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20th Anniversary of Internet in the Philippines


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A presentation I gave during the 20th Anniversary of Internet in the Philippines. Thanks to Jurist, Manny and Achie for some of the materials you contributed.

Published in: Technology

20th Anniversary of Internet in the Philippines

  1. 1. Delivering Internet Services in the Philippines … the best years are are ahead of us! Cocoy J. Claravall IV Vice President Consumer Broadband Products March 27, 2014
  2. 2. " is a partnership, it's an industry coalition working together to make the internet and the different parts of it more efficient. For everyone to have access to it for a really affordable price or free is the real goal for basic internet services. In the Philippines, for example, we've been working with Globe, and what we've seen in the Philippines is the number of people who are using internet and data has doubled. It's a homerun, it's going really well. We delivered this product, where basically, in partnership with them [Globe], there's free basic services with upsells. We're starting off with Facebook and Messenger, the next version we're going to do is more basic services," shared Zuckerberg in his keynote. Facebook CEO Mark Zuckerberg at the 2014 Mobile World Congress in Barcelona
  3. 3. Global Trends – Mobile connections projected to reach the 4 Bn mark by 2018 • Almost half the population of the earth now uses mobile communications. • A billion mobile subscribers were added in the last 4 years to leave the total standing at 3.2 billion. • There are still many adults and young people who would appreciate the social and economic benefits of mobile technology but are unable to access it, highlighting a huge opportunity for future growth and a challenge to all players in the industry ecosystem to expand the scope of products and services to tap this demand. • Given the strong growth trajectory and pace of innovation, the next few years will see continued growth with a further 700 million subscribers expected to be added by 2017 and the 4 billion mark to be passed in 2018. The biggest growth rates are in Asia including the Philippines !
  5. 5. Copyright©2013TheNielsenCompany.Confidentialandproprietary. 5 Source: NSCB; News articles and Internal market research Philippines, % GDP Growth • Armed conflict in Zamboanga (Q3) • Earthquake in Bohol (Q4) • Yolanda in Leyte (Q4) Despite the calamities & conflicts, country’s GDP growth remains strong in Q4’13, but softening noted compared to early part of the year. BUT even then … Internet usage (in Dec 2013 using any medium) still increased, driven by Rural PH. Urban remains stable. Urban is approx 2/3 of the Internet population vs 1/3 for Rural.
  6. 6. Copyright©2013TheNielsenCompany.Confidentialandproprietary. 6 Profile of Internet Users (%) in Urban PH SEC Region Gender Age Group Lifestage Base=1,500/qtr LEGEND: Higher at 95% CL vs. PP 90% Lower at 95% CL vs. PP 90% Higher at 95% CL vs. YA 90% Lower at 95% CL vs.YA 90% Internet user profile generally remains the same save that there are now more users from 41-50 age group, driven adult housewives and working youth. Ferrell Segment
  7. 7. Copyright©2013TheNielsenCompany.Confidentialandproprietary. 7 17 31 19 29 Device Ownership in Urban PH (%) Estimated Population of Device Owners (In Millions) LEGEND: Sig higher at 95% CL vs. PP 90% Sig lower at 95% CL vs. PP 90% Sig higher at 95% CL vs. YA 90% Sig lower at 95% CL vs.YA 90% *From Project Vector (personal ownership) Note: Christmas holidays captured as part of Q1 due to Field Work schedule. No Field Work during last 2 weeks of December 887 1033 1103 983 873 1099 1059 825 Base for Tablet, Laptop & Desktop Base for Smartphone* 1500 1500 1500 1500 1500 1500 1500 1500 Q4’13 Smartphone and Tablet ownership continues to surge—Tablet gaining on desktop PCs. More and more cheap but average to high-spec tablet made by local/ China brands and even top brands (Samsung and Apple) could be driving this trend.
  8. 8. Copyright©2013TheNielsenCompany.Confidentialandproprietary. 8 Tablets shared within the immediate family, reinforcing tablet as a shared device rather than personal. Tablet Shared with Whom Age of Currently Owned Tablet Base Q4’13 = 611 Base Q4’13 = 900 Average: 10 mos. Average # of people sharing: 2 members/ HH
  10. 10. Internet Landscape – PH Traffic Source: local traffic profiler Traffic Profile -IP traffic is still predominantly US-centric -Asian traffic continuous to grow – specifically Singapore, Malaysia & Korea -CDNs/US Carriers bringing content closer to Asia -European traffic growing, (route via U.S.) -Philippines is the 2nd top Internet user in Southeast Asia, next to Indonesia; 6th in Asia and 17th in the world. Filipino Internet User Growth Source: FB Users 2/13 Philippines #8
  11. 11. Enabling Infrastructure – Globe’s IP Capacity (Gbps)
  12. 12. Enabling infrastructure Singapore Global Switch Hong Kong Mega-I TGN-IA TGN-IA TGN-IA C2C APCN2 C2C USA Seattle – Westin Building USA LA - One Wilshire TGNIA-TGNP C2C-UNITY Japan Shinagawa Equinix SJC SJC SJC TGNIA-UNITY IP Core AS4775 Global Connectivity Domestic Connectivity 3 Major Core Networks International Domestic Internet 5 Int’l PoPs 2 CLS The Philippines is Well - Connected to the ROW! Globe’s Resilient International Cable Network
  13. 13. Internet Landscape – Local IX *Government policy on to via PhOpen IX (answer to Domestic traffic localization) Note: 15-23% of all Internet is Domestic Source:The-Need-for-a-True-National-Internet-Exchange-Philippines-V1-2 No common IX where all ISPs are connected ISPs operate their own IXP ISPs peer directly (selected ISPs) Traffic localized - through inter-ISP peering sessions Peering Policy – Inter-AS only (with special exceptions) IXP list IX Name ISP GIX Globe PHIX PLDT NGIX Bayan MIX ETPI VIX ePLDT PhOpenIX DOST-ASTI COMIX Comclark CORE PHNet
  14. 14. Internet reachability – Global IX Source:peeringdb PH Carriers has expanded connectivity to Global Internet eXchange Points (IXPs) Multiple Regionals Connections complements diversity and more direct connectivity Globe Bayan ETPI Digitel IPvG Comclark PLDT IXP/ASN 4775 6648 9658 9497 23930 17639 9299 US-LA Any2IX P P US-LA LAIIX P P US-SEA SIX P Equinix P HKIX P P P P P iAIX P Equinix P SOX P Equinix P P SGIX P Europe London LINX P Count 7 5 1 2 3 Carriers US Asia JP HK SG N/A N/ANo Data Available
  15. 15. Home Broadband Plans Continue to Get Better, More Value for Money!
  16. 16. THE FUTURE
  17. 17. The Next Wave of mobile broadband enabled services – Connected Living. Connected Living Ushers in the Era of Web 3.0 and Telco 3.0
  18. 18. Connected Life Services are in use today but a lot opportunities are emerging in many markets including developing economies. Connected Smart meters • Do away with error prone and labor intensive manual meter readings • Provide customers with means to track and monitor energy or water or gas consumption actively and even send a reminder if target consumption levels are exceeded • Prepaid utility services for transients • Remote monitoring of utilities facilities (power plants, water reservoirs, depots) Connected Homes • Remote control of home and its appliances Connected Consumer electronics • Access of social networking sites increase • Automatic uploading and downloading of photos, videos and movies • Automatic generation of groceries shopping lists E-libraries • e-books for students • Online rentals of e-books, videos, music E-payments and e-banking • Mobile payments • Micro loans • remittances E-health • Remote monitoring technologies for healthcare can deliver more cost-effective and resource efficient healthcare while offering individual s and medical practitioners better insights into patient lifestyles Connected vehicles/embedded mobile transport solutions • On-demand in-vehicle entertainment systems, route and traffic information and navigation services • Travel route planning, emergency assistance • Delivery of maintenance information and support to drivers and car owners including vehicle tracking, carnap alerts and automatic lock down E-government • License renewals and various transactions with government
  19. 19. The Biggest Challenge then is Developing New Capabilities and Capacity for Emerging Broadband Usage Believe It Or Not : The Philippines is the fastest- growing smartphone market for SEA and soon connected appliances and even vehicles ! Highly Confidential Unauthorized disclosure internally and externally is prohibited “The Philippines was noted as the fastest-growing market, with the value of smartphones sold growing by 402 percent in the first quarter of 2012 over the same period in 2011” - GfK Asia The Next Wave of mobile broadband enabled services– Connected Living. Highly Confidential Unauthorized disclosure internally and externally is prohibited • Ensuring Quality of Customer experience • Usage control , Fair Use Policy, and ability to charge for service and experience • Value-Add Proposition for OTT / Partnerships • Indoor coverage and capacity • Fixed broadband connectivity • Speed, speed, speed • Scalability • Ensuring Quality of Customer experience • Usage control , Fair Use Policy, and ability to charge for service and experience • Value-Add Proposition for OTT / Partnerships Management • Indoor coverage and capacity • Fixed broadband connectivity • Speed, speed, speed • Security • Digital rights management • M2M / LBS / • Regulations
  20. 20. Philippine telcos are starting to adopt emerging technologies and offer new services to meet the requirements of enabling “connected lifestyle”. Consumers Network & Technology Mobile Operator/Service Provider Devices • Gigabit WiFi, LTE, LTE-advanced, FTTx, xPON • IPv6 • Small cells & Heterogeneous networks • Cloud RAN & cloud based WiFi • Network Function virtualization • Optical distributed antenna systems (ODAS) • Google glass • Connected automotive • Wearable smart devices • Managed IT services • Hosted solutions • Payment gateways • Network-based security (Security- as-a-Service) • Platform-as-a- Service Partners • Banking industry • Utilities (power, water, transport etc) • Government agencies • Academe • Health industry • Logistics industry • Manufacturing Business Model • Customized consumer plans • Unlimited plans • QoS-based • Fair Use Policy • Pre-paid