Telecommunications as drivers of digital transformation

By Bjorn Biel M. Beltran, Special Features and Content Assistant Editor

It is easy to take for granted just how much and how drastically technology, or specifically telecommunications technology, has changed the world we live in. Just over 20 years ago, cellphones were primarily used only for calling and texting, and barely anyone has a decent internet connection.

The World Economic Forum estimates that while less than 7% of the world was online in 2000, today over half the global population has access to the internet. Meanwhile, at the start of the 2000s, there were 740 million cellphone subscriptions worldwide. Fast-forward to today, and there are now more cellphones in the world than people.

In the Philippines, that is even more evident. In the early 2000s, internet connections were hardly able to sustain video streaming. Today, one can encounter people playing mobile games — a market that is projected to reach just under $4 billion in Southeast Asia this year — on the commute to work. As another example, in 2005, Facebook had not even existed.

As of the DataReportal Digital 2025 report published just this week, there were a recorded 97.5 million individuals using the internet in the Philippines at the start of 2025, meaning that online penetration stands at 83.8%. There were also a recorded 90.8 million social media user identities in January 2025, roughly 78% of the total population.

Eastern Communications Co-Coordinator Atty. Aileen Regio said that as a head of a storied 145-year-old telecommunications company, she is well aware of how digital transformation has changed people’s lives.

“It has been integral to our evolution and longevity,” she said. “Rather than simply adopting new technologies, we continuously redefine how we deliver connectivity, efficiency, and innovation, integrating technology to ultimately enhance the human aspect of work.”

“It’s about achieving the ease of everyday life, the promise of new opportunities, and being able to secure and future-proof operations, which we confidently offer to our customers. Digital transformation for Eastern cuts across business industries and sizes and applies to everyone. We see it in how the government is automating its processes, in remote learning for education to be accessible to more Filipinos, and in business collaborating with local and global partners. I believe that telcos play a role in each of these scenarios and more,” she added.

Digital telecommunications are enabling countless improvements to people’s lives. As of the latest government data, the digital economy in 2023 amounted to about $35.4 billion, contributing 8.4% to the country’s GDP. Digital-enabling infrastructure is seen as the biggest contributor of the growth of this virtual economy, accounting for around $28 billion or 77.2% of the total.

Mapping future growth

Onur Binay / Unsplash

It is exciting to imagine, then, how much more potential the country can unlock through the digital world. As emerging technologies continue to reshape the global landscape, it is safe to assume that they too will enable new avenues of growth for the Philippines.

“For us, the future of the telecommunications industry is being shaped by several key advancements. These include cloud computing, IoT (internet of things), integrated cybersecurity solutions for end-to-end protection, and the increasing demand for seamless, high-speed connectivity. As businesses become more digitally driven, reliable and intelligent solutions will be key to their growth and success,” Jaeson Evangelista, Co-Coordinator at Eastern Communications, said.

“At Eastern, we are open to embracing new technology, evolving from a traditional telco provider into a full-scale managed ICT services partner. We continuously explore new ways to support businesses in their digital transformation, ensuring they have the technology and connectivity needed to thrive.”

According to the e-Conomy SEA 2023 report, jointly produced by Google, Temasek, and Bain & Company, the digital economy in the Philippines is projected to reach $150 billion in gross merchandise value by 2030. This growth will be mainly driven by the e-commerce sector, which includes online media, travel, transport, and food delivery services.

Even technologies like virtual reality (VR) and augmented reality (AR) are creating new opportunities. “With regard to immersive experiences like VR and AR, the country is steadily moving toward readiness. While adoption is still in its early stages, industries such as retail, education, healthcare, and entertainment are beginning to unlock their potential,” Mr. Evangelista said.

“With sustained investments in connectivity and more resilient digital infrastructure to support future applications, the country is steadily moving toward a future where immersive technologies can be fully realized and integrated into everyday business operations.”

However, certain measures have to be taken to ensure the growth of the digital economy is secure and inclusive. Last year, President Ferdinand R. Marcos, Jr. issued Executive Order (EO) No. 58, officially adopting the National Cybersecurity Plan (NCSP) 2023-2028, developed by the Department of Information and Communications Technology (DICT). Under this, the government aims to a create a clear policy direction and operational framework, ensuring an integrated, whole-of-nation approach to securing the country’s digital infrastructure.

The initiative also includes working with the private sector to provide technical assistance to various government agencies to enhance cybersecurity measures across the country.

“As technology keeps evolving, cyberthreats are also becoming more advanced. By integrating advanced cybersecurity tools into our connectivity and ICT solutions, we provide businesses with a stronger, more resilient defense, ensuring safer and more secure operations,” Mr. Evangelista said, adding that they are also looking to expand their reach to more people in remote provinces.

“Expanding digital infrastructure in provincial areas comes with several challenges, including geographical constraints and the need for strong, sustainable technology. As we steadily grow and improve our network, we are prioritizing investments in high-tech, durable, and sustainable infrastructure to ensure long-term reliability and resilience.”

“By continuously enhancing our network, expanding our portfolio of intelligent solutions, and delivering a best-in-class customer experience, we ensure that businesses have the tools they need to thrive in a rapidly evolving digital landscape,” Ms. Regio said.

“Staying competitive also means learning from the past, anticipating industry shifts, and remaining agile in the face of change, which is why moving forward, we are committed to exceeding customer expectations in each touchpoint.”