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The Manila-based multilateral lender Asian Development Bank (ADB) is urging its host country to ramp up nationwide mobile internet access to boost Filipino households' wealth, according to a report by Manila Bulletin.
"Our findings show that mobile internet access has a significant and positive impact on household wealth, particularly in rural areas and among lower-educated households. These results suggest that mobile internet can offer opportunities to underserved populations who may otherwise be excluded from traditional infrastructure investments," read an ADB background paper titled "Mobile Internet Connectivity and Household Wealth in the Philippines," authored by Neil Lee, Zhiwu Wei, and Yohan Iddawela.
As such, the ADB paper urged Philippine policymakers to "prioritize expanding mobile internet coverage in rural areas and among communities with lower educational attainment to maximize the economic returns of connectivity."
For the ADB, this can be done by "[prioritizing] the deployment of mobile towers in remote and underserved areas where access to traditional infrastructure is limited."
"To overcome challenges that are associated with long distances from submarine cable landing points, investments in innovative solutions, such as satellite internet or regional connectivity hubs, could be considered," the ADB paper said.
But more than connectivity, the paper's findings showed that the quality of internet access, as well as proximity to mobile towers, also plays a crucial role in wealth generation, which the ADB said "highlights the importance of not only increasing coverage but also ensuring reliable and high-speed connectivity, particularly in regions far from submarine cable landing points."
"Efforts to enhance internet quality could help mitigate the diminishing returns to connectivity as one moves further from infrastructure hubs," it said.
To do this, the ADB urged policymakers to "incentivize telecommunication providers to upgrade existing infrastructure to ensure high-speed and reliable connectivity."
"Initiatives such as subsidies for upgrading network technologies in rural areas or implementing minimum speed requirements could reduce disparities in internet quality, especially in regions located far from submarine cable hubs," the ADB said.
Further, the ADB enjoined the Philippine government to leverage internet connectivity to strengthen the education sector.
"Our results show that mobile internet access has the most significant impact on helping individuals achieve key educational milestones, such as secondary school completion. Policymakers could integrate digital tools into secondary education curriculums to maximize these benefits," it said.
"Programs that provide students and teachers with affordable devices, free or subsidized data packages, and access to online learning platforms could further enhance educational outcomes. Additionally, interventions that target students at critical educational thresholds (such as those transitioning from primary to secondary education) could amplify the transformative potential of internet access," it added.
The ADB also urged both public and private investments in foundational digital literacy and skills development to uplift lower-educated households as well as marginalized groups, especially in rural areas.
For instance, "vocational training programs that integrate digital tools and focus on equipping workers with skills for remote or gig economy jobs could further enhance the economic returns from internet access," the ADB paper said.
Also, the quality of internet connectivity should be coupled with equitable access across the archipelago’s underserved regions and marginalized population demographics.
"The uneven benefits of internet access, particularly for households with higher education or in urban areas, highlight the risk of widening inequalities if rollout strategies are not carefully designed. Policymakers should adopt a 'digital equity' framework, ensuring that internet investments prioritize disadvantaged regions and populations. Mechanisms such as targeted subsidies, public–private partnerships (PPPs), and community-driven internet access projects could help bridge these gaps," according to the ADB paper.
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