Results

Through sustained engagement across multiple projects since 2019, the World Bank has helped the Philippines expand access to digital services and address the digital divide. 

The Competitiveness and Resilience DPL series (2019–22) improved internet penetration and enhanced infrastructure. This series helped lay the groundwork to address challenges in access, connectivity, and the digital divide. During the period of the DPL, significant improvements were made in several areas:

  • Mobile internet penetration increased, with the share of the population with a unique subscription to mobile internet (internet on a mobile device such as a smartphone or a tablet) increasing from 45.5 percent in 2019 to 56.3 percent in 2022 (before falling to 54.1 percent in 2024).
  • The number of installed telecommunications towers increased, from 17,850 in 2020 to 35,043 in 2023, increasing rural network coverage and improving service quality in urban areas.
  • The number of fixed broadband subscriptions per 100 people increased from 5.4 in 2019 to 7.9 in 2022. 
  • The share of digital payments surged from 1 percent of retail payments in 2013 to 52.8 percent in 2023.

More recent projects build on the Competitiveness and Resilience DPL to continue expanding access and closing the digital gap. The Digital Transformation DPL series is driving regulatory reforms to modernize outdated legal frameworks, facilitate market entry, attract investment, and promote competition. The Digital Infrastructure Project, which supports public investments to expand connectivity in unserved and underserved areas, complements these efforts. Results expected over the next two to four years include the following:

  • Access to broadband internet will increase by 20 million (new, inferred and enhanced) by 2028.
  • The share of households connected to fixed broadband services will rise from 25.6 percent in 2022 to 35.0 percent in 2026.
  • The cost of fixed broadband basket as a percentage of Gross National Income per capita will fall from 11.3 percent in 2022 to 8.5 percent in 2026. 

The Digital Transformation DPL series supports reforms aimed at improving digital government services, the digital economy, digital finance, and digital skills. Expected and achieved results include the following:

  • The number of people using digitally enabled government services through the unified e-government portal or a mobile application will increase by 30 million between 2022 and 2026.
  • The share of digital payments in retail transactions will rise from 42 percent in 2022 to 56 percent in 2026.
  • The number of e-commerce enterprises will rise from 2.4 million in 2022 to 3.5 million in 2026.
  • The number of higher education institutions recognizing digital skills courses via the Philippines Credit Transfer System will increase to 50 in the 2024/25 academic year. 

Collaboration accross the World Bank Group

The World Bank and the International Finance Corporation (IFC) have collaborated to reduce digital infrastructure gaps in the Philippines through adoption of the Common Tower Policy, supported by the Promoting Competitiveness and Enhancing Resilience to Natural Disasters DPL series (FY20–22). Collaboration through IFC’s upstream advisory led to adoption of policy reforms to allow the establishment of and foreign investment in independent tower companies and the streamlining of the permitting process for tower building, which reduced permitting time from 18 months to 16 days, allowing the granting of 1,500 permits in a single year. These reforms enabled private investment and IFC’s participation in building rural towers in underserved areas such as Mindanao. They also helped sustain the reform momentum that led to the Digital Transformation DPL series.

Roles of private and public sectors in increasing broadband penetration in the Philippines ©World BankSource: World Bank staff calculations based on the Philippines Statistics Authority’s Census of Population and Housing Form 3, aggregated at the municipality/city level.

Note: For discussion of differentiated approaches to the four segments, see Bettter Internet for All Filipinos.

World Bank Group Contribution

The International Bank for Reconstruction and Development (IBRD) provided $1.64 billion in funding, including $600 million for the First Digital Transformation DPL, $750 million for the Second Digital Transformation DPL, and $287 million for the Digital Infrastructure Project. Together, multiple trust funds—including the DATA Fund, the Digital Development Partnership (DDP), Identification for Development (ID4D), the Cybersecurity Multi-Donor Trust Fund (MDTF), and Australia–World Bank Growth and Prosperity in the Philippines (AGaP)—provided $2.4 million in funding for the advisory and analytics program. IFC provided $25.5 million in loans and $8.3 million in indirect equity investment in independent tower companies.

Partnerships

The Philippines’ Department of Economy, Planning, and Development (DEPDev) has been the leading partner in preparing and implementing the Digital Transformation DPL Series. It submitted the Konektadong Pinoy Act to the Senate and co-convened stakeholder forums with other partners, including USAID, the American Chamber of Commerce of the Philippines (AmCham), the Philippine Institute of Development Studies (PIDS), and the UP Law Center. The Asian Infrastructure Investment Bank (AIIB) provided $400 million in co-financing for the First Digital Transformation DPL. The Department of Information and Communications Technology (DICT) has been the sole implementing agency for the Digital Infrastructure Project.

Looking Ahead

The World Bank Group Philippines Country Partnership Framework for 2026–31 focuses on improving internet connectivity as part of its “more private sector jobs” pillar. It aims to increase the number of people using digitally enabled services through a cross-cutting theme on an “efficient public sector” to achieve outcomes such as boosting the productivity of firms and farms, promoting inclusive finance, strengthening health systems, improving education, and building resilient communities. Supported by the World Bank, the Philippine government is considering follow-on reforms and investments to accelerate expansion of internet connectivity in rural areas and advancing digital transformation across key sectors through integration of the digital ID to services and expansion of digital payment, interoperable data systems, and provision of digital skills.