How The
Philippines Got Asia's Worst Internet Service
By:
Ralph Jennings
A traveler to
the Philippines knows the dance too well. You check into a hotel that
advertises Wi-Fi. Turns out it’s only available in the lobby, and only in the
daytime. Then you learn of a freak service outage in the lobby. When you do
eventually connect, no websites come up. On better days, each website takes a
minute or two to load. Yes, on any kind of device.
The
Philippines is Asia’s outlier for Internet sloth, but why?
Occasionally
the answer is local. Your host might be afraid of keeping the router going 24
hours, for example. Or the hotel lacks money to extend Wi-Fi coverage to
guestrooms. But more common explanations in the Southeast Asian country popular
with foreign tourists are linked to economic development pains and awkward
relations among providers. Obviously the issue isn’t limited to tourists. Gum
in the Internet slows business for the nation of 102 million people. Oh, and
apparently help is not on the way.
Here’s a
schematic of how things don’t work.
The
Philippines is made up of about 7,100 islands, making fixed networks
particularly hard to build. Permits may be issued only at the smallest level of
local government, and one by one. The government also charges
“high fees,” a deterrent to any start-ups or foreign investors in broadband,
said Fiona Vanier, senior media analyst with market research firm IHS
Technology. Dominant broadband provider Philippine Long Distance Telephone Co.
controls much of the infrastructure, allowing it to charge fees higher than
elsewhere in Asia despite a relatively poor population. The phone company goes on to charge
other providers for traffic through its network as well, Vanier said, and the
Philippines lacks Internet peering, which slows broadband speeds.
Most
fixed-line Internet users still use old systems such as xDSL rather than newer
fiber-to-the-home (FTTH) technology, reducing speeds, says market research
firm IDC’s Southeast Asia senior telecom research manager Alfie Amir. Last
year, IDC says, just 2% of fixed Internet connections in the Philippines were
FTTH, compared to 33% across Asia excluding Japan.
High-speed service costs about
$57 per month, more than in the United States, estimates Manila-based software
technology entrepreneur Valenice Balace. After food, rent and education, that
Internet bill “seems like a luxury,” she says. “Clearly, price would be the
number one barrier for availing good internet speeds in the Philippines, since
most people can’t afford it.”