While average internet connection speed is increasing, local telcos should still continue to put up large capital costs and significant annual expenditures in order to maintain and upgrade their network infrastructure, a study said.
In an academic research paper, University of the Philippines professor emeritus Epictetus Patalinghug, et al said the rate of change of average internet connection speed in the Philippines was increasing, and this gap would soon be bridged by new investments in network facilities.
Separate data from content delivery network services provider Akamai showed the average connection speed for fixed broadband in the Philippines in the second quarter of 2016 increased by 23% over the previous quarter. Mobile broadband fared better, with almost twice the average connection speed of fixed broadband.
Third quarter results further showed improvement as the country’s average mobile internet speed of 13.9 mbps was the fastest in Asia-Pacific.
Telco investments in major infrastructure programs are expected to continue even beyond 2020.
For 2017, both PLDT and Globe raised their capital expenditures for network expansion and service improvement.
PLDT said it would spend P40 billion, while Globe disclosed it had allotted about P38 billion for capital spending.