Being one of the Asian countries with lowest cell site density, the Philippines is forced to serve more internet users per cell site compared to most of its neighbors. Setting up more telecommunications infrastructure continues to be challenging in the country, hampered by lengthy permit applications and some uncooperative stakeholders.

Latest data from TowerXchange and We Are Social showed that user-per-cell site density in the Philippines is now about 4,036, based on estimates of 16,600 total cell sites against internet users of around 67 million internet users as of first quarter of the year. This shows a stark difference when compared to some of its neighboring countries like India, Indonesia, China, and Vietnam.

India, with 1.459 million cell sites against 462 million internet users, has a user-per-site density of 316. Indonesia, with over 91,700 cell sites against 132.7 million internet users, has a user-per-site density of 1,446. China, with 1.95 million cell sites against 751 million internet users, has a user-per-site density of 384. While Vietnam, with 70,000 cell sites against 64 million internet users, has a user-per-site density of 914.

The disproportionate number of cell sites versus internet users in the Philippines is mainly attributed to difficulties in securing permits from various local government units (LGUs), homeowner associations (HOAs), and other stakeholders, causing considerable delay in the construction of such facilities, Globe Chief Technology and Information Officer Gil Genio said.

For Globe Telecom, more cell sites are needed as its network saw mobile data traffic soar by 49 percent to 641 Petabytes during the first nine months of 2018, from 430 Petabytes recorded in the same period in 2017. As of end September 2018, Globe clocked in 65.4 million mobile customers, the majority of which are internet users. For instance, around 246,700 Globe active customers in Cotabato City in Maguindanao are forced to share only 13 cell sites. This shows the urgent need to build more towers in order to serve the current data traffic that continuously grows exponentially over the past months.

“Consumer demand for mobile data is growing at an explosive rate. This means more and more cellular towers have to be deployed to keep up with the demand. But deployment is only the final step to a potentially long, costly site acquisition process,” Genio said.

Lengthy permits

To cater to the rising demand for data, Globe has been accelerating the deployment of cell sites across the Philippines. This is part of its initiative to continue building on its network capacities for better quality of internet experience. But in the absence of regulations on the construction of passive telecommunications infrastructure, LGUs impose their own requirements, slowing down the deployment of cell sites.

Aside from LGU permits, HOAs, exclusive subdivisions, and building administrators also impose certain guidelines and requirements based on Housing and Land Use Regulatory Board (HLURB) Resolution No. R-626 issued in 1998. From negotiations and documentation of prospective cell site location to securing structural permits and approvals, Globe estimates an average of eight months and over 25 permits before it can build one cellular tower.

Non-present health risks

Several exclusive villages and HOAs in the Philippines also refuse to have network-boosting cell sites deployed in their vicinity because of unfounded health risk linked with exposure to radiation emitted from cell sites.

Global authorities in radiation safety, like Environmental Protection Agency (EPA) and World Health Organization (WHO), have affirmed that proximity to cell sites does not cause any known health risks, contrary to what many HOAs and exclusive villages in the country believe. Even the Department of Health has taken all the necessary precautions in ensuring that the Philippine standard of thermal emissions from local cell sites are at least four times lower than what has been approved globally.

In a bid to bring the Philippines closer to first-world internet connectivity, Globe continues to push for cooperation among all stakeholders, from the public sector, down to the barangay level,  property developers, and homeowners.

Snapcart, the real-time offline shopper and consumer insights startup, late last month closed a USD10 million series A funding from several investors, which include Kickstart Ventures, the wholly-owned venture capital company of Globe Telecom.

Photo (L-R): Laith Abu Rakty, Co-Founder & Chief Technology Officer; Teresa Condicion, Co-Founder & Chief Data & Operations Officer; Araya Hutasuwan, Co-Founder & Chief Financial Officer; Reynazran Royono, Founder & Chief Executive Officer

The amount, which is significant for a data B2B startup, would be used to advance  further Snapcart’s AI-based OCR technology, as well as expand its operations and teams in the Philippines and Indonesia, where it currently operates. Snapcart is pushing  to widen its market to include other Southeast Asian countries.

“A sizable amount of the fund will be used to further enhance our product’s proposition. Given our unique organization structure, where our Data Science team is based in Manila, we would ultimately ramp up the Philippines organization,” says Teresa Condicion, co-founder and chief data & operations officer of Snapcart.

Condicion added: “The participation of Kickstart in our Series A fund-raising will definitely boost our business development efforts in the country as well, given their vast network.”

Snapcart is the 34th firm to receive funding from Kickstart, which invests in digital startups globally. It is Kickstart’s second portfolio company from Indonesia.

“Kickstart supports entrepreneurs and accelerates the growth of new businesses in the digital technology space. It is co-creating a dynamic innovation ecosystem in the Southeast Asian region, and helping to promote partnerships between startups and large enterprises. Snapcart has an excellent founding team, possibly the most diverse we’ve seen at this stage. The product is innovative and robust, and the business model demonstrates good traction as can be seen from its A-list corporate clients. We believe in what Snapcart offers and we’re thrilled to support its growth,” said Minette Navarrete, Kickstart President.

The Series A round was led by Vickers Ventures Partners, with participation from Social Capital and Endeavor Catalyst. Existing investors also followed on like Wavemaker Partners and SPH Ventures.

Snapcart previously closed a USD3 million pre-series A round in early 2017.

Launched in September 2015, the app has over 700,000 users and is collaborating with more than 75 FMCG brands across the region such as Unilever, L’Oreal, Unilab, and Nestlé.

Who would have thought that a humble computer shop would transform into one of the most successful tech giants in the Philippines? DIGITS Trading Corporation began as a modest computer shop sidelining as a gadget assembling hub. Charles Paw started the company back in 2002, carrying only his passion and grit, and envisioning a company that would become the foremost hub of gadgetry in the Philippines.

Glenn Ong, DIGITS Vice President for Customer Experience and Information Systems Management

In time, the business included retail in its portfolio by launching Beyond the Box, which is an Apple Premium Reseller and Authorized Service Provider, and Digital Walker, which is the premier hub of gadgets and accessories in the Philippines. Additionally, DIGITS supplies to different dealers and organizations like Globe, Astrovision, and Lazada.

Despite its current status, the path to success wasn’t easy. Glenn Richmond Ong, DIGITS’ Vice President for Customer Experience and Information Systems Management, says they faced various challenges, but the toughest and by far the most ironic was a backlog in their technology. Describing how their situation used to be, he talks about their cashiers still using manual receipts and their IT teams receiving hundreds of tickets a month regarding unstable Internet connection.

When it was made clear that Internet connectivity was the most pressing issue, they decided as a company that investing in a stable and strong Internet connection was a must. Thus, they did a scan of four vendors selling network connectivity solutions, before finally deciding to go with Globe Telecom’s offered solutions. Globe’s Managed Wi-Fi and wired connection were installed in their head office, a process which Globe took care of through network rehabilitation of the entire building.

The company also subscribed to many other digital solutions, such as service units relying on Globe postpaid, the use of G Suite (which Google hosts in partnership with Globe), and managed CCTV in their warehouses.

Besides the effectiveness of these solutions, what appealed to Glenn was the convenience. He shares, “I only had to speak to one company, and they were able to provide a lot of different solutions that really helped us. We really see how happy the employees are now. I think it’s my way of also changing the culture. If you are a digital company, and within your company you aren’t digital yet, how do you live out the digital lifestyle?”

More than anything, having reliable Internet connection has worked wonders for DIGITS’ owner and its employees. It provides them with a sense of assurance that whenever they work on something, the work that they have put effort into won’t go to waste. Glenn states that this has improved productivity and allowed them to look forward to optimizing their other business operations through digitization.

“It all starts with having happy employees internally,” Glenn says, stating that everyone around them deserves to be catered to – including fellow employees, whom he considers internal customers. “That’s why I’m focused on resolving the pain points that we have in the head office. If the employees are happy, then the outputs that they will give out are better, which eventually will echo to the external customers who are visiting our stores.”

More than just technology, it’s human capital that makes digitization effective. Glenn describes how some people in the company weren’t tech-savvy prior to utilizing these solutions, and how he trained them to use solutions like G Suite and a Managed Wi-Fi system.

“For us, technology just helps efficiency, but [what’s] more important for us is the people,” he says. “So as long as we have the right people, combining it with the right process and coupling it with good technology, that’s when the company will really blaze a trail.”

When asked about his advice to other businesses looking into digital solutions, he urges them to be open to new things. Some people can become close-minded once they are asked to invest in something, so he encourages them to take a look and understand how even expensive products can benefit their businesses.

“If we try to be open about what’s new and always on the lookout for tools that can help us be more efficient, we’ll have a culture where people are always hungry for innovation,” he says.

Taking a page from DIGITS founder Charles Paw’s book, he also states that business owners shouldn’t be afraid of failure, as mistakes are something anyone can learn from and improve on.

Finally, he adds that it’s important to focus on the people you work with. When you’re a leader, you need to be on the same level as your team and understand their pain points, so that you know the issues that need to be addressed.  He also encourages his fellow leaders to talk to their people – not just to follow up about work, but to ask them how they are, understand what motivates them, and get their feedback.

These things, he says, were the key to DIGITS’ success.

For more information on optimizing your own business with digital solutions and business tools, visit mybusiness.globe.com.ph.