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BusinessWorld

Philippines underinvesting in ICT infrastructure, economist says

THE Philippines needs to increase investment in information and communications technology (ICT) infrastructure to unlock productivity gains and improve internet connectivity, an economist said. “In this era of digitalization, the ICT industry plays a crucial role in accelerating economic growth,” De La Salle University Economist Tereso S. Tullao, Jr. said at a policy symposium on […]

Context & Analysis

The call for greater ICT investment touches a well-documented structural bottleneck in the Philippine economy. While consumer demand for high-speed broadband has surged, the physical rollout of fiber networks, cell sites, and data centers continues to face friction at the local level. Right-of-way permitting, which falls under the jurisdiction of individual cities and municipalities, remains a primary drag on deployment speed and cost. Even with national guidelines, inconsistent fee structures and lengthy approval processes force network operators to stretch capital across fewer towers and slower upgrades than optimal.

For businesses, this infrastructure gap translates into uneven digital readiness. Large enterprises can afford private leased lines or backup connectivity, but micro and small enterprises operating outside Metro Manila and key growth corridors often face latency issues that hinder cloud adoption, real-time data analytics, and seamless e-commerce integration. The IT-BPM sector, a cornerstone of export earnings, also depends on redundant, low-latency connections to maintain global service-level agreements. On the consumer side, the trade-off between affordability and performance persists, limiting the full economic potential of digital financial services, online education, and telehealth.

The path forward hinges on coordinated action between national agencies and local governments. The Department of Information and Communications Technology and the National Telecommunications Commission have been pushing for standardized right-of-way fees, streamlined permitting, and more efficient spectrum management to encourage next-generation network deployments. Investors and business owners should monitor upcoming congressional hearings on pending telecommunications reform measures, as well as capital expenditure disclosures from the country’s major network operators. Any shift toward accelerated infrastructure rollout will likely be reflected in broadband pricing trends, regional digital adoption rates, and the competitiveness of Philippine exports in the broader ASEAN digital economy.

Analysis by IJE Software — original commentary on the story above.

This is an excerpt. Read the full article at the original source:

Source: bworldonline.com

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