The Philippines is working to improve its digital transformation by enhancing internet connectivity, a move seen as crucial for poverty reduction and shared prosperity. Despite the government's efforts since 2022, the country still faces significant challenges. Outdated policies like the Radio Control Law of 1931 and the Public Telecommunications Act of 1995 hinder market competition and investment. In 2023, only 28% of Filipino households had access to fixed broadband, compared to higher percentages in neighboring Southeast Asian countries.
Pattoys Miranda and Pam Angeles, owners of Bikeary Lifestyle Bike Shop, highlight the importance of fast internet: "Access to fast internet has been a game-changer for our business. It allows us to reach more customers online, manage inventory efficiently, and process payments quickly."
The World Bank has been collaborating with the Philippine government on this issue through various initiatives under their Country Partnership Framework (2019–24). Efforts include increasing internet access, reducing connectivity costs, promoting e-commerce, digital payment systems, and enhancing digital skills across the population. The Competitiveness and Resilience Development Policy Loan (DPL) series (2019–22) improved internet penetration and infrastructure significantly.
Recent projects build on these achievements by driving regulatory reforms that modernize outdated legal frameworks to facilitate market entry and attract investment. These efforts are expected to increase broadband access by 20 million users by 2028 and raise household fixed broadband connection rates from 25.6% in 2022 to 35% in 2026.
The collaboration between the World Bank Group's International Finance Corporation (IFC) led to policy reforms allowing foreign investments in independent tower companies. This resulted in faster permitting processes for tower building—cutting it down from 18 months to just 16 days—and enabled IFC's participation in constructing rural towers in underserved areas such as Mindanao.
Funding from various sources supports these endeavors: $1.64 billion from the International Bank for Reconstruction and Development (IBRD), $400 million from the Asian Infrastructure Investment Bank (AIIB), alongside loans from IFC amounting to $25.5 million.
The Department of Economy, Planning, and Development (DEPDev) leads preparations for implementing digital reforms like submitting the Konektadong Pinoy Act aimed at lowering barriers to market entry while promoting competition within telecommunications sectors.
Looking ahead into their Country Partnership Framework for 2026–31 with an emphasis on creating private-sector jobs via improved connectivity measures supported by follow-on reforms will help expand internet access further into rural areas integrating digital IDs into services along with expanding digital payment systems across key sectors throughout society—all part of a broader vision towards fostering inclusive growth throughout this archipelagic nation.