Lack of telco incentives hampers broadband expansion in Philippines, says World Bank study

MANILA, Philippines – A study revealed that the Philippines’ poor broadband infrastructure is rooted in outdated policy frameworks which hinder the broadband expansion and limit the access of internet connectivity to Filipinos. 

One of the reasons that hinders broadband expansion in the Philippines is the government’s failure to provide incentives to telecommunications companies, according to a study released by the World Bank in January 2024.

“Unlike most other countries, the Philippines neither incentivizes nor obliges its largest operators to expand rural broadband coverage. Hundreds of small internet service providers (ISPs) extend broadband services in rural areas while facing an unlevel playing field,” said the study titled “Better Internet for Filipinos: Reforms Promoting Competition and Increasing Investment for Broadband Infrastructure”.

Globe Telecom has been advocating for the elimination of unnecessary rental costs and promoting infrastructure sharing.

The study further stressed that the outdated policies and regulations have long stunted the growth of the country’s broadband industry and expansion of digital infrastructure.

“For inclusive growth through digitalization that benefits all Filipinos, updating Philippine policy to promote competition, encourage investment, and upgrade broadband infrastructure is urgent and necessary,” the World Bank study added.

Lawmakers have been pushing for the passage of the bills that seek to amend the National Building Code of the Philippines that have been pending in the House of Representatives. 

Tarlac 2nd District Rep. Christian Yap filed House Bill No. 900, which seeks to amend the building code, saying that the policies were outdated and that in order to emphasize the importance of electronic equipment facilities, such should be updated to include enough room for broadband services.

A separate House Bill No. 8534 has been filed also by Albay 2nd District Rep. Joey Salceda, which seeks to prohibit charging telcos for provisioning services within properties.

The Department of Information and Communications Technology expressed its full support in providing incentives to telcos to widen the coverage of internet connection in the country. 

Currently, there are over 600 building and property owners who allow the use of their buildings for telcos without a charge.