Telcos to government: Subsidize poor families with 50 GB data/month

MANILA, Philippines — The country’s telco providers are asking President Marcos to expand internet penetration in rural areas by subsidizing families with a monthly load of 50 GB for a year.

In a recent meeting of the Private Sector Advisory Council (PSAC), the Connectivity Plan Task Force led by Globe Telecom president and CEO Ernest Cu proposed the construction of new cellular towers in geographically isolated and disadvantaged areas (GIDAs).

The telcos said the towers should be built through a public-private arrangement to cover the nearly 25 million Filipinos living in 7,063 barangays classified as GIDAs.

In line with this, the providers also pushed for the maximum utilization of existing towers in the areas that they serve. To do this, the telcos are ready to issue SIMs to unconnected families, but the government has to subsidize their data plans until 2028.

If Marcos approves this proposal, families living in GIDAs will be provided with SIMs that have an automatic allocation of 50 GB per month for a year. The telcos said 50 GB is enough to cover the average data usage of a household with five members.

They believe that every family should be able to access the internet in the digital age, given that education, health care, livelihood and public services are all online.

In presenting the pitch to the President, Cu said the telcos need the government’s help in putting up connectivity assets in GIDAs where it is challenging to profit.

“The telco industry is fully dedicated to leveraging our partnership within the industry and with the government to reach the underserved areas, where the private sector has been unable to build because of the negative cost of business,” Cu said.

The telcos told Marcos of the importance of maximizing existing networks first before setting up new ones. Through this, GIDAs will get connectivity access from at least one provider, avoiding duplication of efforts and removing unnecessary competition.

Also, the telcos reminded the President of other reforms sought by the telco industry to improve the ease and cost of doing business in the Philippines. They hope that the government reduces, if not eliminates, the spectrum user fees (SUF) that take away an average of P5 billion yearly.

The industry remitted about P27 billion in SUF to the National Telecommunications Commission from 2018 to 2022, averaging P5.39 billion a year and growing by 12 percent annually during the period.

As outlined under the Philippine Development Plan 2023-2028, the government wants to expand internet penetration in the country to 60 percent in 2028, from 17.7 percent in 2019.