{"id":19593,"date":"2024-07-04T03:03:25","date_gmt":"2024-07-04T03:03:25","guid":{"rendered":"https:\/\/energybuzz.ph\/staging\/6915\/phl-fiber-broadband-adoption-extremely-challenging\/"},"modified":"2024-07-04T03:03:25","modified_gmt":"2024-07-04T03:03:25","slug":"phl-fiber-broadband-adoption-extremely-challenging","status":"publish","type":"post","link":"https:\/\/energybuzz.ph\/staging\/6915\/phl-fiber-broadband-adoption-extremely-challenging\/","title":{"rendered":"PHL fiber broadband adoption \u2018extremely challenging\u2019"},"content":{"rendered":"
\n

By Luisa Maria Jacinta C. <\/b>Jocson, <\/b><\/span>Reporter<\/i><\/p>\n

THE WIDER ADOPTION of <\/span>f<\/span>iber <\/span>broadband in the Philippines remains \u201cextremely challenging,\u201d but that may soon improve if the government successfully implements a project to roll out f<\/span>iber-optic infrastructure in last-mile areas, Fitch Solutions\u2019 unit BMI said.<\/p>\n

In a report, BMI said the Philippine Digital Infrastructure Project (PDIP), which was recently approved by the National Economic and Development Authority (NEDA) Board, will \u201ccatalyze further foreign investment in the Philippines\u2019 wider information and communications technology (ICT) ecosystem.\u201d<\/p>\n

\u201cAdoption of f<\/span>iber broadband at the household level remains extremely challenging in the Philippines, and the PDIP may only provide marginal upsides to our outlook,\u201d it said.<\/p>\n

BMI forecasts expect over 1.83 million FTTx (Fiber to the x) subscriptions in 2033, for a penetration rate of 1.4 every 100 people. This is higher than its 2024 FTTx forecast of 1.58 million subscribers with a penetration rate of 1.3 per 100 people.<\/p>\n

\u201cWe believe that obstacles to consistent and widespread fiber uptake remain the prices of packages in last-mile areas, particularly stemming from the elevated costs of rollout that are further increased by the Philippines\u2019 archipelagic configuration,\u201d it said.<\/span><\/p>\n

BMI said its forecasts ref<\/span>lect a consistent uptake for f<\/span>iber broadband among households in metro and suburban areas.<\/p>\n

\u201cExecution and project management will be key for the success of the PDIP to boost stronger fiber uptake among Philippine-based households. By extensively co-financing last-mile area rollout, wholesale network providers and internet service providers (ISPs) may be encouraged to further decrease prices on fiber bundles though at the expense of average revenue per user (ARPU) f<\/span>igures,\u201d it said.<\/p>\n

BMI said fiber broadband providers that also own the infrastructure are tweaking their strategies to boost uptake.<\/p>\n

\u201cConsumer interest in f<\/span>iber is evident and grounded in sizable mobile data traffic increases,\u201d it said.<\/p>\n

For example, it cited Globe Telecom, Inc.\u2019s mobile data traff<\/span>ic which grew to 1,600 exabytes (EB) in the fourth quarter of 2023 from 836 EB in the f<\/span>irst quarter of 2021.<\/p>\n

\u201cThat said, consumers have shown that they are not immediately able to (consistently) buy in long-term contracts with prices around P1,500 ($25.5).\u201d<\/p>\n

BMI noted that there have been efforts to introduce low-cost f<\/span>iber of<\/span>ferings, such as from Globe, PLDT Inc., and Converge ICT Solutions, Inc.<\/p>\n

\u201cRenewed government efforts to fiberize the Philippines\u2019 last-mile areas will be beneficial for the players with a large risk-seeking stance. Regardless, wider digital transformation ambitions and the attractiveness of the Philippines\u2019 ICT market are set to benefit from a stronger nationwide backbone and last-mile network density.\u201d <\/span><\/p>\n

Meanwhile, National Campaigner of digital advocacy group Digital Pinoys Ronald B. Gustilo said that the PDIP will help hasten the government\u2019s efforts to provide internet connection to disadvantaged areas.<\/p>\n

\u201cWe are hoping that this will also pave the way for the decrease in internet rates and the improvement of the quality of connectivity services,\u201d he said in a Viber message.<\/p>\n

Sam Jacoba, founding president of the National Association of Data Protection Off<\/span>icers of the Philippines, said that upgrading the country\u2019s digital infrastructure is the \u201cfoundation for the country to remain competitive in the global digital economy.\u201d<\/p>\n

\u201cIt is crucial that the investments will strategically target areas or segments in the country that will bolster digital economic activities, while bridging the digital divide,\u201d he said in a Viber message.<\/p>\n

Mr. Jacoba said there must also be a focus on digital skills training and enablement. Digital content creation initiatives should also be targeted to growth areas such as artif<\/span>icial intelligence, he said.<\/p>\n

\u201cHopefully, the digital economic impact of this loan-funded project will eventually pay for itself through the new digital businesses that it will create,\u201d he added.<\/p>\n

Mr. Gustilo also called for the strict implementation of Executive Order No. 32, which streamlines the processes for the construction of telecommunications and internet infrastructure. This would cut red tape and ensure the delivery of internet services to geographically isolated and disadvantaged areas, he added. <\/span><\/p>\n

The World Bank earlier reported that household penetration for fixed broadband in the Philippines stood at 33% in 2022.<\/p>\n

The cost of fixed broadband was more than four times more expensive than Malaysia and Vietnam and more than double the Southeast Asian average, it added.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

THE WIDER ADOPTION of fiber broadband in the Philippines remains \u201cextremely challenging,\u201d but that may soon improve if the government successfully implements a project to roll out fiber-optic infrastructure in last-mile areas, Fitch Solutions\u2019 unit BMI said.<\/div>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"nf_dc_page":"","footnotes":""},"categories":[1],"tags":[5442,16227,8058,14644,6982,16263,11354],"class_list":["post-19593","post","type-post","status-publish","format-standard","hentry","category-uncategorized","tag-extremely","tag-adoption","tag-broadband","tag-bworldonline","tag-challenging","tag-fiber","tag-phl"],"yoast_head":"\nPHL fiber broadband adoption \u2018extremely challenging\u2019 - Energy Buzz<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/energybuzz.ph\/phl-fiber-broadband-adoption-extremely-challenging\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"PHL fiber broadband adoption \u2018extremely challenging\u2019 - 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