Penalizing Telcos for Unreliable Services Will NOT Give Better Services to Filipinos

Is it me or are Philippine politicians that fond of band-aid solutions? A few days ago, I ended up reading from The Philippine Star where Senator Jose Pimentel Ejercito Jr. aka Jinggoy Estrada proposed yet another band-aid solution. Here's an excerpt from what Estrada wants to do:

It seeks to amend Section 20 of the Public Telecommunications Policy Act of the Philippines to include a provision mandating refund credit to a customer who experienced a service outage and disruption for an aggregate period of 24 hours or more within a month.
Under the proposed measure, the refund credit shall be also granted to customers subscribing to a service on a prepaid basis.
“Why should we pay for a service that we have not benefited from? And at a time when almost everything depends on gadgets and digital devices, it is important to have a fast, accessible and reliable connection,” Estrada said in Filipino.
“Genuine accessibility can only be achieved if the connection services are regular, reliable, consistent, uninterrupted, and fast to allow continuity of activities and interconnection among different users,” he added.

I really must laugh at the proposal if it's intended to be long-term. Sure, there's the problem of a choppy Internet connection. The proposal seems good on paper until we realize one thing. How can two or three telecommunications companies (telcos) ever fill the need of an archipelago? There are 7,107 islands and a total of 18 regions, 81 provinces, 145 cities, 1,489 municipalities, and 42,029 barangays. The real problem is all about supply and demand.

The real constraint is too few service providers and too many islands. Back then, we only had a duopoly with Globe and PLDT. I heard DITO is now questionable though I can't verify that. Fortunately, there's now Starlink in the Philippines. There's also the Public Services Act of 2022 which was renounced as "imperialism" by fools. If we think about it, the Philippines has been overtaken by Communist Vietnam.

Please stop believing fools like Bayan Muna, IBON Foundation, Kabataan Partylist, League of Filipino Students, and Migrante International (to name a few). They keep saying it's "imperialism". A big question that's worth throwing on their faces if they can really have a long-term solution. If their solution is again, based on their dream of a protectionist advancement, they really need to check out what happened during Mao Zedong's Great Leap Forward. The dream of a protectionist industrialized utopia only ended up in failure.

Do I need to specify that the removal of 60-40 shares of ownership means that FDIs don't need a local partner? That would encourage more FDIs to come here. Nobody in their right mind would want to invest in a country where they must find a local partner, be allowed to own only up to 40% equity, and have to share 60% of the net income (read here). If you're afraid of them getting rich--they only get rich based on net income after taxes (read here).

The real solution is all about healthy competition. Welcoming FDIs to invest and compete with the locals fill in the supply and demand gap. Local businesses might have better connections now thanks to Starlink. Local businesses can benefit from better telco services to communicate with both local and international customers. The refunds will not help boost the speed. With more telcos, we can expect the supply and demand gap in the Philippines to be closer.

It's More Fun In The Philippines Thanks to the Filipino First Policy

I guess it can be called a day, right? This April 1, 2023 , I'm finally calling it quits with fighting for economic liberalization! Yes, that's right! All the advocacy for economic liberalization is just garbage. Why did I even spend so much time writing this blog only to find out that I've been duped? I hereby renounce everything I wrote here. I finally saw how brilliant the Filipino First Policy is. Man, what have I done? How much damage have I caused in advocating for economic liberalization? The greatest president we ever had was... High School Philippine History Movement It's time to listen to the economic genius known as the late Carlos P. Garcia. Yes, he has to be one of the greatest presidents that ever existed. I took this note from the Bohol Provincial Library and found this about CPG's Filipino First Policy ; CPG adopted the “Filipino First” Policy to promote greater Filipino participation in business, and to put the Filipinos in control of the economy...

Learning from the Late Lee Kuan Yew's Proving Protectionist-Driven Economists Wrong About Multinational Corporations

Reading the book From Third World to First is really a must. The late Lee Kuan Yew was faced with the mentality of the development economists of his day. Here's an excerpt from "Chapter 4--Surviving Without a Hinterland" which I'd like to share from Pages 57-58: After several years of disheartening trial and error, we concluded that Singapore's best hope lay with the American multinational corporations (MNCs). When the Taiwanese and Hong Kong entrepreneurs came in the 1960s, they brought low technology such as textile and toy manufacturing, labor-intensive but not large-scale. American MNCs brought higher technology in large-scale operations, creating many jobs. They had weight and confidence. They believed that their government was going to stay in Southeast Asia and their businesses were safe from confiscation or war loss. I gradually crystallized my thoughts and settled on a two-pronged strategy to overcome our disadvantages. The first was to leapfrog the reg...

The Myth of "Invading" Other Countries Through Foreign Investors and Overseas Filipino Workers

BoardGameGeek Years ago, I could remember how "Filipino pride" seems to be required by the DECS. Some songs in the Filipino subject (or called Tagalog) tend to glorify it. One of the songs was called "Ako'y Isang Pinoy" (or "I'm Pinoy") feels ironic since it was played on an imported music player. We had discussions for years about how Overseas Filipino Workers (OFWs) are often the unsung heroes or the new heroes. The mentality kept going on with how people desired to take a particular course not because they wanted to--it's because they wanted to go abroad. Why I wanted to take Bachelor of Science in Information Technology (BSIT) was not just to impress people but also to go abroad . However, more people shifted away from BSIT either because they were eliminated (common cause) or because it was too hard for them. Some of them flat out admitted that they took BSIT in hopes of going abroad. Some were taking nursing in hopes of again-- going abro...

The Good Old Days when Gasoline was Cheaper Under the Late Noynoy Aquino

Millennials' Voice I would like to clarify first and foremost that this post isn't an attempt to say that the late Benigno Simeon C. Aquino III's legacy was all bad. Some good things happened. However, let me be clear that it's stupid to say, " We don't need economic cha-cha because of the late Noynoy. " However, let me clear that I decided to write this because of a Facebook post called Millennials' Voice , which wrote this: Did you know that during President Noynoy Aquino's time, the price of oil in the world market was high, between $100 and $110 per barrel. But even with those high prices, gasoline and diesel at local pumps in the country were still relatively affordable. Under President Duterte, world oil prices went up and down, from a low of $41 to a high of $101 per barrel. The big jump to $101 in 2022 happened because of the war between Russia and Ukraine. Now, under the current president, world oil prices have gone up again to around $...

Pinoy Pride Economics Helps in Drug Mule Recruitment

Al Jazeera Who can remember the execution of three drug mules in China on March 30, 2011 ? These were three separate cases where the three convicts were Sally Villanueva , Ramon Credo (who was cremated before his remains were brought home, and Elizabeth Batain (whose face was never shown). Sally had an episode in the GMA-7 TV show Magpakailanman, where her husband was personally interviewed by Mel Tiangco. We never got Sally on the big screen. The husband's side of the story said that his wife was guilty of a frame-up, while Mel herself said, "If the offer is too good to be true, don't take it, or you could end up in the same pickle." Take note that I'm just paraphrasing Mel's words, not saying the words she said. Reviewing the three drug mules who got arrested, based only on what's available for public viewing on the Internet If we read through the circumstances , this is how they were arrested, proving they weren't a trio: China has brushed aside...

Business & Economics Perspective Blogger

Search This Blog