Slow and Expensive Internet in the Philippines

SRN-620: Impact of Slow and Expensive Internet Connection

RESOLUTION DIRECTING THE COMMITTEE ON TRADE, COMMERCE AND ENTREPRENEURSHIP TO CONDUCT AN INVESTIGATION, IN AID OF LEGISLATION, ON THE IMPACT OF SLOW AND EXPENSIVE INTERNET CONNECTION PROVIDED TO CONSUMERS WHICH ADVERSELY AFFECTS EASE OF DOING BUSINESS IN THE PHILIPPINES AND ADVANCEMENT OF TELECOMMUNICATIONS SERVICES AND FACILITIES IN ALL AREAS OF THE COUNTRY

 

Whereas, Sections 13 and 19 of Article XII on National Economy and Patrimony of the 1987 Philippine Constitution provide that the State shall pursue a trade policy that serves the general welfare and utilizes all forms and arrangements of exchange on the basis of equality and reciprocity and shall regulate or prohibit monopolies when the public interest so requires;

Whereas, the State recognizes the vital role of communications in nation building and it has become the objective of government to promote advancement in the field of telecommunications and the expansion of telecommunication services and facilities in all areas of the Philippines. Executive Order No. 59 (s 1993) required mandatory interconnection for other telecommunications firms and thereby encouraged investment in telecommunications infrastructure by service providers duly authorized by the National Telecommunications Communications (NTC);

Whereas, based on the State of the Internet report made by Massachusettsbased Akamai Technologies Inc., the Philippines had an average peak Internet connection speed of 32.6 megabits per second (Mbps) in the 4th quarter of 2013, representing a 103% quarter-on-quarter growth and a 144% rise from the same period in 2012. According to news reports, the Philippines’ average peak Internet connection speed is faster than that of China and several countries in the AsiaPacific region but its low use of broadband technology as well as high costs for Internet users compared to other countries mean slow average connection speeds for consumers. Reports showed that the Philippines had the slowest Internet connection among members of the Association for Southeast Asian Nations (ASEAN);

Whereas, there is a need to ensure that all users of Internet services shall have access to it wherever they may be within the Philippines at an acceptable standard of service and at a reasonable cost. According to the “ASEAN Average Internet Speed Index 2014” report by the ASEAN DNA, the Philippines is at the bottom of the list of ASEAN countries (3.6 Mbps), way below the ASEAN average of 12.4 Mbps;

Whereas, Filipino consumers spend around One Thousand Pesos (Php 1,000.00) per month for Internet services with speed up to two (2) Mbps while some telecommunication companies offer speed up to five (5) Mbps at around Two Thousand Pesos (Php 2,000.00). Comparing the prices of Internet services among Southeast Asian countries, the cost to Filipino consumers is more expensive than Internet costs in Singapore and Thailand, which have the fastest Internet connections globally;

Whereas, in this era of advanced technology, improving Internet connection in the Philippines is crucial to the ASEAN Economic Integration (AEC) in 2015, which aims to transform the region into a single market and production base, and a highly competitive region. To maximize benefits from the AEC for the Filipino people, there is a need to promote an efficient and balanced flow of information into, out of and across the country by providing an environment for the emergence of communications structures that will benefit the vast majority of consumers in the country, which has broad economic growth spurred by increasing competition;

NOW, THEREFORE, BE IT RESOLVED, as it is hereby resolved to direct the Committee on Trade, Commerce and Entrepreneurship to conduct an investigation, in aid of legislation, on the impact of’ slow and expensive Internet connection provided to consumers which adversely affects ease of doing business in the Philippines and advancement of telecommunication services and facilities in all areas of the country.

 

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Transcript of Sen. Bam Aquino’s Interview after the Hearing on the Slow and Expensive Internet Connection

Q: Kumusta po ang inyong hearing?

A: Marami pang kailangang pag-usapan, to be frank. We just suspended the hearing but you can expect that in a few months, we will have another hearing on this because marami pang unresolved issues.

 

Changes in Advertising

We talked mostly about the problems today but I really want to talk about solutions. One I think iyong changes sa ating advertising, I think that would be quite good for our consumers na mas malinaw kung ano ang nakukuha nila pagdating sa Internet.

Congestion

Pangalawa iyong pagdating sa congestion. We’ve instructed NTC to actually check if indeed congestion is the main problem kung bakit mabagal ang Internet.

Sabi ko nga, kung congestion ito na once in a blue moon, then maybe you can say ok at that particular time, mahina ang Internet. But if it a regular type of congestion, araw-araw mong nararanasan, that’s something that has to be addressed regularly.

Value-Added Service vs. Basic Service

Now, NTC has said na Internet natin is considered as a value-added service, hindi siya basic service meaning hindi siya makapagregulate nang todo-todo dahil hindi ito kasama sa basic services natin.

I think that can be one of the laws that could be amended na gawin nating basic service ang Internet. It is already recognized as a human right and if we make it a basic service, at least puwede talaga nating bantayan kung paano ito puwedeng maikalat sa maraming Pilipino, at the right cost and at the right service level.

Next Step: Technical Working Group

The TWG will probably tackle this more in detail. Hopefully aantabayanan po natin iyan kung paano gumalaw.

Kasi ang nagiging problema sa maraming hearing, nag-uusap-usap pero walang nangyayari.

Hindi natin iiwanan ang isyung ito.

Every quarter we can have this hearing and make sure that we get closer to affordable and quality Internet for our country.

 

Q: Puwede bang babaan ang charges sa Internet na mabagal?

A. Sa totoo lang, NTC cannot regulate even on that because it’s not a basic service.

It is a market driven system right now.  If we’re able to make Internet a basic service, it can one of the services which is regulated.

Alam naman natin na sa ating bansa, may mga regulators tayo, they can basically dictate the prices for certain services and if we’re able to make Internet a basic service, puwede nang gawin iyan. Puwede nang mag-regulate.

 

Q: Sir ano ang mga standards that you want to set?

A: In fact, in the Philippine Digital Strategy, nakalagay doon na by 2016, kailangang 80 percent na ng ating mga kababayan ang mayroong internet access and nasa minimum of 2 MPBS.

Mayroon na tayong standard na kailangang sundan. This Philippine Digital Strategy was made by DOST in 2010.

In fact, binabantayan natin kung umaabot tayo sa standards na iyon. According to the private sector and NTC, mukhang maaabot naman ang 80 percent access by 2016.

But iyong regularity of speed and iyong cost ang dapat bantayan, na dapat affordable pa rin ito at tuluy-tuloy at hindi dapat pawala-wala.

 

Q: Sino ba dapat magre-regulate? Dapat pa ba tayong mag-create ng regulator?

We have a regulator and that’s the NTC. So alam ninyo iyong isang na-reason kanina ay do we need new laws or just have NTC regulate.

In some cases, puwede na silang mag-regulate but in case of the Internet, na hindi considered as basic service, kailangan itong gawing basic service.

 

Q: Sir, how do we do that?

We’ll amend the Public Service Act, which is a 1936 law.

Isipin mo, we’re talking about high-tech information age and we’re still using a 1936 law.

So it’s about time that we update this law and we use those amendments to really push for better access, more affordable internet in the Philippines.

 

Q: This means powerless po ang government?

No that’s not right. In fact, we asked NTC to come up with standards for Internet. Initially, walang pa silang standard na sini-set because this is a value added service.

Standards

To respond lang sa hinaing ng maraming Pilipino, kahit iyong ibang senador may hinaing na rin sila, it’s just right that they come up with standards to check the infrastructure kung talagang kaya ng infrastructure natin ang pinapangakong speed ng ating Internet.

Kung hindi, pilitin natin ang private sector na ma-match ang standards na nakalay-out na at gagawin ng NTC.

Responsibility of Users

Iyong kabaligtad din dito I think, we must be responsible users of the Internet just to be fair. Earlier nga na-mention na iilang tao lang na heavy users, apektado ang lahat.

Kung 24/7 ka sa mobile, panay ang download mo, nakakaapekto sa mga kasama mo.

 

Q: Sir in your next hearing ano po ang tututukan ninyo?

A: First we’ll have a TWG. All of the resource speakers, the NTC, DOST, DTI and telco partners. We’ll invite the other ISPs. I think mahalaga rin dito ang ating local government units.

 

Puro Salita

Himayin natin ang discussion natin and come up with specific recommendations and from there, we’ll give it maybe two to three months to have another hearing para ma-track natin kung may nangyayari ba o wala.

Ang masakit kasi, puro salita at walang nangyayari. By the next hearing, after three months, we can check already, mayroon ba tayong solusyon na naihain o nagawa na o wala pa rin.

 

On Local Government Units

Iyon isa ring siguro na na-raise ay iyong sa local government units. Sinasabi ng ating telcos, hindi pare-pareho ang pagtrato sa kanila ng LGUs. There are some LGUs who will charge a really high amount, ang iba naman will charge less.

Nahihirapan sila (telcos) na i-roll out ang kanilang services. Kaya it’s important also to have the DILG, League of Cities and the League of Municipalities to have a common stand that when it comes to Internet and providing, kailangang tulung-tulong tayo rito.

On Congestion

Standards when it terms to congestion. At the minimum, they can actually show kung iyong infrastructure natin nagma-match sa population or Internet usage, para kung congestion nga ang problema, makita natin kung ano ang paraan kung anong ma-decongest natin.

Q: What’s the issue with Internet peering?

A: Well this is something NTC is already working on. We’ll ask for an update on the next hearing or during the TWG.

Ibig sabihih nito nagko-connect locally ang ating mga nodes. To be frank, maybe a technical answer might be better.

 

Paikot-ikot

Simply put, kunyari galing akong Quezon City pupunta akong Makati, dadaan akong EDSA. Hindi na ako iikot sa Manila Bay, pupunta pa sa Cebu at babalik pa bago makarating sa Makati.

This makes the nodes faster. I think NTC is already working on this, and we’ll look for updates after three months on this issue.

 

Q. Kasama po ba ang mga text na pinapadala ng network na may promo sa resolusyon ninyo?

A: It’s not part of the resolution but we can add it.

 

Q: Kung minsan matutulog ka na lang may magtetext, akala ko importante.

A: I can have that checked. Pag nandoon na ang NTC puwede nating patanong iyon. But primarily kasi, the question is more on the expensive Internet.

Compared to other countries, medyo lumalayo na ang presyo. So we’re hoping kung ma-refer na siya sa aming committee today, we’re hoping to have the hearing next week.

 

Q: Hindi magkakalayo ang mga rates nila, so puwede ba nating sabihin na maaaring may cartel rin sila?

A: Hard to say that that’s a crime.

 

Fair Competition

But babalik din tayo diyan sa competition policy. That’s one of the bills we’re pushing for.  If you have better competition, you have more people in the market, mas competitive, mas bababa ang presyo.

 

Roadmap for Internet

Primarily gusto naming tanungin sa NTC, ano ang roadmap natin.

Technically, regulated industry iyan, NTC should have a roadmap in terms of the price and quality.

Unfortunately, napag-iwanan na tayo ng ibang mga bansa so we want to see. Antabayanan natin kung anong sasabihin nila.

Transcript of Sen. Bam Aquino’s Interview on the Slow, Expensive Internet

Q. Kasama po ba ang mga text na pinapadala ng network na may promo sa resolusyon ninyo?

A: It’s not part of the resolution but we can add it.

QUESTION: Kung minsan matutulog ka na lang may magtetext, akala ko importante.

ANSWER: I can have that checked. Pag nandoon na ang NTC puwede nating patanong iyon. But primarily kasi, the question is more on the expensive Internet.

 Compared to other countries, medyo lumalayo na ang presyo. So we’re hoping kung ma-refer na siya sa aming committee today, we’re hoping to have the hearing next week.

QUESTION: Hindi magkakalayo ang mga rates nila, so puwede ba nating sabihin na maaaring may cartel rin sila?

ANSWER: Hard to say that that’s a crime.

But babalik din tayo diyan sa competition policy. That’s one of the bills we’re pushing for.  If you have better competition, you have more people in the market, mas competitive, mas bababa ang presyo.

 Primarily gusto naming tanungin sa NTC, ano ang roadmap natin. Technically, regulated industry iyan, NTC should have a roadmap in terms of the price and quality.

Unfortunately, napag-iwanan na tayo ng ibang mga bansa so we want to see. Antabayanan natin kung anong sasabihin nila.

 

QUESTION: Kailan iyon?

ANSWER: If it is referred today, we can have that (investigation) next week. Kung ma-refer siya today.

Sen. Bam: Slow Internet Affects Business Growth

Slow Internet connection adversely affects ease of doing business and hampers the advancement of telecommunication services and facilities in all areas of the country.

This was emphasized by Senator Bam Aquino as he formally filed a resolution calling on the Committee on Trade, Commerce and Entrepreneurship, which he chairs, to investigate the slow and costly Internet service in the country.

In his resolution, Aquino reiterated the need to ensure that all users of Internet services shall have access to it anytime and anywhere in the country at an acceptable standard of service and at a reasonable cost.

Aquino made the move after it was reported that the Philippines is at the bottom of the list of ASEAN countries (3.6 Mbps) in terms of Internet speed, way below the ASEAN average of 12.4 Mbps.

A report by the Massachusetts-based Akamai Technologies Inc. entitled State of the Internet mentioned that the Philippines’ low use of broadband technology as well as high costs for internet users compared to other countries mean slow average connection speeds for consumers.

A study commissioned by the Internet Corporation for Assigned Names and Numbers (ICANN) and released by Boston Consulting Group (BGC), saying the Philippines is trailing its ASEAN neighbors in terms of Internet infrastructure.

The study also mentioned that the Philippines has the eighth most-expensive fixed broadband pricing among 65 countries included in the study.

Also, Aquino took notice of the expensive Internet service in the country where Filipino consumers spend around One Thousand Pesos (Php 1,000.00) per month for speed up to two (2) Mbps and around Two Thousand Pesos (Php 2,000.00) for speed up to five (5) Mbps.

“Comparing the prices of Internet services among Southeast Asian countries, the cost to Filipino consumers is way more expensive than the Internet costs in Singapore and Thailand, which have the fastest connections globally,” said Aquino.

The senator said improving Internet connection in the Philippines is crucial to the ASEAN Economic Integration, which aims to transform the region into a single market and production base, and a highly competitive region.

“We should provide an environment for the emergence of communications structures that will benefit the vast majority of consumers in the country which has a broad economic growth geared towards increasing competition,” Aquino stressed.

 

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