Government urged to take active role in digital infrastructure financing

MANILA, Philippines — A consumer advocacy group has urged the government and development finance institutions to take a more active role in financing the country’s digital infrastructure, warning that the Philippines risks falling behind global standards if it continues to rely primarily on telecommunications companies to fund the country’s digital transformation.

In a statement, CitizenWatch Philippines co-convenor Kit Belmonte said nationwide fiberization has become a strategic requirement for industrial development as economies around the world accelerate investments in digital infrastructure to support artificial intelligence, advanced manufacturing, cloud computing and other technology-driven industries.

“The challenge is no longer simply expanding internet access,” Belmonte said. “The real challenge is financing the digital backbone that will determine whether the Philippines can compete in the global digital economy.”

Belmonte noted that telcos have invested heavily in broadband infrastructure over the years, but the scale of investments needed to build world-class digital networks now requires broader participation from government and development finance institutions.

CitizenWatch cited its review of publicly disclosed financial statements submitted over the past 15 years (2011 – 2025) showing that major telecommunications and broadband providers have collectively invested more than P1.8 trillion in capital expenditures to expand and modernize digital infrastructure across the country.

“These investments demonstrate the private sector’s commitment to building the country’s digital backbone,” Belmonte said. “But achieving nationwide fiberization and bringing the Philippines closer to global digital infrastructure standards will require a broader financing partnership involving government, development finance institutions and private capital.”

CitizenWatch said many countries now treat digital infrastructure as a strategic national investment, using public financing, development banks and public-private partnerships to accelerate network expansion and improve digital competitiveness.

“No country has achieved rapid digital industrialization by relying solely on private telecommunications operators,” Belmonte said. “Countries leading the digital economy recognize that fiber infrastructure is as essential today as roads, ports and power systems were during earlier stages of industrial development.”

“The Philippines cannot afford to fall behind while other economies are investing aggressively in digital infrastructure,” he added. “Even after more than P1.8 trillion in private-sector investment, closing our digital infrastructure gap requires investments at a scale that should not rest on telecommunications companies alone.”

The group said fiber networks support modern manufacturing, logistics, financial services, education, healthcare and government services, making them critical infrastructure that benefits the broader economy.

Belmonte said greater public investment does not mean government should compete with private telecommunications providers.

“Government should invest where the market alone cannot,” he said. “Public financing should reduce investment risks, mobilize long-term capital and encourage faster private sector expansion, particularly in areas where commercial returns take longer to materialize.”

“The quality of a country’s digital infrastructure increasingly determines the quality of opportunities available to its people,” Belmonte said. “Investments in fiber networks are investments in jobs, innovation, public services and long-term economic growth.”