The Economic Impact of Broadband in the Philippines

The following study focuses on assessing the economic impact of broadband in the Philippines. It analyses the relative impact of fixed and mobile wireline and wireless broadband communications. The measurable economic impact of ICT infrastructure depends heavily on the timing of introduction, existing adoption conditions and market maturity. As studies of the lagged impact of ICT have demonstrated (Hardy, 1980; Jorgenson et al., 2006; Karner and Onyeji, 2007), the significant economic impact of ICT does not materialize immediately after the introduction of a new technology. Broadband services represent a market that has contributed to the evolution of the Philippine economy during the last decade. To measure this contribution, a structural model, relying on four simultaneous equations that model the market operation was constructed for each of the two countries.