Building a Digital Nation - GIL B. GENIO Chief Technology & Information Officer & Chief Strategy Officer - DICT
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Building a Digital Nation
GIL B. GENIO
Chief Technology &
Information Officer
& Chief Strategy Officer
In 2016 and 2017, Globe spends 30-31% of its revenues for
capex, significantly more than telcos in most other countries
40
30 36
33
29
20 2623 26 23
2123 22
10 1514 1513 1614 1413 1614 1617
1213
0
FY14 FY15
The benefits of such annual investments are tangible
1. Industry 5. Improvements in
revenue comprises reach and efficiency of
2% of GDP businesses such as
banks, retail stores etc
4. 1.3M direct
2. Social BPO
connections employment
3. Helps OFW
connect
Recall: The realities of “slow internet” in PH
Current Challenge Internet Access Current Constraints Solutions
Method
MOBILE INTERNET • Not enough cell sites to support • Less bureaucracy for sites
(Using mobile devices, mobile data traffic and high speed and towers
“pocket WiFi” devices, internet* • Less bureaucracy for
etc.)* • Globe current backlog of 3,000 sites underground facilities
due to permitting issues • Faster approvals for pole
• Permits for sites take 8 months attachments
• “Tower Fees” for sites range from • Government to prioritze
P5,000 – P200,000 per tower and enable the sector to do
depending on LGU infrastructure builds
• No standard fees breed corruption • Close collaboration with
• Despite difficulty in putting up cell DPWH to reduce fiber cuts
“Slow Internet" sites, HOAs can easily have the sites • Integrate ICT connectivity
removed in urban planning
• Alleged health risks are never
substantiated
• Right of way issues for fiber
(underground, pole attachments)
• DPWH operations cut fiber cables
contributing to service disruptions
*There is no reliable Mobile Internet Benchmark. Only by 2Q2016 has Akamai Technologies published mobile internet
speed results for PH
From November DICT Summit
Mobile Internet in Bright Spot:
• Speeds getting better with continued investment, larger spectrum
• Increasing reach of 4G/LTE (including use of the 700MHz),
• Supports the lifestyle changes of the Filipino (at home/work/play)
Mobile
Ave. Speed
3Q16
13.8 MBPS
Significant improvement
on PH State of the
Internet based on the
Akamai Technologies
3Q16 Report
What have we done?
Ø Continuous build of 1,000 cell sites per year
Ø Deploying recently acquired frequencies
Ø 3-year roll out plan sent to NTC covering 95% of total municipalities by 2018
Issues on mobile internet must be addressed
• Lack of sites: issues with local governments including homeowners
associations, "health fears", “tyranny of the minority”, among others.
• Globe supports concept of TowerCo (tower sharing with competitors, or from a
third party), or even with government becoming a TowerCo.
• We just need to fix the national embarrassment of having only about 16.3K
towers versus Vietnam's 70K.
Selected Asian tower market size comparisons, Q3 2016
Fixed-line internet is getting better
But penetration of fixed broadband
generally (whether xDSL or
FTTH), and high speed specifically
(>10Mbps or >25Mbps) is growing
rapidly, albeit from a smaller
based, with more homes passed
But issues on fixed-line
internet must be
addressed
Ø Incentives for investments
with longer term payoff
Ø Right of way
Ø Monopolies on pole
attachments
A Laundry List of Policy
Recommendation from
Various Sectors:
What is Globe’s Position?
Recommendations from certain groups
and Globe Telecom’s position
Comment: Globe favors tower sharing, or an active
TowerCo market in the Philippines like in other countries,
provided tower sharing in fact result in more sites or faster
Policy 1: Adopt permitting and lower costs. Tower sharing is pointless if it
Open Access Model doesn't add sites.
to open up industry to Tower sharing without new sites will not alleviate
local and foreign congestion as current sites are in same locations.
players. “It allows Infra backlogs happen due to difficulty in getting LGU
sharing the physical permits;; no standardized fees at LGU leads to opportunities
for corruption.
infrastructure across
multiple operators Action: Build more physical sites;; also including new
players
which can contribute
significantly to Simplify site acquisition;; government should prioritize
infrastructure builds
improving cost
effectiveness.” Congress can prioritize Open Access Law to standardize
permitting and tower fees
Recommendations from certain groups
and Globe Telecom’s position
Policy 2: Update and Comment: We support the amendment of
Telecom Policy Act of 1935 to reflect 21st
upgrade laws, amend the century requirements.
Public Telecommunications
We support Republic Act 7925 of 1995 to be
Policy Act and create the
amended or repealed to enable
DICT. “The PH badly needs rationalization of the management,
a law that promotes allocation or assignment of radio frequency
spectrum in a manner that is transparent,
innovation in
fair, and economically efficient and effective.
communications and
Action: Congress should make this a top
connectivity.”
priority
Recommendations from certain groups
and Globe Telecom’s position
Comment: IP Peering is now a reality. (But
among us geeks, we just need to monitor that all
Policy 3: Level the playing
AS are advertised.)
field by promoting open and
neutral internet exchange points Tower co-location will not solve anything if we
(IXPs) and encourage maintain same number of cell sites;; rather, we
infrastructure sharing. “Allow need more sites.
tower co-location in order to Sharing of radio spectrum is not a common
lower cost for smaller players. practice due to complexity.
This also includes sharing of
radio spectrum, allowing the use Action: Encourage the development of local
of unlicensed frequencies at the content and applications (keep traffic local).
community level.”Recommendations from certain groups
and Globe Telecom’s position
Comment: We support a new ICT strategy to
improve delivery of government services and
promote process efficiencies for public service.
Policy 4: Update the
country’s ICT strategy and A National Broadband Plan minus corruption
plan, including the will help the industry especially in missionary
sites where there is high risk or no business
development of a national
case for private corporations.
broadband plan.
It should also include putting up free WiFi in
“This plan must include ways public places and connecting public schools to
on how various key the Internet.
stakeholders will work
Action: Government to invest in the internet
towards a more accessible,
superhighway.
affordable and better quality
broadband service.” Government should provide incentives to
private corporations to connect public
schools to the Internet.Recommendations from certain groups
and Globe Telecom’s position
Comment: We support spectrum management
Policy 5: Improve and monitoring by the NTC. Spectrum must not
spectrum management. be left in the hands of private companies that do
“Key spectrum bands have not use it to benefit consumers. “How much
mostly been allocated to the spectrum is allowed for a telco" is a function of
large telcos without site density. In PH, more spectrum is needed to
consideration for the serve customers effectively, given lack of sites. In
other countries, where there is no site constraint,
smaller players and new
spectrum slices as small as 10MHz per
entrants.”
technology would suffice.
Action: Government to adopt a spectrum
distribution policy
Effective monitoring system to encourage
innovation and evolution of services and
technologies. Globe Network serves more subscribers per site than other operators in Europe or South East Asia as a result of lower cell site count arising from difficulty in building cell sites. * Average of Mobile Network Operators in EU and South East Asia (UK, Netherlands, Germany, Indonesia, Malaysia, Philippines, Vietnam Source : Bell Labs Consultancy Services, Aug. 2016
Recommendations from certain groups
and Globe Telecom’s position
Comment: The statements fail to appreciate the
Policy 6: Ensuring and intense competitive environment that forced voice,
protecting the competitiveness
SMS and data prices to decline over the past 3
of the telco industry. “There is
years. There are multitudes of offers and high
no definition of what constitutes
personalization of offers consider consumer
public interest in telecoms
preferences.
regulation. There are also no
obligations imposed on telcos Both telcos have invested billions of dollars for
with significant market power. many years and very few companies in PH are
The PH telco market has been willing or able to sustain high annual CAPEX.
tagged as less competitive and
effectively a duopoly. The sector PH high CAPEX to revenue ratio vs. Asian telcos is
will benefit from new players both proof that we spend more for infrastructure.
domestic and foreign, and
effective competition. No other Competing on Internet, telcos also invest heavily in
local company has invested submarine cable facilities, cable landing stations
massively in the PH telecoms and terrestrial/submarine backhaul.
sector.”
Action: The PH Fair Competition Act should
prevent monopolies and anti-competitive
practices.HOA’s health concerns myth about cell sites is a
major obstacle for sites and network coverage
In the US, where
there is strong
protection on
consumer welfare
and health, has
already enacted
federal laws that
prevent denial of
permits based on
health reasons.
https://www.fcc.gov/general/tower-and-antenna-siting
State and Local Authorities
Section 332(c)(7) of the Communications Act preserves state and local authority over zoning and land use
decisions for personal wireless service facilities, but sets forth specific limitations on that authority. Specifically,
a state or local government may not unreasonably discriminate among providers of functionally equivalent
services, may not regulate in a manner that prohibits or has the effect of prohibiting the provision of personal
wireless services, must act on applications within a reasonable period of time, and must make any denial of
an application in writing supported by substantial evidence in a written record. The statute also preempts
local decisions premised directly or indirectly on the environmental effects of radio frequency (RF)
emissions, assuming that the provider is in compliance with the Commission's RF rules.Home Owners Associations against cell site
proposals
• La Vista • Loyola Grand Villas
• Forbes • 1st Valle Verde Asso. Inc. (Valle Verde 1)
• Dasmarinas • Jaybee Village
• TSCRUZ Subdivision • St. Mary’s Subdivision
• Fruitville HOA • Vista Real Classica Subdivision
• Bf homes HOA • Meteor Home Owners Association
• Merville subd hoa • Loyola Grand Villas
• Bf homes Executive Village Assoc • Kings' Vill Executive Village
• Merville Subd HOA • Smile CitiHomes Condominium Corp.
• South Bay Garden Village • Thomas Home Association
• JEE Village Association • Vista Rio Village
• Vista Verde Subdivision • Magallanes Village
• Concepcion Village • Greenmeadows Village
• Modesta Village • Greenhills North
• Vista Verde Subdivision • Belair VillageKey “asks” and recommendations to the
government to improve state of
telecommunications in PH
1) Amend the Local Government Code
2) Amend the Republic act 7925: An Act to Promote and Govern the
Development of Philippine Telecommunications and the Delivery
of Public Telecommunications Services
3) Update the Philippine ICT Roadmap
4) Repeal the DPWH Administrative Order 18 (telcos are not
allowed to install telco infra in public roads)
5) Government must participate in building digital infra
6) Above all: sites, sites, sitesYou can also read
