Information Technology in The Philippines

Impacts of National Information Technology Environments on Business

Internet Activity

In early 1994 with the collaborative work of Computer Network Systems Corporation (ComNet) and the Department of Science and Technology (DOST) major Universities of the Philippines connected their wide area network (PhilNet/PhNet) to the United States via a leased line. The Philippines had officially entered the world of the Global Internet.1

Studies show forecasts of strong Asia-Pacific Internet user and subscriber growth in the near future. As of August 1997, Asia accounted for 10% of total Internet hosts in the world. The report, by Paul Budde Communications, showed that the Philippines had 1.771% growth in Internet hosts since 1996, with a reported 100,000 Internet users in 1997.2 This number is not exact however, since the number is based on Internet accounts activated. On average, there are three users to every account which would increase this number to a 300,000 user range for the Philippines. In 1998, the number of Internet subscribers in the Philippines increased to 150,000 or an estimated 450,000 users.3

According to Paul Budde Communications in December of 1998, the number of Internet subscribers in Asia was expected to reach 7.36 million by the end of year.4 This is attributed to the fact that 50% of the population in the Asia/Pacific region are under 25, compared to 26% in the United States and 28% in Australia.

A general problem facing Asian ISPs comes as a result of the economic crisis, where line costs have risen from 25% of overall costs to 40% of the total.5 The effect of the recession on the domestic market means that raising access rates in order to survive is not a feasible option.

Number of Internet subscribers in Asia in 19986  


Country Number of Internet subscribers
Japan 5,100,000
Taiwan 800,000
Hong Kong 400,000
China 320,000
South Korea 200,000
Philippines 150,000
India 100,000
Singapore 100,000
Thailand 100,000
Malaysia 60,000
Indonesia 30,000
 

 

 

 

 

 

 








If adding these numbers together, there is a total of 7.36 million accounts which results in an estimated 22.08 million users in Asia in 1998. Nua Internet Surveys, however, estimates that there were 25.57 million people in Asia online in 1998. As stated above, following this projection of three users for every registered account, this results in an estimated 450,000 users for the 150,000 accounts in 1998 in the Philippines.

The total number of Internet users in the Asia-Pacific region is expected to grow to 44.7 million users by 2002. Research group, International Data Corporation (IDC), projects the growth of Philippine users to reach 590,000 by 2001 and 900,000 users by 2002.7

The Philippine Communications Satellite Corporation (Philcomsat) conducted a survey on Internet usage among 974 Filipino business professionals in 1999. The survey showed that 60% of Internet subscribers in the Philippines are not satisfied with their current service due to frequent disconnections, busy signals or slow downloading times.

Electronic mail makes up the most of Internet usage in the Philippines at 88%, then web surfing at 60%. Internet chats came in at 29% and newsgroups at 17%. The survey also showed that downloading files in the Philippines is still the most popular of uses of the Internet.8

The Internet Software Consortium sponsors an Internet Domain Survey which attempts to discover every host on the Internet by doing a complete search of the Domain Name system. Technical operations of the survey are subcontracted to Network Wizards. Survey results show that the number of hosts in the Philippines domain (.ph) is still relatively small, almost reaching 10,000 by 1999. However, several businesses within the country are also using the dot com domain which this number does not account for.

Number of hosts in the .ph (Philippines) domain9
July 1999

 


Domain Number of
Hosts
All Hosts Duplicate Names Level 2
Domains
Level 3
Domains
.ph domain 9,942 10,019 77 9 344
Total 56,218,330 63,019,061 6,800,731 1,638,115 17,299,119
 

 

 





Internet Service Providers in the Philippines

The number of Philippine ISPs increased from 19 in 1995 to 88 in 1996, and to over 160 by the end of 1997. The number of ISPs in the country is now estimated to be around 190. Of the 129 registered ISPs in early 1997, about 25 of them had a primary connection to the Global Internet.10

Because of the increased competition in Philippine ISPs, various companies are pushing different avenues to their advantage to increase the number of Internet users in their region. WebQuest launched the Internet aXess card to provide telephone services over the Internet while PhilWorld boasts access to the International Gateway via an MCI direct line to the United States with speeds of 1024 Kbps and provides local speeds based on T3 lines.11

InfoCom Technologies, Inc., the leading ISP of the Philippines, is the Internet service provider of PLDT (Philippine Long Distance Telephone Company), the dominant telecommunications company in the Philippines. As of July 1999, InfoCom handled more than 15,000 dial up customers and about 130 corporate clients with dedicated leased-line connections. By the end of 1999, InfoCom targets a dial-up customer base of about 25,000 and 200 corporate accounts.

MosCom Internet, established in June 1994, was the first commercial ISP in the Philippines. In 1998, ISDN and V.90 56Kbps dial up services were introduced by MosCom in selected areas. By the end of 1997, MosCom grew to six offices. MosCom is continuously increasing both the bandwidth of its domestic infrastructure as well as the number of Internet Points of Presence (PoPs), with almost 70 PoPs and counting.12

MosCom's network (MosNet) is now probably the largest spanning network across all regions of the Philippines. Its domestic high-speed backbone currently connects Makati, Pasig, Cebu, and Davao using multiple E1 (2.048 Mbps) lines. Internationally, MosCom has a 3 Mbps line to MCI and another T1 (1.544 Mbps) line to UUNet. Toward the end of 1999, MosCom attained broadband capability up to 45 Mbps (T3). Its current Frame Relay backbone shall be upgraded to an Asynchronous Transfer Mode (ATM) backbone. It also has a North American presence (MosComUSA) in Sunnyvale, California directly connected through multiple high capacity international private leased lines to the Philippines.13

In the near future, MosCom hopes to have another T1 line to the United States via Sprint and a T1 link to the ABONE (Asian Backbone) via Tokyo. Satellite based access will also be deployed to connect clients in remote areas and two more E1 lines connecting MosCom Manila and MosCom Cebu will be installed to handle more traffic. MosCom has also prepared for implementation of future services such as IP telephony, ADSL (Asymmetric Digital Subscriber Line) and ATM (Asynchronous Transfer Mode) to be the leading ISP in cutting edge technology in the Philippines.14

The first Philippine Internet Exchange (PhIX) was launched in July 1997. PhIX is a network access point that allows ISPs to exchange local Internet traffic within the Philippines without having to connect to host servers overseas. The PhIX was established by PLDT and interconnects Infocom, IPhil, Moscom, Virtualink and Worldtel.

Other major service providers with contact information and basic pricings for services are listed below. Consumer Basic prices are based on a standard dial-up, or comparable service, with data speeds at 14.4Kbps or otherwise stated. Rates are monthly fees for approximately 60 hours per month. Additional hour rates run between 45-75 PhP (US$1.13-$1.88) depending on the plan signed up for. Corporate Basic rates are based on a leased-line, or comparable service, with data speeds at 128Kbps or otherwise stated. Rates are subject to change. If interested in obtaining Internet service in the Philippines, contact the ISP directly for current information and pricing plans.15
 


Internet Service Provider Costs
Consumer Basic Corporate Basic
AlphaNet, Inc.
3/F PDAF Bldg.
Sen Gil Puyat Ave.
Brgy.Bel-Air Makati City, Philippines
Tel. No. + 63 (2) 897-8579 / 897-8580 / 897-8592
Fax. No. +63 (2) 897-8585
Not Available 45,000 PhP (US$1,125)
One-time fee of 50,000 PhP (US$1,250)
Amanet
AMANET Incorporated
7860 Amanet Bldg.
Makati Ave. cor Kalayaan Ave.
Makati City, Philippines
Tel No. +63 (2) 896-5857
Fax No. +63 (2) 890-4136
1,350 PhP (US$33.75) 45,000 PhP (US$1,125)
One-time fee of 45,000 PhP (US$1,125)
Axcess Technologies, Inc.
Axcess Technologies, Inc. (AXTI)
Unit-G 6th Floor
Westgate Office Tower
Investment Drive
Madrigal Business Park
Ayala Alabang
Muntinlupa City, Philippines
Tel No. +63 (2) 809-9901 / 807-7997 / 807-8555
1,800 PhP (US$45) Not Available
Compass Internet
24/F Galleria Corporate Center
EDSA corner Ortigaas Avenue
Quezon City, Philippines
Tel No. +63 (2) 636-5091 to 92
Fax No. +63 (2) 636-5092
56Kbps: 2,400 PhP (US$60) US$1,950
One-time fee of 35,000 PhP (US$875)
Destiny Inc.
Destiny Inc.
2285 Pasong Tamo Ext.
Makati City 1231
Philippines
Tel. No. +63 (2) 867-9000
Fax No. +63 (2) 813-0237
Cable modems only: 1,895 PhP (US$47.38)
One-time fee of 3,000 PhP (US$75)
Cable modems only: 2,500 PhP (US$62.50)
One-time fee to purchase modem 12,500 PhP (US$312.50)
Earthgate Information Services
Suite 302, Omm Bldg. San Miguel Ave.
Ortigas Center Pasig City
Philippines
Tel. No. +63 (2) 638-8037 to 40
Fax No. +63 (2) 638-8035
1,500 PhP (US$37.50)
One-time fee of 4,500 PhP (US$112.50)
10,000 PhP (US$250.00)
One-time fee of 12,500 PhP (US$312.50) and 30,000 PhP in advance (US$750.00)
EpicNet
EPiCnet, Executive Power Center
24th Floor, Pacific Star Building
Sen. G. Puyat cor. Makati Avenue
1200 Makati City, Philippines
Tel. No. +63 (2) 811-5985 / 811-6007 / 811-6239
Fax No. +63 (2) 811-6001
2,626.80 PhP (US$65.67)
One-time fee of 500 PhP (US$12.50)
Not Available
Evoserve
Penthouse, TEXTRON Building
168 Luna Mencias St.
San Juan, Metro Manila
Philippines
Tel. No. +63 (2) 726-7701 to 02 / 718-2222
Fax No. +63 (2) 724-8121
1,900 PhP (US$47.50)
One-time fee of 500 PhP (US$12.50)
Not Available
FapeNet
Ground Floor, Concorde
Condominium Cor. Salcedo & Benavidez Sts.
Legaspi Village, Makati City, Philippines
M.C.P.O. Box 2144
Makati City 1299
Tel. No. +63 (2) 892-8911 to 18
Fax No. +63 (2) 812-2364
33.6 Kbps or higher: 1,200 PhP (US$30)
One-time fee of 1,000 PhP (US$25)
45,000 PhP (US$1,125)
One-time fee of 50,000 PhP (US$1,250)
iConnect
7th floor 116 Herrera Street
Legaspi Village, Makati City
Philippines
Tel. No. +63 (2) 812-8023 to 24
Fax No. +63 (2) 810-3614
1,700 PhP (US$42.50) Shared 64K: 37,000 PhP (US$925)
One-time fee of 37,000 PhP (US$925)
Infocom Technologies, Inc.
Unit 2B, Trafalgar Plaza, H.V.
Dela Costa Street
Salcedo Village, Makati City
Philippines
Tel. No. +63 (2) 848-3801 to 06
1,600 PhP (US$40) Not Available
Internet Manila
I-Manila Customer Care Center
Unit 008, Level 3, Robinson's Galleria
Expansion Mall, EDSA cor. Ortigas, QC.
Tel. No. +63 (2) 632-7096 / 632-7054
Fax No. +63 (2) 632-7096
1,485 PhP (US$37.13)
One-time fee of 1,980 PhP (US$49.50)
Not Available
IPhil Communications Network, Inc.
5th Floor, 116 Herrera St.
Legaspi Village, Makati City
Philippines 1229
Tel No. +63 (2) 750-2288
Fax No. +63 (2) 750-4947
Not Available Not Available
Jetlink.com
Zamboanga Branch
Ground Floor GV Bldg., Veterans Ave.
Zamboanga City, Philippines
Tel. No. +63 (062) 992-1342
Fax No. +63 (062) 992-1343
1,388 PhP (US$34.70)
One-time fee of 2,000 PhP (US$50)
Not Available
MosCom Internet
Suite 601/602, The Peak Tower
107 Alfaro Street
Salcedo village, Makati City
Philippines
Tel. No. +63 (2) 848-2606
Fax No. +63 (2) 840-4434 / 810-0909
2,100 PhP (US$52.50)
One-time fee of 750 PhP (US$18.75)
US$1,500
One-time fee of 45,000 PhP (US$1,125)
NetQuest Systems Company
1,200 PhP (US$30)
One-time fee of 1,500 PhP (US$37.50)
US$1,500
One-time fee of 45,000 PhP (US$1,125)
Pacific Internet
3/F, The Taipan Place
Emerald Avenue Ortigas Center
Pasig City, Philippines 1600
Tel. No. +63 (2) 637-1700
Fax No. +63 (2) 637-0600
1,540 PhP (US$38.50)
One-time fee of 935 PhP (US$23.38)
61,875 PhP (US$1,546.88)
One-time fee of 68,750 PhP (US$1,718.75)
PhilWorld Online
#7 Wilson St. Corner Pasteur St
Philippines
Tel. No. +63 (32) 233-8055 / 233-8056-59
Fax No. +63 (32) 233-8056-59 (ask for fax tone)
1,400 PhP (US$35)
One-time fee of 600 PhP (US$15)
Not Available
Portal Inc.
Suite 222, Atrium Building
Makati Avenue, City of Makati
Metro Manila, Philippines 1200
Tel. No. +63 (2) 811-4104 to 08
Fax. No. +63 (2) 811-4096
1,700 PhP (US$42.50) Not Available
Tridel Technologies
Unit J1, 2/F Avocado Lane, Virra Mall
Greenhills, San Juan Metro Manila
Philippines
Tel. No. +63 (2) 721-0808
1,485 PhP (US$37.13)
One-time fee of 1,980 PhP (US$49.50)
Not Available
Virtual International Corporation
Suite 1105, One Magnificent Mile Condominium
13 San Miguel Avenue
Ortigas Center, Pasig City
1600 Philippines
Tel. No. +63 (2) 637-5625 to 30
Fax No. +63 (2) 637-5631
Not Available Not Available
WorldTel Philippines
118 Gamboa St., Legaspi Village
Makati City, Philippines
Tel. No. +63 (2) 840-4166 to 68
Fax No. +63 (2) 894-5083
Not Available Not Available
 

 

 

 

 

 

 

 

 

 









 

 

 

 

 

 

 

 

 

 

 

 





 

 

 

 





 





 

 

 













 

 

 

 

 

 









 

 

 

 

 

 









 

 

 

 

 

 



 

 

 










This site was developed for
Impacts of National Information Technology Environments on Business
Kogod School of Business
American University, Washington, DC.

Created by Bree Connally

This page was last updated: December 11, 1999