By Arjay L. Balinbin, Senior Reporter
MORE satellite operators are expected to enter the Philippines as a result of President Rodrigo R. Duterte’s executive order allowing inclusive access to satellite services, Kacific Broadband Satellites said.
“With the signing of Executive Order 127, we expect more satellite operators to take interest in expanding operations in the Philippines,” Jose Daniel E. Belgira, national partnership manager for the Philippines at Kacific, told BusinessWorld in a recent e-mail interview.
“We see this as an opportunity for the industry as a whole to benefit, as more people start to gain awareness and consideration of satellite connectivity as an alternative internet source,” he added.
Mr. Duterte’s executive order, which he signed in 2021, expands internet services through inclusive access to satellite services. It amends Executive Order 467, which required telecommunication companies to get a congressional franchise before using satellite facilities.
“If anything, entry of LEOs (low-earth orbit satellites) like Starlink will also help to increase the demand in internet usage, penetrate new markets and address the demand of the enterprise customers with high-speed products,” Mr. Belgira said.
The Trade department announced last week that Space Exploration Technologies Corp. (SpaceX) was already preparing to enter the Philippine market.
“We see there is still a large opportunity for satellite internet in the Philippines, given the nature and geography of the country as an archipelago with plenty of mountainous regions,” Mr. Belgira said.
He noted that 32% of the population remains unconnected with an additional 10% in underserved areas.
He also said it remains difficult and costly for internet service providers to offer mobile and fiber services in remote regions.
“As such, satellite broadband now serves as a viable and more affordable option to connect the last mile, and may also complement existing internet infrastructure as a… redundancy service.”
There has been a rapid shift to digital connectivity during the pandemic, especially for e-learning, remote work, and online transactions. The digital shift disenfranchises remote and underserved communities, Mr. Belgira said.
Kacific, which operates in Southeast Asia and Pacific Island regions, said it has connected over 100,000 communities in the remote areas of Mindanao and Visayas.
Mr. Belgira said the key challenge for LEOs will remain the price of the remote antennas, which is usually in the range of $9,000 to $13,000 without shipment and duties.
“We understand that the satellite industry is historically known to be expensive and unreliable,” he added.
According to the company, it is already taking steps to address the challenge “by offering cheaper equipment for as low as P31,200.”