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PhilStar Business

Telcos link up for $500 million national undersea cable project

Connectivity giants PLDT Inc., Globe Telecom Inc. and Converge ICT Solutions Inc. are setting aside competition for a $500-million project to connect all islands to broadband service through undersea cable.

Context & Analysis

For an archipelago of many islands, the real test of digitalization is not whether urban centers can stream high-quality video, but whether businesses and households outside major metros can upload files reliably without paying satellite-like prices. Undersea fiber has long been the backbone of internet capacity, carrying a large share of international traffic and linking key domestic hubs. A shared national cable system could reduce dependence on fragmented terrestrial backhaul and satellite links, which are often costly, weather-sensitive, and limited in bandwidth.

For businesses, better island connectivity is a productivity multiplier. Cloud-based accounting, digital payments, logistics tracking, e-commerce, and customer service platforms all work better when latency drops and bandwidth becomes more predictable. Small firms in provinces may finally access the same online tools as urban companies, while consumers could see faster streaming, video calls, remote learning, and telemedicine. Such infrastructure also strengthens resilience: multiple cable routes can reduce downtime if a single line fails, an increasingly important issue as data centers, cloud services, and online transactions expand.

The move also fits the country’s need to turn connectivity into economic output rather than just a consumer amenity. A more connected archipelago supports tourism, agri-business, fisheries, manufacturing, and financial inclusion, but only if last-mile access, device affordability, and content follow. Regulators will likely focus on fair competition, service standards, universal access obligations, and how costs are recovered through tariffs. If the participating companies can share infrastructure without recreating cartel-like behavior, the deal could improve market efficiency; if they simply coordinate pricing, it may raise consumer concerns.

Watch for details on landing sites, interconnection terms, and whether the network will serve as a wholesale backbone that other internet providers can buy from. Permitting for coastal routes, environmental clearances, and protection against physical damage will shape the timeline. The real measure will not be ribbon-cutting announcements but whether provincial broadband speeds improve, outage rates fall, and smaller ISPs gain cheaper access to international bandwidth.

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

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

Source: philstar.com

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