Telcos at crossroads: How satellite internet could redraw map

Telcos at crossroads: How satellite internet could redraw map | Daily Tribune

The rise of satellite-backed models signals a shift for legacy telecommunications firms.

While they have long dominated internet connectivity, particularly in urban areas, they may face pressure to innovate, expand into underserved markets, or collaborate with new providers.

Otherwise, they risk ceding share in key sectors and regions where demand for reliable access is growing.

According to a World Bank study, only 33 percent of Filipino households have access to fixed broadband internet.

In a nation of over 7,000 islands, this digital gap is more than a statistic, it’s a structural barrier to education, employment, public services, and long-term development.

A recent collaboration between a major local broadband provider and a global satellite internet company marks a potentially significant step in addressing this gap.

Under the partnership, satellite-based internet services will be bundled with existing fiber infrastructure to reach areas without reliable or available connectivity.

While the move is projected to boost enterprise services this year, its broader implications lie in how it may reshape access and opportunities across remote provinces.

The joint offering targets businesses and government agencies in hard-to-reach locations, including those engaged in agriculture, retail, fisheries and maritime services.

These sectors, often limited by geographic and technological constraints, could benefit from more reliable digital infrastructure to enhance operations, access markets, and support decision-making.

The digital divide has long reinforced cycles of poverty in rural areas. Without stable internet, students miss out on educational resources, entrepreneurs are excluded from digital commerce, and communities are cut off from essential public services.

Expanding coverage to these areas opens up new possibilities.

For education, this means learners in far-flung barangays can participate in global classrooms, earn online certifications, and access modern learning materials.

Educators, in turn, can deliver more effective and up-to-date instruction.

In the realm of commerce, improved connectivity can help small producers and artisans reach broader markets.

For instance, a farmer in Mindanao or a craftsperson in the Visayas could promote their products online, tap into logistics networks, and compete beyond their localities.

This creates ripple effects across local economies, stimulating job creation, income growth, and rural entrepreneurship.

Digital payments are another key area. With better access to internet services, even microenterprises like neighborhood sari-sari stores can begin accepting cashless payments, track inventory digitally, and participate in the formal financial system.

This integration enhances both business resilience and financial inclusion.

Beyond these individual gains, enhanced connectivity may catalyze broader regional development.

Improved infrastructure can attract investment and enable the growth of logistics hubs, business process outsourcing centers, and technology-enabled services outside major urban centers, supporting decentralization and long-term economic resilience.

In today’s world, connectivity is not just a convenience, it is a core infrastructure.

Roads and bridges remain vital, but so too does internet access.

Infrastructure is the foundation of opportunity. By bridging the digital divide, the recent collaboration between a major local broadband provider and a global satellite internet company can unlock the potential of rural communities, drive inclusive growth, and enable wider participation in the digital economy.

Over time, this can boost national productivity, attract global investment, and help position the Philippines as a more competitive and resilient economy in the region.