The weak internet infrastructure, costly services, and limited network coverage in the Philippines are reportedly hindering the digital potential of Filipinos.
An April 2024 report from the World Bank noted the widening disparity between the rich and poor over broadband access. From 2019 to 2022, the digital divide expanded by 16 percentage points, which the report claims could deepen broader societal inequities.
A more detailed analysis of the digital divide is presented in the World Bank’s January 2024 policy report, entitled “Better Internet for All Filipinos: Reforms and Promoting Competition and Increasing Investment for Broadband Infrastructure.”
The report recognizes digitalization as a key priority for enhancing efficiency and productivity across industries and sectors, but the country faces significant challenges due to inadequate internet services. The problem is especially prevalent in rural areas, according to the report.
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Among the root causes of the country’s poor broadband infrastructure are outdated policy frameworks. The report claims the broadband market in the Philippines is effectively a duopoly, which has led to an unlevel playing field that hampers competition and deters new investments.
Key regulatory weaknesses have also been mentioned, including barriers to market entry and the lack of modern spectrum policies. The report also notes that the Philippines is the sole country worldwide that still necessitates a legislative franchise to build and operate networks.
To address these issues, the World Bank has listed a number of strategic recommendations, including the simplification of market entry and licensing, guaranteeing fair competition practices, and promoting infrastructure sharing.