My US-based lawyer-daughter Ivy Lopez Cabaltica did some research on Internet use in the Philippines. Her findings are not something our telcos in the Philippines can be proud of. Only a little more than half of Filipinos have Internet access. Local Internet is slow (one of the slowest in the world), and expensive. Internet remains an elitist pursuit and is mainly for the educated.
If our government wants to promote inclusive growth, one of the best ways is not to give the poor money. Give them cheap, if not free, internet. That way, the poor will be at par with the rich, instantly. I am not saying our telcos are anti-poor. They could be more pro-poor. If they do, they can access the other half of their market.
Only 56 of every 100 Filipinos have Internet access. The world’s ratio is 75 of every 100 people.
One reason is cost. Internet in the Philippines is expensive: An initial cost of $80 for installation and deposit, with a two-year lockup and heavy penalty for pre-termination. Plans range from $30 to $140 a month.
In response, Filipino instead use their smartphone, which is much cheaper. A mobile plan can range from $1 a day to $20 a month. A smartphone plan can also be prepaid for a set amount or a daily basis which gives users, especially the low-income earner, a lot of flexibility.
Also, smartphones are cheap—only $100 from South Korea’s Samsung. China’s Oppo and Vivo hold 59 percent of the smartphone market. This segment is more than the combined sales of low-end ($101 to $199), mid-range ($200-$400), high-end ($401-$600), and ultra high-end (from $601) smartphones.
Filipinos want a smartphone with a bigger screen, good camera, and greater capabilities that allow them to centralize their digital needs for work and personal use, especially for their social media habits. A bigger screen allows users to enjoy beautiful graphics, view their pictures and videos, and easily read text. Plus the portability of smartphones is incomparable.
Large-screen smartphones have been made popular by the greater availability of video streaming services like Netflix, where you can watch shows, movies, and original programs from your phone.
Emerging economies like the Philippines use social media platforms beyond personal pursuits.
Users go to networking sites and FB to market their wares, promote their business, and increase their professional standing. Small business owners and side businesses sell directly on FB and other social media sites. FB is attractive for the cash-strapped proprietor since these sites are free and they already have a personal profile and a network of friends who can support their business. It’s also common for regular users to post their used clothes and luxury items for sale on these sites.
Globally, the youth (ages 18 to 36) are the most frequent internet users. In countries with a young population like the Philippines (median age is 23), there is a great age gap between the young and the older users.
“In three countries, there is at least 50-percentage-point gap between younger and older generations: the Philippines (55-percentage-point gap), Tunisia (51 points) and Vietnam (50 points). Among advanced economies, the largest generational divides in Internet use are found in Greece (47-point gap), Italy (36 points), Poland (34 points) and Hungary (33 points).” (Pew Research Center)
Generation X (ages 34-53) are also heavy users of the Internet and social media sites. They spend over 40 minutes more on the Internet than millennials and are heavily reliant on their smartphones and smart devices for their work and recreation. They are now in more advanced stages of their careers so they have the economic means to buy more, whether in terms of higher-priced devices or greater quantities.
Baby boomers (ages 54-72) may not use the Internet or social media as much as the two younger generations after them, but they have the most means. They buy the most expensive smartphones, laptops, and devices; pay for the best Internet and phone subscriptions; and most likely pay for their children’s and grandchildren’s smartphones, digital devices, and subscriptions, too.
Filipino boomers use social media to keep in touch with family members regularly, especially those who live far from them or are abroad. They use the Internet mostly for information like international news and health research but still prefer to watch TV for local news and shows.
The more affluent have greater digital access.
Affluent nations have the means to build better infrastructure to support the Internet and mobile technology. Their prosperity allows its citizens to afford Internet subscriptions, smartphones, and computers. The opposite is true for developing nations where most basic services and infrastructure are poor.
Worldwide, there is a significant gap between those with more education, who have more Internet access, over those with less education who have less Internet access. In 95 percent of all countries surveyed, the differences are in the double digits.
Less educated Filipinos use the Internet 27 percent of the time, while the more educated use the Internet or own a smartphone 75 percent of the time. The 48- percent gap is one of the highest among the nations surveyed.
Less educated Chinese use the internet 55 percent versus the more educated 92 percent. India is 11 percent versus 53 percent. In contrast, the less educated American has an Internet use of 84 percent, while the more educated has 96 percent. Again, South Korea has the smallest gap of 6 percent since 99 percent of its population has a college degree, but its less educated still has a high Internet use of 93 percent.
Internet access is the standard in many high schools and all colleges and universities, even in developing countries like the Philippines. So students who pursue a tertiary or postgraduate degree also avail of the school’s facilities even if they cannot afford their own subscription, smartphone, or computer.
Internet access and social media use are a reflection of many socioeconomic and cultural factors within a country. In this digital age, Internet connectivity and digital savvy is essential for a nation to compete globally.
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