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BusinessWorld

Network expansion rate tied to LGU permit speed, Globe says

EXPEDITED ISSUANCE of permits by local government units (LGUs) will help telecommunications companies accelerate their network expansions and…

Context & Analysis

The bottleneck Globe is pointing to is one of the most persistent friction points in Philippine digital infrastructure. Building cell sites, laying fiber optic cables, and deploying small cells requires permits from individual LGUs, and in practice this means navigating dozens of different municipal and city offices with varying requirements, timelines, and political considerations. A tower that could technically be erected in two weeks can stall for months if a barangay captain objects or if a city planning office is understaffed. Globe has raised this issue publicly before, and it is not unique to them. Every telco operating in the country faces the same maze.

For business owners, the stakes are straightforward. Connectivity is no longer a convenience but an operational dependency. A BPO firm in a secondary city cannot reliably staff up if bandwidth is constrained. An e-commerce logistics provider cannot route deliveries efficiently in areas where 4G coverage is patchy. SMEs adopting cloud-based accounting or point-of-sale systems need stable connections that do not drop during peak hours. When network expansion is delayed by permit backlogs, it is not just Globe's bottom line that suffers. It is the digital readiness of entire local economies.

The regulatory environment has been slowly shifting in the right direction. The Anti-Red Tape Authority has set timelines for permit processing across government agencies, and the CREATE MORE Act reinforced the push to cut red tape for investors, including in infrastructure. There have also been repeated legislative proposals in Congress to mandate a standard, expedited permit process for telecom infrastructure nationwide, removing the patchwork discretion LGUs currently enjoy. None of these bills have fully passed into law as of this writing, which means the status quo remains: telcos negotiate permit-by-permit, and expansion speed is uneven across the archipelago.

What to watch next is whether the NTC and the Department of the Interior and Local Government can jointly enforce or incentivize faster LGU processing without a new law. DILG has the authority to penalize LGUs that fail to meet the mandates of the Ease of Doing Business Act, but enforcement against LGUs on telecom-specific permits has been inconsistent. If the government treats connectivity expansion as a national infrastructure priority comparable to roads or power grids, the permitting framework will need to be centralized or at least standardized. Until that happens, Globe's complaint will remain accurate, and the Philippines will continue to trail its ASEAN neighbors on internet quality and coverage.

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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