Telcos propose gov't-subsidized SIM card distribution

The country's major telecommunications companies have proposed distributing government-subsidized SIM cards with data plans to unconnected Filipino households to accelerate and complement their expansion into remote areas.

The Connectivity Plan Task Force (CPTF), led by Globe President and CEO Ernest Cu, recently met with the Private Sector Advisory Council (PSAC) to present plans to Malacañang to expand network infrastructure in Geographically Isolated and Disadvantaged Areas (GIDAs) between 2025 and 2028.

According to Cu, the operators agreed that the subsidized SIM cards would come with an automatic monthly load of 50GB for one year, sufficient for a five-member household. 

He explained that this initiative would ensure even the most remote communities gain access to mobile signals and internet service, enhancing their access to education, healthcare, government services, and economic opportunities.

“Once the government lays a bigger stake in our push for inclusive connectivity and invests in our proposal, this will mark a milestone in our collective aspiration for a Digital Philippines,” Cu said. 

The Digital 2024 report by Data Report, released in January, highlighted that 26.4 percent of Filipinos were still offline at the start of the year, indicating a significant gap in internet access despite recent improvements.

“The telco industry is fully dedicated to leveraging our partnership within the industry and with the government to reach underserved areas where the private sector has been unable to build because of the negative cost to business,” he added.

In addition to the subsidized data plan, the country’s three Mobile Network Operators have proposed utilizing existing infrastructure and building new towers in GIDAs. 

It aims to optimize coverage, ensuring that each barangay in GIDAs, currently totaling 7,063 and representing nearly 25 million residents, receives support from at least one telecom provider, thereby avoiding duplication of services.

The CPTF also advocates for legislative support to streamline the permitting process for new cell sites, ensure consistent energization for telecom towers, and rationalize spectrum user fees.

The Marcos administration has pledged to improve the country’s connectivity infrastructure by introducing policy reforms and nationwide streamlined processes to eliminate obstacles to connectivity expansion.