Mobile broadband accounted for 7.3 percent PHL's economic growth since 2000

Just one out of every 25 Filipinos is able to connect to the Internet, but mobile Internet consumers managed to consistently raise the country's GDP by 0.32 percent annually for the past decade.

 

According to the Broadband Commission for Digital Development report entitled, “The economic impact of broadband in the Philippines,” broadband technology accounted for 7.3 percent of all economic growth in the country over the past ten years. 

 

 

Philippine GDP grew at a compound annual average of 4.6 percent, according to the report, which was written by Columbia Institute for Tele-Information’s Dr. Raul Katz.

 

The same report also showed a steady rise in Internet use among Philippine households over the past decade.

 

“(G)iven the acceleration of mobile broadband penetration since 2005, the impact of the technology has almost doubled, reaching 0.61 percent of GDP and representing 7.3 percent of all economic growth in the country,” the report explained.

 

 

The country's booming mobile sector also contributed significantly to the Philippines’ GDP, according to the report.

 

It was also mentioned that the telecommunications sector boosted tax revenues and helped provide more job opportunities.

 

Still low broadband penetration

 

A United Nations (UN) report put the Philippines at 101st place for fixed broadband penetration, with only 2 out of every 100 Filipinos enjoying access to broadband technology.(See report here.)

 

The UN report underscored the necessity of Internect connections to countries' growth: “Broadband is today a critical infrastructure in the growing global digital economy.”

 

“(C)ountries that fail to invest in broadband infrastructure risk being excluded from today’s online economy, as well as the next stage of the digital revolution and future Internet,” said the report.

 

The UN report showed that the active mobile broadband subscription in the Philippines is also low, at an average 3.4 of every 100 Filipinos. This rate put the country at 93rd place, just a few notches above Uganda, Nigeria, and Cambodia.

 

“This phenomenon of mobile broadband growth and marginal subscription in fixed broadband appears to reflect the market needs for openness and connectivity,” said a related report from the Broadband Commission published in May 2012.

 

The relatively low penetration of fixed broadband services is seen to increase along with mobile broadband penetration in the coming years —along with the introduction of better mobile internet services from the major telecom companies. — TJD, GMA News