As a child of the 80’s I was born into the world of the terrestrial landline. In my teens, mobile carriers were the new fanfare of the world as Nokia phones slowly populated the pockets of my classmates in college. As far as I can remember, the one constant gripe as a teenager was how two telcos seemed to dominate the space. There were repercussions for us youngsters who didn’t have a lot of budget for newfangled things such as “prepaid load.” Down the line, competition for user acquisition heated up, bringing forth the unli-text era where SMART and Globe locked subscribers in by offering unlimited SMS as long as you were within the network. This escalated with mobile data offerings in the early 2000’s with both telcos one-upping each other with the “better” service. Truth is, back in the day, mobile data on EDGE and HSDPA (the precursors of 3G) was a tad janky.
I remember sitting through a report back in the day referencing how the number of telcos in a country is directly proportional to better mobile services because of competition. In the case of the Philippines, we have had only two telcos – for a brief time, three, with SUN Cellular, but it was acquired by SMART in 2011 – and this has always been a pain point back in the day when it came to our country being compared to other SEA nations for data speeds (for reference, both Thailand and Indonesia have four major telcos).
But change is on the horizon. The emergence of wireless broadband as a viable alternative to traditional wired solutions is shaking up the status quo. With advancements in technology and changing consumer preferences, wireless broadband is stepping into the spotlight, offering a more agile and cost-effective approach to connectivity.
The problem of connecting 7,107 islands
In an archipelagic country like the Philippines, with its rugged and geographically diverse regions, laying down extensive wired infrastructure has always been a costly and challenging endeavor. Wireless broadband, with its ability to leverage existing cellular networks and deploy small cell technology, presents a solution to bridge the digital divide and reach underserved communities with minimal disruption.
Enterprising players like DITO Telecommunity are making that attempt to lead the charge, offering affordable plans and reliable connectivity to previously underserved areas. With speeds of up to 500 megabits per second (Mbps), the telco brings high-speed 5G internet access to communities that have long been left behind. My team has written in the past about how underserved communities around the archipelago are now being served with educational solutions from the DOST c/o STAR Books. Opportunities like these require modern infrastructure — the pandemic was proof of this resilience and the further need to hunker down and improve connections.
The benefits of wireless broadband are undeniable. With speeds that rival or surpass those of traditional wired connections, it enables seamless streaming, immersive gaming, and real-time communication. Its low latency makes it ideal for emerging technologies like augmented reality and autonomous vehicles, opening up a world of possibilities for innovation and growth.
But perhaps the most significant impact of wireless broadband is its potential to break the stranglehold of the telco duopoly. By providing a viable alternative to the dominant players, wireless broadband introduces much-needed competition into the market, forcing incumbents to up their game or risk losing market share.
However, the road ahead is not without its challenges. Rapid technological advancements, shifting consumer preferences, and economic uncertainties all pose risks to the continued growth and success of wireless broadband providers. To overcome these challenges, players like DITO Telecommunity must remain vigilant, agile, and customer-focused, continuously adapting their strategies to meet the evolving needs of consumers.
As the Philippines continues its digital transformation, wireless broadband is ushering in a new era of connectivity and opportunity. With the promise of 5G technology and the bold innovations offered by players like DITO Telecommunity, the barriers to internet access are crumbling, paving the way for a more competitive, inclusive, and connected future.
Breaking the duopoly in the Philippine telco scene has been a long time coming. Although the landscape has changed since the early 2000’s, there’s a breath of fresh air to be had with new competition pushing the two behemoths — and the industry to move forward.