BECAUSE the development of the information and communications technology sector in the countryside will result in higher employment rates and increased economic activities, the government must put primary focus on investing in the sector.
Globe Telecom Inc. President Ernest L. Cu said the government and the private sector must collaborate to develop key telecommunications infrastructure to hasten the development of the sector.
Currently, only the private sector invests billions of pesos in building the country’s telecommunications infrastructure.
“Time and again, we continue to call on the government to help develop broadband access in the Philippines by investing in Internet infrastructure in rural and far-flung areas of the country,” Cu said.
“There is no substitute for government support if we are to achieve social inclusion of all communities as we aspire for further economic growth.”
Cu said in 2015, mobile technologies and services generated 5.4 percent of GDP in the Asia-Pacific region, a contribution that amounted to around $1.3 trillion of economic value, according to the 2016 GSMA Mobile Economy report on the Asia-Pacific area.
The sector, the report said, is expected to contribute $1.7 trillion to the region’s GDP this year, as countries benefit from the improvements in productivity and efficiency brought about by increased take-up of mobile services and the adoption of new mobile technologies, like machine to machine.
“In recent years, the use of digital technology has extensively enhanced the delivery of important government services. We hope that development of broadband infrastructure will also redound to improved business competencies and capabilities and, in turn, create more employment opportunities for Filipinos,” Cu said.
He said development of broadband infrastructure is particularly essential in communities where even basic infrastructure services, such as roads and bridges, are lacking.
The Philippines was listed by Huawei Technologies as a “starter” with one of the highest scores in its Global Connectivity Index.
Starters are countries in the early stage of ICT infrastructure build-out with an average GDP of $3,000. They also focus on increasing ICT supply to give more people access to the digital world. To fully benefit from the digital economy, starter economies need faster broadband expansion to ensure most businesses and citizens have affordable broadband access.
However, business viability is a concern among telecommunications companies in most countries that keep them from deploying infrastructure in rural and far-flung areas, Cu said.
In addition to investments in “missionary routes,” telecommunication operators also need government support in minimizing, if not eliminating, bureaucracy in relation to the permitting process for cell sites and right-of-way for optics fiber deployment, Cu said, noting the company needs to secure around 25 permits, spanning around eight months, to build a single cell site.
“We need the government not just as a regulator, but especially as an enabler of the telecommunications industry. Rationalization of permitting process would substantially enhance ICT development in the country,” he said.