Top Issues of PH Telecoms Consumers

Mary Grace Mirandilla-Santos

March 9, 2017 | 1st Philippine Telecoms Summit

PH Telecoms Access (per 100 persons, 1992-2015)

1.03 1.65 1.65 2.55 2.86 3.41 3.87 3.9 4.2 4.1 4.0 4.1 3.9 4.2 4.4 4.5 4.5 3.6 3.7 4.1 3.2 3.2 3.0 0 0 0 0 0 0 0

8.3

15.3 19.0

27.3

39.1 40.5

49.1

64.5

75.4

82.3

89.0

99.1

105.0 104.5

111.2 118.1

2.0 2.5 4.3 4.9 5.2 5.4 5.7 6.0 6.2

9.0

25.0 29.0

36.2 37.0 39.7 40.7

0

20

40

60

80

100

120

140

Fixed Line Subscription (per 100 persons) Mobile Phone Subscription (per 100 persons) Internet Use (per 100 persons)

per

10

0 p

erso

ns

MOBILE

INTERNET

FIXED LINE

Sou

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Fixed Line and Mobile Phone Subscription,

Internet Use

Broadband Commission Targets

Making broadband policy universal and boosting affordability and broadband uptake:

Target 1: Making broadband policy universal. By 2015, all countries should have a national broadband plan or strategy or include broadband in their Universal Access / Service Definitions.

Target 2: Making broadband affordable. By 2015, entry-level broadband services should be made affordable in developing countries through adequate regulation and market forces (amounting to less than 5% of average monthly income).

Broadband Commission Targets

Target 3: Connecting homes to broadband. By 2015, 40% of households in developing countries should have Internet access.

Target 4: Getting people online. By 2015, Internet user penetration should reach 60% worldwide, 50% in developing countries and 15% in LDCs.

Who are connected?

2010: 9.5

2015: 28.3

Household with Internet Fixed broadband Mobile broadband 2010: 2.3

2015: 41.6

3x

19x

2010: 1.8 2015: 3.4 2x

per 100 population

Who are not connected?

of 101 million citizens

of 22.98 million households

of 46,700+ public schools

Sou

rce:

Bro

adb

and

Co

mm

issi

on

; D

epEd

, 20

16

How does PH fixed broadband fare? A

vera

ge s

pee

d (

in M

bp

s)

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Aka

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, Sta

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tern

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01

1-2

01

6

0

2

4

6

8

10

12

Thailand Malaysia China Viet Nam Indonesia India Philippines

Fixed Broadband Average Speed, 2011-2016 (in Mbps)

2011 2012 2013 2014 2015 2016

309% ave. growth

522% ave. growth

379% ave. growth

453% ave. growth

Philippine fixed Internet performance started improving in 2015, and continued in 2016.

2009 2010 2011 2012 2013 2014 2015 2016 2017

PHILIPPINES

THAILAND

MALAYSIA

VIET NAM

INDONESIA

CAMBODIA

MYANMAR

How does PH fixed broadband fare?

What happened in 2015-2016? PEERING

2009 2010 2011 2012 2013 2014 2015 2016 2017

PUBLIC 41.92 Mbps

TELCO 8.23 Mbps

PRIVATE 7.36 Mbps

Which entities had the most impact on PH Internet speed?

Public institutions: - Public universities - Government agencies - Research centers and institutions

Are peered networks faster?

2009 2010 2011 2012 2013 2014 2015 2016 2017

PEERED

NOT PEERED

YES!

How does PH mobile broadband fare?

PH mobile broadband overall speed ranked 2nd slowest in the world in Feb 2017.

Sou

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Op

en S

ign

al, G

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of

Mo

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Net

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rks,

20

16

3.33

4.17

4.72

6.09

7.86

12.61

21.79

30.05

37.54

0 5 10 15 20 25 30 35 40

Philippines

India

Indonesia

Thailand

Malaysia

Hong Kong

Japan

Singapore

South Korea

Overall 3G/4G Speed Comparison (in Mbps)

Average speed (in Mbps)

How does PH mobile broadband fare?

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6

Akamai’s State of the Internet report included the Philippines in its mobile connectivity report starting in Q2 2016.

PH mobile broadband average speed seen leading APAC, at 13.9Mbps.

However, Akamai notes that the Philippines did not meet the minimum requirement of 25,000 unique IPv4 addresses seen by Akamai and identified as coming from a mobile network.

The Philippines does not qualify for, and was not included in, the analysis, but its data is included for reference.

“Akamai is working with mobile carriers within the Philippines to better understand their mobile network architectures, but we are confident in the

validity of the reported speeds.”

How’s PH broadband user experience?

Sou

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NEasia

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37.25

21.63 26.65

33.04

23.00

4.00

16.00 11.00

21.67

1.68 4.56 3.15

10.94

0.00

10.00

20.00

30.00

40.00

50.00

60.00

70.00

80.00

90.00

100.00

Highest Average(per test)

Lowest Average(per test)

ISP A (averageoverall)

ISP B (averageoverall)

ISP C (averageoverall)

Actual vs. Advertised Speed (%)

2011 2013 2014

IDEALLY, PROMISED SPEED

IS REACHED 80% OF THE TIME.

Act

ual

Sp

eed

as

a %

of

Ad

vert

ised

Sp

eed

How is PH broadband user experience? Average Page Load Time

Philippines India Malaysia Indonesia Vietnam Thailand

4.71 secs 3.87 secs 3.53 secs 3.38 secs 2.81 secs 2.79 secs

Does PH Internet give value for money?

Philippine vs. select SA & SEA ISPs

0

50

100

150

200

250

300

0800 H 1100 H 1500 H 1800 H 2000 H 2300 H

Airtel 3G (4Mbps)-Bangalore,IN

Tata (3.1Mbps)-Chennai,LK

Airtel (4Mbps)-Delhi,IN

Airtel LTE (4Mbps)-Bangalore,IN

Ooredoo Data 99 (7Mbps)-Male,MV

Dhiraagu Data 200 (1Mbps)-Male,MV

Ncell (7.2Mbps)-Kathmandu,NP

PTCL Evo (9.3Mbps)-Karachi,PK

Etisalat (7.2Mbps)-Colombo,LK

Telkomsel Flash Ultima(3.6Mbps)-Jakarta,ID

SMART Bro Starter Plug-it (7.2 Mbps)-Manila,PH*

Globe Tattoo 4G Flash(7.2 Mbps)-Manila,PH*

Sun Broadband Plan 799 (3.6Mbps)-Manila,PH

kbp

s p

er U

SD

THE HIGHER, THE BETTER! IDEALLY, MORE KBPS PER USD

Download speed:

Actual speed never reached advertised speed, not even once

Highest average of actual speed by an ISP was 26.65% of advertised speed

Speed performance declined for all ISPs tested year on year

Sign of network congestion in the last mile?

Value for money:

Low value for money; Highest kbps per peso attained was 1kbps/PH peso;

Decreasing value for money per ISP; consumers are paying more for less!

PH ISPs offered lowest value for money among SA and SEA ISPs tested

Summary of LIRNEasia results

Is PH broadband affordable?

Sou

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: ITU

, Mea

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Info

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01

5-2

01

6

0.70 1.32

2.00

3.10 3.11 3.58 3.63

5.28

8.27

11.84

12.64

0.63 1.29

1.79 1.11

9.51

3.12

3.89

5.11

7.53

13.31

14.2

0.00

2.00

4.00

6.00

8.00

10.00

12.00

14.00

16.00

SG ROK VN MLY INO PRC THA IND PHL LAO CAM

FIXED broadband (as % of GNI per capita)

2014 2015

5% Affordability Target

% o

f G

NI p

er c

apit

a

Is PH broadband affordable?

0.35

1.16

2.49

1.69 1.56

3.15 3.13

3.92

5.15

8.27

0.31 0.43

1.21 1.32 1.36

2.35

2.98

3.52

4.88

6.74

0

1

2

3

4

5

6

7

8

9

SG ROK THA MLY INO CAM IND VN LAO PHL

MOBILE broadband (postpaid, 1GB) (as % of GNI per capita)

2014 2015

5% Affordability Target

% o

f G

NI p

er c

apit

a

Sou

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: ITU

, Mea

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ng

the

Info

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01

5-2

01

6

Is PH broadband affordable?

0.26

0.99

2.53

1.38 1.13

2.47

7.31

2.48

4.12

0.16 0.22

0.78 0.88 1.18 1.21

1.36 1.5

2.20

3.09

4.44

0

1

2

3

4

5

6

7

8

SG ROK PRC MLY CAM THA INO PHL VN IND LAO

Mobile broadband (prepaid, 500MB) (as % of GNI per capita)

2014 2015

5% Affordability Target

% o

f G

NI p

er c

apit

a

Is PH broadband affordable?

The Inclusive Internet: Mapping Progress 2017

Philippines ranks in the lower half of the Asian countries

included in the index, and 43th out of 75 overall.

Affordability rank is particularly low, at 20th out of 22 in Asia

• second-lowest score for competitive environment in the index, after

Ethiopia

• relatively high rank for the availability of relevant content (35th out of

75) is its strongest suit.

Inputs from Consumers (1)

Speed • Address limited/slow internet speeds available in most areas

• Review necessity of bandwidth capping to maintaining service quality

• Improve speed reliability during peak hours, and inclement weather

• Update the NTC’s service reliability standards to include metrics

• Address issue of misleading or inaccurate advertising on internet speeds and reliability

Cost • Improve cost vs. speed ratio; bring to levels at par w/ other countries

• Revamp internet service payment practices so that consumers don’t pay for interrupted or unacceptable service – No Service, No Pay!

• Pass the No Load Expiry Bill

Inputs from Consumers (2)

Coverage

• Speed-up fiber rollout so that service is not limited to urban areas

• Need public investment in passive infrastructure, to make it less costly to

lay out broadband

• Address interconnection issues for voice and text between major telcos

• Remove telco franchise requirement in rolling out broadband networks in

order to encourage competition

Other issues:

• Mandate improved customer service in the industry

• Create standards for resolution of customer complaints

• Review the fairness of postpaid plan contracts, especially lock-in period

• Eliminate spectrum hoarding

We are an alliance of citizens and stakeholders committed to supporting

initiatives that bring better broadband services to the Philippines.

We believe that efficient broadband connectivity is a key driver of the

Philippines’ economic growth and development.

We envision a Philippines where every individual, home, and business has

access to fast, reliable, and affordable broadband services anytime,

anywhere, and using any technology.

Our Call

We want a policy and regulatory environment that:

Promotes effective competition, a level playing field for service

providers, and freedom of choice for consumers

Adapts to innovation and encourages

collaboration among stakeholders

Ensures an open internet where

all voices and ideas are welcome

Our Call

Allows democratic access to

technology that enhances market

dynamism and fosters innovation

Protects consumer rights and welfare

Recommended Solutions

Regulation should be technology-neutral and service-oriented

• Modern-day regulation and best practice does not restrict technology use

• ISPs should be allowed to own and operate any type of network to deliver internet

Policy must be future-proof!

• Allow any internet technology to be used in the Philippines by any service provider

Recommended Solutions

Long-term: Open Access in Data Transmission

• Filed by Rep. Victor Yap in House, now being consolidated with

amendments to RA 7925

• Filed by Sen. Bam Aquino in Senate

Short-term: Future-proofing regulation

• Unleash the potential of new, alternative technologies (e.g.,

satellite broadband)

• Ensure that regulation adapts to, not stifle, innovation

Open Access

Unlock the market!

• Lower regulatory barriers and costs of entry for market

players offering internet service

Allow ISPs to build and operate their own network

o Requiring ISPs to use telco facilities defeats purpose of deregulation and competition

o Requiring Congressional franchise and NTC burdens entrepreneurs and suppresses innovation

Open Access

Adopt a technology-neutral framework

• Let’s not repeat same mistake as RA 7925, anchored on old telephone

Encourage market entry from smaller players

• Anyone can build and operate a network, esp communities

Promote transparency and level playing field

• No one entity can take a position of dominant market power.

Regulate only where necessary

• Spectrum allocation, interconnection, standards, net neutrality

Future-proofing regulation

Allow service providers to use any technology to deliver Internet

Declare as value-added service (VAS) new technologies used for internet service (e.g., satellite broadband)

Let innovation benefit all Filipinos

Many alternative technologies for universal access, especially for areas not reached by fiber and cellular networks (e.g., satellite, project loon, TVWS), but hampered by regulation

Unleash the potential of local ISPs and entrepreneurs to serve their communities

THANK YOU.

Thanks to everyone who contributed to the presentation: • John Bonsol

• Raul de Leon, IGDA Manila

• Carlo Subido

• Sam Matunog, ICT Davao

• Nestor Tiglao, Electrical and Electronics Engineering Institute, University of the Philippines

• John Forbes, The American Chamber of Commerce of the Philippines

• Vic

• Economic Policy Research Service, Congressional Policy and Budget Research Department, House of Representatives

• Internet Society – Philippines Chapter

• Democracy.net.ph

• Foundation for Media Alternatives