top issues of ph telecoms consumers...• john bonsol • raul de leon, igda manila • carlo subido...
TRANSCRIPT
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Top Issues of PH Telecoms Consumers
Mary Grace Mirandilla-Santos
March 9, 2017 | 1st Philippine Telecoms Summit
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PH Telecoms Access (per 100 persons, 1992-2015)
1.03 1.65 1.65 2.55 2.86 3.41 3.87 3.9 4.2 4.1 4.0 4.1 3.9 4.2 4.4 4.5 4.5 3.6 3.7 4.1 3.2 3.2 3.0 0 0 0 0 0 0 0
8.3
15.3 19.0
27.3
39.1 40.5
49.1
64.5
75.4
82.3
89.0
99.1
105.0 104.5
111.2 118.1
2.0 2.5 4.3 4.9 5.2 5.4 5.7 6.0 6.2
9.0
25.0 29.0
36.2 37.0 39.7 40.7
0
20
40
60
80
100
120
140
Fixed Line Subscription (per 100 persons) Mobile Phone Subscription (per 100 persons) Internet Use (per 100 persons)
per
10
0 p
erso
ns
MOBILE
INTERNET
FIXED LINE
Sou
rces
: Wo
rld
Dev
elo
pm
ent
Ind
icat
ors
; Mea
suri
ng
the
Info
rmat
ion
So
ciet
y, 2
01
6
Fixed Line and Mobile Phone Subscription,
Internet Use
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Broadband Commission Targets
Making broadband policy universal and boosting affordability and broadband uptake:
Target 1: Making broadband policy universal. By 2015, all countries should have a national broadband plan or strategy or include broadband in their Universal Access / Service Definitions.
Target 2: Making broadband affordable. By 2015, entry-level broadband services should be made affordable in developing countries through adequate regulation and market forces (amounting to less than 5% of average monthly income).
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Broadband Commission Targets
Target 3: Connecting homes to broadband. By 2015, 40% of households in developing countries should have Internet access.
Target 4: Getting people online. By 2015, Internet user penetration should reach 60% worldwide, 50% in developing countries and 15% in LDCs.
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Who are connected?
2010: 9.5
2015: 28.3
Household with Internet Fixed broadband Mobile broadband 2010: 2.3
2015: 41.6
3x
19x
2010: 1.8 2015: 3.4 2x
per 100 population
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Who are not connected?
of 101 million citizens
of 22.98 million households
of 46,700+ public schools
Sou
rce:
Bro
adb
and
Co
mm
issi
on
; D
epEd
, 20
16
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How does PH fixed broadband fare? A
vera
ge s
pee
d (
in M
bp
s)
Sou
rce:
Aka
mai
, Sta
te o
f th
e In
tern
et r
epo
rt, 2
01
1-2
01
6
0
2
4
6
8
10
12
Thailand Malaysia China Viet Nam Indonesia India Philippines
Fixed Broadband Average Speed, 2011-2016 (in Mbps)
2011 2012 2013 2014 2015 2016
309% ave. growth
522% ave. growth
379% ave. growth
453% ave. growth
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Philippine fixed Internet performance started improving in 2015, and continued in 2016.
2009 2010 2011 2012 2013 2014 2015 2016 2017
PHILIPPINES
THAILAND
MALAYSIA
VIET NAM
INDONESIA
CAMBODIA
MYANMAR
How does PH fixed broadband fare?
What happened in 2015-2016? PEERING
-
2009 2010 2011 2012 2013 2014 2015 2016 2017
PUBLIC 41.92 Mbps
TELCO 8.23 Mbps
PRIVATE 7.36 Mbps
Which entities had the most impact on PH Internet speed?
Public institutions: - Public universities - Government agencies - Research centers and institutions
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Are peered networks faster?
2009 2010 2011 2012 2013 2014 2015 2016 2017
PEERED
NOT PEERED
YES!
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How does PH mobile broadband fare?
PH mobile broadband overall speed ranked 2nd slowest in the world in Feb 2017.
Sou
rce:
Op
en S
ign
al, G
lob
al S
tate
of
Mo
bile
Net
wo
rks,
20
16
3.33
4.17
4.72
6.09
7.86
12.61
21.79
30.05
37.54
0 5 10 15 20 25 30 35 40
Philippines
India
Indonesia
Thailand
Malaysia
Hong Kong
Japan
Singapore
South Korea
Overall 3G/4G Speed Comparison (in Mbps)
Average speed (in Mbps)
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How does PH mobile broadband fare?
Sou
rce:
Aka
mai
Sta
te o
f th
e In
tern
et r
epo
rt, 2
01
6
Akamai’s State of the Internet report included the Philippines in its mobile connectivity report starting in Q2 2016.
PH mobile broadband average speed seen leading APAC, at 13.9Mbps.
However, Akamai notes that the Philippines did not meet the minimum requirement of 25,000 unique IPv4 addresses seen by Akamai and identified as coming from a mobile network.
The Philippines does not qualify for, and was not included in, the analysis, but its data is included for reference.
“Akamai is working with mobile carriers within the Philippines to better understand their mobile network architectures, but we are confident in the
validity of the reported speeds.”
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How’s PH broadband user experience?
Sou
rce:
LIR
NEasia
Bro
adb
and
Qu
alit
y o
f Se
rvic
e Ex
per
ien
ce S
tud
y, 2
01
1-2
01
4
37.25
21.63 26.65
33.04
23.00
4.00
16.00 11.00
21.67
1.68 4.56 3.15
10.94
0.00
10.00
20.00
30.00
40.00
50.00
60.00
70.00
80.00
90.00
100.00
Highest Average(per test)
Lowest Average(per test)
ISP A (averageoverall)
ISP B (averageoverall)
ISP C (averageoverall)
Actual vs. Advertised Speed (%)
2011 2013 2014
IDEALLY, PROMISED SPEED
IS REACHED 80% OF THE TIME.
Act
ual
Sp
eed
as
a %
of
Ad
vert
ised
Sp
eed
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How is PH broadband user experience? Average Page Load Time
Philippines India Malaysia Indonesia Vietnam Thailand
4.71 secs 3.87 secs 3.53 secs 3.38 secs 2.81 secs 2.79 secs
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Does PH Internet give value for money?
Philippine vs. select SA & SEA ISPs
0
50
100
150
200
250
300
0800 H 1100 H 1500 H 1800 H 2000 H 2300 H
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
Etisalat (7.2Mbps)-Colombo,LK
Telkomsel Flash Ultima(3.6Mbps)-Jakarta,ID
SMART Bro Starter Plug-it (7.2 Mbps)-Manila,PH*
Globe Tattoo 4G Flash(7.2 Mbps)-Manila,PH*
Sun Broadband Plan 799 (3.6Mbps)-Manila,PH
kbp
s p
er U
SD
THE HIGHER, THE BETTER! IDEALLY, MORE KBPS PER USD
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Download speed:
Actual speed never reached advertised speed, not even once
Highest average of actual speed by an ISP was 26.65% of advertised speed
Speed performance declined for all ISPs tested year on year
Sign of network congestion in the last mile?
Value for money:
Low value for money; Highest kbps per peso attained was 1kbps/PH peso;
Decreasing value for money per ISP; consumers are paying more for less!
PH ISPs offered lowest value for money among SA and SEA ISPs tested
Summary of LIRNEasia results
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Is PH broadband affordable?
Sou
rce
: ITU
, Mea
suri
ng
the
Info
rmat
ion
So
ciet
y, 2
01
5-2
01
6
0.70 1.32
2.00
3.10 3.11 3.58 3.63
5.28
8.27
11.84
12.64
0.63 1.29
1.79 1.11
9.51
3.12
3.89
5.11
7.53
13.31
14.2
0.00
2.00
4.00
6.00
8.00
10.00
12.00
14.00
16.00
SG ROK VN MLY INO PRC THA IND PHL LAO CAM
FIXED broadband (as % of GNI per capita)
2014 2015
5% Affordability Target
% o
f G
NI p
er c
apit
a
-
Is PH broadband affordable?
0.35
1.16
2.49
1.69 1.56
3.15 3.13
3.92
5.15
8.27
0.31 0.43
1.21 1.32 1.36
2.35
2.98
3.52
4.88
6.74
0
1
2
3
4
5
6
7
8
9
SG ROK THA MLY INO CAM IND VN LAO PHL
MOBILE broadband (postpaid, 1GB) (as % of GNI per capita)
2014 2015
5% Affordability Target
% o
f G
NI p
er c
apit
a
Sou
rce
: ITU
, Mea
suri
ng
the
Info
rmat
ion
So
ciet
y, 2
01
5-2
01
6
-
Is PH broadband affordable?
0.26
0.99
2.53
1.38 1.13
2.47
7.31
2.48
4.12
0.16 0.22
0.78 0.88 1.18 1.21
1.36 1.5
2.20
3.09
4.44
0
1
2
3
4
5
6
7
8
SG ROK PRC MLY CAM THA INO PHL VN IND LAO
Mobile broadband (prepaid, 500MB) (as % of GNI per capita)
2014 2015
5% Affordability Target
% o
f G
NI p
er c
apit
a
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Is PH broadband affordable?
The Inclusive Internet: Mapping Progress 2017
Philippines ranks in the lower half of the Asian countries
included in the index, and 43th out of 75 overall.
Affordability rank is particularly low, at 20th out of 22 in Asia
• second-lowest score for competitive environment in the index, after
Ethiopia
• relatively high rank for the availability of relevant content (35th out of
75) is its strongest suit.
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Inputs from Consumers (1)
Speed • Address limited/slow internet speeds available in most areas
• Review necessity of bandwidth capping to maintaining service quality
• Improve speed reliability during peak hours, and inclement weather
• Update the NTC’s service reliability standards to include metrics
• Address issue of misleading or inaccurate advertising on internet speeds and reliability
Cost • Improve cost vs. speed ratio; bring to levels at par w/ other countries
• Revamp internet service payment practices so that consumers don’t pay for interrupted or unacceptable service – No Service, No Pay!
• Pass the No Load Expiry Bill
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Inputs from Consumers (2)
Coverage
• Speed-up fiber rollout so that service is not limited to urban areas
• Need public investment in passive infrastructure, to make it less costly to
lay out broadband
• Address interconnection issues for voice and text between major telcos
• Remove telco franchise requirement in rolling out broadband networks in
order to encourage competition
Other issues:
• Mandate improved customer service in the industry
• Create standards for resolution of customer complaints
• Review the fairness of postpaid plan contracts, especially lock-in period
• Eliminate spectrum hoarding
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We are an alliance of citizens and stakeholders committed to supporting
initiatives that bring better broadband services to the Philippines.
We believe that efficient broadband connectivity is a key driver of the
Philippines’ economic growth and development.
We envision a Philippines where every individual, home, and business has
access to fast, reliable, and affordable broadband services anytime,
anywhere, and using any technology.
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Our Call
We want a policy and regulatory environment that:
Promotes effective competition, a level playing field for service
providers, and freedom of choice for consumers
Adapts to innovation and encourages
collaboration among stakeholders
Ensures an open internet where
all voices and ideas are welcome
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Our Call
Allows democratic access to
technology that enhances market
dynamism and fosters innovation
Protects consumer rights and welfare
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Recommended Solutions
Regulation should be technology-neutral and service-oriented
• Modern-day regulation and best practice does not restrict technology use
• ISPs should be allowed to own and operate any type of network to deliver internet
Policy must be future-proof!
• Allow any internet technology to be used in the Philippines by any service provider
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Recommended Solutions
Long-term: Open Access in Data Transmission
• Filed by Rep. Victor Yap in House, now being consolidated with
amendments to RA 7925
• Filed by Sen. Bam Aquino in Senate
Short-term: Future-proofing regulation
• Unleash the potential of new, alternative technologies (e.g.,
satellite broadband)
• Ensure that regulation adapts to, not stifle, innovation
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Open Access
Unlock the market!
• Lower regulatory barriers and costs of entry for market
players offering internet service
Allow ISPs to build and operate their own network
o Requiring ISPs to use telco facilities defeats purpose of deregulation and competition
o Requiring Congressional franchise and NTC burdens entrepreneurs and suppresses innovation
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Open Access
Adopt a technology-neutral framework
• Let’s not repeat same mistake as RA 7925, anchored on old telephone
Encourage market entry from smaller players
• Anyone can build and operate a network, esp communities
Promote transparency and level playing field
• No one entity can take a position of dominant market power.
Regulate only where necessary
• Spectrum allocation, interconnection, standards, net neutrality
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Future-proofing regulation
Allow service providers to use any technology to deliver Internet
Declare as value-added service (VAS) new technologies used for internet service (e.g., satellite broadband)
Let innovation benefit all Filipinos
Many alternative technologies for universal access, especially for areas not reached by fiber and cellular networks (e.g., satellite, project loon, TVWS), but hampered by regulation
Unleash the potential of local ISPs and entrepreneurs to serve their communities
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THANK YOU.
Thanks to everyone who contributed to the presentation: • John Bonsol
• Raul de Leon, IGDA Manila
• Carlo Subido
• Sam Matunog, ICT Davao
• Nestor Tiglao, Electrical and Electronics Engineering Institute, University of the Philippines
• John Forbes, The American Chamber of Commerce of the Philippines
• Vic
• Economic Policy Research Service, Congressional Policy and Budget Research Department, House of Representatives
• Internet Society – Philippines Chapter
• Democracy.net.ph
• Foundation for Media Alternatives