In the Philippines, the internet services market is dominated for decades by a duopoly of two major players: PLDT and Globe Telecom. These companies have a combined market share of over 90% in the fixed broadband market and over 95% in the mobile data market.
The duopoly has been criticized for its high prices and poor service quality. Despite efforts from the government to increase competition and improve internet connectivity, progress has been slow.
PLDT and Globe Telecom have been investing heavily in improving their infrastructure to meet the growing demand for internet services in the country. This has led to the expansion of their coverage areas and the introduction of faster internet speeds. However, there is still a significant digital divide in the country, with many areas lacking access to reliable and affordable internet services.
Efforts are being made to break the duopoly, such as the entry of third players in the market and the implementation of policies to promote competition. The success of these efforts remains to be seen, but it is clear that more needs to be done to improve internet connectivity in the Philippines.
The entry of Starlink by ultra-billionaire Elon Musk in the Philippines has put serious pressure on the existing telecom companies, PLDT and Globe Telecom, to improve their internet speeds and service quality to remain competitive. To meet this challenge, both companies have announced plans to increase investments in their infrastructure and network upgrades, such as fiber-optic cable installations and 5G rollouts.
These investments aim to improve internet speeds, reduce latency, and enhance overall connectivity for customers. The increased competition is expected to benefit consumers, as they may have access to better internet services and more competitive pricing from both traditional telecom companies and new entrants like Elon Musks’ Starlink.
Starlink in the Philippines has the potential to bring several benefits to Filipinos, including:
Improved Internet Connectivity
With Starlink’s high-speed, low-latency internet service, users can enjoy faster and more reliable internet connectivity, even in remote areas that are currently underserved by traditional internet providers with the Philippines being an archipelago with more than 7,000 islands.
Enhanced Access to Education and Information
Starlink’s internet service can provide students and educators in rural areas with access to online learning platforms, educational resources, and research materials, allowing them to pursue their studies and expand their knowledge.
Increased Opportunities for Business and Entrepreneurship
With faster and more reliable internet access, entrepreneurs and small businesses in remote areas can expand their reach and tap into new markets, creating new economic opportunities and contributing to the growth of the local economy.
Improved Communication and Connectivity
Starlink’s internet service can improve communication and connectivity for families and communities in remote areas, enabling them to stay connected with loved ones, access healthcare services, and participate in online communities with Filipino’s being savvy internet user’s.
Reduced Dependence on Traditional Providers
The entry of Starlink in the Philippines can help promote competition in the internet services market, reducing dependence on the existing duopoly of PLDT and Globe Telecom and potentially leading to lower prices and improved service quality for consumers.
Photo courtesy: Starlink: Elon Musk / Luneta Park Archives / Globe Telecom & PLDT
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