LIBERALIZATION OF TELECOMMUNICATION INDUSTRY

ON THE ENHANCEMENT OF INTERNET

CONNECTIVITY

Maria Theresa Rabuya

Eugene Nojara

Proponents
 SUMMARY

The objective of this proposal entitled “LIBERALIZATION OF

TELECOMMUNICATION INDUSTRY ON THE ENHANCMENT OF INTERNET

CONNECTIVITY” is to propose a solution on the slow and expensive internet

connectivity in the Philippines and to address these consequential issues

including the weighing down of overall economic efficiency due to slow but

expensive internet, and the slowing down of businesses and government

agencies’ performance. The proposal aims to suggest Amendment of NTC

Mandates and Liberalization of Telecommunication Industry as solutions to

the issues presented. This proposal will greatly benefit the Filipino people

especially those who have business, consumers and government agencies

that have increasingly become reliant on internet.

 Background and the Problem

After the different basic needs of life, the internet has become the

most important material for most human beings (Muldoon, 2012). Recently,

Philippines ranked as the second-slowest average among 22 countries in

Asia. With this slow yet very expensive internet, have resulted to

consequential issues such as the weighing down of overall economic

efficiency and the slowing down of businesses and government agencies’

performance especially for those that have become increasingly reliant on

internet (Marasigan, 2016).

Internet has already become a basic need for humans (Hazra, 2017),

therefore there is an urgency to look for solutions to this problem.

Legalization of Telecommunication Industry is a way to solve this dilemma

in where many public and private investors will be attracted to invest in this

industry (Ahmed, A. and Ahmed, G., 2019). Even though private

investments are helpful but government intervention in a comprehensive

approach is needed. Other developing and developed economies are

investing billions of dollars to improve their internet connectivity.

Amendment of NTC mandates is also another solution where it will reclassify

web access as a basic service wherein the regulator will have power over the

internet market in the Philippines. Making the internet a basic service

means the government will have the right to dictate the price and the speed

of the connection. (Marasigan, 2016). This proposal will greatly benefit the

Filipino people particularly businessmen, consumers and government

agencies that increasingly depends on internet.

 Proposed Solution to the Problem Presented

Legalization of Telecommunication Industry

There is a need for Philippines to have a universal-access fund. Private

investors are really helpful but government’s help is needed. The country

has charge for power, road usage and water but none in

telecommunications. There must be legislation for telecommunication

Industry. A national backbone should be made in order for the country to

not rely on the private investors alone.

IP Peering

After the legalization of Telecommunication Industry, peering between

Internet service providers (ISPs) comes in. Peering of Internet protocols (IPs)

will allow the exchange of Internet traffic among the providers of data-

service, and will make it faster for information transfer from one to another.

IP Peering will help Philippines attain a more robust, fault- and

attack-resistant network infrastructure that will result to low latency or less

“lag”.

Amendment of NTC Mandates

The National Telecommunications Commission (NTC) will make the

internet a basic service wherein the government has the right to control it.

Since there are already existing laws, the government will have to make use

of it and be creative as a regulator to do much within the limits of the law

and in order to issue the guidelines for a “minimum broadband speed” in

the country.

The average connection for a fixed-line broadband plan should be on

par with the standard of the International Telecommunications Union, or at

256 kilobits per second. The NTC will procure the Internet speed-test

technologies to enact the memo. Results will be published per area every

month. On the instance that subscribers will not enjoy the speed that were

advertised to them, they can file complaints before the regulator.

Cost Analysis

In cooperation with the Philippine government specifically NTC, this

proposal most likely will cost and will be budgeted for about Php 500 billion

for a period of two (2) to three (3) years.

Item Cost
Wifi Internet Towers Php 300 billion
Tools and Equipments Php 200 billion
Total: Php 500 billion

REFERENCES

Muldoon, K. (2012). The importance of good internet connection. Retrieved

 on August 23, 2019 from

https://www.kevinmuldoon.com/importance-good-internet-

connection/

Marasigan, L. (2016). PHL’S slow but expensive internet service. Retrieved

on August 23, 2019 from

https://businessmirror.com.ph/2016/10/13/phls-slow-but-

expensive-internet-service-4/