CitizenWatch urges ‘fifth utility’ status for internet as costs drop

Internet services in the Philippines have become more affordable due to increased competition and infrastructure investment, but sustaining these gains requires a policy shift to recognize connectivity as an essential utility, a consumer advocacy group said.

CitizenWatch Philippines is calling on the government to formally classify internet access as the country’s “fifth utility,” alongside electricity, water, gas and transport. This status would align with the amended Public Service Act, which already identifies telecommunications as critical infrastructure.

CitizenWatch Philippines co-convenor Kit Belmonte said the decline in data costs and the rise of flexible prepaid promos have expanded access across all income segments.

“Consumers today are paying less for more data, with greater flexibility in how they spend on connectivity,” Belmonte said.

“Low-denomination, short-duration packages have made internet access far more accessible, especially for prepaid users who make up the majority of the market,” Belmonte said.

Data from the Department of Information and Communications Technology and the International Telecommunication Union show that the cost of 1 GB of mobile data has fallen from over 2 percent of gross national income per capita in the mid-2010s to below 1 percent recently. This meets the affordability targets set by the United Nations.

Fixed broadband speeds have also seen a sharp increase. Average speeds rose from single-digit levels in 2016 to over 90 Mbps by 2025. While performance has improved, entry-level fiber plans have remained stable between P1,299 and P1,699, representing a significant drop in the cost per Mbps.

Belmonte said connectivity is now embedded in basic functions such as education, employment and public services. However, he cautioned that structural pressures like high electricity rates and complex local permitting processes for towers and fiber continue to threaten service expansion.

“Power accounts for a significant share of network operating costs, while permitting inefficiencies slow down rollout and increase capital requirements,” Belmonte said.

“These directly affect both pricing and service expansion,” said Belmonte.

The group also noted that global energy volatility and geopolitical tensions in the Middle East could impact domestic costs. Belmonte suggested that strengthening digital infrastructure can act as a “cost stabilizer” by reducing the need for physical travel and fuel consumption through remote work and digital transactions.

CitizenWatch Philippines said the “whole of society” effort should focus on real-world reliability rather than just headline speeds.

“Affordable internet that fails when it is needed is not meaningful access,” Belmonte said.

“What consumers require is reliable, consistent connectivity that supports everyday use,” said Belmonte.