Gov't urged to lower telco airwave fees to improve connectivity

The government should reform the country's Spectrum User Fee (SUF) system as the current fee structure is hindering the growth of digital infrastructure and threatening to leave millions of Filipinos disconnected, according to consumer advocacy group Citizen Watch Philippines.

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SUFs impose substantial annual costs on telecommunications providers based on the frequency bandwidth they are assigned. These are calculated based on the size and type of spectrum assigned to telcos, with higher fees incurred for wider bandwidths and more commercially valuable frequency bands.

In a statement, Citizen Watch highlighted the country's widening digital infrastructure gap, noting that internet penetration — which is the percentage of population that has access to and uses the internet — in the Philippines remains significantly lower than that of its regional counterparts.

"As more Filipinos use mobile data for work, education and digital transactions, telecom firms must acquire more spectrum to ensure service quality — but doing so automatically triggers higher SUF payments," Citizen Watch co-convenor Orlando Oxales said.

"The system may have been relevant before, but now, it has become a barrier as it discourages investments and penalizes growth at a time when expansion is most needed," he said.