History of Ict

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History of Information Communication Technology (ICT) in the Philippines

The Philippines connected to the internet in 1994 via the Philippine Internet Foundation (PHNet), the first internet service provider in the country. Penetration increased slowly until 2005, when Executive Order 109 was enacted calling for the expansion of telecommunication services to underserved areas, which in turn promoted competition in the information and communications technology (ICT) sector. Internet use further accelerated after 2008 with the entry of a number of industry players, although the use of mobile phones has remained more widespread. Penetration of such technologies is higher in urban areas where middle- to upper-income classes are concentrated.
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Many local ISPs go through the PLDT because it owns the 10,000-kilometer Domestic Fiber Optic Network (DFON) connected to several international cable routes and has the highest capacity in the country at 250 Gbps. PLDT also owns or manages several international cable landings in the country. Further, the country’s telecommunications industry in the last decade has been characterized by mergers and acquisitions amid the country’s market liberalization initiatives during the 1980s and the absence of anti-trust laws. By the end of 2010, three privately-owned telecom companies were dominant: PLDT/Smart, Globe Telecommunications, Inc., and Digitel. With PLDT’s

recent acquisition of majority shares in Digitel, the company now controls 70 percent of the country’s ICT sector.
To enter the ICT industry in the Philippines, companies must go through a two-stage process. First, they must obtain a congressional license that involves parliamentary hearings and the approval of both the upper and lower houses. Second, they need to apply for a Certificate of Public Convenience and Necessity (CPCN) from the NTC. The constitution limits foreign entities to only 40 percent ownership of a business to be established in the country. Internet service is currently classified as a value-added service and is therefore subject to fewer regulatory requirements compared to mobile and fixed phone services.
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