,” Colet said.
Economic multiplier
“Investing in network infrastructure in remote areas is expected to have an inclusive economic multiplier effect as more Filipinos are able to access digital services and economic opportunities,” he said.
“As with any PPP project, it’s important to craft terms that make financial sense to both the government and private sector,” he added.
Faster permits needed
The task force also underlined the need to pass legislative changes to simplify the permit process for cell sites, ensure stable power for telco towers, and adjust spectrum fees.
According to Data Reportal’s Digital 2024 report, over 26 percent of Filipinos were still offline at the start of the year.
Miguel R. Camus has been a reporter covering various domestic business topics since 2009.
