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Amid the
proliferation of Internet cafés, Wi-Fi zones and various
broadband-service offerings, and the ubiquitous presence
of personal gadgets like laptop computers and 3G cell
phones among the younger generation, the general
impression is that the Philippines is now on the crest
of a mind-boggling, frenetic and unstoppable broadband
revolution.
It is
tempting to conclude that the process is ongoing, and
that it is just a matter of time before the nation fully
conquers the digital divide and embraces the digital
technology. Also, it has become inconceivable for a
Filipino without knowledge of the Internet. Somehow, a
typical Filipino knows the dynamics of the information
and communications technology (ICT).
Are we
really having a broadband revolution?
Let’s
examine the fundamentals.
First,
although data on Internet penetration are conflicting, a
positive attitude toward the ICT exists among the
people. Some sources, official or otherwise, have placed
the Internet penetration from a low of 3 percent to a
high of 20 percent of the population. But most people
tend to believe the Internet is a major ticket to
progress and development. A positive attitude is a good
starting point for any revolution.
Second,
a core of private telcos and cable TV operators—Globe
Telecom, PLDT-Smart-Piltel-Meridian, Digitel, BayanTel,
BellTel, Multimedia Telephony, Sky Cable and Global
Destiny—is around to speed up the process and spend for
capital expenditures. The duopoly of Globe and PLDT
alone has spent hundreds of millions of dollars to
acquire the infrastructure and technology. They know
that their investments would bring in profits in the
future.
Third,
the Commission on Information and Communications
Technology (CICT), the National Telecommunications
Commission (NTC) and the Department of Transportation
and Communications have adopted a liberal outlook toward
broadband services, allowing the private telcos and
cable TV operators to compete among themselves. The
competition means less costly broadband-service rates.
But the
NTC, the main regulatory agency on telecommunications,
has not been proactive in coming out with appropriate
policies. Proof: the NTC has kept on postponing the
drafting of the envisioned competition, which seeks to
impose obligations on telcos that enjoy significant
market power. The competition policy has been on the
drawing board for the past two years, but the current
leadership is painfully slow to touch it.
Fourth,
the CICT and the Department of Education were working
closely to train a critical mass of public high-school
teachers, who, in turn, would train students on ICT and
broadband. This nationwide training program is important
for the development of human capital. Hence, the
training of teachers will not only create public
awareness, but build skills, which is the most tangible
manifestation of human capital.
A
quantum leap is expected in three or four years, but the
failure of Congress to enact the bill that elevates the
CICT to a distinct Department of Information and
Communications Technology (DICT) with enormous powers
seems to slow the momentum of this training program.
Even the CICT seems to hibernate, as it could hardly
push and implement the training of public-school
teachers, especially the elementary teachers, who have
the capacity to bring ICT to the elementary level.
Fifth, the CICT has long been working closely with
several foundations and suppliers to bring down the cost
of a laptop computer to $100 (about P4,200), or to the
same level of a small television or cell-phone unit. But
it is not successful, since a personal computer or
laptop cost much more than $100 price tag. Thus, access
to computers has not been enhanced and that most
households do not own a PC set yet.
Sixth,
rural connectivity is yet to be established. Wimax
(wireless interoperability microwave access) technology
is not available commercially. Hence, most rural
communities do not have access to broadband services. In
most cases, only urban communities have access to the
Internet.
Seventh,
the presence and capability of local content providers
have remained wanting. Their presence is deemed
important to lessen dependence on costly foreign content
providers. Local content providers do not only provide
the competition, but they also make broadband services
useful for most users.
In
short, while the Filipinos have prepared their
consciousness for a successful broadband revolution,
this upheaval has been stymied by a host of factors,
which include the lack of political will of the current
political leadership. The ZTE/NBN scandal is just one of
the reasons for the continued delay.
Basically, the broadband revolution would enable every
Filipino, with a PC, laptop computer, or a mobile
handset, to download information, data, songs, video
clips, games, TV programs, or even movies. He can also
gain internet access. Or he can also use broadband
services in his profession, especially in areas that
require huge amounts of data. Fundamentally, the
broadband revolution is part of the broader Information
Revolution, which is comparable with the Industrial
Revolution that took place almost 200 years ago.
Based on
the convergence of the telecommunications networks
(fixed and wireless), the computer and consumer
electronics industries to bring a cascade of home video,
data, audio, Internet and game downloads, the broadband
revolution is real, changing people’s lifestyle to
reflect a new, albeit emerging, global culture. The
broadband revolution is already sweeping some Asian
countries, particularly Korea and Japan. The broadband
revolution is widely felt in countries like the United
States, Korea, Japan and several European nations. In
Korea a virtual broadband society has emerged; almost
every home has broadband connection. In Japan wireless
broadband access is quite common, as the Japanese use
their mobile handsets for every conceivable purpose. It
is an identification card, a mobile wallet, an
organizer, a utility tool or whatever.
In the
Philippines broadband services loom to be the next
growth areas—or a potential gold mine—for the
telecommunications sector. Major telcos have been
offering their broadband services to the public. The
sudden surge in subscriber base has yet to come
primarily because of a host of factors, which include
the high cost of personal computers, connectivity
problems, the perceived general public aversion to the
Internet (the sheer volume of information is already
intimidating), and the general economic slowdown.
Meanwhile, several things of momentous proportions are
happening around the world, especially to the developed
countries. Take note of the following:
§
Online
content is on the progressive surge. In two years’ time,
the Internet won’t be able to cope with the increasing
amounts of uploaded video and user-generated content,
which will require bigger amounts of bandwidth and
expanded Internet infrastructure.
§
AT&T
estimates say the “unprecedented flow of broadband
traffic” would increase by 50-fold in 2015, forcing
network operators to invest and upgrade their Internet
infrastructure. The United States needs at least $55
billion in new Internet infrastructure investments in
the next three years; globally, the requirement is
placed at about $130 billion for the same period.
§
According to AT&T, the increasing demand for
high-definition video will put an increasing strain on
the Internet infrastructure. “Eight hours of video is
loaded onto YouTube every minute. Everything will become
HD very soon, and HD is 7 to 10 times more
bandwidth-hungry than typical video today,” says an AT&T
top executive.
§
Broadband visual video, typified by YouTube, is changing
the Internet traffic patterns, rising to unimaginable
proportions in the next few years. Now, YouTube
constitutes 7.0 percent of the Internet traffic in the
United States. As network providers improve their
facilities for faster transmission, the traffic is
likely to rise to half of the Internet traffic.
In many
ways, these developments show how much the country has
been left out in the race for digital development. While
other countries have focused their attention on the
other issues, the Philippines could not even create a
DICT that would effectively regulate the industry. In
brief, the digital divide still exists, although
Filipinos have shown their willingness to embrace the
digital technology. |
