Despite a 500-percent surge in demand for connectivity, internet speed in the country increased amid the lockdown due to the pandemic, according to the National Telecommunications Commission (NTC), with the telco regulator seeing a more robust competition in the industry beginning 2021.
During a hearing of the Committee on Public Services at the Senate, Atty. Gamaliel Cordoba, commissioner of NTC, explained that investments by industry giants Globe and Smart, as well as the entry of DITO Telecommunity augured well for the improvement in internet speed across the country.
“Since 2016 to the present, improvements in internet speed for both fixed and mobile broadbands have been monitored,” the head of the telco regulatory body said.
“As of November 2020, fixed broadband increased by 262.70 percent, while mobile broadband likewise grew by 148.52 percent compared to July 2016 tests by Ookla Speed Test Global Index,” he added.
Since 2015, both Globe and Smart have been pouring in significant investments to improve connectivity and coverage, spending P50.3 billion and P70 billion, respectively.
DITO, on the other hand, told the Senate panel that it has so far spent P150 billion for its roll-out and will commit to spend P257 billion over the next five years.
With these three combined, plus other investments in telco infrastructures, the NTC chief sees services to further improve.
“We expect the competition to be intense in 2021,” Cordoba told the committee.
At the same time, Cordoba reported a sharp increase in the issuance of permits to telecommunications companies by local government units to build cell site towers following the order of President Duterte to streamline and speed up the process or they will face sanctions.
For the month of November alone, at least 1,054 construction permits have been issued, bringing the total number of permits approved to 4,644 since July 2020, or an average of 929 permits per month.
Permits issued to Globe surged to 590 percent during the period, while Smart rose to 150 percent.
The combined number of towers built by DITO, Globe and Smart over a five-month period ending in November totaled 2,510, or an average of 502 towers per month. Overall, the country has 22,405 cell towers as of end-November.
“The target of DICT (Department of Information and Communications Technology) is to 50,000 more towers,” Cordoba said.
For fiber optic, the combined footprint of PLDT, Globe, Converge and DITO has reached 534,960 cable-kilomoters.
“We noticed that there is fast roll-out of towers and fiber optic cables that’s why there is an increase in internet speed,” he said.
Cordoba said he expects the internet service to further improve along with the rates for the consumers, as the competition among industry players become more intense once DITO starts is commercial operations, combined with the entry of RED Broadband and aggressive positioning of Converge.