Mobile Internet Connectivity and Household Wealth in the Philippines
by Neil Lee , Zhiwu Wei , Yohan IddawelaOokla Digital Development
The rapid expansion of mobile internet has resulted in significant economic and social impacts. Therefore, it is essential to comprehend how policymakers can maximize the economic benefits of internet accessibility. Ookla® data was leveraged as part of a study by the Asian Development Bank (ADB) to understand the importance of internet access quality to enhance household wealth.
Challenge
From strengthening work skills to improving efficiency, internet access provides important economic and employment opportunities. Given these positive effects, it is vital for policymakers to leverage mobile internet access as a tool for fostering economic development.
Although extensive research exists on the economic effects of mobile internet access, lower-middle-income archipelagic nations represent an underexplored area with especially severe geographic and infrastructure challenges.
Solution
The Philippines, a lower middle-income archipelagic country, has been undergoing rapid digital transformation. It experienced a swift rollout of mobile internet access starting in the second decade of the 21st century (2010s) from initially low levels. Between 2010 and 2022, the percentage of the population using the internet rose from 25% to 75%, and the number of mobile cellular subscriptions grew from 88% to 144% (World Bank 2024). This Southeast Asian country serves as an ideal case study to explore how the effects of internet connectivity are being distributed in lower middle-income nations.
To conduct a comprehensive assessment of internet access in the Philippines, as part of their study the ADB team gathered mobile upload and download speed data from Ookla, obtained via the Development Data Partnership. The Speedtest Global Network Performance open data, which was accessible quarterly from 2019 to 2024, had a resolution of approximately ~610m2. It was collected each time a mobile device accessed Ookla’s Speedtest® application. Only measurements with Global Positioning System (GPS)-quality location accuracy were retained.
The team’s findings showed that mobile internet access has a significant and positive impact on household wealth, particularly in rural areas and among lower-educated households. Additionally, they found that an increase in internet quality (measured either in upload or download speeds) leads to an increase in overall household wealth.
Impact
This study offers key insights for policymakers aiming to utilize mobile internet access to foster inclusive economic development.
For instance, the study reveals that internet quality—assessed by upload and download speeds—is just as significant as geographical proximity to mobile towers. Policymakers could therefore encourage telecommunication providers to enhance existing infrastructure to deliver high-speed and dependable connectivity.
Although expanding internet infrastructure is crucial, the research also underscores the importance of targeted, context-sensitive interventions to guarantee equitable advantages across various geographic and demographic groups. Initiatives like subsidies for upgrading network technology in rural areas or enforcing minimum speed standards could help mitigate disparities in internet quality, particularly in regions far from submarine cable hubs.