1 The Problem of #PHInternet: How Can President Duterte Make Philippine Telecommunications Faster, More Reliable , Cheaper, and More Accessible Across the Country? Introduction During the 2016 campaign season of the presidential elections, then-candidate Rodrigo Duterte had this to say in a town hall meeting hosted by CNN Philippines, “Wala akong panahong makipagdaldalan (I don’t have time for idle chit-chat). I'd talk to the telecommunications people and ask, ‘Ano bang problema n'yo (What is your problem)?’” i Reiterating a statement made shortly after his election into office ii , when asked about the “mega-deal” between Globe Telecom, Philippine Long Distance Telephone Co. (PLDT), and San Miguel Corporation (SMC), President Duterte said that he is “not satisfied” with Philippine connectivity, and he would agree to the entry of foreign players into the Philippine telecommunications market. iii In his first State of the Nation Address, President Duterte said that he had ordered the newly-created Department of Information and Communications Technology (DICT) to “develop a national broadband plan to accelerate the deployment of fiber optic cables and wireless technology to improve internet speed.” iv Clearly, the President understands two of the many aspects of the problem facing Philippine telecommunications: the lack of competition in the Philippine telecommunications space, and the lack of telecommunications infrastructure across the nation. Thus, the questions are these: Can President Duterte make Philippine telecommunications faster, more reliable, cheaper, and accessible across the country? What are the challenges to achieving this objective that the President and his administration will be facing? What are the solutions that are available to the President and his administration? The answer to the first question can be “yes, the President can.” To meet this challenge, President Duterte has three action items: First action item: increase the competition space. Second action item: aggressively roll-out national information and communications technology (ICT) infrastructure. Third action item: ensure and promote a level playing field.
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The Problem of #PHInternet: How Can President Duterte Make Philippine Telecommunications Faster, More Reliable, Cheaper, and More Accessible Across the Country?
Introduction During the 2016 campaign season of the presidential elections, then-candidate Rodrigo Duterte had this
to say in a town hall meeting hosted by CNN Philippines, “Wala akong panahong makipagdaldalan (I
don’t have time for idle chit-chat). I'd talk to the telecommunications people and ask, ‘Ano bang
problema n'yo (What is your problem)?’”i Reiterating a statement made shortly after his election into
officeii, when asked about the “mega-deal” between Globe Telecom, Philippine Long Distance Telephone
Co. (PLDT), and San Miguel Corporation (SMC), President Duterte said that he is “not satisfied” with
Philippine connectivity, and he would agree to the entry of foreign players into the Philippine
telecommunications market.iii In his first State of the Nation Address, President Duterte said that he had
ordered the newly-created Department of Information and Communications Technology (DICT) to
“develop a national broadband plan to accelerate the deployment of fiber optic cables and wireless
technology to improve internet speed.”iv Clearly, the President understands two of the many aspects of
the problem facing Philippine telecommunications: the lack of competition in the Philippine
telecommunications space, and the lack of telecommunications infrastructure across the nation.
Thus, the questions are these:
Can President Duterte make Philippine telecommunications faster, more reliable, cheaper, and
accessible across the country?
What are the challenges to achieving this objective that the President and his administration will
be facing?
What are the solutions that are available to the President and his administration?
The answer to the first question can be “yes, the President can.” To meet this challenge, President
Duterte has three action items:
First action item: increase the competition space. Second action item: aggressively roll-out national information and communications technology
(ICT) infrastructure. Third action item: ensure and promote a level playing field.
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This paper aims to discuss how the President can meet his objective of ensuring faster, more reliable,
cheaper, and more accessible ICT services for the Filipino people, across the country.
The Current State of Philippine Telecommunications The Philippine telecommunications industry can be characterized as an effective duopoly that is
primarily highly urbanized-centric (particularly for Luzon), limited in available options, and
discriminatory in its practices against its largely-prepaid subscriber base. Also, the telecommunications
- Fixed wireless - Mobile internet (i.e., “pocket wifi” or “USB dongle”; cellular
mobile internet) - Mobile broadband (i.e., “pocket wifi” or “USB dongle”, but with
minimum speed at least 256 kbps)vi
Landline penetration per 100 inhabitants (2015) 2.99vii
Mobile penetration per 100 inhabitants (2015) 118.13viii
Cable TV penetration per 100 inhabitants (2010) 1.58ix
Cable internet penetration per 100 inhabitants (2016) 0.43x
Fixed-broadband subscriptions per 100 inhabitants (2015) – world rank 110 3.40xi
Active mobile broadband subscriptions per 100 inhabitants (2015) – world rank 89 41.58xii
Prepaid vs postpaid subscriptions (2015)xiii
Post – 4% Pre – 96%
Households with internet access (developing countries, 2015) – world rank 64 28.30%xiv
Public schools with internet connection (April 2014) 21.2%xv
Individuals using the internet (2015) – world rank 111 40.70%xvi
Time spent accessing the internet per day (2015) - Time spent accessing social media per day (2015)
6.3 hoursxvii
3.4 hours
xviii
Fixed broadband average connection speed (2016) 4.3 Mbpsxix
Wireless mobile broadband average connection speed (2016) 3.13 Mbpsxx
xxi
Minimum speed of broadband connections 256 kbpsxxii
3G/ 4G Availability 68.63%xxiii
Minimum reliability of broadband connections 80%xxiv
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market is currently heavily dominated by mobile communications, with the players shifting their
emphasis from legacy telecommunications (voice and short messaging) to data services and internet
connectivity.xxv (See also “#PHInternet Quick Facts” table.)
The nature of the Philippine telecommunications industry and market has resulted in poor service
quality, highlighted in various media reports, hearings in the Philippine legislature, and public hearings
and consultations by the country’s telecommunications regulator, the National Telecommunications
Commission. There has been and still is an unaddressed clamor demanding better services from the two
dominant players, Philippine Long Distance Telephone Co. – Smart Communications Inc. (PLDT-Smart)
and Globe Telecom, recognized even internationally as an effective duopolyxxvi.
When rumors of an impending deal between Australian telecommunications company Telstra and San
Miguel Corporation (SMC), which owned Vega Telecom, a holding company that housed
telecommunications companies Bell Telecommunications Philippines, Inc., Eastern Telecommunications
Philippines, Inc., Liberty Telecommunications Holdings, Inc., Express Telecommunication Company, Inc.,
Hi-Frequency Telecommunications, Inc., there was significant excitement, with some social media sites
calling Telstra “the savior of Philippine Internet”xxvii. The public recognized that entry of a new player in
the Philippine telecommunications market would be spur competition, leading to better services,
cheaper prices, and wider access and penetration for the Philippinesxxviii.
To the disappointment of the publicxxix, the deal did not come to pass. Instead, SMC entered into a joint
deal with PLDT and Smart, further strengthening the duopoly. The Philippine telecommunications
market has regressed instead of progressed, to the detriment of the public. Being elected because of his
strong populist stance, there is no wonder why President Duterte made strong statements with regard
to telecommunications and internet connectivity services, even threatening the duopoly with
competition to be brought from abroad.
First Action Item: Increase the Competition Space President Duterte recognizes that competition is a key element towards improving the sorry plight of
telecommunications services available to the public. But how much competition is needed?
The telecommunication giants claim that at present, there is no duopoly and that competition is
sufficientxxx, even as experts disagree. A 2012 studyxxxi from the Public Utility Research Center of the
University of Florida provided a simple guide to what is sufficient competition in a telecommunication
market:
There should be at least 5 reasonable comparable rivals.
No firm should have more than 40% market share.
Entry by new competitors must be easy.
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Currently, reports indicate that PLDT dominates the fixed line market with about 70% market sharexxxii,
and the two telecommunications giants Smart (owned by PLDT) and Globe have split the mobile market
between them 60-40xxxiii. Collating data from various media reports, the pie charts below illustrate the
lack of competition in various telecommunications markets:
Clearly, the Philippine telecommunications market does not have sufficient competition, and thus the
President must consider the methods of increasing competition.
Implementing an open access model for Philippine telecommunications Both giants of the effective duopoly in the Philippine telecommunications market can be described as
vertically-integrated monoliths of the “too big to fail” school of business thought, as illustrated below:
Current Model: The telcos own everything, from the Philippine border down to what you receive on your device
Landing stations and gateway facilities
Towers, telephone poles, utility corridors
Backbones and fiber connections
Switches, internet exchanges and data centers
Wholesale to other service providers
Retail services to the public
Preferential treatment for affiliated content providers
Globe33.00%
PLDT/Smart67.00%
Others0.00%
Fixed Line Telephone
Globe PLDT/Smart Others
Globe44.70%
PLDT/Smart54.80%
Others0.50%
Prepaid Mobile Telephone
Globe PLDT/Smart Others
Globe44.80%
PLDT/Smart55.20%
Others0.00%
Postpaid Mobile Telephone
Globe PLDT/Smart Others
Globe43.90%
PLDT/Smart51.60%
Others4.50%
Fixed Broadband
Globe PLDT/Smart Others
Globe45.30%
PLDT/Smart54.70%
Others0.00%
Mobile Broadband
Globe PLDT/Smart Others
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Open Access Model
International connectivity operator – submarine cable, landing station, satellite ground station
Passive infrastructure operator – ducts, dark cable, dark fiber, shared utility corridors, telephone/ electric poles, shared towers
Backbone operator (active infrastructure) – connectivity between wholesalers, internet exchanges, internet data centers
Backhaul operator – wholesaler (sells bandwidth to last mile operators)
Last mile operator – retail to the public (directly interacts with the public; e.g. CMTS providers, landline service providers, broadband service providers, cable internet service providers, and other SPs)
Content provider – non-telco/ non-communication/ non-data transmission services (ringtones, apps, streaming media, and other non-communication/ non-data transmission services)
The telecommunications entity owns and operates everything, “from soup to nuts” as the saying goes,
and as such there is little drive to serve the public interest. With all aspects of the telecommunications
network in the control of a single entity, there is no necessity for the duopoly to act beyond lip service
as far as competition is concerned.
To ensure that healthy competition enters
the Philippine telecommunications
market, President Duterte must push for
structural segmentation via an open
access model. Open access is the
separation of physical infrastructure from
service provisioning, the separation of
network operators from service providers,
wholesalers from retailers.xxxiv As
illustrated by the various combinations
below, the implementation of structural
segmentation via an open access model
opens up the competition space:
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As shown above, instead of vertically-integrated monolithic business structures, each logical segment
becomes a space where healthy competition can take place. The far left column shows the end goal of
absolute logical segmentation of full implementation of open access, with the adjacent two columns
showing two of the many possible permutations that can operate in the market until full open access is
achieved. Should there be a need to accelerate growth and competition by means of government
participation, the implementation of open access allows government to participate without having to
bear onerous burdens by having to deliver end-to-end services, and instead participate only in areas
where it can have the greatest benefit with the least amount of effort, or simply in key areas of interest.
(More on this later in the section “Second Action Item: Infrastructure Roll-out.”)
With the application of logical segmentation by means of implementation of open access, entities who
wish to enter the Philippine telecommunications market need not have to enter as a monolithic entity to
challenge the vertically-integrated, monolithic duopoly. Instead, entities can compete in the segments
where they are best suited to compete due to competencies, capital availability, and other business
strengths that potential telecommunications entities for the Philippine market possess. The President
can promote competition by pushing for the implementation of open access, and spur economic growth
by attracting new players to enter these new segments.
It must be made clear that some of the logical segments require more infrastructure roll-out and time to
market than others. The President can order the government to ease the burden, such as by providing
incentives such as temporary tax relief while the roll-out plans are being implemented, to ensure the
readiness for competition of these new players.
The role of the Philippine Competition Commission is critical during the initial implementation of open
access, to ensure the smooth transition from vertically-integrated monolithic business structures into
logical segments, as well as promote a healthy competition environment for new entrants. After
successful implementation, the role of the Philippine Competition Commission is likewise crucial; the
Commission must ensure that there is no collusion between players and similar anti-competitive
behavior (e.g., preferential pricing or service quality by a backhaul operator to benefit a last mile
operator it has interests or stock ownership in), anti-trust and monopolistic acts, and severely penalizing
such acts and behavior.
Encouraging cross-platform competition The continual innovation in technology has created opportunities for competition where there was once
none. For instance, an electric power company can use its existing distribution network as a landline
telephone system (as has been demonstrated in India and other locations), with the same service quality
as legacy landline telephone systems (the availability of which is one of the lowest in Asia and the
world). A cable television operator now has the ability to be a last-mile telecommunications player in
the same way as a wired ADSL broadband service provider is. An association of cable television service
providers operating in adjacent geographical areas can form a backhaul service provider, no different
from a backhaul fiber operator. A Wi-Fi service provider with the capacity to mount routers on
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streetlights could be a last-mile service provider no different from a cellular mobile telephony service
provider. With open access as the Philippine ICT competition model, the possibilities in the application
of existing and new platforms to compete with each other will greatly encourage competition in the
Philippine market.
President Duterte can encourage local business and local government leaders to explore the potential of
cross-platform competition, which will spur innovation and economic growth across local government
units, spread ICT use and penetration from the highly urbanized to reach the rural population. With this,
even the most disadvantaged and geographically-distant communities, such as those in Visayas and
Mindanao, will have equal (or at least similar) opportunities that those in highly-urbanized Metro Manila
currently enjoy.
Improve implementation of and transparency in spectrum management As the Supreme Court held in ABS-CBN v. Philippine Multimedia System, “the radio spectrum is a finite
resource that is a part of the national patrimony and the use thereof is a privilege conferred upon the
grantee by the State and may be withdrawn anytime, after due processxxxv.” As part of the national
patrimony, the Filipino people owns the spectrum, and only allows its use by the private sector through
permission granted through Congress. It is clear, therefore, that all Filipinos have the right to know
which companies have been granted the privilege to use spectrum, and how efficiently are they using it;
thus, it is strange that the NTC considers spectrum licensing information (i.e., “who owns what
spectrum” information) as confidential information that should not be made available to the public. This
lack of transparency is completely at odds with President Duterte's direction, as shown by his emphasis
of Freedom of Information.
Leaving off the absence of transparency, the incoherent policies in the allocation of spectrum of the
Philippines are even more uniquely disappointing compared to progressive global ICT practices.
The global best practicesxxxvi for the allocation of spectrum can be classed into two ways: for mature
technologies, spectrum bands are auctioned off through open tenders, and simple allocation (otherwise
known as “beauty contest” allocation) for new or emerging technologies, or newly opened digital
dividends. Allocation, whether via spectrum auction or via beauty contest allocation, is for a finite
periodxxxvii;in most countries, to ensure healthy competition, spectrum licensing periods average five (5)
years, with with license periods ranging from as short as 3 to as long as 10 years. Also important is that
not all of the spectrum available is auctioned or allocated; spectrum bands are reserved for future
competitionxxxviii, as can be exemplified by the Singaporexxxix, Hongkong xl, and Thailand auction
practicesxli. Equally important is periodic spectrum refarming, which is exemplified by the UKxlii and
Frenchxliii practices, and a “use it or lose it” policy for the government to prevent “spectrum
warehousing” by unscrupulous telecommunications entities.
On a side note: spectrum auctions provide billions of dollars of revenues to governments practicing
themxliv, over and above spectrum user fees that are collected annually. The absence of spectrum
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auctions and spectrum refarming are two of the major missed opportunities of the National
Telecommunications Commission as the country's telecommunications regulator.
Because of the incoherence in spectrum allocation policy, after the controversial sale of Vega Telecom
spectrum assets to PLDT-Smart and Globe Telecom, rightly being subject of review by the Philippine
Competition Commission, the duopoly owns nearly 80% of the total available and allocatable spectrum,
inclusive of guard bands. Data extrapolated from Bulatlatxlv and the National Radio Frequency Allocation
Table (NRFAT) can be summarized as such in the pie charts below.
(More detail in the end notes.xlvi)
Globe34%
PLDT/Smart42%
Others9%
Available15%
Total
Globe PLDT/Smart Others Available
Globe39%
PLDT/Smart39%
Others0%
Available22%
700 MHz
Globe PLDT/Smart Others Available
Globe0%
PLDT/Smart40%
Others0%
Available60%
850 MHz
Globe PLDT/Smart Others Available
Globe64%
PLDT/Smart36%
Others0%
Available0%
900 MHz
Globe PLDT/Smart Others Available
Globe40%
PLDT/Smart60%
Others0%
Available0%
1800 MHz
Globe PLDT/Smart Others Available
Globe25%
PLDT/Smart25%
Others25%
Available25%
1900 MHz
Globe PLDT/Smart Others Available
Globe16%
PLDT/Smart42%
Others0%
Available42%
2100 MHz
Globe PLDT/Smart Others Available
Globe30%
PLDT/Smart60%
Others0%
Available10%
2300 MHz
Globe PLDT/Smart Others Available
Globe45%
PLDT/Smart37%
Others0%
Available18%
2500 MHz
Globe PLDT/Smart Others Available
Globe30%
PLDT/Smart30%
Others40%
Available0%
3400 MHz
Globe PLDT/Smart Others Available
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As the pie charts above show, with the existing spectrum available for allocation, there is not enough
spectrum to be attractive for the entry of even just one potential new player; as in basketball, any
potential third player has been “boxed-out” by the duopoly.
That there is not enough spectrum for a third player to materialize is one of the issues that the
Philippine Competition Commission seeks to address through a review of the PLDT/Smart-Globe-SMC
deal and the PLDT/Smart-Globe spectrum “co-use” agreement. This review by the Philippine
Competition Commissionxlvii, one that is mandated by the Fair Competition Act, is being aggressively
opposed by the duopoly PLDT/Smartxlviii and Globexlix.
One compelling reason for the duopoly to grab as much spectrum as it can is to reduce its obligations for
capital expenditure. With more spectrum licensed to a cellular mobile telephony services provider, the
provider needs not increase cell site density to meet demand and subscriber growth. Instead of building
more infrastructure, a wireless communications service provider will merely add a few new antennas to
its existing cell sites for the new frequencies, or simply reprogram its base transceiver station equipment
to include the spectrum that it has acquired. It is because of this near-monopoly on the Philippine
spectrum that the duopoly has been uninterested about rolling out infrastructure to meet subscriber
demand in rural areas. (See “Second Action Item: Aggressive Infrastructure roll-out for a short
comparative discussion of cell site density in the Philippines and other jurisdictions.)
Furthermore, it is also important to remember that because the Filipino people owns spectrum, the
ordinary Filipino must be afforded as much opportunity to be able to use spectrum as a public good. To
do this, as much spectrum that can be deregulated should be deregulated, and kept free from licensing,
such as the wi-fi spectrum bands, the Bluetooth spectrum bands, and so on. For ordinary citizens to
have the ability to directly use spectrum will spur innovation in the ICT space, and this will benefit the
Filipino people at large.
There are two calls to action, therefore, that President Duterte can order the Philippine Competition
Commission to address immediately: first, resolve quickly the issue of the 700 MHz telco mega-deal
between PLDT/Smart, Globe, and San Miguel Corporation (and the attendant co-use agreements and
other potentially anti-competitive behaviors), and; second, immediately provide guidelines for the
refarming and re-allocation of spectrum to ensure that no potential new competitors are blocked from
entry because there is no available spectrum to be had, and that the maximum benefit to the Filipino
people that spectrum use can provide can be attained.
Implementing net neutrality Net neutrality, in its simplest sense, is that no content is demoted or promoted in priority over another.
Demotion can be by making content costly compared to another; for instance, the data for news
websites are charged to a subscriber's prepaid load credits, while Facebook is free, or by charging to a
subscriber's data allowance for the viewing of a YouTube video while iFlix videos are not.
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Likewise, demotion can be done to the services themselves, against or for content. There have been
reports that service providers throttle (that is, “slow down”) content of non-affiliates, while allowing
freely the transmission of content from affiliates (such as by telecommunications service providers on
behalf of their affiliated media networks).
The absence of net neutrality stifles free choice of content, which will result to subscribers being forced
to choose service providers that carry their choice of content, and thus discourages competition from
flourishing. To use an analogy (one that fortunately has not yet happened), the absence of net neutrality
would be akin to a power company promoting and selling a single brand of a line of electrical appliances
exclusively, and creating preferential electricity pricing for the use of these appliances, to the detriment
of other appliance brands and to retailers. An analogy in the retail industry would be a supermarket
chain creating its own line of products and selling them exclusively in its outlets, and preventing
competition wholesalers and manufacturers from offering their products in the supermarket chain's
outlets.
President Duterte can stop such unfair practices from happening by ensuring that the Philippine
Competition Commission takes an active role against anti-trust and anti-competitive acts that will exist
through the absence of net neutrality. The President should also order the Philippine Competition
Commission to strongly promote net neutrality as a means of preventing such acts from occurring, and
investigate potential violations of net neutrality (such as the Cignal service provided by PLDT, as well as
the recent PLDT – ABS-CBN content deall).
Second Action Item: Aggressive Infrastructure Roll-Out As earlier shown by the “#PHInternet: Quick Facts” table, the Philippines is a global laggard in ICT
infrastructure development, whether for wired or for wireless technologies; landline telephony, cable
internet, and fixed-broadband penetration are among one of the world's poorest. By the admission of
the local telcos themselves, cell site density is no less poor; Tokyo, a city of about 2,188 square
kilometers wide has 22,000 cell sites serving 13.4 million peopleli, while the entire Philippines, with only
approximately 2,000 inhabited islands out of 7,641, covering an area of about 300,000 square
kilometers, only has 16,000 cell sites to serve 100 million people. Also by their own admission, the
16,000 number also does not reflect incremental gains, due to duplication of sites to provide
competitive coverage in a given area.lii
President Duterte has given marching orders to the DICT to accelerate ICT infrastructure developmentliii,
and in statements made in recent Congress and Senate hearings the DICT Secretary, Rodolfo Salalima,
formerly Senior Vice President for Corporate and Regulatory Affairs of Globeliv, has committed to meet
the President's mandate to the department, with the goal of increasing internet speeds and other
aspects of service quality. From the initial promise of improving internet connection speeds within three
to six monthslv, the new goal is to provide improvement within a yearlvi, with the NTC threatening to
revoke its approval of the spectrum “co-use” agreement between PLDT and Globe if this goal is not
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metlvii. As of this writing, and as discussed in recent Senate hearings, there have been no national ICT
plans presented by the DICT, and there is an imperative need for ICT infrastructure development plans
and implementation.
No Filipino left behind: national ICT infrastructure development As previously mentioned in the discussion on the implementation of open access in the section above
“First Action Item: Increase the Competition Space,” President Duterte can spur competition by
ordering his administration to consider entry into select segments of the telecommunications markets.
The easiest segment for the government to build, enter, and operate, perhaps through a government
owned and controlled corporation (GOCC), would be the passive infrastructure segment. The
government can build out, through public-private partnerships (PPP) or other mechanisms, the dark
cable, dark fiber, shared utility corridors, and antenna towers, particularly prioritizing underserved,
unserved, and missionary areas that the duopoly has refused to enter for decades. The infrastructure
can be later leased – in ICT parlance, “lit up” – to the existing duopoly or to new players. The advantage
of this option is that it will provide communications and data transmission services to rural areas that
did not enjoy such services in the way that highly-urbanized areas do; the disadvantage, however, will
result from the refusal of the existing duopoly to light up the passive infrastructure to reach these
underserved, unserved, and missionary areas. President Duterte can order an aggressive roll-out of
passive infrastructure, and then encourage new players to lease the passive infrastructure if the duopoly
refuses to do so, and thus provide landline, wireless, and internet connectivity to rural areas that
previously had none. The alibi of the duopoly that it is costly to lay inter-island submarine cable, and
thus they do so sparingly, would no longer be valid if the government goes ahead and links up the
approximately 2,000 inhabited islands out of the 7,641 islands that comprise the Philippine archipelago.
A slightly more involved infrastructure roll-out would be for the government to set up a government-
owned and operated backbone, operated by a separate agency or GOCC as appropriate. For purposes of
fast, reliable, and secure government communications, the roll-out of a government backbone, even
specific backbone and local loop networks each for government, for law enforcement, and for the
military, would be important for enhancing ICT-enabled governance and e-governance, information-
sharing, and public service. While this provides benefits to the country for the long-term, for the short
term such a roll-out cannot be expected to improve the ordinary citizen's use of telecommunications
services.
The government can also roll-out a separate backbone network designed to carry backhaul bandwidth
to areas that the telcos do not want to penetrate due to their business interests. This roll-out can result
to unserved , underserved, and missionary areas, such as rural communities in Visayas and Mindanao,
being provided access that was previously only enjoyed by highly-urbanized population centers like
Metro Manila. For the government to build this, however, provides a double-edged sword in so far as
private enterprise is concerned: it can reduce the capital expenditure pressure on the duopoly to roll-
out infrastructure in areas they claim are not economically viable (i.e., using taxpayer money to promote
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shareholder value) and the telcos can simply lease the backbone to go to these unserved, underserved,
and missionary areas with less capital expenditure; on the other hand, it may result in the creation of
small service providers (such as associations, cooperatives, and small and medium enterprises, or SMEs)
in areas where the large private enterprises initially refuse to enter, as will be discussed in the next
paragraph.
While it is true that government is not as efficient and skilled as the private sector in providing front-line
or retail services, the government is sufficiently competent to provide wholesale services. If the
government is reasonably confident in the competencies of its organic personnel, or its ability to hire
skilled workers from the private sector, the government can also establish another GOCC to provide
backhaul services, selling wholesale bandwidth to private retail service providers around the country. In
doing so, President Duterte can encourage the growth of SMEs or cooperatives that will provide
telecommunications services to their communities, further spurring economic and infrastructure growth
especially in currently unserved and underserved rural communities such as those in Visayas and
Mindanao.
International connectivity infrastructure (that is, the landing stations and the submarine cables
connecting to them, or the ground stations that connect with satellites) are usually rolled-out by
international consortia that include both private enterprise and national governments. Many of the
benefits discussed above can be realized and amplified if the Philippine government decides to enter
agreements with partner countries and multinational companies to lay cables and landing stations to
connect (e.g., between Mindanao and Indonesia, between Hong Kong and/or Taiwan and Luzon, and the
United States and Eastern Visayas). The international bandwidth could be sold to the government's
agency providing backhaul services, with the government backhaul service provider reselling wholesale
bandwidth to last mile service providers, at rates promoting healthy competition and aggressive
expansion in the Philippine telecommunications markets.
It must be reiterated here that for these roll-outs to be successful, President Duterte must aggressively
push healthy competition in the telecommunications industry, especially through the implementation of
an open access model, spectrum management, and net neutrality, as discussed in the preceding section
“First Action Item: Increase the Competition Space.”
Supporting the private sector: shared utility facilities Shared utility facilities, such as shared utility corridors, shared towers and poles, can go a long way to
reducing a telco’s capital expenditure. Currently, each telco has to dig its own utility corridors to lay
cable, and when it does so not only is it costly for the telco, but it causes traffic and other similar
disruptions to the public. With shared utility corridors dug only once, usually in parallel with the roll out
of a new road, highway, or rail track, shared utility corridors can be made ready for the installation of
the passive network infrastructure of the existing players and for new ones. Local government units can
build towers for the co-location of telecommunication operators' antennas, reducing the capital
expenditure burden pressures that these operators claim they are subject to.
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Among the additional advantages of the government rolling out shared utility infrastructure would be
ease in traffic management during maintenance (with only one common corridor for all operators
instead of multiple corridors for each player), ensuring disaster resilience (particularly for underground
cabling as opposed to pole-mounted cabling), and increased critical infrastructure security and ease of
damage control.
The rural last mile: “Juan Konek” free Wi-Fi in schools and public areas, TV
WhiteSpace, and other government initiatives for citizens In the previous discussion of “Encouraging cross-platform competition,” we recognize that alternative
technologies can be used in areas where the duopoly refuses to provide wired and wireless
communications and data transmission services. The “Juan Konek” projectlviii and the “TV WhiteSpace”
projectlix are two government initiatives that can provide data transmission services to unserved,
underserved, and rural areas where the large private enterprises refuse to go. With these technologies,
citizens can communicate via services like voice over internet protocol (VOIP) applications like Skype, or
internet messaging services like Viber, Line, or Facebook Messenger, as a temporary replacement for
the absence of landline and cellular mobile telephony services in their areas.
Other technologies that the government, NGOs, educational institutions, and local communities can
explore would be the use of power line communicationslx, community mesh networkslxi, packet switched
radio, and many others. If private enterprises refuse to provide reliable and inexpensive services to
unserved, underserved, and missionary communities, and there is no means for the government to
compel these private enterprises to do so, these alternative communication methods can be
implemented as temporary or semi-permanent transition measures until new competition arrives to
provide public services to these areas.
Third Action Item: Level the Playing Field Competition is the primary driver to ensure that President Duterte's objective of making Philippine
telecommunications faster, more reliable, cheaper, and more accessible across the country. Healthy
competition in a a level playing field can only be ensured by the active oversight of the appropriate
branches and agencies of government.
The Fair Competition Act mandates the Philippine Competition Commission to to ensure healthy
competition in all industries and markets in the country, and the telecommunications market is not
exempt in any way. It is important that President Duterte and his administration recognize and support
this, with the end objective of improving the plight of the ordinary Filipino. That said, there are other
similarly-mandated and similarly-powerful agencies that must exercise their mandates independently of
and in collaboration with the Philippine Competition Commission; at the end of the day, government
agencies are bound to serve the Filipino people, not the interests of private enterprise and big business.
14
Progressive legislation and franchise oversight: the Philippine Senate and the
House of Representatives In the Philippines, telecommunications franchises are granted by the Senate and the House of
Representatives, which is a practice also done in other jurisdictions. In contrasting practice is that in
other jurisdictions, reviews of franchises and reviews of enterprises meeting their franchise obligations
by other legislatures are performed periodically and frequently. Some legislatures' franchise committees
hold monthly hearings on whether or not telecommunications franchises are meeting their franchise
obligations as provided for by the enacted franchise laws. It is also not unknown for legislative franchises
committees in other jurisdictions to recommend severe penalties or directly slapping fines on erring
franchises.
It is therefore important for the House of Representatives Committee on Franchises and the Senate
Committee on Public Services to be active and proactive in providing oversight on the franchises issued
to telecommunications entities, penalize severely and even move to revoke the legislative franchises of
unrepentant operators.
Likewise, the legislature can, as it did in its enactment of the charter of the Department of Information
and Communications Technology, also legislate measures to provide coherent guidance for Philippine
ICT, such as the Magna Carta for Philippine Internet Freedom and the Open Access Act, as well as
amendments to ICT fundamental laws like the Public Telecommunications Act, the Radio Control Act,
the Public Service Act, among many others.
Regulatory action and quality of service (QoS) standards: the National
Telecommunications Commission In the landmark case Globe v. National Telecommunications Commissionlxii, Justice Dante Tiñga penned a
prophetic warning about the NTC: “Much complication could have been avoided had the NTC adopted a
proactive position, promulgating the necessary rules and regulations to cope up with the advent of the
technologies it superintends. With the persistent advent of new offerings in the telecommunications
industry, the NTC's role will become more crucial than at any time before.” (Emphasis supplied.)
The National Telecommunications Commission would do well to heed the caution of Justice Tiñga. It is
unfortunate that in the twelve years since then, the Commission has been observed to be remiss in its
duties and responsibilities as a regulator. Most recently, the NTC has failed to provide quality of service
standards for broadband internet connections, despite calls for the Commission to do so by the Senate
of the Philippineslxiii and ordinary citizenslxiv, including ICT advocacy groups like Democracy.Net.PHlxv, for
more than several years nowlxvi.
President Duterte can remind the National Telecommunications Commission of its mandate and duty to
the public, and order the NTC to be active in issuing guidelines, regulations, memorandum circulars, and
memorandum orders, and implementing such regulations for the Philippine ICT sector, for the general
benefit of the Filipino people. The officials of the National Telecommunications Commission would do
15
well to heed the directive of the President to serve the public interest and perform their mandate as the
ICT regulator representing the Filipino people.
Consumer protection: the Department of Trade and Industry As telecommunications is a sector that has direct and profound impact on Filipino citizens, especially
and most particularly for citizens who are subscribers to telecommunications service providers, the
Consumer Protection Group (CPG), the Consumer Protection Advocacy Bureau (CPAB), and the Fair
Trade Enforcement Bureau (FTEB) of the Department of Trade and Industry (DTI) are important agencies
in the protection of the ordinary Filipino from unscrupulous and unfair business practices. President
Duterte can direct the DTI and its subordinate and attached agencies to be more active and proactive in
promoting consumer welfare, especially for the largely-prepaid sector of the telecommunications
market that is barely within reach of ordinary Filipinos nationwide.
Pursuit of fairness and justice: the Department of Justice and Office of the
Solicitor-General The Department of Justice did, in fact, perform a great service for the Filipino people, when it released
circulars that warned telecommunications operators about misleading the public with “unlimited” public
offerings that were not, in fact, unlimited, due to the application of data throttling and data cappinglxvii.
It is in this vein that the Department of Justice and the Office of the Solicitor-General can support
President Duterte's directive that the government must be of service to the Filipino people, by
representing the government when actively pursuing and promoting fairness and justice when President
Duterte's administration intervening if and when intervention is necessary to promote the ordinary
Filipino's welfare.
National ICT policy: the Department of Information and Communications
Technology President Duterte has come under criticismlxviii, whether fairly and unfairly, by appointing a former
Senior Vice President for Corporate and Regulatory Affairs of Globe to the newly-formed Department of
Information and Communications Technology (DICT), the cabinet position to lead this administration's
ICT policy-making and implementation.
The DICT can and should take the lead in promoting and implementing progressive ICT plans, programs,
and policies. Among those that can be readily pushed are the PhOpenIXlxix, IP peeringlxx, TV
WhiteSpacelxxi, and the “Juan Konek” public free wi-filxxii projects and programs. With many good ideas
towards improving the Philippine information and communications technology sector being proposed by
ICT advocates and the ICT community at large, the DICT can prove itself a partner for change, change
that will benefit all sectors of the Philippine population.
It is thus up to DICT Secretary Salalima, and with Secretary Salalima's actions reflecting on the President,
to show critics that the DICT will be working for the Filipino people's interests and betterment, and not
work for the benefit of the duopoly that has been enjoying the privileges of an uncontested market.
16
Competition watch: the Philippine Competition Commission The Fair Competition Act provides President Duterte and his administration the legal mandate and the
policy tools to promote fair and healthy competition, a state of affairs that can only be beneficial to the
general public. As the primary competition policy-making body, implementer of fair competition law,
policy, and regulation, and enforcer against anti-competitive behavior, the Philippine Competition
Commission is President Duterte's strong right arm to ensure that the Filipino people will not suffer
through anti-trust activities and unfair, deceptive, and abusive acts and practices, and that businesses
will practice fair dealings between themselves. President Duterte can throw his full support behind the
Philippine Competition Commission in performing its mandate of ensuring a level playing field in the
Philippine telecommunications marketplace.
A Final Note Competition is the primary driver to ensure that President Duterte's objective of making Philippine
telecommunications faster, more reliable, cheaper, and more accessible across the country will be met,
and properly-directed ICT infrastructure development is a means towards this end.
President Rodrigo Duterte's objective of providing ICT services, even down to the rural areas that did not
enjoy communications and data transmission services the same way Metro Manila and other highly
urbanized areas have enjoyed for decades, can be met on a national scale by aggressively promoting
competition and allowing infrastructure development to flourish. We hope that the President and this
administration he leads will adopt measures that will lead to national ICT development that promotes
the welfare of the Philippines as a nation.
It is in this hope that Democracy.Net.PH submits this paperlxxiii, to be a partner for change towards
progress for and on behalf of the Filipino people.
End Notes i “Duterte to telcos' slow Internet: Ano bang problema n'yo?” philstar.com. The Philippine Star, date last updated 18 February 2016. Web. Date accessed 13 October 2016. http://www.philstar.com/headlines/2016/02/18/1554412/duterte-telcos-slow-internet-ano-bang-problema-nyo ii Quote: “For the communications guys, iyung internet connectivity, you improve the service or I will open
the Philippines to competition. Pasok lahat. Then it will bring down [the price] and increase efficiency.” “Duterte tells telco firms to shape up.” news.abs-cbn.com. ABS-CBN News, date last updated 22 May 2016. Web. Date accessed 13 October 2016. http://news.abs-cbn.com/business/05/22/16/duterte-tells-telco-firms-to-shape-up iii Quote: “I am quite not satisfied because of the connectivity problem. If you cannot improve on the
services, that’s what I said, I would really agree to the coming in of foreign players, also with energy.”
“Duterte: Improve internet services or face foreign players.” news.abs-cbn.com. ABS-CBN News, date last updated 03 June 2016. Web. Date accessed 13 October 2016. http://news.abs-cbn.com/business/06/03/16/duterte-improve-internet-services-or-face-foreign-players iv “SONA 2016: Duterte vows faster internet, free Wi-Fi.” rappler.com. Rappler, date last updated 25 July
2016. Web. Date accessed 13 October 2016. http://www.rappler.com/business/industries/telecommunications-and-media/140896-duterte-sona-2016-internet-speed v Quote: “The population of the Philippines as of August 1, 2015 was 100,981,437, based on the 2015 Census of
Population (POPCEN 2015).” “Highlights of the Philippine Population, 2015 Census of Population, Reference Number: 2016-058.” psa.gov.ph. Philippine Statistics Authority, date last updated 19 May 2016. Web. Date accessed 13 October 2016. https://www.psa.gov.ph/content/highlights-philippine-population-2015-census-population vi NTC Memorandum Circular 07-08-2015, “Rules on the Measurement of Fixed Broadband/Internet Access
Service” vii
“ICT Statistics Home Page, Time Series By Country (Until 2015), Fixed Telephone Subscriptions (excel).” itu.int. International Telecommunications Union. Web. Date accessed 13 October 2016. http://www.itu.int/en/ITU-D/Statistics/Documents/statistics/2016/Fixed_tel_2000-2015.xls viii
“ICT Statistics Home Page, Time Series By Country (Until 2015), Mobile-cellular subscriptions (excel).” itu.int. International Telecommunications Union. Web. Date accessed 13 October 2016. http://www.itu.int/en/ITU-D/Statistics/Documents/statistics/2016/Fixed_tel_2000-2015.xls ix “The Philippines in View: Executive Summary.” casbaa.com. Cable and Satellite Broadcasting Association of Asia,
date last updated May 2010. Web. Date accessed 13 October 2016. http://www.casbaa.com/mobile/Publications/CASBAA%20Philippines%20in%20View%20Report%20Exec%20Summ%202010.pdf
x Extrapolation and estimate from SkyCable (biggest market share) data.
“Investor Presentation, UBS Investor Forum, Hong Kong & Singapore (August 2016).” corporate.abs-cbn.com. ABS-CBN Investor Relations, last updated August 2016. Web. Date accessed 13 October 2016. http://data-careers.abs-cbn.com.s3.amazonaws.com/investorrelations/1474860951_abs-cbn-presentation-aug-2016-v3.pdf
xi “The State of Broadband 2016: Broadband Catalyzing Sustainable Development, Annex 2: Fixed-Broadband
Subscriptions per 100 inhabitants.” broadbandcommission.org. Broadband Commission for Sustainable Development, date last updated 15 September 2016. Web. Date accessed 13 October 2016. http://www.itu.int/dms_pub/itu-s/opb/pol/S-POL-BROADBAND.17-2016-PDF-E.pdf xii
“The State of Broadband 2016: Broadband Catalyzing Sustainable Development, Annex 3: Active Mobile-Broadband Subscriptions per 100 inhabitants.” broadbandcommission.org. Broadband Commission for Sustainable Development, date last updated 15 September 2016. Web. Date accessed 13 October 2016. http://www.itu.int/dms_pub/itu-s/opb/pol/S-POL-BROADBAND.17-2016-PDF-E.pdf xiii
“Digital, Social & Mobile in APAC in 2015.” wearesocial.com. We Are Social, date last updated 11 March 2015. Web. Date accessed 14 October 2016. http://wearesocial.com/sg/special-reports/digital-social-mobile-in-apac-in-2015
“The State of Broadband 2016: Broadband Catalyzing Sustainable Development, Annex 4: Percentage of households with Internet, Developing Countries, 2015.” broadbandcommission.org. Broadband Commission for Sustainable Development, date last updated 15 September 2016. Web. Date accessed 13 October 2016. http://www.itu.int/dms_pub/itu-s/opb/pol/S-POL-BROADBAND.17-2016-PDF-E.pdf xv
Quote: “The Philippines currently has a modest 52-percent Internet penetration rate, nearly doubled in the past four years from 27-percent in 2010. The average connection speed is about 2.1 Mbps, with a little above 8-percent of the users enjoying connection speeds faster than 4 Mbps. In terms of user devices, laptops (45%) are the most preferred over desktops and mobile devices for Internet access. However, with only 20-percent of the total households having computers, a significant portion of the population still do not benefit from the Internet access despite the fact that each Filipino owns at least one phone or mobile device. “Data from the Department of Education as of April 2014 elucidates the situation well:
Public School
Count w/ Internet Connection w/ Grid Supply
None Wired Wireless No Yes ND
Primary 38,683 85.8% 6.8% 7.4% 17.4% 82.5% 0.1%
Secondary 7,915 44.9% 22.3% 32.8% 8.3% 91.6% 0.1%
Total 46,598 78.8% 9.5% 11.7% 15.9% 84.0% 0.1%
“The 85.8% of the 38,683 public elementary schools not having an Internet connection strongly suggests that many areas remain underserved or unserved with respect to broadband service. According to the large telecommunication companies, about half of the 1,496 municipalities are connected using pre-Internet technologies that limit the services they can deliver which includes broadband Internet. When asked if these cannot be upgraded, the general reply is that the market would not support the necessary ROI.” (emphasis supplied) “Free Wi-Fi Internet Access in Public Places Project Terms of Reference (TOR).” dict.gov.ph. Department of Information and Communications Technology, date last updated 04 March 2016. Web. Date accessed 13 October 2016. http://freepublicwifi.gov.ph/wp-content/uploads/2016/03/Free-Wi-Fi-Project-TOR.pdf xvi
“The State of Broadband 2016: Broadband Catalyzing Sustainable Development, Annex 5: Percentage of Individuals using the Internet, 2015.” broadbandcommission.org. Broadband Commission for Sustainable Development, date last updated 15 September 2016. Web. Date accessed 13 October 2016. http://www.itu.int/dms_pub/itu-s/opb/pol/S-POL-BROADBAND.17-2016-PDF-E.pdf xvii
“Digital, Social & Mobile in APAC in 2015.” wearesocial.com. We Are Social, date last updated 11 March 2015. Web. Date accessed 14 October 2016. http://wearesocial.com/sg/special-reports/digital-social-mobile-in-apac-in-2015 xviii
“Digital, Social & Mobile in APAC in 2015.” wearesocial.com. We Are Social, date last updated 11 March 2015. Web. Date accessed 14 October 2016. http://wearesocial.com/sg/special-reports/digital-social-mobile-in-apac-in-2015 xix
“akamai’s [state of the internet] Q2 2016 report.” akamai.com. Akamai, date last updated Q2 2016. Web. Date accessed 13 October 2016. https://www.akamai.com/us/en/multimedia/documents/state-of-the-internet/akamai-state-of-the-internet-connectivity-report-q2-2016.pdf
“Global State of Mobile Networks (August 2016): Overall Speed Comparison.” opensignal.com. OpenSignal. Web. Date accessed 13 October 2016. https://opensignal.com/reports/2016/08/global-state-of-the-mobile-network/
A dissimilar report on mobile internet speed is provided by Akamai, in that the average internet connection speed of mobile is 8.5 Mbps. “akamai’s [state of the internet] Q2 2016 report.” akamai.com. Akamai, date last updated Q2 2016. Web. Date accessed 13 October 2016. https://www.akamai.com/us/en/multimedia/documents/state-of-the-internet/akamai-state-of-the-internet-connectivity-report-q2-2016.pdf
NB. As indicated, the data set is for fewer than 25,000 devices. xxii
NTC Memorandum Circular 07-08-2015, “Rules on the Measurement of Fixed Broadband/Internet Access Service” xxiii
“Global State of Mobile Networks (August 2016): 3G/4G Availability Comparison.” opensignal.com. OpenSignal. Web. Date accessed 13 October 2016. https://opensignal.com/reports/2016/08/global-state-of-the-mobile-network/
NTC Memorandum Order 07-07-2011, “Minimum Speed of Broadband Connections” xxv
Quote: “In 2016 we crossed the border of 50-percent penetration of the smartphone and when that happens movement away from traditional voice and SMS or legacy voice and SMS will simply accelerate. People will be using VOIP type of communication or messaging platforms like the ones you mentioned—the Vibers, the WhatsApps, the Telegrams, the Line, and the WeChats of the world. And our job is to really fortify revenues by having people consume more data as we shift the revenue base from voice and SMS into data.” (emphasis supplied) “FULL TEXT: Interview with Globe President and CEO, Ernest Cu.” inquirer.net. Philippine Daily Inquirer, date last updated 11 October 2016. Web. Date accessed 14 October 2016. http://business.inquirer.net/216411/full-text-interview-with-globe-president-and-ceo-ernest-cu
“PLDT, Globe cement duopoly in Philippine telecom despite antitrust concerns.” asia.nikkei.com. Nikkei Asian Review, date last updated 31 May 2016. Web. Date accessed 14 October 2016. http://asia.nikkei.com/Business/AC/PLDT-Globe-cement-duopoly-in-Philippine-telecom-despite-antitrust-concerns xxvii
“3 reasons why Telstra is the savior of Philippine Internet.” astig.ph. ASTIG.PH, date last updated 30 Oct 2015. Web. Date accessed 14 October 2016. http://astig.ph/telstra-phliippines-internet/ xxviii
Quote: “’A new player in the ICT space will lead to more competition that we hope will result in better services, more reasonable costs and greater penetration and access,’ he said. ‘We also hope that this heralds the possibility of faster, more reliable and cheaper Internet and network services to the public.’ However, this would prove to be a threat to the incumbent vendors.” “PLDT, Globe ready to battle with Telstra.” businessmirror.com.ph. BusinessMirror, date last updated 09 September 2015. Web. Date accessed 14 October 2016. http://www.businessmirror.com.ph/pldt-globe-ready-to-battle-with-telstra/ xxix
“Filipinos fume as slow internet leaves business on ice.” chinadailyasia.com. ChinaDaily Asia, date last updated 18 July 2016. Web. Date accessed 14 October 2016. http://www.chinadailyasia.com/eyeonasia/2016-07/18/content_15464457.html xxx
Quote: “John Nery: One implication, does that mean there is in fact no space for a third player in the Philippines?
“Ernest Cu: I wouldn’t say no space, but I say it’s a very difficult space to get into. I wouldn’t want to say never is never. I guess the question becomes, ‘Is there a need for a third player?’ Telcos are spending a lot of money into their networks. If you’re looking for a third player to prod us to spend, there’s no need to do that. “John Nery: What if you were to consider the government as the third player, I mean they helped build the infrastructure. “Ernest Cu: I wouldn’t want to speak ill of government, but telco is very involved operation, very, you would say, sensitive to how assets are maintained and optimized. I don’t think our government in the past has shown a very good track record of building something and maintaining it, that’s the usual problem. Because this thing requires constant tweaking almost nightly, daily. So from that point of view, I think that’s quite difficult. “But again I go back to the issue why is a third player needed. Is that the panacea or the solution to this whole thing when you are seeing telcos like us at least for us? We are spending about 30 percent of our revenue back into the capex base. That’s a lot. Out of a 120 billion projected revenue, that’s 36 billion that we’re going to pump back into the infrastructure, and probably more this year because of the 700(MHz frequency) we were granted rights to use. “The other thing is competition. I think someone would be hard pressed to prove that there is no competition between the PLDT group and the Globe group. I think if you see the way pricing has gone down in this market. 700MB of data for three days along with unlimited texting to all networks from Globe for 50 pesos. I think the only country that beats us in price is India, but in India you would get a very inferior data experience.
“So I think that price (data) has gone down. In January of this year, at 50 pesos you would only get 350MB. Today it’s close to a Gig with free Facebook, too. So the prices are coming down and there’s definitely competition. “John Nery: Is that a long-term trend or is that a temporary one? “Ernest Cu: I think it’s a long-term trend because from what I’ve been seeing with my eight years in Globe, we’ve been seeing general price reductions across the board because of the intense competition, because there’s been quite a movement by us and our group here to continually gain market share and fortify position in the market, and that, of course, creates competition from the other side. “John Nery: We’ve spent the last 15 minutes talking about the challenges the telco industry faces. One more question about the challenge, you referred to this. This was the second development in 2016: The acquisition of the stranded assets has led to the new Philippine Competition Commission objective. Can you give us an idea of where you stand on this? “Ernest Cu: I’ll tread carefully given the lawsuit, but anyway our position is very clear that the transaction was or should be deemed approved given the rules in existence at the time during the transaction. Just my opinion is that, the essence of a competition commission should be to ensure that competition does exist in the marketplace. As a I told you earlier it’d be hard-pressed to prove that it isn’t, given the pricing pressures, given the seeming price war that has erupted on data and the competitive positions that the two players have put themselves in. And by the way there has not been resistance from us to say ‘Yes, watch the industry from a competitive point of view.’ Because it is their job. At times, of course, it will help us as well, because, you know, to ensure that there are no anti-competitive practices being employed by both sides. We like playing on a level playing field and play fair and if they can help assure that, then more power to them.” (emphasis supplied)
“FULL TEXT: Interview with Globe President and CEO, Ernest Cu.” inquirer.net. Philippine Daily Inquirer, date last updated 11 October 2016. Web. Date accessed 14 October 2016. http://business.inquirer.net/216411/full-text-interview-with-globe-president-and-ceo-ernest-cu xxxi
Jamison, Mark. “Methods for Increasing Competition in Telecommunications Markets.” 2012. Public Utility Research Center, University of Florida. Web. Date accessed 14 October 2016. http://regulationbodyofknowledge.org/wp-content/uploads/2013/03/Jamison_Methods_for_Increasing.pdf Quote: “Most recently a simple set of metrics emerged, namely that there should be at least 5 reasonably comparable rivals, none of the firms should have more than a 40 percent market share, and entry by new competitors must be easy.” xxxii
“PLDT Home widens market share in Q3.” philstar.com. The Philippine Star, date last updated 15 November 2016. Web. Date accessed 15 October 2016. http://www.philstar.com/business/2015/11/15/1521927/pldt-home-widens-market-share-q3 xxxiii
“The marriage of PLDT and Globe.” bworldonline.com. BusinessWorld, date last updated 06 June 2016. Web. Date accessed 15 October 2016. http://www.bworldonline.com/content.php?section=Opinion&title=the-marriage-of-pldt-and-globe&id=128557
Mirandilla-Santos, Mary Grace. “A Reliable and Affordable Philippine Internet: Are We Getting There?” Senate Centennial Lecture Series, 06 October 2016. Senate of the Philippines. xxxv
ABS-CBN v Philippine Multimedia System, G.R. Nos. 175769-70, July 19, 2009. sc.judiciary.gov.ph. Supreme Court of the Philippines. Web. Date accessed 15 October 2016. http://sc.judiciary.gov.ph/jurisprudence/2009/jan2009/175769-70.htm xxxvi
“Debating the Philippines' spectrum dilemma.” telecomasia.net. TelecomAsia.Net, date last updated 01 February 2016. Web. Date accessed 15 October 2016. http://www.telecomasia.net/blog/content/debating-philippines-spectrum-dilemma . xxxvii
Quote: "In a typical auction, participants bid for exclusive rights to a particular band for a given period of time." (emphasis supplied) Davies, Ron. “Radio spectrum: A key resource for the Digital Single Market.” europarl.europa.eu. March 2015. European Parliamentary Research Service, date last updated March 2015 Web. Date accessed 15 October 2016. http://www.europarl.europa.eu/EPRS/EPRS-Briefing-554170-Radio-Spectrum-FINAL.pdf xxxviii
“FCC Reaffirms Pro-Competitive Reserve Spectrum in Incentive Auction.” fcc.gov. Federal Communications Commission, date last updated 24 August 2015. Web. Date accessed 15 October 2016. https://www.fcc.gov/document/fcc-reaffirms-pro-competitive-reserve-spectrum-incentive-auction (synopsis)/ https://apps.fcc.gov/edocs_public/attachmatch/FCC-15-79A1_Rcd.pdf (FCC record) xxxix
“Spectrum auction expected in Q3 this year to facilitate entry of 4th telco.” channelnewsasia.com. Channel News Asia, date last updated 18 February 2016. Web. Date accessed 15 October 2016. http://www.channelnewsasia.com/news/business/spectrum-auction-expected/2526348.html xl “OFCA releases official statement on 3G reallocation.” telegeography.com. Telegeography, date last
updated 09 December 2016. Web. Date accessed 15 October 2016. https://www.telegeography.com/products/commsupdate/articles/2013/12/09/ofca-releases-official-statement-on-3g-reallocation/ xli
“Thailand to launch 4G auction on 11 November, but regulator increases reserve price.” telegeography.com. Telegeography, date last updated 24 August 2015. Web. Date accessed 15 October 2016. https://www.telegeography.com/products/commsupdate/articles/2015/08/24/thailand-to-launch-4g-auction-on-11-november-but-regulator-increases-reserve-price/ xlii
“Ofcom approves 2G and 3G spectrum refarming.” telecoms.com. Telecoms.com, date last updated 11 July 2013. Web. Date accessed 15 October 2016. http://telecoms.com/161582/ofcom-approves-2g-and-3g-spectrum-refarming/ xliii
“900 MHz and 1800 MHz band refarming case study: France.” gsma.com. GSM Association, date last updated 30 November 2011. Web. Date accessed 15 October 2016. http://www.gsma.com/spectrum/wp-content/uploads/2012/04/refarmingcasestudyfrance20111130.pdf xliv
“UPDATE 1-AIS wins last Thailand 4G licence in uncontested auction.” reuters.com. Reuters, date last updated 27 May 2016. Web. Date accessed 15 October 2016. http://www.reuters.com/article/thailand-telecoms-4g-idUSL3N18O1OM
“The 700 MHz Frequency and the Philippine Telecom Duopoly.” bulatlat.com. Bulatlat, date last updated 26 June 2016. Web. Date accessed 15 October 2016. http://bulatlat.com/main/2016/06/26/the-700-mhz-frequency-and-the-philippine-telecom-duopoly/ xlvi
* Globe Telecom has been alleged to have been illegally using Altimax’s spectrum. “Unauthorized frequency use.” philstar.com. The Philippine Star, date last updated 13 January 2016. Web. Date accessed 17 October 2016. http://www.philstar.com/business/2016/01/13/1541890/unauthorized-frequency-use xlvii
“Preliminary Statement of Concerns: JOINT ACQUISITION BY PHILIPPINE LONG DISTANCE TELEPHONE COMPANY AND GLOBE TELECOM, INC. OF VEGA TELECOM, INC., BOW ARKEN HOLDING COMPANY, INC. AND BRIGHTSHARE HOLDINGS CORPORATION M-037/2016.” phcc.gov.ph. Philippine Competition Commission, date last updated 25 August 2016. Web. Date accessed 15 October 2016. http://phcc.gov.ph/preliminary-statement-concerns/ xlviii
“PLDT tells PCC: Shut up.” inquirer.net. Philippine Daily Inquirer, date last updated 11 October 2015. Web. Date accessed 15 October 2016. http://business.inquirer.net/216424/pldt-tells-pcc-shut-up xlix
“CA upholds ruling on Globe Tel vs PCC.” mb.com.ph. Manila Bulletin, date last updated 13 October 2015. Web. Date accessed 15 October 2016. http://www.mb.com.ph/ca-upholds-ruling-on-globe-tel-vs-pcc/ l “PLDT, ABS-CBN link up for video streaming.” philstar.com. The Philippine Star, date last updated 28 September 2016. Web. Date accessed 15 October 2016. http://www.philstar.com/business/2016/09/28/1627988/pldt-abs-cbn-link-video-streaming li “Tokyo Statistical Yearbook 2014, 2 Population and Households, 2-3 Population by District (excel).”
toukei.metro.tokyo.jp. Statistics of Tokyo. Web. Date accessed 15 October 2016. http://www.toukei.metro.tokyo.jp/tnenkan/2014/tn14qa020300.xls lii Quote: “Ernest Cu: It’s always been there, whether we get there or not is another question. Like for many
years running it’s always been an endeavor to do the 1,000 per year but we only get between 450 and 500. That’s why if you look at the Philippines, we have 15,000-16,000 cell sites between the two telcos. And a city like Tokyo will have 22,000 in itself. So there’s not enough sites. China, this massive country has 1.2 million cell sites because they can pretty much build cell sites at will. To add to that in the Philippines there’s no sharing of sites. So if you look at the 16,000 we have much of that is duplicate. It’s not incremental to each other because of the facilities.” “FULL TEXT: Interview with Globe President and CEO, Ernest Cu.” inquirer.net. Philippine Daily Inquirer, date last updated 11 October 2016. Web. Date accessed 15 October 2016. http://business.inquirer.net/216411/full-textinterview-with-globe-president-and-ceo-ernest-cu liii
“SONA 2016: Duterte vows faster internet, free Wi-Fi.” rappler.com. Rappler, date last updated 25 July 2016. Web. Date accessed 13 October 2016. http://www.rappler.com/business/industries/telecommunications-and-media/140896-duterte-sona-2016-internet-speed liv
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lv “NTC’s pass-the-buck strategy.” manilatimes.net. The Manila Times, date last updated 06 June 2016.
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Submitted by Engr. Pierre Tito Galla, PECE, on behalf of Democracy.Net.PH, to the Office of the President and attached agencies, 19 October 2016. About Democracy.Net.PH:
Democracy.Net.PH was founded in response to the need to address the issues that resulted to poorly-crafted legislation and policy development in the information and communications technology (ICT) space. An ICT and civil rights advocacy movement, since 2012 Democracy.Net.PH has been actively involved in efforts to improve Philippine ICT legislation and policy development, measures to improve internet connectivity access and penetration, quality of service, cyberdefense and cybersecurity, in cooperation with international, national, and local government and non-government organizations.
About the author:
Engr. Pierre Tito Galla, PECE, is a co-founder and co-convener of Democracy.Net.PH. A professional electronics engineer with nearly two decades of training and experience in the ICT sector, Engr. Galla has helped spearhead and push various ICT-related measures, such as the proposed Magna Carta for Philippine Internet Freedom, the enactment of the Department of Information and Communications Technology (DICT) law, draft regulations for quality of service standards for internet connectivity, and cyberdefense, cybersecurity, and social media policies for the private sector and for national and local government agencies, the military, and law enforcement.
