PH INTERNET CONNECTIVITY IS BAD, AND IT S NOT YOUR FAULT

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1 PH INTERNET CONNECTIVITY IS BAD, AND IT S NOT YOUR FAULT Mary Grace Mirandilla- Santos Independent telecom/ict policy researcher Research Fellow, LIRNEasia VP for Policy, Internet Society PH Chapter September 10, 2015 Y4iT 2015, SMX Conven9on Center

2 WHY GOOD INTERNET SERVICE MATTERS? dporn #Nomnom #Blessed World Bank: 10% increase in broadband penetra9on can lead to 1.38% increase in GDP. OECD: In less developed economies (Brazil, India and China), 0.5 Mbps, which increases household income by $800 per year.

3 MGA TANONG PARA SA FILIPINO INTERNET USER MABAGAL BA ANG INTERNET MO? LAGI BANG MAY LAG HABANG NAG- DO- DOTA? BUFFERING BA FOREVER ANG FAVORITE YOUTUBE VIDEO MO?

4 SAGOT NG MGA SERVICE PROVIDERS: BAKA LUMA ANG COMPUTER MO. SIGURO NASA BASEMENT KA KAYA MAHINA SIGNAL. CHEAP [KA] ANG DATA PLAN MO. ABUSIVE USER KA KASI!

5 What does the data say? Internet users: 44 million out of 100 million total popula9on (Google) Majority below 30 years old (Nielsen) Fixed broadband subscribers: 2.6 per 100 Filipinos (BBC, 2013) Mobile broadband subscribers: 20.3 per 100 Filipinos (BBC, 2013) Access Gap: 83% of 38,000+ elementary schools na9onwide NO INTERNET ACCESS in their area, wired or wireless (DepEd survey, cited by Casambre, 2014)

6 Actual vs. Adverbsed Speed (%) THE HIGHER, THE BETTER! IDEALLY, PROMISED SPEED IS REACHED 80% OF THE TIME. Local ISPs tested via an interna9onal server [VALUE]% Highest Average (per test) Lowest Average (per test) [VALUE]% ISP A (average overall) [VALUE]% ISP B (average overall) ISP C (average overall)

7 Latency or Round- trip Time (ms) THE LOWER, THE BETTER! IDEALLY, < 300 MS OF RTT Local ISPs tested via an interna9onal server Highest Ave. Lowest Ave. ISP A ISP B ISP C

8 Value for Money (Kbps/PHP) THE HIGHER, THE BETTER! IDEALLY, ONE GETS MORE KBPS PER USD Highest Average (per test) Lowest Average (per test) ISP A (average overall) ISP B (average overall) ISP C (average overall)

9 Value for Money (kbps per USD) in 2014 THE HIGHER, THE BETTER! IDEALLY, ONE GETS MORE KBPS PER USD Philippine vs. select SA & SEA ISPs Airtel 3G (4Mbps)- Bangalore,IN Tata (3.1Mbps)- Chennai,LK Airtel (4Mbps)- Delhi,IN Airtel LTE (4Mbps)- Bangalore,IN Ooredoo Data 99 (7Mbps)- Male,MV Dhiraagu Data 200 (1Mbps)- Male,MV Ncell (7.2Mbps)- Kathmandu,NP PTCL Evo (9.3Mbps)- Karachi,PK E9salat (7.2Mbps)- Colombo,LK H 1100 H 1500 H 1800 H 2000 H 2300 H Telkomsel Flash Ul9ma(3.6Mbps)- Jakarta,ID SMART Bro Starter Plug- it (7.2 Mbps)- Manila,PH* ISP B- Manila, PH (7.2 Mbps) Globe ISP A- Manila, Tajoo 4G Flash(7.2 PH (3.6 Mbps)- Manila,PH* ISP C- Manila, PH (3.6 Mbps) Sun Broadband Plan 799 (3.6Mbps)- Manila,PH

10 Asia Pacific - Average Mbps (Akamai, ) Thailand Malaysia China Viet Nam Philippines India Indonesia

11 Asia Pacific Average Mbps (Akamai, Q1 2015) South Korea Hong Kong Japan Singapore Thailand Malaysia China Viet Nam Philippines India Indonesia

12 PH Internet Cost: Wholesale and Retail Business- grade bandwidth (1 Gbps) Retail Market Manila $25- $45 per Mbps Philippines $20.35 per Mbps Cebu Australia/NZ Hong Kong USA $70 $6 $5 $0.35- $2 Indonesia Malaysia Singapore Thailand Viet Nam $16.83 $10.29 $2.56 $2.29 $2.25 Source: R. Jones, 2014 Source: Ookla, Dec 2014

13 So Why is PH Internet Slow and Expensive? No real compebbon in the market Only two major players control infra, therefore pricing Smaller players acquired by large ISPs; 100+ ISPs in 1997, >10 in 2014 High barriers to entry for new players Telecom infra is a ver9cal, monolithic whole Congressional franchise + license (CPCN) to build network Numerous permits and clearances from NGAs, LGUs, homeowners, etc. to lay fiber and put up towers

14 So Why is PH Internet Slow and Expensive? Lack of interconnecbon among ISPs Local traffic between two ISPs gets sent abroad to be exchanged and then routed back Each data hop costs 9me, money, and quality. High access charge to connect to big telco network Outdated laws and regulatory framework RA 7925 (Public Telecoms Policy Act), CA 146 (Public Service Act), and the NTC Charter are not able to address the demands and challenges of the fast- evolving Broadband Age.

15 NOW WE KNOW THE PROBLEM... WHAT S THE SOLUTION TO SLOW AND EXPENSIVE INTERNET?

16 SAGOT NG GOBYERNO: PNoy: Aaralin nabn kung may oversubscripbon vs. capacity. NTC: Mag- invest ang gobyerno sa ICT infra. NEDA: Kailangang isama ang ICT sa Philippine Development Plan.

17 Some Recommendabons 1) Create an open and level playing field for more players How? Think in terms of MARKET SEGMENTS, not services. Internabonal connecbvity providers Network access providers Last mile providers Why? To encourage the building of carrier- neutral infrastructure where segment wholesalers don t necessarily compete in retail market

18 Some Recommendabons 2) Promote bemer interconnecbon How? Support the growth of Philippine Open Internet Exchange (PHOpenIX) or similar neutral, non- commercial IXs Why? Keep local Internet traffic local! Less bandwidth use, lower latency, more security. 3) Encourage shared infrastructure How? Shared towers and u9lity corridor, in coordina9on with DPWH, DOE, PNR, and toll road operators. Why? Lower cost of infra built out, esp. civil works 4) Push for a more independent and pro- acbve regulator (NTC) How? Fixed terms for commissioners. Increase budget to build ins9tu9onal capacity. Work with PH Compe99on Commission. Why? Because telecoms is a big business.

19 Share posts/rt on PH Internet #PHInternet #BejerInternet #TakeBackTheNTC What Can a Student Do? Comment on forums that mamer - FB groups, online forums that discuss relevant issues in substan9ve manner PHInternet: hjps:// Internet Society Philippine Chapter: hjps:// Democracy.net.ph: hjps:// PHOpenIX: hjps:// (closed group) Call for a more pro- acbve NTC - Par9cipate in public hearings - Submit comments via your student council or school organiza9on

20 THANK YOU. Mary Grace Mirandilla- Santos Independent telecom and ICT policy researcher hjps://ph.linkedin.com/in/gracemirandilla

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