Mobile Internet speed in Philippines improving – study

MANILA, Philippines - Mobile Internet services in the Philippines showed steady improvements  in the second half  of 2015 as telcos ramped up investments to boost their data networks, according to the latest Asia Network Quality Report of J.P. Morgan Securities.

The advances were most felt in  3G mobile data service as the country’s 3G download speed improved from 1.77 Megabits per second (Mbp) in the third quarter to 2.09  Mbps in the fourth quarter.

As a result, the Philippines’ average 3G download speed by end-2015 was faster than Thailand’s 1.46 Mbps , Japan’s 1.56 Mbps and Hong Kong’s  2.05 Mbps.

Among Philippine carriers, PLDT wireless unit Smart Communications set the pace as it managed to raise its average 3G download speed to 2.54 Mbps in the fourth quarter from just 1.66 Mbps in the third quarter.

Ariel Fermin, head of PLDT and Smart’s Consumer Group, touted the report as testament to the network's effort to enhance its mobile Internet service.

 “We’ve paid specific attention to enhancing our 3G capacity and resiliency because about 90 percent of our subscribers who go online use 3G handsets.  Improving our 3G data service delivers immediate benefits to the largest number of people in our subscriber base,” he said.

Fermin said Smart also continues to roll out its 4G/LTE network in preparation for the expected growth in the number of individuals using 4G/LTE handsets.

According to the report, the average 4G/LTE download speed in the country for both Smart and Globe Telecom Inc. has also risen to over 10 Mbps by end-   2015 from about five Mbps in the earlier part of the year.

Last year, PLDT’s capital expenditures amounted to P43.2 billion, P8.4 billion higher than the 2014 level.

The capex for last year was spent on boosting the capacity and resiliency of the group’s  fixed line and mobile data service in anticipation of a surge in data usage.

PLDT alloted P43 billion for this year’s capital expenditures.

Globe which spent $700 million last year, has set its capex at $750 million this year with the bulk to be spent on addressing the subscribers’ digital needs.

While telcos are ramping up their investments, they said the government also  has a role to play in helping improve the broadband service in the country.

In particular, the government has to help telcos in building more cell sites through reforms in securing permits, as well as improvements in site acquisition and right of way issues.

Globe general counsel Froilan Castelo said while telcos see the need to put up more cell sites to boost Internet connectivity, their work is hampered by the prohibitive   environment.

 “A lot of the infrastructure backlogs in the telecommunications industry could be attributed to challenges in getting LGU (local government unit) permits. This is why Globe has been calling on the government to provide policy support for initiatives to improve Internet infrastructure in the country,” he said.

Globe is pushing for the passage of an Open Access Law for the telco industry to expedite the issuance of all relevant permits for all telecommunications facilities at the local government level.

Ramon Isberto, PLDT and Smart Communications Inc. head of public affairs, shared the same view noting it is difficult to put up cell sites due to the sheer number of permits that have to be secured from national agencies, LGUs and homeowners.

“LGUs impose different levies and require different permits that make the process more complex and difficult,” he said.

The two telco firms are also calling for the equitable distribution of the 700 Megahertz (Mhz) band which can easily penetrate buildings and walls and requires less investments compared to other frequencies in order to provide faster Internet services.

The bulk of the 700 MHz is currently held by San Miguel Corp., which is in talks with Australia’s Telstra to launch a joint venture for a wireless business in the Philippines.