Telecommunications in the Philippines: … in the Philippines: Perspectives on the Digital Divide...
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1 [email protected] Telecommunications in the Philippines: Perspectives on the Digital Divide Fernando Paragas Instructor Communication Research Department College of Mass Communication, University of the Philippines Diliman This paper examines the digital divide in the Philippines by looking at issues of telecommunications access, use and perceived benefits in the context of space. Inasmuch as the presence or the absence of the divide depends on the groups being compared and the indicators being used to compare them, th is paper, by drawing from different scholarly perspectives on communication technology and development, explores macro and micro measures for the study of telecommunications. The paper finds that access to basic landline service seems to reinforce the centrality of urban/commercial areas rather than diminish this as originally purported because of cost and infrastructure considerations, the Philippine telecommunications industry having been reformed only in 1987. There is, however, an emergent proof that mobile phone services, in combination with established landline networks, can perhaps lead to a more equitable delivery of telecommunications services to groups of various demographic profiles and locations. Finally, this paper extends the digital divide discourse from the basic issue of access to include nature of use and perceived benefits from the use of telecommunications facilities. It discovers that while there may be differences in their access to telecom facilities, people generally use these in a generic, or phatic, manner with the same perceived benefits.
Transcript of Telecommunications in the Philippines: … in the Philippines: Perspectives on the Digital Divide...
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Telecommunications in the Philippines: Perspectives on the Digital Divide
Fernando Paragas Instructor Communication Research Department College of Mass Communication, University of the Philippines Diliman
This paper examines the digital divide in the Philippines by looking at issues of
telecommunications access, use and perceived benefits in the context of space. Inasmuch as the
presence or the absence of the divide depends on the groups being compared and the indicators
being used to compare them, th is paper, by drawing from different scholarly perspectives on
communication technology and development, explores macro and micro measures for the study
of telecommunications.
The paper finds that access to basic landline service seems to reinforce the centrality of
urban/commercial areas rather than diminish this as originally purported because of cost and
infrastructure considerations, the Philippine telecommunications industry having been reformed
only in 1987. There is, however, an emergent proof that mobile phone services, in combination
with established landline networks, can perhaps lead to a more equitable delivery of
telecommunications services to groups of various demographic profiles and locations. Finally,
this paper extends the digital divide d iscourse from the basic issue of access to include nature of
use and perceived benefits from the use of telecommunications facilities. It discovers that while
there may be differences in their access to telecom facilities, people generally use these in a
generic, or phatic, manner with the same perceived benefits.
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1.0. Overview. The digital divide refers to the disparity between those who have access to and
use of information and communication technologies (ICT) and those who do not (World
Economic Forum Global Digital Divide Initiative). A product of the natural evolution of "the
information haves and have -nots" discussion just before the turn of the century (Cronin, 2002;
Compaine 2000), the digital divide discourse becomes more significant with the increasing
importance of ICT as a tool for social, political and economic development (Pitroda, 1996;
Compaine, 2000). Interestingly, however, the digital divide itself is both a reflection and a
product of many other socio-economic gaps that exist in various societies (Cronin 2002;
Compaine, 2000).
This paper discusses the digital divide in the Philippines. Using macro data from the country's
National Telecommunications Union and the International Telecommunications Union as well as
micro data from a study conduc ted in two of the country's 16 regions, the paper examines the
digital divide in the context of telecommunications access, nature of use and perceived benefits.
The two data sets help present a holistic map of the digital divide ? within the country from the
local to the national levels, and ? between the country and its immediate neighbors. These two
levels of analysis both consider geographic location and income to check whether
telecommunications indeed diminishes geographic isolation or reinforces the centrality of
already established commercial and urban centers. This way, the paper contributes to theorizing
on the supposed more equitable order that telecommunications helps develop as it blurs the
importance of distance and creates more opportunities in peripheral areas.
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Moreover, the micro data extends the digital divide discourse from issues of access, either to
basic telephone services or the Internet, to include the nature of use and perceived benefits of
telecom facilities. The paper thus addresses the emergent interest on the quality of content gained
through telecom access, which is crucial in efforts to realize the potential of telecom in fostering
development.
Finally, inasmuch as the digital divide exists depending on the groups being compared and the
indicators being used to compare them, the paper explores
various measures, following different perspectives on
communication technology and development, to discuss
telecom access, use and perceived benefits.
2.0. The Philippines. Located in Southeast Asia, the
Philippines is a democratic nation of 75 million people. An
archipelago of over 7,100 islands, the country is divided into 14
geographic and three administrative regions. Despite the dispersed nature of its topography,
political and economic activity is centralized in the National Capital Region (NCR), where
Manila, the capital is located. Though only 14% of Filipinos live in this region, it accounts for
nearly a third of the Philippine Gross Domestic Product.
For 20 years until 1986, the Philippines was under President Ferdinand Marcos, who centralized
government under his authoritative rule. While several high-profile infrastructure projects were
undertaken during his extended term, many other utilities were poorly developed under
Figure 1. Philippine Regional Map
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nationalized and/or monopolized agencies. It was only in 1987, upon the assumption of
President Corazon Aquino, that the reform and the deregulation of these agencies and the
industries to which they belong started. Telecommunications was among those that lagged
behind, even if it were crucial in virtually connecting the country's many islands in the absence
of a strong public works network.
The roots of the digital divide in the Philippines, however, can be traced much earlier. In 1928,
an exclusive franchise to develop the country's telecom backbone was granted to the Philippine
Long Distance Telephone Company. Though this meant the installation of 30,000 new lines, it
eventually translated to a decline in the long-term telephony in the country. Until 1987,
teledensity in the country remained at 1:100. Fortunately, reforms in the industry have so far led
to significant growth in the number of telephone lines in the country though actual subscription
to these lines remain low because of personal cost conside rations and the country's over-all weak
economy following the Asian crisis.
But the centerpiece of the country's telecommunications industry is the significant growth in the
subscription to wireless services. Though
introduced only in 1989, cellular mobile
telephone services now have 11 million
subscribers, or almost double the year 2000
figures. The growth is driven by the services only originally available in mobile phones (text
messaging, pre-paid payment schemes) and the poor landline infrastructure in the country
(compared to the presence of cell sites across the archipelago).
Table 1. Landline and mobile phones*
Year Landline phones**
Growth rate
Mobile phones**
Growth rate
1997 5776 1343 1998 6641 15.0 1733 29.0
1999 6812 2.6 2849 64.4
2000 6906 1.4 6454 126.5 *From the NTC website; **in millions
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That the communication sector is crucial in the country’s development is reflected in the
government’s policy statements. Conversely, policies on the communication sector are important
as they "inevitably influence the flow of information, and thus the trade of goods and services.
More than ever before, telecom policy can affect the location of jobs and the competitive
position of firms" (Fetekuty, 1992). The 1987 Philippine Constitution states, "The State
recognizes the vital role of communication and information in nation -building."
3.0. Framework and Methodology. On the next page is a conceptual framework that depicts
the selected aspects of various theoretical perspectives, from positivist to structural. The
framework shows that telecom use patterns (bottom center box) reflect the convergence of
demand from the consumers (leftmost box) and supply from telecom firms (rightmost box). The
convergence then leads to probable contributions of telecommunications to development.
More specifically, the right box focuses on the level of access to telecom facilities in the study
sites. The left box, meanwhile, pertains to the users’ profile. These two boxes meet towards a
center box, which defines patterns of telecom use (What messages, with what intention) at the
household level across the groups or area. Finally, the top box seeks to ascertain how the use of
available telecom facilities relates to the development of various groups or areas (with what
effect).
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The framework draws on schools of thought that predominate the attempts to encapsulate the
relationship between communication and development (Mowlana and Wilson, 1988) as it seeks
to contribute to the lack of theory to explain this elusive link (Hudson, 1984).
Inasmuch as the digital divide depends on the indicators that are used to measure telecom access
and the groups that are compared, the concept itself may "have changing connotations"
(Compaine, 2000). And since findings depend on the quality of measures (Dordick and Wang,
1993), the digital divide debate now includes not only simple access to Internet but also the
attendant benefits of such an access. The studies now include, among others:
? "the scope and centrality of Internet use among diverse groups" (Jung, Qiu and Kim, 2001); ? "the scope and intensity of the relationship people develop with the Internet" (Loges and
Jung, 2001); ? the discussion of "the Internet in terms of access, political and social involvement, and social
interaction (Katz, Aspden and Rice, 2001)."
Telecom Access & Use Patterns
Telecom Access and Subscription;
Frequency and Cost of Calls; Messages to
Recipients of Calls
Profile Social
Demographic Economic
Dem
and
Sid
e
Area/Group
Area/Group
Su
pp
ly S
ide
Area/Group
Area/Groups
Telecom Infrastructure
Level of Development and Density
Are
a/G
rou
p A
rea/Gro
up
Perceived Benefits
Lifestyle and the Economy Economic
Efficiencies Other Spatial
Integration Effects Social Dynamics
Figure 2. Conceptual-Analytical Framework for Telecommunications Use, Access, and
Perceived Benefits
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Despite the continued evolution of indicators to measure the digital divide, there is still an
argument that the apparent rush to address perceived disparities has "taken precedence over what
is or should be measured in determining a divide" (Compaine, 2000). Moreover, there is a
sentiment that "traditional categories are insufficient means of addressing equity issues because
the contents and the systems of access in most communication systems lack relevance and
meaning except to an elite. What is needed are categories that are more communication-based--
situated and relevant to actors" (Dervin, 1989).
4.0. The Spatial Nature of the Digital Divide. The concept of space is pivotal in the digital
divide discourse. Spatial structuralists who concern themselves with “aspects of economic
development that have geographic or locational significance,” believe interventions in the pattern
of human settlement functions in a territory can initiate and sustain it s progress. And while
heretofore, linkage infrastructures have been synonymous to transport networks (Friedmann and
Weaver, 1979), the world is now at the throes of a “new economic revolution equivalent to the
Industrial Revolution, wherein the strategic infrastructure is the telecommunications system”
(Fetekuty, 1992). Telecommunications is now seen as a “factor of production,” in the same way
that railroads promote economic growth (Williams, 1991).
However, "contrary to popular predictions of their decentralizing impact, digital communications
contribute to new and more complex forms of corporate integration, reinforcing center-periphery
problems on a global scale" (Gillespie and Robins, 1989). Further, "in spite of considerable talk
about the `death of distance' and `the end of geography,' computer technology appears to
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accentuate the importance of place, both physical and virtual… Rather than think about this as
the death-of-distance, it is more useful to refer to the transformation of space made increasingly
salient by the introduction of ICT. In the sense of physical geography, the use of ICT
reconstitutes the spatial map by revalorizing locations and relations between them" (Mosco
2000).
4.1. The Digital Divide in the National Space. That telecommunications has so far reinforced
than diminish centrality of primary cities is evident in the telecommunications profile in the
Philippines. While only 14% of Filipinos live in National Capital Region (NCR), it accounts for
over two-quarters of all installed telephone lines and exactly half of all telephone subscribers in
the Philippines. Similarly, the regions of Central Luzon (III) and Southern Tagalog (IV), which
immediately surround the NCR, are the next more wired regions in the country. Collectively,
these three contiguous regions, the economic powerhouses of the Philippines that have 55%
share of its Gross Domestic Product, have two-thirds of all telephone lines and 71% of all
subscribers in the country. The only other regions that have significant connectivity are those
which have urban centers of scale: Region VII with its Cebu City and Region XI with its Davao
City, the commercial cores of Visayas and Mindanao respectively.
The same relationship among population, incomes and connectivity exist even within the specific
regions themselves. Telecommunications data for Region 3 (see Table 3) illustrate this. Bulacan,
the province which shares boundaries with NCR, has the region's most number of lines and
subscribers. Its proximity to NCR determines in part its population and provincial gross domestic
product. Its increasingly urbanized nature is due to the fact that it is becoming a "dormitory
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town" for the many workers who cannot afford housing within NCR and that factories are
beginning to locate there as well because of NCR's limited open spaces. Second to Bulacan in
terms of population, provincial GDP, and telecom development is Pampanga, which is also the
province next to it.
Table 2. 2001 Philippines Telecommunications Profile, by Region
Reg
ion
Reg
iona
l P
opul
atio
n as
P
erce
nt o
f P
hilip
pine
P
opul
atio
n (B
ase:
731
3099
8)
Reg
iona
l Gro
ss
Dom
estic
Pro
duct
(G
DP
) as
Per
cent
of
Nat
iona
l GD
P
Per
cent
of
Inst
alle
d Li
nes
in
the
Phi
lippi
nes
(Bas
e: 6
7023
13)
Per
cent
of
Sub
scrib
ers
in th
e P
hilip
pine
s (B
ase:
290
2407
)
Per
cent
of
Inst
alle
d lin
es th
at
have
Sub
scrib
ers
Tele
dens
ity
(Inst
alle
d lin
es)
Tele
dens
ity
(Sub
scrib
ed li
nes)
I 5 3 3 3 39 5.44 2.1
II 4 2 0 1 ? 92 1.12 1.0 CAR 2 2 1 1 48 6.23 3.0
III ? 10 ? 9 ? 7 ? 7 40 6.56 2.6 NCR ? 14 ? 31 ? 44 ? 50 ? 50 ? 29.00 ? 14.0
IV ? 15 ? 15 ? 15 ? 14 41 ? 9.16 ? 3.7
V 6 3 2 2 40 2.92 1.2 VI 8 7 4 5 ? 52 4.70 2.4
VII 7 7 ? 7 6 40 ? 8.46 ? 3.4 VIII 5 2 1 1 22 2.61 0.6
IX 4 3 2 1 17 5.21 0.9 X 6 4 3 2 36 3.92 1.4
XI 7 6 5 4 37 5.99 2.2
XII 3 3 1 1 31 2.77 0.9
ARMM 3 1 1 0 24 1.68 0.4
Phils. 100 98 100 100 43 9.08 3.4
Beyond issues of centrality of geographically situated settlements, however, another important
issue in the telecom digital divide in the Philippines pertains to the level of subscription to
available landlines. Across the country, only 43% of all landlines actually have subscribers.
Across regions, the highest subscription rate is in Region II, in the northeastern tip of the
Philippines, where 9 out of 10 phones are subscribed. The level of subscription is a good
indicator that there is neither a deficit nor surplus between the levels supply of and demand to
telecom facilities at any given time. Too big a surplus, as it is the case now in the Philippines,
leads to some amount of distortion in teledensity statistics. It may seem as if Philippine landline
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teledensity has significantly improved in the last 15 years from the pre-form ratio one phone for
every 100 people to the current ratio of 9:100, the statistics that government usually uses.
However, actual subscription ratio is only 3.4:100, which is not as significant a leap from the
previous statistic. The poor subscription rate is said to be a function of several major variables:
the increasing preference for wireless over wireline phones, the pricing structure of landline
phones relative to household incomes, the generally poor economies of scale across the country,
and access to landline services through public payphones.
4.2. The Digital Divide in the ASEAN Space. Comparing the Philippine experience to that of
its immediate neighbors is one way of examining the existence of a telecom divide between it
and countries of similar location but of contrasting economic status. Doing this helps planners
define marginal levels for the nature of the telecom infrastructure required in an area depending
upon its economic development (Schrage, 2001).
Situating the Philippines in its regional grouping is in line with previous comprehensive
literature. The digital divide has been studied between or among US and the rest of the world
(Cronin, 2002), developing and developed countries (Cronin, 2002; Schrage, 2001; Garnier,
1999; Compaine, 2000), the countries in Africa (Cronin, 2002) and in East/Central Europe
(Zassoursky et al), urban and rural areas within regions (Zassoursky et al; Garnier, 1999), and
north and south countries (Pitroda, 1996).
In Southeast Asia, it is per capita GDP, and neither population nor GDP per se, that relates with
connectivity. As opposed to the big countries of Indonesia, Philippines and Thailand, it is the
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Table 3. Telecommunications Profile of Region 3 (Central Luzon) of the Philippines
Province
Pro
vinc
ial
Pop
ulat
ion
as
Per
cent
of R
egio
nal
Pop
ulat
ion
(Bas
e: 7
3130
998)
Pro
vinc
ial G
ross
D
omes
tic P
rodu
ct
(GD
P) a
s P
erce
nt o
f R
egio
nal G
DP
Per
cent
of I
nsta
lled
Line
s in
the
Reg
ion
(B
ase:
493
831)
Per
cent
of
Sub
scrib
ers
in th
e R
egio
n (B
ase:
196
197)
Per
cent
of I
nsta
lled
lines
that
hav
e S
ubsc
riber
s
Tele
dens
ity
(Inst
alle
d lin
es)
Tele
dens
ity
(Sub
scrib
ed li
nes)
Bataan 7 8.5 7 9 52 6.43 3.37
Bulacan 26 28 36 36 40 8.70 3.47 Nueva Ecija 21 17 14 13 37 4.04 1.49
Pampanga 24 27 31 32 42 8.31 3.46 Tarlac 13 11.5 7 8 43 3.44 1.48
Zambales 8 8 6 2 16 4.69 0.76
Region 3 100 100 100 100 40 6.42 2.55
comparatively small but affluent countries of Singapore, Brunei and Malaysia that have the
highest rates of overall-connectivity according to the three ITU classifications of main, landline
and mobile teledensity. While this perhaps underscores a telecom digital divide among countries
of various income levels, there is at least hope that this disparity is narrowing. Growth rate in the
number of main telephones is highest in the emergent economies of Vietnam, Cambodia and
Laos. Further, Vietnam, the Philippines and Indonesia post the highest growth rates in the
number of mobile phones, which reflects possible preference for cellular telephone services as
landline phone networks untenable in these wide-area countries. As it is, mobile phones account
for a significant portion of the region's total telephone lines, even as the number of mobile phone
subscribers in the region continue to grow in double digits.
However, inasmuch as the emergent economies try to catch up with their more developed
neighbors with respect to access to telecoms, they are a long way from having equal statistics for
teledensity, either landline or wireless. Moreover, this gap is even more evident when one looks
at the ratio of computers and Internet users relative to respective country populations.
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Table 4. Telecommunications Profile of Southeast Asian Countries Main telephone
lines (2001) Mobile (2001)
Country
Cou
ntry
Pop
ulat
ion
as P
erce
nt o
f SE
A
Pop
ulat
ion,
200
1 (B
ase:
470
.4M
) C
ount
ry G
DP
as
Per
cent
of S
EA
G
DP
, 200
1 (B
ase:
US
$553
.6B
)
Per
Cap
ita G
DP
, in
US
$ (2
001)
Den
sity
, pe
r 100
peo
ple
CA
GR
'9
5-'0
1,
in p
erce
nt
Den
sity
of L
andl
ine
Sub
scrib
ers,
pe
r 100
peo
ple
(200
1)
Den
sity
, pe
r 100
peo
ple
CA
GR
'95-
'01,
in
per
cent
As
perc
ent o
f al
l pho
nes
Den
sity
of P
Cs,
pe
r 100
peo
ple
(200
1)
Den
sity
of I
nter
net
Use
rs, p
er 1
00
peop
le (
2001
)
Brunei 0.1 0.8 ?13724 ?24.5 0.4 ?53.5 ?28.9 21.5 54.1 ?7.5 ?1044.8
Cambodia 2.9 0.4 175 0.3 ?20.1 1.9 1.7 58.5 ? 87.0 0.2 7.4
Indonesia ? 45.7 ? 27.7 726 3.7 14 6.2 2.5 ?71.2 40.0 1.1 186.2
Laos 1.2 0.3 315 0.9 ?17.2 1.5 0.5 63.6 36.0 0.3 17.7 Malaysia 5.1 16.1 ?3838 ?19.9 3.1 ?49.9 ?30.0 38.6 60.1 ?12.6 ?2395.0
Myanmar 10.3 1.2 147 0.6 8.4 0.6 0.0 30.7 4.7 0.1 2.1 Philippines ?16.4 13.6 983 4.0 11.8 17.7 13.7 ?66.6 ?77.3 2.2 259.3
Singapore 0.9 ?16.7 ?23015 ?47.1 2.6 ?119.6 ?72.4 46.2 ?60.6 ? 50.8 ?6051.5
Thailand ?13.5 ?22.0 2012 9.4 7.6 21.3 11.9 34.1 55.8 2.7 556.1 Vietnam 4.1 1.2 384 3.8 ?23.7 3.0 1.5 ? 94.0 29.1 1.0 49.3
If telecommunications networks are to be the main infrastructures in the emergent economy, the
current plans of Southeast Asian nations to belong to one coherent region are difficult to sustain
in the long run given the strong disparities in connectivity within it. After all, the status of
telecom networks in this case serves as a good indicator of more basic differences in the
development of the economies of these otherwise proximate countries.
5.0. The Digital Divide and Issues of Access, Use and Perceived Benefits. This section
explores telecommunications use, access and perceived benefits of landline and mobile phones
across urban and rural areas. It employed one-shot survey of 180 respondents in the core area of
National Capital Region and the Central Luzon Region in its periphery.
Data gathering was held in the early part of the year 2001. Analyses using uni-variate and multi-
variate tabulations were undertaken and appropriate, statistical tests were performed to determine
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the significance of differences in proportions or in the relationships of variables, to address
criticism of previous digital divide studies (Compaine, 2002). The formula below was used to
test differences in proportions:
T-test for independent samples was also used to compare means across sites, while chi-square
test was employed to compare frequency distributions across respondent subgroups.
Data for the study were gathered across Metro Manila and in the province of Bulacan. Metro
Manila, also referred to as the National Capital Region (NCR) in government statistical
databases, is the center of national commerce and trade. Meanwhile, Bulacan, which is primarily
agricultural, is fast becoming urbanized as its towns and cities become “dormitories” to the
working middle class of Metro Manila. On the one hand, Metro Manila and Bulacan have vastly
different degrees of landline telephone infrastructure development. The two areas, on the other
hand, generally have similar universal mobile phone coverage, based on the reach of existing
"cell sites" in both areas (www.gsmworld.com).
Both located in the island of Luzon, Metro Manila is bound to the north by Bulacan. The
southern tip of Bulacan is around 15 kilometers from Metro Manila and travel between the two
areas can take only 30 minutes by car in light traffic (www.bulacan.gov.ph). NCR and Bulacan
share the Manila Bay coastline. Bulacan has 24 towns and cities, with Malolos as its capital. Of
these political subdivisions, the research was conducted in Marilao and Meycauayan, two
neighboring towns in the southwestern end of the province. They were selected for their relative
t= p1-p2 p1(1- p1) p2(1- p2)
n1 +
n2
Where p1
p2 n1 n2
df
= proportion in sample 1 = proportion in sample 2 = size of sample 1 = size of sample 2 = (n1+n2-2)
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distance from Metro Manila and the differences in the development of their economy and
telecom infrastructure. Both towns are in the fourth provincial district.
Bulacan has a total land area of 2,625 sq. km. Of this area, Marilao and Meycauayan have a
share of 26.25 (1%) and 28.55 (1.09) sq. km respectively. Of Bulacan’s 568 barangays, Marilao
has 16 while Meycauayan has 26. Metro Manila, meanwhile, is comprised of four cities and 13
towns encompassing a total land area of 636 sq. km. For this research, data were gathered in
Quezon City (central), Kalookan City (northern), Manila (western), Paranaque (southern) and
Pasig (eastern), each representing a geographical section (in parentheses) of the metropolis.
5.1. Access and Location. With the belated development of its landline infrastructure, the
Philippines has thus become one of the leading users of cellular mobile telephone services
(CMTS) (Carmel, 1998). Because of this, discussions of the digital divide in the Philippines
needs to include access to mobile phone services, unlike in countries where these are not
regarded as real substitutes for wireline phones. In fact, Falling through the Net "does not track
ownership of cellular telephones or other wireless devices. If prices continue to decline and these
devices become substitutes for conventional wireline phones, then future household penetration
studies should include both types" (Irving, 1999).
To help explain gaps in the teledensity between installed and subscribed landlines, and the
subscription rate between mobile and landline phones, this study includes the nature of use of
telecom as Compaine (2002) has asserted.
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The types of modes of telecoms access is defined into four categories: ? Own landline-respondents have at least one operational landline telephone at home ? Work landline-working respondents have access to an operational landline phone at their
workplace ? Public-for-pay landline-respondents have access to a landline public phone, either a
payphone directly operated by a telephone company or a private phone whose use is open to the public for a certain fee per call.
? Own mobile-respondents have at least one operational mobile phone in their household
Of these four modes, the only significant difference in the level of access across areas is noted in
the proportion with own landline phones, ie, a greater section of Metro Manila respondents have
a landline phone in their house which is a
reflection of the higher level of development of
landline infrastructure in Manila. Interestingly,
while the difference is not statistically significant,
a bigger group of Bulacan respondents said their
household owned at least one mobile phone compared to their Manila counterparts (see Table 5).
Either way, this shows a possible substitution of Bulacan respondents of mobile for landline
phones for their telecom needs because of cost and access considerations. Landline phones have
fixed service rates compared to mobile phones, and Bulacan's local exchange carriers remain
limited to town centers.
Another interesting interpretation of these results is that even with high teledensity in Metro
Manila, significant proportions (nearly equaling Bulacan), still see the need for mobile phones.
This finding seems to indicate that mobile phones fulfill a function that landlines do not. The
table also shows that a majority of the respondents in either area have access to the four modes of
Table 5. Simple modes of access (in percentage) M Manila Bulacan
Type (n=100) (n=80)
T-Computed
Own landline 79 56 3.31* Own mobile 60 71 -1.60 Office landline 67 64 0.46 Public payphone 79 73 1.01
*Significant at alpha=.05 where T-critical is 1.66
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simple telecom access, and that the biggest groups of respondents also use payphones in both
areas.
There is universal access to telecom facilities as all of the respondents say that they have access
to at least one telecom mode. Furthermore, the biggest groups of respondents in either area have
access to three telecom modes. Likewise, nearly a quarter of them say they have access to all
four telecom modes. Interestingly, respondents with access to only one mode constitute the
smallest groups in either area. The implication of these results is that even with relatively low
landline teledensity, people can still have access to telecom facilities by choosing or combining
other telecom modes that are available to them. This raises the question of whether teledensity
should be measured solely against the number of landline phones relative to the population or to
widen its definition to include mobile phones. Moreover, since people adopt to other telecom
modes, there is perhaps a need to re-examine whether to continue focusing on landline facilities
to deliver telecom services.
5.2. Access and Demographics. Discussions of telecom digital divide invariably include the
examination of telecom access by groups of different demographic characteristics. While general
access maybe high, some groups seem to, as Cronin puts it, "have been traditionally beyond the
digital pale." (Irving, 1999; Cronin, 2002). Across the world, differences in the level of access
have been noted across age (Loges and Jung, 2001; Irving, 1999), sex (Compaine 2000), race
(Hughes, 2002) and economic standing (Irving, 1999). In the Philippine study, it is employment
and household income that impact on access. Across types of access, for instance, household
income only significantly influences ownership of mobile phones, ie, a bigger proportion of
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higher-income families have at least one mobile phone in their household. Income does not
significantly impact on having a landline at home and at the office, or having access to public
payphones.
5.3. Access and Nature of Use. These twin concepts are important in the digital divide discourse
(Compaine, 2000). Access can perhaps determine nature of use; simply put, without access there
would be nothing to use. Further, despite presence of means of access, people may be hard
pressed to harness its potential (Zassoursky et al). And even if they do know how to exploit it,
what is their quality of experiences as they use either the telephone itself or its extensions such as
the Internet (Katz, Aspden and Rice, 2001)
Likewise, the converse of that argument is also important. Nature of use can also determine
whether individuals or households would want to gain access to telecom in the first place.
Without any use for or incentive to use telecom facilities, they would not want telephone service
even if they could afford it (Compaine, 2000). Similarly, when communities freely share a
telecom unit, figures such as teledensity may remain low though access is near universal. Such is
the case when there is a preponderance of community access centers as opposed to access
through individual households (Cronin, 2002; Irving, 1999)
Given these premises, this study thus discusses patterns of telecom use by the respondents ? Local phone calls ? Long distance phone calls
? Costs for phone calls ? Factors influencing patterns of use
18
5.3.1. Local phone calls. Across areas, a bigger group of respondents from Manila make daily
local calls from their home compared to those from Bulacan (.59 against .41). The same pattern
is also true for office local calls (.45 against .42). The biggest groups of respondents say their
average calls from the home and the office last for 10 minutes or less. However, while it is not
statistically significant, it can be noted that, compared to their Bulacan counterparts, a slightly
bigger group of NCR respondents report that their average home calls last for over 10 minutes.
Indeed, the mean length of home calls supports this (11.8 against 8.5 minutes for NCR and
Bulacan respectively). This can be explained either by the greater familiarity of NCR
respondents with the use of telephones or by the toll fees that Bulacan respondents have to pay
for calls they make to numbers connected to other telcos even if these are within the province.
In comparison with calls originating from the home, office calls tend to be shorter in both Metro
Manila and Bulacan, while average length of calls is one minute longer in Bulacan, the
difference is not statistically significant.
NCR and Bulacan respondents do not differ in their ranking of individuals and organizations
they call most often from the house. The ranking is as follows: spouse and kids, parents, and
friends. Lowest in their ranking of whom they call most often were commercial establishments,
co-workers and government agencies. This pattern is validated by the nature of topics that they
discuss over the phone; these centered mainly on greeting and telling stories to each other. It can
be noted that house calls are still devoted to matters that involve family and friends, and that they
are rarely, if ever, used to contact business and government offices for various products and
services that are now available over the phone.
19
Interestingly, even from the office, people still ranked their spouse and kids, and their parents
among the top three groups they call most frequently. And even if phone calls to private
organizations rank second, in both areas, for calls made from the office, calls to government
offices still rank lowest in the hierarchy. This perhaps reflects limited transactions between
business and government or, more feasibly, 1) the limited government services that are available,
and 2) the difficulty to deal with government offices, over the phone.
5.3.2. Long distance phone calls. Across the two areas, long distance call patterns are generally
similar. Long distance calls are markedly less frequent than local calls, ie, calls are mostly once a
week or once a month. In terms of average length, however, local calls and long distance calls
are not significantly different in either area.
All respondents whose offices have nationwide coverage use the phone for their national
transactions. There are differences, however, in the extent to which NCR and Bulacan rely on the
phone for these dealings. The biggest group of Bulacan respondents say such calls translate to
less than 25% of their sales, compared to NCR respondents who say these translate to over 75%
of their sales. Thus, on the whole, Metro Manila respondents say that, on the average, national
calls account for 60% of their sales, compared to the 40% reported by those from Bulacan. The
same pattern is true for long distance phone transactions that involve the purchase of supplies.
Across areas, the calls are primarily to coordinate with their regional network. However, the two
areas differ on the second-level transactions that they perform over the phone; Manila
20
respondents say they consult with their business associates, while those from Bulacan introduce
their products and services over the phones.
5.3.3. Telecom costs across modes of access. Cost is considered as a general indicator of use as
it is equal to frequency multiplied by the call's average length of use and its corresponding price
per time unit.
Across modes of access, landline phones appear to entail the biggest cost among the respondents.
This is perhaps one reason for the low subscription to landline phones as well as the increasing
appeal of mobile phones, which do not charge basic services. Across areas, it is only the average
monthly bill for mobile phones that differ significantly. Bulacan respondents say they pay over
50% more than their Manila counterparts do for their monthly mobile phone bills (P820 against
P500).
Further, landline and mobile phone bills across areas now represent around 10% of monthly
household expenses. Though Bulacan respondents report that their communication costs now
partake a bigger share of their expenses, the difference between their answers and those of
Manila respondents was not statistically significant.
5.3.4. Factors influencing patterns of use. Five variables have been studied to check whether
they influence the way people use their phones. These are:
? Ownership of telecom equipment ? Civil Status ? Work Status
? Length of residence ? Sex
21
It is assumed that people who own phone units are more familiar in using them. Familiarity, in
this regard, translates perhaps to more frequent and longer calls, as well as to more diverse topics
and transactions with a wider base of publics.
Based on results of the surveys, owning the telecom equipment does not seem to influence
frequency of calls in either area. That is, the distribution by frequency of calls in both areas is not
different between those who own the equipment and those who use office or payphones. On the
one hand, for both Metro Manila and Bulacan, those who own their equipment tend to make
longer calls than those who do not own their equipment. In terms of parties contacted and topics
of conversation, ownership of equipment does not seem to be an important determinant.
Meanwhile, married respondents have a greater scope of publics that include their own family,
their parents and siblings, their friends, and their officemates. Does it follow then that they use
the phone differently from other respondents? Within Manila and Bulacan, married respondents
do use the phone more frequently to deal with problems, emergencies and their work compared
to non-married respondents. In addition, they also tend to make longer phone calls.
The data also show the pattern of working respondents' use of the phone in general does not
significantly differ from the non-workers. The two groups differ in only one point: non-wor king
respondents make longer phone calls.
The number of years that respondents have lived in their current residence indicates how well
they have established themselves in their area. It can also mean that newcomers to an area have a
22
stronger desire to keep in touch with family and friends whom they have left in their previous
area of residence. The data reveal, however, that it is not easy to box patterns of telecom use with
respect to length of residence. In Manila, the bigger group of respondents who have lived longer
in their area use the phone more often, while those who have lived for a shorter time there make
longer calls, although not statistically significant. In Bulacan, the opposite pattern holds: short-
term residents make calls more frequently while long-term residents make longer calls.
A recurring theme in communication technology discourse is the supposed predominance of
males in the use of communication facilities. However, in this survey, no differences were
observed in the patterns of telecom use across male and female respondents in both study sites.
5.4. Access and Perceived Benefits. A further extension of the nature of use discussion pertains
to the perceived benefits that users derive from having access and use to telecom. In this study,
perceived benefits from the use of telecoms are gauged in two main ways:
1. Direct respondent answers explore the reasons 1) for the ownership of telecom equipment and 2) the nature of calls
2. Respondents' perceptions on how telecoms contribute to: ? Economic efficiencies or how telecoms helps improve the manner in which business and
consumption activities are performed. ? Social dynamics or how telecoms enhances transport substitution, telecommuting and
telemarketing; and, ? Other spatial integration effects or how telecoms addresses certain planning issues
5.4.1. Direct Respondent Answers. The main benefits of owning a telephone, the respondents
say, is the convenience that it affords. Convenience includes the speed with which telecom
facilitates communication and how it enables the respondents to perform various transactions
23
without having to travel. There are respondents who say cellular phones are better because these
afford mobility to the user and entails less hassle to purchase and activate.
On the flipside, a number of
respondents, even if they see benefits
from telecoms, neither owns a landline
or a mobile phone because these are
expensive to buy and maintain. While
the reasons for owning telecom
equipment are generally the same across
the two areas, it can be noted that a
number of Bulacan respondents have been previously connected to a landline service but they
had their service ended for reasons of poor service.
5.4.2. Respondent Perceptions on Telecom's Contributions to:
5.4.2.1. Economic Efficiencies. Telecom facilities can help improve the manner in which
business transactions are performed by shortening the duration and lessening the frequency of
travel by serving as a substitute to transportation and by enabling new modes of marketing and
work systems. The respondents say that their use of telecoms has translated to savings in travel
cost and time and to better information flow. There is no significant difference in the way
respondents from either area ranked the choices given to them.
M Manila Bulacan Table 6. Reasons for owning telecom equipment (in proportion)
Own landline
Own mobile
Own landline
Own mobile
Reasons for owning (n=79) (n=60) (n=45) (n=57)
Convenience 0.73 0.92 0.80 0.58 Amenities 0.30 0.35 0.38 0.49 Emergencies 0.28 0.25 0.27 0.47 Necessities 0.25 0.07 0.09 0.09 Mobility 0.03 0.11 0.14 Reasons for not owning (n=21) (n=40) (n=33) (n=21)
Cost considerations 0.48 0.25 0.42 0.29 No need 0.33 0.18 0.30 0.38 Disconnected 0.00 0.05 0.18 0.00 Cellphone is better 0.24 0.15 Poor service 0.18 Standing app 0.10 0.06
24
The economic efficiency benefits of telecoms can be verified into three broad categories:
transport substitution, telecommuting
and telemarketing, and other
integration effects.
5.4.2.2. Transport Substitution. A
bigger group of NCR respondents has
used the phone instead of travelling for
a business transaction, a function
perhaps of the bigger sphere of
services available for NCR residents over the phone. Meanwhile, across areas, the primary
reason of substituting phones for travel is the speed of transactions over the phone.
Of the socio-demographic characteristics which were thought to influence the substitution of
phone for travelling among Manila and Bulacan respondents, only age and work status proved to
be statistically significant. A bigger group of older, and working, respondents from Manila used
to phone instead of travelling compared to their Bulacan counterparts. This perhaps reflects their
greater familiarity with services available over the phone.
5.4.2.3. Telecommuting and Telemarketing. Among working respondents, only very few are
able to telecommute, or to work at home while maintaining contact with the office through
telecom facilities. Of the 23 working respondents who telecommute, the biggest group is
composed of businessmen, and though the greatest number of them still go to the office daily, the
Table 7. Telecom and… M Manila (n=100)
Bulacan (n=80)
Extent to which availability of telecom facilities has improved the respondents' situation
Information flow 1.75 (3) 1.98 (3) Labor cost savings 2.44 (4) 2.59 (4) Network/linkages 2.61 (5) 2.90 (5) Time management 1.58 (2) 1.54 (1) Travel cost savings 1.68 (1) 1.56 (2) *Rate of 1 to 5, where 1 is greatly improved; none of the comparison of means across areas is significant at alpha=.05 based on t-test for independent samples run using SPSS
Using the phone instead of travelling for a business transaction (jn percentage)
Answer (n=100) (n=78) Yes 80.0 68.0 No 20.0 32.0
Reasons* (n=79) (n=51) Fast 100.0 100.0 Convenient 62.0 73.0 Affordable 22.0 27.0
*Multiple response
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biggest group accomplish over 75% of their work at home. Moreover, while the two areas
generally have the same portion of telecommuting respondents, Manila telecommuters have
more telecommuting ac tivities and a greater proportion of them do not go to the office at all.
Meanwhile, very few of the respondents have received a telemarketing call, and even fewer of
them have purchased products or services from these calls. These respondents say that the items
they bought were cheap and useable, that the agent was trustworthy, and that the process was
time saving. Those who did not buy, meanwhile, say the items were expensive and the process
was impersonal. They were also not interested
over the items being sold since they did not
find any use for these items.
5.4.2.4. Other Spatial Integration Effects.
The respondents say that of various planning
issues, telecom facilities have addressed the
problem of geographic isolation the most.
Other planning issues which they ranked are
as follows, organized according to how the
respondents deem the issues have been
addressed by telecom facilities (rankings are
in parentheses). It should be noted that there
are no significant differences in the way that respondents from the two survey areas rated the
choices given to them.
Table 8. Other Spatial Integration Effects Extent to which availability of telecom facilities has addressed the following planning issues, according to respondent's experience
Manila (n=100) Bulacan (n=80)
Geographic isolation 1.56 (1) 1.61 (1) Lack of human capital 3.04 (6) 3.18 (5)
Lack of job opportunities 2.70 (3) 2.91 (3) Lack of products 2.92 (5) 3.18 (5)
Lack of services 2.53 (2) 2.64 (2) Lack of urban amenities 2.80 (4) 3.07 (4)
*Rate of 1 to 5, where 1 is greatly improved; none of the comparison of means across areas is significant a t alpha=.05 based on t-test for independent samples run
using SPSS
Ranking of basic necessities in order of importance in deciding where to live*
Manila (n=100) Bulacan (n=80)
Educational facilities 4.92 (7) 4.78 (6) Electricity 2.30 (2) 2.30 (2) Proximity to relatives 6.32 (9) 6.50 (9) Security/peace and order** 3.93 (4) 3.06 (3) Telecom facilities 4.64 (5) 4.53 (5) Proximity to town center 6.26 (8) 5.73 (8) Ease of transportation 3.99 (3) 3.80 (4) Water 1.73 (1) 2.02 (1) Proximity to work 4.89 (6) 5.54 (7)
*Rate of 1 to 5, where 1 is greatly improved; **Significant at alpha=.05 based on t-test for independent samples run using SPSS
26
Despite what they perceived to be telecom benefits, telecom facilities are still not at the top of
the respondents’ priorities in deciding where to live. The availability of telecommunications
ranks only as the fifth priority of the
respondents in deciding where to live.
Respondents from either area generally do
not differ with their rankings, though there
is a significant difference in their
estimation of security and peace and order
as Bulacan respondents valued it higher
compared to their Manila counterparts.
5.5. Access and Technology. Even where
there is universal access, there may be
differences in the level of technology that
is used to gain access to telecom networks.
This nature of a disparity requires further
examination, as "the sum of historical
context of the recent surveys documenting
a digital divide are often unclear about
what services or substance is involved in
determining any "divide"… Information technologies are being developed and implemented at
historically unprecedented levels" (Compaine, 2000).
Table 9. The Internet (in proportion, unless otherwise specified)
M Manila Bulacan T-computed
Access to the Internet (n-100) (n=79) Yes 0.39 0.32 1.03
No 0.61 0.68 -1.03 Venue of internet access (n=39) (n=25) At cybercafes 0.28 0.32 -0.32
In the office 0.28 0.44 -1.29 At home 0.23 0.24 -0.08
At the school 0.51 0.24 2.33* Number of years online
One year or less 0.14 0.16 -0.25 Two to three years 0.08 0.21 -1.40 Over three years 0.78 0.63 1.30 Mean (in number of years) 1.90 2.9 Not Sig
Uses of the Internet For emails 0.77 0.6 1.42
For information 0.26 0.12 1.43 For entertainment 0.85 0.8 0.47
For chatting 0.44 0.36 0.61 For work 0.31 0.24 0.60
For news 0.21 0.32 -1.01 Monthly number of hours spent online
20 or less 0.73 0.75 -0.31
More than 21 0.27 0.25 0.31 Mean (in number of hours) 16.8 29.6 Not Sig Average monthly Internet bill
Free 0.33 0.36 -0.37 400 and less 0.41 0.36 0.69
More than 400 0.26 0.28 -0.35 Mean (in pesos) 355 362 Not Sig Plans to connect to the Internet** (n=54) (n=61)
Yes 0.19 0.12 1.45 No 0.81 0.88 -1.45
*Significant at alpha=.05 with t-critical at 1.6 **Answered by respondents who have no Internet connection
27
In the Philippines, for instance, more Bulacan than Manila respondents say they subscribe to
National Direct Distance (NDD) and International Direct Distance (IDD) dialing services.
Because of existing interconnectivity issues among the telcos, all calls from Bulacan are
considered as long distance, and for this the Bulacan respondents have to subscribe to NDD
services if they wish to contact their relatives who are not connected to Digitel.
Meanwhile, that a bigger section of Bulacan than Manila respondents have IDD connections in
their household phone is due to the fact that Central Luzon, where Bulacan is located, is one of
the top two regions (the other being Southern Tagalog) from where the biggest number of
Filipino migrant workers originate. Further, a number of Bulacan's new residents, primarily
those who have migrated to the province to live in one of its new subdivisions, are families of
these migrant workers. Interestingly, no such differences were observed in the characteristics of
access among the respondents from either area who have mobile phones in their household.
Finally, the Internet, by extending the capabilities of a telephone connection, affords its users
the chance to improve the way they perform some of their tasks. Comparing internet access
across the two areas, differences between NCR and Bulacan were not statistically significant
except for the high incidence of Manila respondents who go online at school. Still, it can be seen
that while more Manila respondents have greater access to the Internet, Bulacan respondents say
they have been online for a longer period of time and spend more money on it. Among those
who have no Internet connection, Manila respondents outnumber those from Bulacan who say
they would want to go online eventually.
28
6.0. Conclusions and Recommendations. This study, by looking at patterns of telecom access
and use, provides insights and recommendations at telecommunications and the digital divide on
the following levels.
6.1.On theory. Previous discourses on telecom have analyzed it using classical and causal
frameworks where inputs necessarily lead to quantifiable outputs. Given its intangible nature,
however, telecom’s contributions to progress would be hard to model in this paradigm. This
study thus purports an alternative framework which, while it provides for a holistic direction
towards development, asserts that telecommunications use patterns are at the convergence of an
interplay between supply (the public) and demand (telecom companies). This perspective frees
scholars from studying telecom’s contributions towards development issues such as social
dynamics and gross value additions along a single line of factors, but to a confluence of several
concerns such as cost, inherent lifestyle and priorities.
In effect, the model that this study seeks to originate is a depiction of assertions in the structural
school. It states that telecom operates within a system, in which it can be a driving, an
intervening or a resulting element depending on the situation at hand. This argument also
tempers the present tendency to subscribe omniscience to telecommunications in particular, and
to information and communications technologies in general, as a propeller to progress.
6.2.On methodology. The data explores the discussion of the digital divide from the micro to the
macro perspectives to provide a holistic picture of such a disparity in the Philippines. Together,
the two data sets facilitate an extensive and intensive discussion of the topic.
29
6.3.On databases. To implement the study, a comprehensive questionnaire and interview guide
were designed to probe telecom access and use vis-à-vis development. These instruments reflect
an attempt to provide possible measures for telecom issues. This is important insofar as
government databases focus greatly on telephone count and density. By not giving as much
attention to actual patterns of access and use, there is a tendency to attribute to telecom a number
of supposed, albeit still to be verified, benefits.
Furthermore, the databases subscribe to a positivist framework where more units lead to greater
outputs, ignoring the ability of people to adapt to the facilities that they have. Aligning the
measures in these databases to follow a structural framework can better serve telecom policy and
planning.
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Fernando Paragas has been an Instructor of Communication Research at the College of Mass Communication of the University of the Philippines since 1997. In 1999, he was the recipient of the Newsweek-Asian Federation of Advertising Associations Research Grant for his work on the communication patterns of Filipino migrant workers. Last April, he earned his MA in Urban and Regional Planning from the UP School of Urban and Regional Planning. Email: [email protected] ? Mobile: (63 917) 535 6348
