Gateway to Connectivity: Starlink’s Entry & the Potential for Better PH Internet Services

A couple of weeks back, the Department of Information and Communications Technology (DICT) approved the registration of Starlink Internet Services Philippines, Inc. The National Telecommunications Commission (NTC) — an agency attached to the DICT — believes that this recent move is projected to attract more foreign satellite broadband providers into the country. “It’s expected that the others will follow. First, the implementing rules for the amendments to the Public Service Act (PSA) are being prepared by the National Economic and Development Authority, so others are probably just waiting for the specific rules,” explained NTC Deputy Commissioner Edgardo Cabarios.

President Rodrigo Duterte earlier marked the Public Services Act as a priority bill, which he then signed into law on March 21. The amendments to the PSA — sponsored by Senator Grace Poe — alleviate the restrictions on full foreign ownership of businesses in the sectors of telecommunications, railways, expressways, airports, and shipping. Following this string of developments, SpaceX-Starlink found a renewed interest to invest in the Philippines, making it the first country in Southeast Asia to offer the firm’s innovative services.

The NTC swiftly approved Starlink’s registration as a value-added service (VAS) provider in an effort to accelerate the roll-out of its services. “We would like to thank the NTC for issuing Starlink’s VAS license 30 minutes after we submitted our application with complete requirements,” expressed Bien Marquez of Quisumbing Torres. “This shows the government’s seriousness in addressing the connectivity needs of our countrymen in unserved and underserved areas. This will also prepare us in the event of natural disasters and calamities.” Qusiumbing Torres is a law officer that served as SpaceX’s counsel.

Securing the VAS registration enables companies to “directly access satellite systems, build, and operate broadband facilities to offer internet services.” Cabarios furthered that the same treatment can be expected by other foreign satellite broadband operators looking to enter the country. “Many foreign companies, telcos, have expressed interest to enter the Philippine market. The Philippine market is a growing market, especially for broadband or internet access. Demand is huge. It is growing every day,” added the NTC official.

DICT Acting Secretary Emmanuel Rey Caintic, likewise, presided over a public consultation with Satellite Systems Providers or Operators (SSPOs) towards the end of May. Caintic urged attendees to “intensify their corporate presence in the country and be part of the digital transformation. “DICT continues to provide an enabling environment, especially for new players such as Starlink,” he added. “Please continue to follow our existing telecommunication laws and make sure to deliver faster and secure connectivity in our country.”

Satellite internet services prove to be a significant game-changer for the Philippines, particularly due to its vulnerability to natural disasters. The entry of similar firms will supply end users with a wider array of providers to choose from spurring competition. Moreover, these services will help to reach Geographically Isolated and Disadvantaged Areas (GIDA) sites in hopes of boosting the country’s overall connectivity.

The recent Speedtest Global Index ranked the Philippines 5th in mobile internet speed and 59th in fixed broadband internet speed. This puts the country behind its regional neighbors. Based on the same index, the Philippines logged median download speeds of 19.45 Mbps for mobile and 55.21 Mbps for fixed broadband. Starlink, in particular, has committed to delivering broadband speeds between 100 to 200 Megabits per second (Mbps), especially in GIDA locations. While these developments sound promising, Starlink’s services — and the services of other potential providers —  will hinge on two factors: its affordability for consumers and the country’s information communications technology infrastructure.

References: Rappler, Nikkei Asia, BusinessWorld, Manila Bulletin, ABS CBN, Inquirer, Yahoo! News