Low-cost Internet Services

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Low-cost Internet Services
Low-cost Internet Services
In partnership with last-mile local governments
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SectorMost major industry classification systems use sources of revenue as their basis for classifying companies into specific sectors, subsectors and industries. In order to group like companies based on their sustainability-related risks and opportunities, SASB created the Sustainable Industry Classification System® (SICS®) and the classification of sectors, subsectors and industries in the SDG Investor Platform is based on SICS.
Technology and Communications
Internet Media and Services
Business Model Description

Providing low-orbit satellite internet solutions to last mile communities which can then be used for education, communication and e-commerce. Business models can operate through providing short term loans to local governments for the internet as well as working in partnership with e-commerce solutions and generating proceeds through small service fees.

Installation of Starlink Internet improved the internet speed in Sta. Ana National High School in Barangay Sta. Ana, Pandan, and Antique, mainly through local funding, which is situated in one of the isolated barangays in the province. Before the installation, the school had a 20 Mbps WiFi connection with a slow download speed of 6.93 Mbps. After installing Starlink internet, initial speed tests demonstrated significant improvements, with download speeds ranging from 217.3 Mbps to 324.97 Mbps, and upload speeds increasing from 6.49 Mbps to 28.7 Mbps.

Remote communities in need of high-speed internet may take advantage of the satellite internet service provided by Starlink and have its cost shared among users. The cost of Starlink is around USD500 for each satellite dish and a monthly cost of around USD100 to USD200 while providing up to 200 Megabits per second (Mbps) of low latency internet service. (22)2

Kacific Internet: Kacific provides services from Kacific1, a Ka-band satellite that uses concentrated spot beams—from Batanes to Palawan and even all the way to Sulu which allows very effective geographic targeting, especially in mountainous areas. Kacific is being supported by companies such as SKY Perfect JSAT, The Boeing Company, and Marsh and Mclennan (22)

Non-Geostationary Satellite Constellations: The Philippine Space Agency (PhilSA) launched the Introducing Non-Geostationary Satellite Constellations Test Deployments to Improve Internet Service, or INCENTIVISE, project in 2020, supported by USAID. The project aims to determine the effectiveness of the emerging satellite internet technologies in the country. (23)

Expected Impact

Increased internet connectivity for communities in remote areas to improve social and economic services including education of young people

How is this information gathered?
Updated: 17 Mar, 2024
Philippines
Indicative ReturnDescribes the rate of growth an investment is expected to generate within the IOA. The indicative return is identified for the IOA by establishing its Internal Rate of Return (IRR), Return of Investment (ROI) or Gross Profit Margin (GPM).
10% - 15% (in IRR)
Investment TimeframeDescribes the time period in which the IOA will pay-back the invested resources. The estimate is based on asset expected lifetime as the IOA will start generating accumulated positive cash-flows.
Short Term (0–5 years)
Market SizeDescribes the value of potential addressable market of the IOA. The market size is identified for the IOA by establishing the value in USD, identifying the Compound Annual Growth Rate (CAGR) or providing a numeric unit critical to the IOA.
> USD 1 billion
Average Ticket Size (USD)Describes the USD amount for a typical investment required in the IOA.
> USD 10 million
Direct ImpactDescribes the primary SDG(s) the IOA addresses.
Quality Education (SDG 4) No Poverty (SDG 1) Partnerships For the Goals (SDG 17)
Indirect ImpactDescribes the secondary SDG(s) the IOA addresses.
Gender Equality (SDG 5) Reduced Inequalities (SDG 10) Decent Work and Economic Growth (SDG 8)

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Sector Sources
  • 1) NEDA. Philippine Development Plan 2023 to 2028 https://pdp.neda.gov.ph/philippine-development-plan-2023-2028/ 2) INFF. Development Finance Assessment 2022 https://medium.com/@jp.inff.ph/2022-development-finance-assessment-shows-ph-financing-landscape-in-the-time-of-covid-19-and-the-68dcc39bcc19 3) Data on Digital Infrastructure and Access to the Internet in the Philippines (2023): https://datareportal.com/reports/digital-2023-philippines 4) NY Times: As schools closed, Covid-19 deepens the Philippines' crisis on education: https://www.nytimes.com/2021/09/13/world/asia/philippines-students-remote-covid.html 5) The Philippine Star (2023) https://www.philstar.com/headlines/2023/06/14/2273740/dict-65-philippines-not-connected-internet 6) Konrad Adenauer Stiftung (2022) https://kas-japan.or.jp/wp-content/uploads/2022/11/Essay_Addressing-Challenges-in-EdTech.pdf 7) Philippine Daily Inquirer (2021) https://globalnation.inquirer.net/199341/intl-study-notes-worst-learning-loss-among-poorest-ph-kids 8) Data Portal (2023) https://datareportal.com/reports/digital-2023-philippines#:~:text=The%20Philippines's%20internet%20penetration%20rate,percent)%20between%202022%20and%202023. " 9) Statita (2023) https://www.statista.com/statistics/1125436/philippines-e-commerce-spend-growth-by-category/ 10) Philippine Daily Inquirer (2021) https://business.inquirer.net/318223/mapping-digital-poverty-in-ph 11) Research Gate (2021) https://www.researchgate.net/publication/315675551_A_Study_on_The_Internet_Connectivity_in_The_Philippines#:~:text=Comparing%20the%20current%20global%20IT,inclusive%20information%20society%20(Salac%20and 12) Philippine Institute for Development Studies (2020) https://pids.gov.ph/details/pids-study-regulatory-bottlenecks-hinder-dev-t-of-ict-sector
IOA Sources
  • 13) Philippine Institute of Development Studies (2022). https://pidswebs.pids.gov.ph/CDN/PUBLICATIONS/pidsdps2210.pdf 14) Duterte (2023) https://ovp.gov.ph/post/basic-education-report-2023-speech 15) Department of Education (2011) https://www.deped.gov.ph/2011/06/01/do-46-s-2011-revised-guidelines-on-the-implementation-of-the-deped-internet-connectivity-project-dicp/ 16) Department of Education. https://authdocs.deped.gov.ph/wp-content/uploads/2021/09/FINAL-00-Introduction-to-DepEds-Digital-Rise-Program-0921019-20210903.pdf 17) RA 7925. https://lawphil.net/statutes/repacts/ra1995/ra_7925_1995.html 18) RA 11659. https://www.officialgazette.gov.ph/2022/03/21/republic-act-no-11659/ 19) Department of Education (2011) https://www.deped.gov.ph/2010/06/10/do-78-s-2010-guidelines-on-the-implementation-of-the-deped-computerization-program-dcp/ 20) RA11534 https://www.officialgazette.gov.ph/2021/03/26/republic-act-no-11534/ 21) Philippine Statistics Authority (2021). https://psa.gov.ph/sites/default/files/%5BONSrev-cleared%5D%202020%20APIS%20Final%20Report_rev1%20wo%20comments_ONSF3_signed.pdf 22) Dela Cruz (2022). https://www.pna.gov.ph/articles/1179386 23) PhilSA. Introducing Non-Geostationary Satellite Constellations Test Deployments to Improve Internet Service (INCENTIVISE). https://philsa.gov.ph/incentivise/ 24) Digital 2023: The Philippines. (2023, February 9). https://datareportal.com/reports/digital-2023-philippines 25) GlobalData (2022, November 17). https://www.globaldata.com/store/report/philippines-telecom-operators-ma/rket-analysis 26) Orgaz, A. S. (2023, 6 January). Why Philippines internet usage in 2023 is at an all time high. Ding. https://www.ding.com/community/internet-usage-in-philippines-2022 27) From Analog to Digital: Philippine Policy and Emergong Technology (2018, October). The Asia Foundation. https://asiafoundation.org/wp-content/uploads/2018/10/From-Analog-to-Digital_Philippine-Policy-and-Emerging-Internet-Technologies.pdf 28) Esmael, L. (2022, May 17). Converge 2021 profit swells to 7.16 billion. https://www.cnnphilippines.com/business/2022/3/17/Converge-2021-profit-swells-to--7.16B.html 29) Free Wifi For All (2023) https://www.undp.org/philippines/blog/free-wi-fi-enabling-inclusive-and-accessible-internet-all 30) RA 11927 https://lawphil.net/statutes/repacts/ra2022/ra_11927_2022.html 31) DTI's Ecommerce Roadmap https://ecommerce.dti.gov.ph/madali/images/eCommerce_Philippines_Roadmap_2022.pdf