WHAT IS BROADBAND?

Broadband refers to telecommunication that provides multiple channels of data over a single communications medium, typically using some form of frequency or wave division multiplexing. Broadband access is a vehicle that allows the delivery of an entirely new breed of media services and communications-oriented applications. In the long run, it is these new services and applications that will differentiate broadband from dial-up Internet access and give consumers a reason for subscribing to broadband. Audio and video are the obvious cornerstones of this coming high-speed revolution. Speedy connections coupled with always-on access will improve the consumer multimedia experience and change the types of business models that are viable in the interactive marketplace. Federal Full broadband lines are lines with information carrying capability in excess of 200 Kbps in both directions, simultaneously. One-way broadband lines are lines with information carrying capacity in excess of 200 Kbps in one direction (typically downstream) and less than or equal to 200 Kbps in the other direction (typically upstream). Broadband Access for Consumers is either through DSL (Digital Subscriber Lines) or via cable modem. DSL is a technology for bringing high-speed and high-bandwidth, which is directly proportional to the amount of data transmitted or received per unit time, information to homes and small businesses over ordinary copper telephone lines already installed in hundreds of millions of homes and businesses worldwide. With DSL, consumers and businesses take advantage of having a dedicated, always-on connection to the Internet. There are currently at least six different types of DSL. They are Asymmetric Digital Subscriber Line (ADSL), Symmetric Digital Subscriber Line (SDSL), ISDN Digital Subscriber Line (IDSL), High-bit-rate Digital Subscriber Line (HDSL), Very high-bit-rate Digital Subscriber Line (VDSL), and Rate-Adaptive Digital Subscriber Line (RADSL). Each one has different technical ranges, capabilities, and limitations. Cable modems (CM) are designed to operate over cable TV lines to provide high-speed access to the Web or corporate Intranets. A power splitter and a new cable are usually required. The splitter divides the signal for the "old" installations and the new

segment that connects the cable modem. No television sets are accepted on the new string that goes to the cable modem. There are three types of CM: external modem, internal modem, and interactive set-top cable box. A number of different cable modem configurations are possible. Over time more systems will arrive. Cable modem services offer shared bandwidth between you and your neighbors. The speed will vary with how many people are on the cable modem network, which may be a disadvantage. With DSL service, you have a dedicated connection to your home.

BRIEF ANALYSIS

The Philippines telecommunication sector has grown rapidly during the last ten years, primarily driven by the adoption of mobile telephony. The widespread adoption of wireless telephones had a critical impact on the subsequent adoption of mobile broadband exceeding 10 million subscribers in 2010. Fixed Internet subscriptions, including dial-up and DSL access, have remained fairly stable during the last decade, reaching 3.3% of Internet penetration in 2009. Fixed broadband is even lower, at 1.87% in 2009. There is only a limited substitution effect between dial-up and DSL, suggesting that there is yet much to be done in this segment. Prices have been following a decreasing trend, especially after 2005. However, there is only a very limited fixed access network, reaching 7.37% in 2009, thus capping the maximum fixed Internet adoption at comparatively low levels. This phenomenon of mobile broadband growth and marginal subscription in fixed broadband appears to reflect the market needs for openness and connectivity. Almost half of all fixed line connections have some form of Internet connectivity, suggesting a lethargic expansion of legacy infrastructures. To the contrary, mobiles have surpassed all expectations and continue to do so, earning the country a predominant wireless wireless broadband adoption position among its counterparts. The fixed broadband market is primarily shared between PLDT (58%) and Globe (28%). Other competitors control the remaining 14%. The tax contribution of the broadband sector reached USD18.92 million in 2011.

Broadband Sector Market Share, 2011 (Philippines)

14%
PLDT

28%

58%

GLOBE Others