POLICY BRIEF FOR IIID 2017-031 YAMBOT, ARIELLE O.

PA 243 (PROGRAM AND PROJECT DEVELOPMENT)

ESTABLISHING COMMUNITY CELLULAR NETWORKS IN THE PHILIPPINES

Mobile connectivity has become an integral part of modern life, providing access to
information, education, healthcare, economic opportunities, and essential communication.
However, rural areas often face significant challenges in gaining access to reliable and affordable
mobile services. Bridging the digital divide between urban and rural regions is vital for ensuring
that all communities can enjoy the benefits of mobile technology.

EXECUTIVE SUMMARY

Mobile phones have greatly influenced economic development worldwide, with over five billion
subscribers globally. However, in remote parts of the Philippines, there is still a lack of cellular
coverage due to the high costs of establishing infrastructure where the user base is limited. A
potential solution is to use low-cost cellular infrastructure to make connectivity economically
viable in rural areas.

The Village Base Station (VBTS) project in the Philippines deployed low-cost GSM (2G) base
stations in remote areas, powered by solar energy and using VSAT links for connectivity. Local
communities operated these base stations, offering an alternative to traditional telco-owned
networks. However, the project faced two major challenges: spectrum usage and operating costs.
In the Philippines, GSM spectrum was already licensed to major telecom companies, making it
difficult for projects like VBTS to access. It required negotiations with telecommunication
companies to use their spectrum, hindering widespread access to communication technology.
Additionally, small communities struggled to sustain the operating costs of base stations, mainly
due to high backhaul expenses. Sharing VSAT links among neighboring communities was
considered, but the cost of VSAT subscriptions did not scale economically at higher bandwidths,
making it an unsustainable solution.

Hence the creation of the “Connecting Communities Through Mobile Networks” most commonly
known as CoCoMoNets project, aimed to expand on the success of VBTS in establishing
community cellular networks in the Philippines. They launched seven pilot sites in isolated coastal
communities, servicing over 2000 subscribers. The project explored various technologies for
network improvement, including GSM translation, dynamic spectrum allocation, and ocean buoy
relay.

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The proponents collaborated with local partners, conducted capacity-building trainings, and
assessed the social and economic impacts of mobile phone access. Users reported positive changes
in their lives, such as improved communication, economic transactions, and local governance. The
project faced challenges related to policy and governance, making it difficult for small
communities to establish their own community cellular networks. They recommended legal
institutionalization of such networks, exclusive frequency licenses, and support for scaling up.
They partnered with Globe Telecom which was instrumental in the project, but the termination of
their support led to the installation of a community WiFi network alongside the 2G VBTS network.
While this falls outside of the VBTS project’s original scope, they recognize the necessity of
offering an alternative communication channel for communities that have come to depend on the
VBTS service.

The project highlighted the importance of community cellular networks (CCNs) in providing
communication access, especially in underserved areas. It addresses the digital divide, empowers
local communities, and promotes inclusivity. As the need for mobile communication continues to
grow, CCNs offer an alternative model that champions community-driven connectivity and social
development.

SOCIETAL IMPACTS OF CELLULAR CONNECTIVITY

Connecting communities using mobile phones is an important and impactful endeavor, especially
in today’s interconnected world. Mobile phones offer various ways to facilitate communication
and collaboration among different communities. The following are some identified societal
impacts that the proponents identified upon the implementation of the project:

1. Voice Calls and SMS: Basic mobile phone features like voice calls and text messages are
essential for community members to stay in touch. This is particularly valuable in remote
or underprivileged areas where other forms of communication may not be readily available.
The FGDs conducted by the proponents to the community were based on oral history,
giving participants the freedom to share stories about the transformative effects of
community cellular networks. Users highlighted significant positive changes in their lives,
including reduced anxiety, better economic decision-making, and improved local
governance and access to social services through mobile communication.
2. Emergency Alerts: Mobile phones can be used for emergency alerts and notifications.
Authorities can send alerts for natural disasters, public health emergencies, or community-
specific warnings to ensure the safety of community members. Access to mobile
communication has significantly improved the ability of barangay officials and
coordinators to respond to various critical situations. This includes sending and receiving

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 typhoon warnings and announcements, addressing medical emergencies and accidents,
efficiently coordinating meetings, and reporting community issues to leaders.
3. Educational Resources: The VBTS networks have had a positive impact on younger
residents in the community. They found it easier to complete school research projects and
coordinate group activities. However, due to the lack of internet connectivity, they had to
rely on friends in areas with stable internet access to perform web searches for them,
reducing the need to travel outside their neighborhood.
4. Marketplace and E-commerce: Access to mobile communication, particularly through
VBTS networks, has led to time and cost savings in economic transactions. Users can
contact customers and suppliers in advance, stay updated on market prices, and benefit
from improved convenience in acquiring supplies and expanding their customer networks.
This access allows for more informed and rational economic decision-making.

CHALLENGES TO CELLULAR CONNECTIVITY

Cellular connectivity, while widespread, still faces various challenges even in more developed
urban and suburban areas. These challenges can affect the quality and reliability of mobile services.
A few challenges that were identified throughout the project that can be associated with cellular
connectivity are:

1. Lack of Infrastructure: Rural areas often lack the necessary infrastructure for mobile
connectivity, including cell towers, broadband backhaul, and electrical power sources. This
limits the reach of mobile networks.
2. Low Population Density: Rural areas typically have lower population densities, which
can make it less economically viable for telecom companies to invest in building and
maintaining network infrastructure.
3. Geographical Barriers: The rugged terrain in many rural areas, such as mountains,
forests, and valleys, can obstruct mobile signals and necessitate additional infrastructure to
cover the geographical challenges.
4. Limited Access to Electricity: Many rural areas lack a stable and reliable power supply,
making it challenging to keep mobile base stations and devices charged.
5. Economic Constraints: Rural populations often have lower incomes, which can affect
their ability to afford mobile devices and data plans. The absence of unlimited call and text
promotions, leading to expensive call and text charges, also dissuaded some of the
participants from continuing the use of their VBTS SIM cards.
6. Digital Literacy: There may be lower digital literacy rates in rural areas, which can affect
how well residents can use mobile technology effectively.
7. Regulatory and Licensing Issues: Government regulations and licensing requirements
can add complexities to expanding mobile networks in rural areas.

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 8. Security and Privacy Concerns: Rural areas may be more vulnerable to cybersecurity
threats due to limited resources and expertise. Ensuring the security and privacy of users’
data can be a challenge.
9. Spectrum Allocation: Spectrum allocation and management can be a challenge in rural
areas, particularly when it comes to allocating spectrum for high-speed mobile data
services.

Addressing these challenges requires a multi-faceted approach involving government policies,

private-sector investments, and community participation. Governments and regulatory bodies can
provide incentives to telecom providers to expand into rural areas, while public-private
partnerships can help fund infrastructure development. Community engagement and digital
literacy programs can improve the use of mobile technology, and innovative solutions like satellite-
based mobile services can help overcome geographic barriers. Efforts to improve and expand
network infrastructure, increase spectrum availability, enhance cybersecurity, and implement more
consumer-friendly policies can help overcome many of these challenges.

POLICY RECOMMENDATIONS

• Investment in Infrastructure
To extend cellular connectivity to rural areas, a crucial step is increased investment in
infrastructure. This includes the construction of additional cell towers and base stations,
and the deployment of advanced network technologies like 4G and 5G. The government
should encourage mobile service providers to invest in infrastructure development in these
underserved regions. Financial incentives and subsidies can play a crucial role in
motivating such investments.

• Shared Infrastructure
Infrastructure sharing among mobile network operators is another practical strategy to
improve connectivity in rural areas. Sharing cell towers, backhaul facilities, and other
resources can reduce costs and enhance coverage, making it more feasible for multiple
operators to serve the same region.

• Public-Private Partnerships
Collaboration between governments, private sector entities, and local communities is
essential to jointly fund and implement mobile connectivity projects in rural areas. Public-
private partnerships can leverage resources and expertise to make these projects more
sustainable and cost-effective.

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 • Regulatory Streamlining
Simplifying regulatory processes and reducing bureaucratic hurdles for mobile operators
in rural areas can significantly expedite infrastructure deployment. Streamlined permitting
and approvals encourage faster and more efficient connectivity expansion.

• Digital Literacy Programs

To maximize the benefits of mobile connectivity, digital literacy and training programs
should be launched in rural areas. These programs empower residents with the skills and
knowledge to effectively use mobile technology for personal and economic development.

• Data Privacy and Security

Implementing policies and regulations to protect the privacy and security of rural user’s
data is crucial. This fosters trust in the mobile services they use and safeguards sensitive
information.

• Mapping and Data Collection

Thorough mapping and data collection efforts are essential to identify underserved areas,
monitor progress in improving rural mobile connectivity, and inform decision-making. By
continuously evaluating the effectiveness of initiatives, governments and organizations can
make data-driven improvements.

• Monitor and Evaluate

Regular monitoring and evaluation of rural connectivity improvement efforts are essential.
Feedback and data should be collected, and adjustments made as necessary to ensure that
goals are met and resources are used effectively.

CONCLUSION

Enhancing mobile network coverage in remote regions is a complex undertaking that demands the
cooperation of government bodies, industry stakeholders, local communities, and technology
providers. The recommendations as stated above can help in the formulation of a comprehensive
roadmap for addressing the digital divide and ensuring that rural areas have access to reliable,
affordable, and transformative cellular connectivity. Bridging this gap is not just about providing
access to technology; it’s about empowering rural communities with the tools and opportunities
they need to thrive in the modern world.

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