A presentation I gave during the 20th Anniversary of Internet in the Philippines. Thanks to Jurist, Manny and Achie for some of the materials you contributed.

1. Delivering Internet Services
in the Philippines …
the best years are are ahead of us!
Cocoy J. Claravall IV
Vice President
Consumer Broadband Products
March 27, 2014

2. "Internet.org is a partnership, it's an
industry coalition working together to
make the internet and the different
parts of it more efficient. For everyone
to have access to it for a really
affordable price or free is the real goal
for basic internet services. In the
Philippines, for example, we've been
working with Globe, and what we've
seen in the Philippines is the number
of people who are using internet and
data has doubled. It's a homerun, it's
going really well. We delivered this
product, where basically, in
partnership with them [Globe], there's
free basic services with upsells. We're
starting off with Facebook and
Messenger, the next version we're
going to do is more basic services,"
shared Zuckerberg in his keynote. Facebook CEO Mark Zuckerberg at the
2014 Mobile World Congress in Barcelona

3. Global Trends – Mobile connections projected to reach
the 4 Bn mark by 2018
• Almost half the population of the earth
now uses mobile communications.
• A billion mobile subscribers were
added in the last 4 years to leave the
total standing at 3.2 billion.
• There are still many adults and young
people who would appreciate the
social and economic benefits of mobile
technology but are unable to access it,
highlighting a huge opportunity for
future growth and a challenge to all
players in the industry ecosystem to
expand the scope of products and
services to tap this demand.
• Given the strong growth trajectory and
pace of innovation, the next few years
will see continued growth with a
further 700 million subscribers
expected to be added by 2017 and the
4 billion mark to be passed in 2018.
The biggest growth rates are in Asia
including the Philippines !

4. GROWTH DRIVERS & TRENDS

5. Copyright©2013TheNielsenCompany.Confidentialandproprietary.
5
Source: NSCB; News articles and Internal market research
Philippines, % GDP Growth
• Armed
conflict in
Zamboanga
(Q3)
• Earthquake in
Bohol (Q4)
• Yolanda in
Leyte (Q4)
Despite the calamities & conflicts, country’s GDP growth
remains strong in Q4’13, but softening noted compared to
early part of the year.
BUT even then … Internet usage (in Dec 2013 using any medium)
still increased, driven by Rural PH. Urban remains stable. Urban is
approx 2/3 of the Internet population vs 1/3 for Rural.

6. Copyright©2013TheNielsenCompany.Confidentialandproprietary.
6
Profile of Internet Users (%) in Urban PH
SEC
Region
Gender
Age Group
Lifestage
Base=1,500/qtr
LEGEND:
Higher at 95% CL vs. PP 90%
Lower at 95% CL vs. PP 90%
Higher at 95% CL vs. YA 90%
Lower at 95% CL vs.YA 90%
Internet user profile generally remains the same save that there are now more
users from 41-50 age group, driven adult housewives and working youth.
Ferrell Segment

7. Copyright©2013TheNielsenCompany.Confidentialandproprietary.
7
17
31
19
29
Device Ownership in Urban PH (%)
Estimated Population of Device Owners
(In Millions)
LEGEND:
Sig higher at 95% CL vs. PP 90%
Sig lower at 95% CL vs. PP 90%
Sig higher at 95% CL vs. YA 90%
Sig lower at 95% CL vs.YA 90% *From Project Vector (personal ownership)
Note: Christmas holidays captured as part of Q1 due to Field
Work schedule. No Field Work during last 2 weeks of December
887 1033 1103 983 873 1099 1059 825
Base for Tablet, Laptop & Desktop
Base for Smartphone*
1500 1500 1500 1500 1500 1500 1500 1500
Q4’13
Smartphone and Tablet ownership continues to surge—Tablet gaining on
desktop PCs.
More and more cheap but average to high-spec tablet made by local/ China brands and even top brands
(Samsung and Apple) could be driving this trend.

8. Copyright©2013TheNielsenCompany.Confidentialandproprietary.
8
Tablets shared within the immediate family, reinforcing tablet
as a shared device rather than personal.
Tablet Shared with Whom Age of Currently Owned Tablet
Base Q4’13 = 611
Base Q4’13 = 900
Average: 10 mos.
Average # of
people
sharing:
2 members/
HH

9. PHILIPPINES TODAY

10. Internet Landscape – PH Traffic
Source: local traffic profiler
Traffic Profile
-IP traffic is still predominantly US-centric
-Asian traffic continuous to grow – specifically
Singapore, Malaysia & Korea
-CDNs/US Carriers bringing content closer to Asia
-European traffic growing, (route via U.S.)
-Philippines is the 2nd top Internet user in
Southeast Asia, next to Indonesia; 6th in Asia and
17th in the world.
Filipino Internet
User Growth
Source: http://www.digitalfilipinoclub.com/41m.htm
FB Users 2/13
Philippines #8

11. Enabling Infrastructure – Globe’s IP Capacity (Gbps)

12. Enabling infrastructure
Singapore
Global Switch
Hong Kong Mega-I
TGN-IA
TGN-IA
TGN-IA
C2C
APCN2
C2C
USA
Seattle – Westin Building
USA
LA - One Wilshire
TGNIA-TGNP
C2C-UNITY
Japan
Shinagawa Equinix
SJC
SJC
SJC
TGNIA-UNITY
IP Core
AS4775
Global Connectivity
Domestic Connectivity
3 Major Core
Networks
International
Domestic
Internet
5 Int’l PoPs
2 CLS
The Philippines is Well -
Connected to the ROW!
Globe’s Resilient International Cable Network

13. Internet Landscape – Local IX
*Government policy on to via PhOpen IX (answer to Domestic traffic
localization)
Note: 15-23% of all Internet is Domestic
Source:The-Need-for-a-True-National-Internet-Exchange-Philippines-V1-2
No common IX where all ISPs are connected
ISPs operate their own IXP
ISPs peer directly (selected ISPs)
Traffic localized - through inter-ISP peering
sessions
Peering Policy – Inter-AS only (with special
exceptions)
IXP list
IX Name ISP
GIX Globe
PHIX PLDT
NGIX Bayan
MIX ETPI
VIX ePLDT
PhOpenIX DOST-ASTI
COMIX Comclark
CORE PHNet

14. Internet reachability – Global IX
Source:peeringdb
PH Carriers has expanded connectivity to Global Internet eXchange
Points (IXPs)
Multiple Regionals Connections complements diversity and more direct
connectivity
Globe Bayan ETPI Digitel IPvG Comclark PLDT
IXP/ASN 4775 6648 9658 9497 23930 17639 9299
US-LA Any2IX P P
US-LA LAIIX P P
US-SEA SIX P
Equinix P
HKIX P P P P P
iAIX P
Equinix P
SOX P
Equinix P P
SGIX P
Europe London LINX P
Count 7 5 1 2 3
Carriers
US
Asia
JP
HK
SG
N/A N/ANo Data Available

15. Home Broadband Plans Continue to Get
Better, More Value for Money!

16. THE FUTURE

17. The Next Wave of mobile broadband enabled
services – Connected Living.
Connected Living Ushers in the Era of Web 3.0 and Telco 3.0

18. Connected Life Services are in use today but a lot opportunities
are emerging in many markets including developing economies.
Connected Smart meters • Do away with error prone and labor intensive manual meter readings
• Provide customers with means to track and monitor energy or water or gas consumption
actively and even send a reminder if target consumption levels are exceeded
• Prepaid utility services for transients
• Remote monitoring of utilities facilities (power plants, water reservoirs, depots)
Connected Homes • Remote control of home and its appliances
Connected Consumer electronics • Access of social networking sites increase
• Automatic uploading and downloading of photos, videos and movies
• Automatic generation of groceries shopping lists
E-libraries • e-books for students
• Online rentals of e-books, videos, music
E-payments and e-banking • Mobile payments
• Micro loans
• remittances
E-health • Remote monitoring technologies for healthcare can deliver more cost-effective and
resource efficient healthcare while offering individual s and medical practitioners better
insights into patient lifestyles
Connected vehicles/embedded
mobile transport solutions
• On-demand in-vehicle entertainment systems, route and traffic information and
navigation services
• Travel route planning, emergency assistance
• Delivery of maintenance information and support to drivers and car owners including
vehicle tracking, carnap alerts and automatic lock down
E-government • License renewals and various transactions with government

19. The Biggest Challenge then is Developing New Capabilities
and Capacity for Emerging Broadband Usage
Believe It Or Not : The Philippines is the fastest-
growing smartphone market for SEA and soon
connected appliances and even vehicles !
Highly Confidential Unauthorized disclosure internally and
externally is prohibited
“The Philippines was noted as the fastest-growing
market, with the value of smartphones sold
growing by 402 percent in the first quarter of
2012 over the same period in 2011” - GfK Asia
The Next Wave of mobile broadband
enabled services– Connected Living.
Highly Confidential Unauthorized disclosure internally and
externally is prohibited
• Ensuring Quality of Customer experience
• Usage control , Fair Use Policy, and ability to
charge for service and experience
• Value-Add Proposition for OTT / Partnerships
• Indoor coverage and capacity
• Fixed broadband connectivity
• Speed, speed, speed
• Scalability
• Ensuring Quality
of Customer
experience
• Usage control ,
Fair Use Policy,
and ability to
charge for service
and experience
• Value-Add
Proposition for
OTT /
Partnerships
Management
• Indoor coverage
and capacity
• Fixed broadband
connectivity
• Speed, speed,
speed
• Security
• Digital rights
management
• M2M / LBS /
• Regulations

20. Philippine telcos are starting to adopt emerging technologies and offer
new services to meet the requirements of enabling “connected lifestyle”.
Consumers
Network &
Technology
Mobile
Operator/Service
Provider
Devices
• Gigabit WiFi, LTE,
LTE-advanced,
FTTx, xPON
• IPv6
• Small cells &
Heterogeneous
networks
• Cloud RAN &
cloud based WiFi
• Network Function
virtualization
• Optical distributed
antenna systems
(ODAS)
• Google glass
• Connected
automotive
• Wearable smart
devices
• Managed IT
services
• Hosted solutions
• Payment gateways
• Network-based
security (Security-
as-a-Service)
• Platform-as-a-
Service
Partners
• Banking industry
• Utilities (power,
water, transport
etc)
• Government
agencies
• Academe
• Health industry
• Logistics industry
• Manufacturing
Business Model
• Customized consumer
plans
• Unlimited plans
• QoS-based
• Fair Use Policy
• Pre-paid