Social networks fuel demand

According to the Institute for Development and Econometric Analysis, Inc. latest Industry Trends, there is no doubt that social media has shaken up Filipinos’ lives. A study released by Universal McCann declared the Philippines as the “social networking capital of the world”.

Filipinos are the top photo uploaders and web video viewers and second in number of blog readers and video uploaders. TIME Magazine, from a database of over 400,000 Instagram “selfies”, found that Makati City and Pasig City are the world’s selfie capital because they produce more selfies per capita than any other city in the world.

However, according to a report by the Broadband Commission for Digital Development, a United Nations agency, the Internet remains inaccessible to seven out of ten Filipinos, despite the country’s self-proclaimed status as the world’s centre for social media. Household final consumption expenditure of communication, which includes the Internet, has been experiencing positive growth. The last two years saw high growth in demand. The gimmick of social media, apps and even online shops implies that demand for Internet access will only go up.

Per IDEA, economic growth that is projected to be sustained will expand the middle class and lead to more urbanization. It will also raise Internet access and demand among Filipinos. Demographically, the country is on its way to having a younger and more tech-savvy population. Internet access and demand has nowhere to go but up.

Slow and expensive Internet. Internet speed in the Philippines is the slowest in Southeast Asia and one of the slowest in the world, given its cost. Senator Paolo Benigno “Bam” Aquino IV has even called on the Senate to investigate the “slow, expensive” Internet connection provided by telecommunications companies and on the National Telecommunications Commission for explanation.

According to CNN, countries with fast, cheap Internet connections tend to have more competition. Globe Telecommunications and PLDT group of companies dominate the country’s broadband market. Encouraging more players to compete with existing ones is a good solution to improve the quality of broadband supply.

National Telecommunications Commission Chairman Gamaliel Cordova says Republic Act (RA) 7925, the law covering affairs involving the Internet, is outmoded and that we need to give NTC more teeth. Nonetheless, Cordova has made a reassurance that the NTC has not been captured by the big telco companies. According to him, the NTC is held back unless more suitable laws and tools are given to it. Cordova also thinks NTC should be allowed to invest some of the close to Php5 billion it annually collects in supervision fees to deploy broadband network in underserved areas to ease traffic congestion. All that money is now sitting in a fund called General Fund. He points out that it is not unusual for governments to invest in telecommunications infrastructure.

The popularity and playfulness of social media and gimmicky applications mean greater demand for existing Internet users. Clamour for faster and cheaper broadband is not going to wane. Elected lawmakers have to respond with solutions that will improve the country’s broadband service and online expression, according to the researchers of IDEA.

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