NEARLY a million Filipinos in rural areas do not have access to digital connections, as most cell towers are located in wealthy cities, according to an analysis by Asian Development Bank (ADB) and Thinking Machines Data Science, Inc. Read the full story.
By Arjay L. Balinbin, Senior Reporter
NEARLY a million Filipinos in rural areas do not have access to digital connections, as most cell towers are located in wealthy cities, according to an analysis by Asian Development Bank (ADB) and Thinking Machines Data Science, Inc.
The report was authored by Stephanie Sy, chief executive officer of Thinking Machines; Bruno Carrasco, chief of governance thematic group, ADB; and Hanif Rahemtulla, principal public management specialist, ADB.
Only 9.5% of the 9.4 million Filipinos in poor areas live within 500 meters from a cell tower, ADB and Thinking Machines said in an analysis published on Feb. 1, citing data from the Project Bandwidth and Signal Strength (BASS).
“This leaves almost 850,000 Filipinos beyond the scope of cell site serviceability,” the authors said.
Cities with high wealth levels typically have higher internet speeds as compared with poor cities.
Areas with high wealth and fast speeds are in Luzon, Central Luzon, and Cebu, while areas with low wealth and low speeds are in the peripheries of Northern Luzon, Palawan, Eastern Visayas, and Northern Mindanao.
Digital inequality is apparent when comparing the average download speeds for five richest Philippine cities with the five poorest cities. Residents of the five wealthiest cities in the country enjoy an average fixed broadband download speed of 25.65 megabits per second (Mbps), while those in the five poorest cities experience 4.62 Mbps.
As for the average mobile download speed, those living in the richest cities experience 25.77 Mbps, while users in the poorest cities only get 7.04 Mbps.
The ADB-Thinking Machines analysis noted sufficient internet speed in the Philippines is at least 3.2 Mbps, and only 6% of the population in the poorest cities have access to it as compared with the 100% rate in the wealthy cities.
“For instance, 100% of the population in San Juan, Metro Manila have access to sufficient internet speeds, while only 6.22% and 4.14% of the population in Burgos, Surigao del Norte have sufficient access on fixed and mobile, respectively,” the authors said.
Clusters of cell towers are found in urban areas like Cebu City, Puerto Princesa, and Davao City, “but none of these compare to the breadth and density of towers in Metro Manila with the largest concentration of cell sites.”
There are also large gaps in mountainous areas in the northern Philippines, they said.
Eastern Visayas has the largest last mile population without sufficient internet access to fixed broadband, while Central Visayas has the largest last mile population without access to sufficient mobile speeds.
“Up to 600,000 people on mobile and up to 1.4 million people on fixed broadband either have speeds slower than 3.2 Mbps or did not run a speedtest and are thus not included in the Ookla data,” the analysis said.
Aside from BASS statistics, the ADB and Thinking Machines also used data from Speedtest by Seattle-based Ookla LLC. to analyze spatial patterns of digital inequality.
Their objective is “to better inform and target strategic investments for digital development” using big data and machine learning.
“The insufficiency of digital infrastructures in the country is a result of multiple factors, including stringent restrictions in the telecommunications market leading to a lack of competition and high barriers to entry,” they said.
Malacañang has said the National Government would continue to exert more pressure on telecommunications firms to improve their services.
Presidential Spokesperson Harry L. Roque, Jr. earlier said, citing a report by Ookla, mobile download speeds improved by 202.4% between July 2016 and December 2020, while fixed broadband speeds rose 297.47% during the same period.
Globe Telecom, Inc. Chief Technology Officer Gil B. Genio said at BusinessWorld Insights online forum in October last year that remote areas might see better connectivity in three years with legislation shortening the permit waiting times for cellular towers.
Globe targets to put up 2,000 cell towers this year. It built 1,300 new cell sites last year.
PLDT Inc.’s wireless arm Smart Communications, Inc. built 700 new cell sites last year, and it also plans to roll out 2,000 more this year.
Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld through the Philippine Star Group, which it controls.
THE Bureau of Internal Revenue (BIR) is aiming to increase excise tax revenues by 13% this year, as it expects economic activity to pick up as pandemic-related restrictions are further eased.
The BIR set a P332.102-billion excise tax collection target for 2021, 12.6% higher than the P294.91 billion collected last year. Excise tax collections from large taxpayers slumped by 7% in 2020, due to the strict lockdown measures and economic slowdown.
The BIR attributed the higher target to the Development Budget Coordination Committee (DBCC) projection that the Philippine economy will return to a growth trajectory this year.
Excise tax collections from tobacco products, alcoholic and sweetened beverages, fuel, and automobiles, among others, will make up 16% of the BIR’s total collection target for the year.
The BIR set a P2.081-trillion collection target for 2021, 7% bigger than the P1.94 trillion collected last year.
BIR Deputy Commissioner for Operations Arnel S.D. Guballa said in a text message the bureau is “hopeful” it will attain its collection goal for 2021.
The agency is aiming to collect P984.65 billion from taxes on net income and profits, up 31% from last year’s target of P751 billion.
The value-added tax (VAT) collection goal has also been raised by 16% to P405.25 billion, from P350 billion in 2020.
The BIR aims to raise collection from percentage tax by 8.92% to P129.292 billion, and other taxes by 23% to P166.05 billion.
The targets have been computed based on DBCC projections of 6.5-7.5% gross domestic product (GDP) growth for 2021.
VAT REFUND STREAMLINED
Meanwhile, the BIR said it is streamlining the requirements and procedures for claiming VAT refunds.
Revenue Memorandum Order (RMO) No. 47-2020, which took effect on Jan. 19, cut the total number of documentary requirements needed for applicants availing of the VAT refund to 30, from 39 previously.
The number of documents from local offices that require certification have also been trimmed to five from 16 previously.
“Most notable under this RMO is the substantial reduction of the number of documentary requirements and the non-submission of the photocopies of sales invoices or receipts for both purchases and sales of goods or services. Instead, the taxpayer claimant availing of the VAT refund is only required to show the original copies of the said documents together with the corresponding scanned copies stored in a memory device,” the BIR said.
Moreover, several documents that need to be certified or consularized/apostilled were no longer required or have become optional on the part of the taxpayer-claimants.
Notarized sworn affidavits needed have also been trimmed to two from five.
CUSTOMS COLLECTIONS
In a separate statement, the Bureau of Customs (BoC) said its Post Clearance Audit Group (PCAG) is expecting to collect P12 billion from the 24 pending demand letters this year. Eighteen have filed a motion for reconsideration, while the remaining eight have been referred to the Customs Legal Service.
It raised an additional P191.38 million in duties and taxes from its audit of importers last month.
“The BoC, through the PCAG is steadfast in its mission and mandate of collecting lawful revenues through ascertaining the payment of appropriate duties and taxes as the nation gears towards economic recovery amidst the current health crisis,” it said. — Beatrice M. Laforga
