MANILA, Philippines — More competition and necessary changes in policies are needed for the Philippines to take advantage of the rapid global digitalization amid the pandemic, a top economic planning official said.
During the BusinessWorld Virtual Economic Forum yesterday, the National Economic and Development Authority (NEDA) said the private sector serves as driver in the country’s move toward a digital economy.
The height of the lockdowns last year made e-commerce stronger than ever as many people depended on online deliveries to ensure that health protocols are being followed.
NEDA Undersecretary Rosemarie Edillon said the entry of more players in the telecommunication sector would boost the overall digital landscape in the country. This is possible if changes would be done on the 85-year-old Public Service Act to encourage more investments from overseas.
Once this is enacted into law, the Philippines would be able to attract new investments from foreign firms in the telecommunications, transportation and other services sector, thereby increasing competition.
“The policies we have now restrict entry to the sector, for the longest time we only have two players. We have to bring in more and after that, you address all the regulatory barriers,” Edillon said.
She said that putting the necessary policies through more competition would also address the high cost of internet connectivity in the country.
Apart from these, digital infrastructure remains a major issue that needs focus if the Philippines wants to ride on the digital revolution.
Data showed that 64 percent of barangays in the Philippines do not have telecommunication power, 88 percent do not have any free WiFi zones, and 70 percent do not have fiber optic cable installed. All these affect connectivity and worsen the digital divide.
Edillon said there is still a lot to do particularly in terms of infrastructure related to internet availability, affordability, quality and reliance.
“Since last year, we are able to see massive improvements in streamlining regulations related to construction of cell sites and fiber optics and we hope this will remain even after the crisis,” she said.
Further, the NEDA official underscored the need for increasing technology adoption, more accessible digital payments, and heightened data security in the digital economy.