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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
WHY GOOD INTERNET SERVICE MATTERS? 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.
#FoodPorn #Nomnom #Blessed
MABAGAL BA ANG INTERNET MO?
LAGI BANG MAY LAG HABANG NAG-‐DO-‐DOTA?
BUFFERING BA FOREVER ANG FAVORITE YOUTUBE VIDEO MO?
MGA TANONG PARA SA FILIPINO INTERNET USER
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!
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)
[VALUE]%
21.63 [VALUE]%
[VALUE]%
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 (average overall)
ISP B (average overall)
ISP C (average overall)
Actual vs. Adverbsed Speed (%)
2011 2013 2014
Local ISPs tested via an interna9onal server
Actual vs. Adver9sed
Spe
ed (%
)
THE HIGHER, THE BETTER! IDEALLY, PROMISED SPEED IS REACHED 80% OF THE TIME.
602.9
480.67
570.3 535.04
746.5
567.25 608.83
635.13 632
437.6 485.73
510.5 544.75
0
100
200
300
400
500
600
700
800
Highest Ave. Lowest Ave. ISP A ISP B ISP C
Latency or Round-‐trip Time (ms)
2011 2013 2014
millise
cond
s (ms)
THE LOWER, THE BETTER! IDEALLY, < 300 MS OF RTT.
Local ISPs tested via an interna9onal server
kbps per PH Pe
so
1.31
0.16 0.26
1.1
0.70
0.12
0.53
0.34
1.00
0.10 0.14
0.19
0.5
0
0.2
0.4
0.6
0.8
1
1.2
1.4
Highest Average (per test)
Lowest Average (per test)
ISP A (average overall)
ISP B (average overall)
ISP C (average overall)
Value for Money (Kbps/PHP)
2011 2013 2014
THE HIGHER, THE BETTER! IDEALLY, ONE GETS MORE KBPS PER USD
Value for Money (kbps per USD) in 2014
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
E9salat (7.2Mbps)-‐Colombo,LK
Telkomsel Flash Ul9ma(3.6Mbps)-‐Jakarta,ID SMART Bro Starter Plug-‐it (7.2 Mbps)-‐Manila,PH* Globe Tajoo 4G Flash(7.2 Mbps)-‐Manila,PH* Sun Broadband Plan 799 (3.6Mbps)-‐Manila,PH
kbps per USD
THE HIGHER, THE BETTER! IDEALLY, ONE GETS MORE KBPS PER USD
ISP B-‐Manila, PH (7.2 Mbps) ISP A-‐Manila, PH (3.6 Mbps) ISP C-‐Manila, PH (3.6 Mbps)
Asia Pacific -‐ Average Mbps (Akamai, 2011-‐2015)
3.1
1.8 1.5
1.1 0.9
3.3
2.3 1.8
1.5 1.3 1.2 1.4
4.8
3 3.4
1.8 2 1.5 1.6
7.1
4.1
3.4
2.7 2.7
2 1.9
7.4
4.3 3.7
3.2 2.8 2.3 2.2
0 1 2 3 4 5 6 7 8
Thailand Malaysia China Viet Nam Philippines India Indonesia
2011 2012 2013 2014 2015
2.2 2.3 2.8 3.2 3.7 4.3
7.4 12.9
15.2 16.7
23.6
0 5 10 15 20 25
Indonesia India
Philippines Viet Nam
China Malaysia Thailand
Singapore Japan
Hong Kong South Korea
Asia Pacific Average Mbps (Akamai, Q1 2015)
PH Internet Cost: Wholesale and Retail
Philippines $20.35 per Mbps
Indonesia $16.83
Malaysia $10.29
Singapore $2.56
Thailand $2.29
Viet Nam $2.25
Source: Ookla, Dec 2014
Retail Market
Manila $25-‐$45 per Mbps
Cebu $70
Australia/NZ $6
Hong Kong $5
USA $0.35-‐$2
Source: R. Jones, 2014
Business-‐grade bandwidth (1 Gbps)
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
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.
NOW WE KNOW THE PROBLEM...
WHAT’S THE SOLUTION TO SLOW AND EXPENSIVE
INTERNET?
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.
SAGOT NG GOBYERNO:
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
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.
What Can a Student Do? • Share posts/RT on PH Internet
#PHInternet #BejerInternet #TakeBackTheNTC
• Comment on forums that mamer -‐ FB groups, online forums that discuss relevant issues in substan9ve manner
PHInternet: hjps://www.facebook.com/groups/PHInternet/ Internet Society Philippine Chapter: hjps://www.facebook.com/isoc.ph Democracy.net.ph: hjps://www.facebook.com/groups/Democracy.Net.PH/ PHOpenIX: hjps://www.facebook.com/groups/phopenix/ (closed group)
• Call for a more pro-‐acbve NTC -‐ Par9cipate in public hearings -‐ Submit comments via your student council or school organiza9on
THANK YOU.
Mary Grace Mirandilla-‐Santos Independent telecom and ICT policy researcher
hjps://ph.linkedin.com/in/gracemirandilla
