Enhance our Digital Infrastructures by prioritizing the National Broadband Plan

January 28, 2021

Over the course of the evolving COVID-19 pandemic crisis, digital platforms and the critical infrastructures that support them have proven to be an essential tool in meeting the challenges of the times and addressing the needs of the consuming public. Despite the economic downturn, the spike in unemployment, rising prices, and disrupted supply chains caused by the pandemic, the rapid digitalization of Filipino life allowed families to receive cash-free amelioration, receive payments for household enterprises, and set up online selling communities that helped keep the economy afloat.

At a recent virtual town hall discussion held by the Stratbase ADR Institute in partnership with the Philippine American Academy of Science and Engineering, representatives from key tech players such as Amazon, Google, Netflix, Grab, and GCash spoke at length about the direct positive economic benefits made possible by digital technologies and advancing innovations for surviving the health risks and difficulties of the pandemic.

Ms. Karen Yang Chiang, Head of Enterprise Architecture and Innovation of GCash shared that “that 66% of Filipinos do not have bank accounts, only less than 5% have access to credit cards or investment tools. Only 36% have access to a physical bank. However, what’s good about the Philippines is that we’re a mobile-heavy society. So, we have 134 million SIM subscriptions and 65% of adults already use smartphones, and 76 million internet users.”

She reported that Globe Telecom’s mobile based financial service has kept the economy moving by servicing over half a million social sellers and over a trillion pesos in Gross Transaction Value for 33 million users in 2020. She went on to add that their platform also gives users access to affordable investments, insurance, savings, and loans, thus addressing the needs of underbanked Filipino consumers. Their company was also responsible for SAP distribution in the early days of the pandemic and for transmitting cash aid to typhoon victims.

However, the online services that consumers are now heavily dependent may be disrupted when the existing, already congested, digital infrastructure is not quickly and extensively expanded. The pace of investment borne primarily by the private telcos is not enough to keep with the surging demand for fast internet.

CitizenWatch Philippines urges government to prioritize the implementation of the National Broadband Plan designed to light up an existing fiber optic network that will serve as a broadband backbone to deliver high speed connectivity nationwide. The government must take the lead in digital infrastructure building by its ability to secure developmental loans that will build a world class telecommunications network. These are sound investments that, instead of sinking into consumption expenses, will instead become a national asset that will boost long term economic growth for every industry of the country. This is a strategy that other ASEAN countries are already racing to operationalize.

We can only emerge from the COVID-crisis as a competitive economy if we can keep up with an increasingly digitally driven global economy.

We cannot, and should not, be left behind in the new digital world.