C f C R E F O R M S TO R Y N O.

1 1 1

Lorem ipsum dolor sit amet, consectetur adipisc-

ing elitn nullam lobortis nisl nec eros consequat,
in pretium nibh iaculis. Sed sed purus neque. Cras
euismod ac magna in facilisis. Suspendisse biben-
dum turpis nunc, in ultrices leo consectetur eu.

“There is significant value in

cultivating a broad support
base and in working with key
gatekeepers – even the
opposition.

Footnote here
 2 C f C R E F O R M S TO R Y N O. 1 1

SMALL POLICY CHANGE, BIG IMPACT:

Coalitions for Change (CfC) is a program IMPROVING INTERNET ACCESS

IN THE PHILIPPINES
of the Australian Embassy and The

Asia Foundation Partnership in the

Philippines. CfC strategically supports

the development, introduction, adoption,

and implementation of key policies NICHOLAS JONES, THE ASIA FOUNDATION

consistent with the government’s

agenda on economic growth, improved

governance, and social development.

In March 2018, citizens in two remote

THE INTERNET
The program creates spaces for

collaboration, strengthening coalitions

municipalities of the Philippines accessed the AND ECONOMIC
and networks, civil society, private sector,

the government, academia, and others to

Internet for the first time.1 The breakthrough
was made possible by Pipol Konek, a government DEVELOPMENT
program aimed at providing free Internet
bring about transformative change.
access to millions of unserved and underserved
There is strong evidence in the international development sphere that
Filipinos. Internet access is a key driver of economic growth. Between 2000 and 2006,
Working with these motivated groups
150 developing countries—including the Philippines—examined by a World
and individuals, and armed with Bank study (2009) had “about a 1.38 percentage point increase in GDP for
This story traces how a policy change introduced
technical and political analysis, CfC each 10-percent increase in [broadband] penetration”.2 A few years later,
in August 2017 unlocked the Pipol Konek
ushers in reforms that lead to sustainable Scott (2012) also found that “…a 10% increase in broadband penetration
program. It describes how a group of concerned
and inclusive development, improving
is correlated with a 1.35% increase in GDP for developing countries and a
citizens and civil society organizations (CSOs) 1.19% increase for developed countries.”3
the lives of Filipinos.
with support from Coalitions for Change (CfC)
identified and eliminated a critical barrier that In the Philippines, the National Economic and Development Authority
(NEDA) stressed the need for robust broadband infrastructure as a critical
would lead to immediate and far-reaching
component in building a competitive workforce and enabling participation
implications for improving internet access for
in the global market. High-speed broadband Internet and coverage
millions of Filipinos. Before turning to the details throughout the country can provide Filipinos with better access
of the reform, we briefly review the importance to economic opportunities.
of the internet for economic development.

1
Simunul, Tawi-Tawi and San Jose, Dinagat Islands 2
Qiang, C. Rosottto, C., & Kimura, K. 2009. Economic impacts of broadband. Information and Communications for
in Mindanao. See http://freepublicwifi.gov.ph/ Development 2009: Extending Reach and Increasing Impact, pp. 35-50. Retrieved from: http://web.worldbank.org/
pipol-konek-reaches-zamboanga-del-sur-and- 3
Scott, C. 2012. Does broadband Internet access actually spur economic growth? Retrieved from: http://www.eecs.
tawi-tawi/ berkeley.edu/~rcs/classes/ictd.pdf.
 C f C R E F O R M S TO R Y N O. 1 1 5

INTERNET
ACCESS
IN THE
PHILIPPINES
Despite 25 years of liberalization and
deregulation, and substantial investments in
telecommunications infrastructure, for millions
of Filipinos, the Internet still is difficult to access.
Data shows almost 45 percent (46 million) of
Filipino citizens, and 74 percent (34,500) public
schools do not have access to the Internet.

While the country’s archipelagic nature makes it

costly to deploy traditional telecommunications
infrastructure, the lack of competition in the
telecommunications industry is also a major
factor in the limited Internet access in the
Philippines.

There are currently only two

telecommunications companies (“duopoly”)
that provide Internet service. These companies
control all segments of the network—from
international connectivity down to the end user’s
device. International submarine cables must
connect to landing stations in the Philippines.
The two telecommunications companies own six
out of seven of these stations.4 The duopoly then
controls the country’s backbone networks and
all the major cables and towers that distribute
Internet capacity (middle mile), down to the
segment of the network that connects the
consumers (last mile).

4
Department of Information and Communications
Technology (DICT). 2017. National Broadband Plan:
Building Infostructures for a Digital Nation. Diliman, FIGURE 1. HOW THE PHILIPPINES CONNECTS TO THE INTERNET
Quezon City. So urc e: DICT, Tel ec o m Summit , 2017
6 C f C R E F O R M S TO R Y N O. 1 1 7

THE SEARCH These long-drawn processes have

FOR WAYS TO HELP discouraged many new competitors from
entering the industry.

In 2014, two CSOs—Democracy.net.ph and cellular mobile technology and concentrated on Other countries in Asia are already extensively entity (PTE). A provider wanting to
Internet Society - Philippine Chapter (ISOC. urban areas. Expanding network reach beyond using satellite technology for commercial and set up satellite broadband needs to obtain
PH)—began working together informally to urban centers was not considered cost-effective, household access, including Indonesia—a much a telecommunications franchise issued
advocate key reforms in current Information to the disadvantage of people living in rural and bigger archipelago with 10,000 more islands by the Philippine Congress, a costly and
and Communication Technology (ICT) policy. remote areas. than the Philippines—as well as Japan, South time-consuming process.
When Senator Benigno “Bam” Aquino IV held Korea, and Singapore, which are some of the
a Senate hearing on the slow and expensive Many of those concerned with the state of the most well-connected countries in the world. Additionally, to operate the service, one
Internet service in 2015, it opened the door country’s broadband service, including President Currently, there are at least four satellites would need to get a license from the National
to opportunities for civil society to coordinate Rodrigo Duterte5, believed the solution to be that cover the Philippines. The most promising Telecommunications Commission (NTC), the
with reform-minded legislators. By mid-2016, greater competition in the telecom sector, which development was the launch of the KOREASAT7 regulatory agency. Securing a license entails the
the Better Broadband Alliance (BBA)—a group led to the bidding and eventual selection of a satellite in May 2017, primarily designated to conduct of public hearings, at which any entity
of civil society organizations, business and third major player to compete with the duopoly. serve the Philippines and the West Philippine affected may raise comments and objections.
industry associations, Internet user groups, Sea.7 These developments indicate that others
industry experts, and researchers—emerged, In addition to introducing competition, other were already aware of the potential of satellite These long-drawn processes have discouraged
with a commitment to support reforms focused coalition partners saw satellite technology as a technology and that there was sufficient Internet many new competitors from entering the
on improving access, affordability, and quality promising option for delivering Internet access capacity to provide this type of service to industry. In one case, a potential competitor
of broadband services in the Philippines. to rural and remote areas. Unlike traditional the Philippines. spent almost five years in regulatory hearings
Democracy.net.ph and ISOC.PH remain as key wired infrastructure, satellite broadband before the approval to operate was granted.
members of the BBA, which CfC has supported can be deployed quickly and cost-efficiently. Unfortunately, while satellite broadband By that time, the incumbent players had built
since its inception. A 2006 study by Communications Research technology looked promising, there were their networks and captured market share,
Canada found that satellite technology is the key policy and regulatory barriers to using forcing the new entrant to withdraw.
Some members of the BBA identified the reliance most cost-effective way to deliver broadband the technology. Philippine regulations
of government and private service providers on in areas where the population density is less classify satellite broadband as a ‘basic
the existing infrastructure of the two dominant than 70 people per square kilometer.6 Given the telecommunications service,’ which means it can
telecommunications companies as the main sparse nature of many areas in the Philippine only be offered by a public telecommunications
roadblock for the limited Internet access. These archipelago, satellite offers the best solution for
incumbent operators invested primarily in nation-wide Internet access.

5
BusinessWorld. Jan 2018. Gov’t strengthening connectivity as telecoms search for a third player. Retrieved 7
KOREASAT-7 aims to provide data and video applications, including internet access, broadcasting, and con-
from: http://www.bworldonline.com/govt-strengthening-connectivity-telecoms-search-third-player/ nectivity for Very Small Aperture Terminal (VSAT) networks, extending quality coverage of service to Korea,
6
Communications Research Centre Canada (CRC). Cited in Chouinard, G. 2006. Retrieved from: https://www. Philippines, Indochinese Peninsula, Indonesia, and India. It was launched by Arianespace for ktsat of South
itu.int/itunews/manager/display.asp?lang=en&year=2006&issue=03&ipage=canadian&ext=html Korea. Retrieved from: http://www.visionaespacial.com.br/files/LAUNCH-KIT_SGDC.pdf.
8 C f C R E F O R M S TO R Y N O. 1 1 9

REFORM APPROACHES
the proposed EO was never signed. However, In their presentations, BBA made it a point to
the suggestion of using satellite technology mention the use of alternative and emerging
to complement the government’s flagship technologies, particularly satellite, to reach
Internet program already made an impression remote provinces. The ICT Council then
on key officials. This dead end turned out to be a included, as part of their recommendations to
significant contribution to introducing reform. the President, opening the satellite market to
To lift the barriers to satellite broadband, BBA began
achieve universal Internet access.
a specific policy reform effort: reclassify satellite
broadband service as a ‘value-added service’ (VAS)
By the end of 2017, DICT Secretary Salalima was
instead of a ‘basic telecommunications service’. SECOND APPROACH replaced by Undersecretary Rio as officer-in-
Changing the classification would allow any firm,
charge. In the face of this change in leadership,
BBA began a specific policy as opposed to only those with telecommunications Between March and August 2017, BBA
the administration was already receptive to the
franchises, to use satellite broadband to offer continued to push for satellite broadband
idea of using satellite technology as part of the
reform effort: reclassify internet services. BBA members believe this would technology, making a series of presentations to
legitimate solution to the nation’s connectivity
foster competition, even allowing in small players various members of the Duterte administration.
satellite broadband service to improve access especially for those not currently They also met with potential reform champions
problems. However, despite an indication of
support, the administration still did not issue a
served. The following section outlines the various within the DICT: Undersecretary for Special
as a ‘value-added service’ Concerns Eliseo Rio, Jr. and Undersecretary
concrete policy on satellite broadband.
approaches pursued of which one succeeded.
(VAS) instead of a ‘basic Denis Villorente, head for policy, planning,
and programming.
telecommunications service’. FIRST APPROACH THIRD APPROACH IS
These efforts soon began to bear fruit. On
Changing the classification August 11, 2017, Undersecretary Villorente
THE CHARM
In September 2016, BBA met with Undersecretary
sent a memo to Secretary Salalima identifying
would allow any firm, as Ramon ‘RJ’ Jacinto, Presidential Adviser on Economic At around the same time that the DICT
satellite connectivity as a component of
Affairs and Information and Communications leadership was changing, the legislature was
opposed to only those Technology (ICT). BBA recommended the current
the National Broadband Plan (NBP). That
working on bills to institutionalize a Free Public
very same day, the President, through the
administration issue an Executive Order (EO) Wi-Fi program. This program was started by the
with telecommunications declaring satellite technology as a value-added
Executive Secretary, issued a memo mandating
Information and Communications Technology
Undersecretary Jacinto to oversee the
franchises, to use satellite service. Undersecretary Jacinto was receptive to the
deployment of satellite technology in the
Office, the precursor of the DICT. The project
idea and agreed to discuss the recommendation at sought to provide Wi-Fi hotspots in public spaces
Philippines.
broadband to offer internet the next Cabinet meeting scheduled the following all over the country, with ambitious targets and
month. The President and most of the Cabinet a sizable budget of Php 30.6 billion (AUD 785
services. members, except for then Department of Information
Some key volunteers of the BBA were also
million). Later renamed Pipol Konek, the program
able to present to the Interagency ICT Council
and Communications Technology (DICT) Secretary performed poorly - only 181 of the 13,024
created by the President in October 2017.
Rodolfo Salalima, approved of the reform.8 planned sites in 17 provinces were operational
Tasked to review the National Broadband Plan,
two years after its launch. That amounted to just
the ICT Council is composed of the secretaries
The BBA helped Undersecretary Jacinto prepare a little over 1 percent of the 2017 target.9
of Presidential Communications, DICT, the
and submit a policy memo to the President, which
Department of Science and Technology (DOST),
highlighted the potential benefits of satellite In March 2017, the House of Representatives
the Presidential Adviser for Economic Affairs
technology for the struggling Free Public Wi-Fi and the Duterte administration were supporting
and ICT, and the National Security Adviser.
Project of the government. Months passed, but a bill to institutionalize the Free Wi-Fi program.

8
President Duterte appointed Rodolfo Salalima, a former classmate, as the inaugural Secretary of the DICT, 9
GOV.PH. What is the Juan, Konek! Free Wi-Fi Internet Access in Public Places Project? Nov 2016. Retrieved
a newly-formed executive department in June 2016 after the purview over information and communications from: http://freepublicwifi.gov.ph/juan-konek-faqs/
technology (ICT) was detached from then Department of Transportation and Communication by virtue
of the DICT Act of 2015 or Republic Act no. 10844. Salalima was a former chief legal advisor for a major
telecommunications company.
10 C f C R E F O R M S TO R Y N O. 1 1 11

ENCOURAGING RESULTS
In his first State of the Nation Address (SONA) projects. The accompanying rationale is that
in July 2016, President Duterte promised to the classification would significantly increase
provide faster and more accessible Internet.10 the number of service providers, allow smaller
The House and Senate, in response, fast-tracked companies to enter the market, and reduce the
the passage of the Free Wi-Fi bill all the way to program’s implementation costs. The House and Events moved quickly after the passage of the This new openness and more technology-neutral
the bicameral conference committee hearing. Senate leaders accepted the recommendation Free Public Wi-Fi bill. Just a few months later, design was a critical breakthrough in creating
and included the satellite broadband provision the DICT issued the revised deployment design space for technological and management
Seizing this reform opportunity, the Better in the bill. By August 2017, President Duterte parameters for service providers of the Free creativity from potential service providers.
Broadband Alliance moved quickly and signed the Free Internet Access in Public Places Wi-Fi project.
recommended the inclusion of a provision Act (Republic Act 10929) with the satellite DICT reports indicate that the reform is lead-
defining satellite broadband as a value-added provision. The law also provides safeguards on The original 2015 design relied on a single ing to very positive results. In the first eleven
service for the providers of the Pipol Konek the online protection of children11 and prohibits technology delivery strategy based on the months after the law was passed, the program
and other government-funded free internet access to pornography. existing infrastructure of telecommunications installed twice as many access points (1,592 from
companies. The revised 2017 design identified 807) in just a third of the time.
three strategies to deliver the Free Wi-Fi project,
with satellite technology as one of the options.

F I G U RE 2 . POLICY TIMELINE

10
SONA 2017 Promise Tracker: Duterte gets started on most vows. Ranada, P. Rappler. July 24, 2017. Retrieved from:
https://www.rappler.com/nation/176429-sona-2017-duterte-promise-tracker
11
Section 11 of the law mandates that the DICT coordinate with the Inter-Agency Council Against Child Pornography
to develop mechanisms to protect children against sexual abuse and exploitation online. This provision came out from F IGURE 3. O RIGINAL (2015) AND REV ISED (2017) F REE PUBL IC WI-F I PROJECT DESIGN
the efforts of the Child Protection Project of the Australian Embassy and The Asia Foundation Partnership
in the Philippines.
12 C f C R E F O R M S TO R Y N O. 1 1 13

LESSONS LEARNED
A few lessons from the Coalitions for Change and Better Broadband Alliance’s experience:

1. Reform must be transformative but feasible

The Better Broadband Alliance recognized that the legislative
barriers to competition and an over-reliance on telecommunications
infrastructure stood in the way of providing Internet access to unserved
and underserved areas. Understanding the game-changing nature of
satellite broadband, the legislative process, the appropriate policy
recommendations, and the prevailing market environment were critical
to introducing the reform.

2. Keep the message consistent

While Coalitions for Change (CfC) and the Better Broadband Alliance
(BBA) applied several approaches to the broadband reform, the message
remained the same. Decision-makers encountered satellite as the most
viable solution to improving Internet service at every turn. Hence,
Remote and never-before connected opening these remote areas to internet service even as the Executive Order fell by the wayside, the idea to shift to
municipalities of Simunul, Tawi-Tawi and San are not without some important concerns. For satellite technology stuck. This awareness helped the team move the
Jose, Dinagat Islands were beneficiaries of the one, support services should be established reform quickly with the legislation when the time was ripe. Consistent
program. For the first time, citizens of these and maintained so that beneficiaries, especially messaging also has a ripple effect. BBA started the conversation about
two rural fourth-class municipalities—with those offering basic services, can maximize satellite broadband as alternative Internet technology. These days, the
a population of about 30,000—accessed the web connectivity. There is also the challenge satellite option can be heard from different stakeholders, even those not
Internet. Upon installation of the satellite of enforcing safeguards on online avenues directly engaged with the BBA.
broadband service, the regional DICT office for violent extremism, terrorism, and the
boldly announced on Facebook, “[w]orld, exploitation of women and children.
prepare for what Tawi-Tawi can contribute to our 3. Seize the moment
Internet-fueled businesses.”12 Pipol Konek, the Free Public Wi-fi program, is
Time and circumstance were on the side of the CfC and the BBA: the
flourishing and the government is signaling
new administration is interested in expanding Internet access. The team
Internet access will likely provide these strong support: from an approved budget of
identified and maximized available opportunities to engage with various
communities with more livelihood opportunities Php 1.4 billion (AUD 35 million) in 2015, the
decision-makers. The team worked hard to ride the positive accord of the
and up-to-date information on education, public program received Php 1.8 billion (AUD 45
administration and the legislative bodies to achieve the change needed:
health, transport, weather forecasts, and other million) in 2017. From the original target of 748
reclassifying satellite as a value-added service.
useful areas of knowledge. Email, social media, plazas in low-income municipalities, the program
and other forms of online communication will has been expanded to include public schools, Change can happen quickly if the reform has both technical and political
also enable these communities to interact with public hospitals, transport terminals, and other soundness: the reform took only a year from the introduction to
the rest of the world more easily. Of course, public places. actual implementation.

12
Facebook. DICT Mindanao Cluster 1. March 2018. Retrieved from: https://www.facebook.com/DICT.mc1/
posts/927098954126137
14 C f C R E F O R M S TO R Y N O. 1 1 15

P H OTO C O U RT E S Y O F P I P O L KO N E K F R EEPU BLICW IFI.G OV.PH

CONCLUSION
By supporting the Better Broadband Alliance, internet service providers (ISPs) to bid on, install,
Coalitions for Change contributed to increasing and operate the Wi-Fi access points (i.e. VSAT
Internet access in rural areas in the Philippines. terminals) in public places, rather than relying
Armed with strong technical analysis and solely on the duopoly. The ISPs can then ride the
political capital that was earned through the government’s Free Wi-Fi network to provide
years, the BBA identified and engaged reform- internet services to their other subscribers,
minded leaders in pushing the reform. separate from the government program. This
partnership with smaller players in the private
The successful change in policy did not come sector will need to be maintained for the Free
from a single source. Rather, it was from Wi-Fi program to continue to proliferate and be
identifying an important policy reform and then sustainable. CfC is in the process of developing
testing various avenues among key players and a baseline study to monitor the progress of Pipol
decision-makers that made satellite technology Konek in various provinces.
a viable solution. CfC and the BBA worked to
sustain the interest in the reform and rode the The promise to provide internet access to all
legislative momentum. Ultimately, their effort Filipinos seems within reach, even for those in
to maximize an existing government program the remotest of places.
paid off.

A couple of months after the law was passed in

August 2017, the DICT began allowing smaller
16 C f C R E F O R M S TO R Y N O. 1 1

Reform Origins
Reform Origins
Lorem ipsum dolor sit amet, consectetur adipisc-
ing elitn nullam lobortis nisl nec eros consequat,
in pretium nibh iaculis. Sed sed purus neque. Cras
euismod ac magna in facilisis. Suspendisse biben-
dum turpis nunc, in ultrices leo consectetur eu.

For More Information

Development Section (Governance)
The Australian Embassy – The Philippines
Tel: +63 (2) 757 8100
Email: [email protected]
Website: www.philippines.embassy.gov.au

The Asia Foundation - Philippines

Tel: +63 (2) 722 9999
Email: [email protected]
Website: www.asiafoundation.org