Government must do more for connectivity

The Philippines has made commendable strides in the International Telecommunication Union’s (ITU) ICT Development Index, but the journey is far from over. Despite a 14% improvement from last year, the country still lags behind its Southeast Asian neighbors, revealing an urgent need for greater government investment and policy reform to foster enhanced connectivity.

The ITU’s 2024 index scores the Philippines at 74.4, a significant jump yet still below the global average of 74.8. In comparison, regional leaders such as Singapore (97.8), Malaysia (95.0), and Thailand (91.0) are far ahead. This disparity highlights persistent gaps in our digital infrastructure that cannot be ignored.

Over the past three years, private companies like Globe have poured billions into improving the country’s ICT landscape. Globe alone invested Php 265 billion in capital expenditures and Php 236 billion in operational expenses. While these efforts have yielded positive results, the private sector cannot bear this burden alone. Substantial government investment is essential to truly transform our digital landscape.

The Department of Information and Communications Technology (DICT) invested only Php 7.6 billion over six years—an amount insufficient for our rapidly growing digital needs.

The National Economic and Development Authority’s approval of a Php 16.1 billion budget for digital infrastructure is a good sign. But this is still just a fraction of the P240 billion requested by the Private Sector Advisory Council to build 35,000 more cell sites across the country. It further recommended Php 60 billion in annual funding for the DICT for the construction of last-mile facilities and tower leasing, among others.

Policy reforms are equally crucial. For one, the outdated National Building Code, crafted in 1977, even before the mainstreaming of the internet, needs to be
amended urgently to remove lease fees on telco facilities in buildings and developments. The provision of mandatory space for telco infrastructure in housing developments should also be institutionalized.

Executive Order No. 32, issued in 2023 to streamline the permitting process for telco infrastructure, must be fully implemented, as local government units continue to circumvent this order, delaying crucial infrastructure development. A unified and efficient permitting process is essential for timely progress.

To elevate the Philippines’ standing in the ICT Development Index and deliver better connectivity experience to Filipinos, the government must play a greater role and not leave it up to the private sector to build the country’s ICT infrastructure. It must increase its investments and enact the necessary policy reforms.

Collaboration between the public and private sectors is crucial to overcoming barriers and fostering an environment where everyone equally benefits from life-enabling connectivity.