The Philippine Chamber of Commerce and Industry (PCCI) announced recently that it is now working on establishing a satellite internet network covering different areas in the Philippines to promote economic recovery and financial inclusivity in isolated areas throughout the archipelago.

In a press statement, Perry Ferrer, Director for Innovation, Digital Economy, and Science & Technology of the PCCI, said that their group is gearing up for the launch of the first phase of a proof of concept for this project. “Phase 1 of the (proof of concept) will set up Internet via satellite in 6 geographically-isolated and disadvantaged areas in the country. This will be divided equally among the islands of Luzon, Visayas, and Mindanao,” he said, adding that “phase 2 of the project will see the Philippines having its own dedicated satellite for this service.”

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The Bangko Sentral ng Pilipinas (BSP), meanwhile, is now also pilot-testing the use of satellite internet services in two rural banks in Batangas that are located in geographically isolated and disadvantaged areas (GIDA). “The test deployment aims to evaluate the performance and reliability of satellite internet services in rural areas under local weather conditions,” said the BSP in a press release. It further said that “the project is in line with the government’s bid to promote access to financial services in remote areas.”

One of those aggressively pushing for the provision of Internet service via satellite in rural areas is Kacific Broadband Satellites, a next-generation HTS satellite operator providing high-speed broadband internet service for the South East Asia (SEA) and Pacific Island regions.

The advantages of satellite internet connection

With its more than 7,640 islands, Internet service providers in the country often find it difficult to make connections in remote areas using just conventional telecommunications technology. Putting fiber cables in these areas could also present significant logistical challenges, resulting in higher installation costs.

According to Kacific, satellite broadband is the most time-efficient and affordable method when it comes to providing high-speed internet in the rural areas. This is the reason why it has created a satellite-based alternative to a fiber connection, which is not only reliable but also offers high-speed and affordable rates for Internet users in hard-to-reach areas.

The company’s first Ka-band High-throughput Satellite, Kacific1, was launched in 2019 as a geostationary satellite, allowing Kacific to offer concentrated spot beams from Batanes to Palawan, and even all the way to Sulu. These spot beams are high power, resulting in availabilities ranging from 99.5% to 99.9%.

Additionally, Kacific can mitigate the effects of “rain fade” through diverse uplink availability, having two local teleports in Subic and Clark serving as backup sites. This ensures that connectivity remains available even in inclement weather. Modern technologies such as adaptive coding and modulation (ACM), signal pre-distortion, and uplink power control are likewise used to increase the signal’s throughput and overall availability, thus, improving service quality and user experience.

Improved internet connectivity means better financial services

Natural disasters are common in the Philippines. This can cause immense interruption to communications by knocking out telephone lines and damaging fiber-optic infrastructure. At times like these, business continuity is crucial. It is imperative that customers are able to access funds and make withdrawals from ATMs or through point-of-sale systems at all times. This is where satellite broadband could prove crucial.

By working with Kacific, banks and cash agents can expand connectivity in the rural areas while providing digital payment solutions, thereby contributing to improved access to financial services.

Kacific Enterprise Backup ensures that businesses can continue to operate normally even when regular terrestrial and mobile broadband connectivity gets interrupted. Acting like an insurance plan for the primary connectivity, the backup solution ensures that the bank remains fully operational 100% of the time.

Finally, installing Kacific’s satellite as a hot backup site for financial institutions is simple and inexpensive.

In the Philippines, TBGI, the local ISP of Kacific, is currently offering unlimited plans starting at ₱5,940. Terminals are also offered for a one-time fee of ₱34,000 or ₱52,000 depending on the size of the plan. To install the terminal kit in a specific area, a one-time installation fee is also charged by the distributors.

Satellite internet provides a lifeline for rural areas, paving the way for the growth of the fintech industry. Banks, after all, need dependable internet connectivity to be able to perform digital services.

With ongoing collaboration between the government and the private sector, connecting rural customers and small-island economies could soon become a reality.