As the Philippines continues its digital transformation, reliable internet connectivity is increasingly critical in fostering economic growth, innovation, and inclusivity.
A recent study by the Global System for Mobile Communications Association (GSMA) reveals that 5G adoption in the country is expected to grow significantly. Nearly 50% of mobile connections will transition to 5G technology by 2030, up from just 6% in 2023.
“The [Philippine] digital economy will balloon to about P5 trillion in total economic value by 2030. Now, or since 2022, it’s been at P2.1 trillion, so it’s going to more than double. It’s going to be 27% of GDP,” said Globe chief commercial officer Darius Delgado.
Delgado highlighted the critical need to expand the country’s digital infrastructure, including 5G networks and satellite internet and the importance of connectivity to advance the digital economy.
In addition, Delgado emphasized the transformative potential of digital infrastructure, citing the significant contribution of the so-called Internet economy to the nation’s economic growth.
Empowering economic growth through connectivity
The increasing availability of 5G and improved internet speeds offer vast opportunities for businesses and workers, especially in the burgeoning gig economy and small enterprises.
Meanwhile, reliable connectivity is equally vital to sustaining key industries like business process outsourcing (BPO). Smart Communications Chief Operating Officer Boy Martinez noted that robust internet infrastructure is essential to upskilling the workforce, enabling employees to adapt to emerging technologies such as artificial intelligence and automation.
“One of the darling industries in the Philippines is the BPO sector. As AI evolves, many workers could be displaced unless they upskill. Telcos play a crucial role in building the necessary internet infrastructure to support this transition,” Martinez stated.
Addressing the digital divide
Despite advancements, the GSMA report revealed a significant usage gap, with 45% of the population—or 55 million Filipinos—still not online, even in areas where connectivity is available. Affordability and accessibility remain significant challenges, particularly in rural areas.
Experts stress the need for modernized policies to make internet services more affordable and accessible. GSMA Asia Pacific Head Julian Gorman highlighted the importance of collaboration between policymakers, telcos, and other stakeholders to simplify infrastructure rollouts and reduce costs.
One area of focus is spectrum management, which remains costly in the Philippines compared to global standards. Lower spectrum fees encourage investment in network expansion, ultimately benefiting consumers.
Building trust in the digital ecosystem
The success of the Philippines’ digital economy hinges on access and trust in digital services. The prevalence of scams and online fraud has eroded confidence in these services, with 29% of Filipino consumers reporting incidents of financial crime.
Telecom providers like Globe have partnered with GSMA to enhance cybersecurity measures to address this. Meanwhile, the Department of Information and Communications Technology (DICT) is advocating for legislation requiring private companies handling critical data to disclose cyberattacks to the government to increase transparency and boost public trust.
“Trust is the foundation of digitalization. For businesses to thrive and for consumers to embrace digital solutions, systems must be secure, and users must feel protected,” said DICT Secretary Ivan Uy.
Driving the future of the digital economy
The Philippines stands at a critical juncture in its journey toward a robust digital economy. By expanding reliable internet connectivity, addressing affordability issues, fostering a competitive environment for infrastructure development, and ensuring digital trust, the country can unlock the full potential of digital transformation.
With nearly half of all mobile connections expected to adopt 5G by 2030, the groundwork is laid for a future where connectivity empowers every Filipino, driving innovation, growth, and resilience in an increasingly digital world.