Philippine Internet Review: 10 Years of Internet History (1994-2004)

theTEAM

JanetteTORAL The main author and editor of this book. She is the founder of the Philippine Internet Commerce Society and DigitalFilipino.com. Through the Internet, she was able to gather support in pushing for the passage of the ECommerce Law and Y2K Law.

CarlosMiguelAlvarezPARAZ Simply known as “Migs” to friends, he is one of the historians of the Philippine Internet. He has been involved in the technical directions of the local Internet scene since its commercial beginnings in 1995. He is well-educated in contemporary Internet and software technology matters and can provide analyses of the subject. He has spoken about the Philippine Internet in foreign conferences from the perspective of a user and on its technical/operational aspect.

DannyESCASA Daniel O. Escasa has over 20 years experience in IT (he claims to be a child prodigy) in various capacities—teacher, developer, and writer. He still considers himself a student of IT, noting that “you can never stop learning, else your knowledge not only stagnates, but actually deteriorates.”

AntonioBUCU Tony was on his 5th year of Electrical Engineering in college when he discovered his heart was in graphic design and the arts. A Mac evangelist in the early days of the Mac/DOS warz, he continues to use the Mac in his everyday e-life. Tony currently teaches Adobe Illustrator at the Philippine Center for Creative Imaging, and is the first to develop and market his custom fonts online, a few of which were used in this book.

5

what’sINSIDE

5

Foreword

7

Introduction: The Bigger Picture

14

Internet Timeline: 1994 - 2004

The Filipino Internet User Evolving

47

Infrastructure: Bandwidth Map of the Philippines

Hi-Tech Crimes

81

73

People Power

Blazing Glory

101

91

Advocacy and Politics Online: A New Media

eGovernment: The Marikina Story

123 6

33

A Father’s Message

117

foreWORD

I

n the summer of March 2002, I met up with Ronald Jabal and Vonj Tingson of Capex Asia to discuss this ambitious project, the documentation of 10 years of the Internet in the country. After several meetings, we agreed that the time has come for this ambitious project.

philippineinternetreview

I spend almost half of my life nowadays online. I use the Internet as the sounding board of my advocacy, thoughts, dreams and success. I experienced failure through it as well. Without the Internet, I won’t be anywhere near where I am today.

Capex Asia Publisher

After a decade, I’ve witnessed various challenges brought by technology, especially to the young and the uninitiated. It has become complicated, uncontrollable, and political compared to how it was a few years ago.

Janette C. Toral Editor Carlos Miguel Alvarez Paraz Daniel O. Escasa Mayumi Canuto Fe Nuñez Johnson M. Chua Julius Gorospe Juan Magdaraog Contributors Okby Enriquez Twinkle Catalan Advertising Managers August San Esteban Cover Design Antonio Bucu Book Design, Layout and Illustrations

This special publication intends to give the reader a view of how Internet in the Philippines has evolved in the past 10 years. It does not intend to be nostalgic, but to make the reader realize the hard work and hurdles the industry went through to make the Internet accessible and affordable to many of us today. It also gives a perspective of things to come in the next 10 years that we should watch out for. Internet in our country will only grow and progress further if we will all be responsible, respectful, and vigilant in ensuring the proper use of this infrastructure. As we intend to update this publication every year, we hope that people will approach us and share how the Internet changed in their respective areas, to give a true country-wide picture of Internet’s evolution. We want this special project to inspire the next generation, to come up with great applications and tools that will empower more Filipinos in this globally competitive world.

The Philippine Internet Review: 10 years of the Internet in the Philippines is published by CapexAsia, Inc.: Unit 1220 Herrera Towers V.A. Rufino St. corner Valero St. Salcedo Village, Makati City. email: [email protected] • Tel. 813-4032 For subscription inquiries please email [email protected]. No part of this special publication may be used or reproduced in ay manner whatsoever without written permission of CapexAsia, Inc. Opinions expressed in this special publication are solely those of the writers and not of the Publisher.

Janette Toral 7

the

picture

by Janette Toral

M

y fascination with computers started as early as 1984 while I was in grade school. I remember the time when I went to the office of my Auntie and had my first encounter with the computer. It was running a spreadsheet program called Visicalc. I played around with it for a few minutes, just typing in numbers. From that moment on, I knew that I want to work in the field of computers. In 1986, I studied Basic Computer System with Cobol, Wordstar, Dbase II, and Visicalc. In 1988, there was a big marketing pitch that one doesn’t need a college degree to get a high paying job. I believed in it and took a computer literacy course and trainor’s training in two computer schools. I had my first computer tutorial job in 1989 and pursued various IT careers. In 1995, I logged at Daniel Chua’s Nightstalker Bulletin Board

System which convinced me to subscribe to Extra Mile Online. That’s where I moderated my first forum - Infotech. I wrote to several ISPs offering forum moderating work in exchange for Internet access. Portal Inc and The E-Mail Company accepted my offer. What is great about the Internet is that you can be who you want to be. In the past 9 years since I first went online, I had become a writer, community leader, lobbyist, activist, IT evangelist, event organizer, entrepreneur, and online educator—living all of these identities online and offline. IT and the Internet provides you with a feeling of empowerment. It can bring you greatness and numerous achievements if used properly. But it can destroy you as well if abused. Then it also gives you room to bounce back and start all over again. 9

philippineinternetreview

We’re connected

the in the New Economy The Filipino’s ability to use ICT efficiently and develop new export markets was greatly powered by the Internet.

Filipino Internet Users (millions)

50 40 30 20 10 0 1994

1997

2000

2003

2006

2009

2014

Filipino Internet user growth estimates by Janette Toral, DigitalFilipino.com

Filipino Internet Users (billions)

A study on ICT and Internet Usage in the Product Export Sector that we did in 2003, 98% of organizations—majority of which are SMEs, have at least one desktop in their offices. Despite the fact that more and more SMEs are using the computer and the Internet, hardly any had more than a word processor, spreadsheet, and presentation programs. These basic productivity tools are used to generate all the reports that an organization need and aid them in decision making. Although there’s nothing wrong about this, foreign competitors of our SMEs have access to more sophisticated tools, leaving our SME sector at great disadvantage. The growth of Internet usage among organizations and individuals must be complemented with software meant to fit our socio-economic situation. In order to counter piracy, development of desktop and productivity applications that can be bought by consumers and SMEs at an affordable price must be pushed.

These 10 years has resulted in the emergence of great content online. From media organizations having their news content online, country information and statistics can now accessed by anyone.

15

10

50

1997

2000

2003

2006

2009

E-commerce growth estimates by Janette Toral, DigitalFilipino.com

10

With 5.5 million Internet users at the end of 2003, I expect this to reach 41 million by 2014 based on trends where the number of Internet users nearly doubles every two years.

Content is king

20

0 1994

The past 10 years allowed more and more Filipinos the luxury of having a personal computer at home. From fifty thousand pesos (P50,000) a few years back, one can now have a personal computer for less than twenty thousand pesos (P20,000) and it’s Internet ready.

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2014

The main question, however, is “how sure are we that the content we see now can still be accessed in 2014?” At this time, you hardly see content from 1994 to 1999 online especially among news web sites. In the course of our research for this book, only ITMatters (http://www.itmatters. com.ph) has managed to keep a great deal of its content online. This site also has a sophisticated search engine that allows a person looking for specific content to retrieve information in a fast and efficient manner. Among government sites, the National Statistics Office (http://www.census.gov.ph) stands out in disseminating useful country information.

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Ken Ilio’s Tanikalang Ginto (http://www. filipinolinks.com) is the biggest directory online. His site is one of the few that remains consistent with its original purpose of recording the existence and evolution of Filipino websites.

month check issuance, 30 days mailing, and 45 days check clearing were unattractive at first. But entrepeneurs believed it was better than nothing. Today, there are sites like Ikobo.com that allowed money withdrawal through automated teller machines (ATMs)— in less than 24 hours—after online sales are completed. Despite these challeges, e-commerce sales volume is increasing. As we entered the 21st century, local e-commerce transaction reached PhP 1 billion. It also shows that there’s at least one billion transaction sales growth annually. If this trend continues, figures can reach up to PhP 20 billion as more businesses conduct online transactions.

Even as “global citizens”, Filipinos love to belong in communities. These types of web sites were the first to “click” as the Internet emerged. Web sites like PinoyExchange.com (http://www. pinoyexchange.com) live up to its purpose as a global contact point among Filipinos. Filipino community sites can be classified according to region, interest, and race, among others. An example is Tsinoy.com (http:// www.tsinoy.com) where Filipinos with Chinese background interact. As IT and Internet became hot topics, communities like PH-Cyberview (http:// groups.yahoo.com/group/ph-cyberview), CyberPromdi (http://groups.yahoo.com/group/ cyberpromdi), and DigitalFilipino (http:// groups.yahoo.com/group/digitalfilipino) became focal discussion points as well. E-commerce is bustling After 10 years of the Internet in the Philippines, local payment gateways still fail to serve the needs of SMEs that are interested in online trading. The low sales target of entrepreneurs and start-up companies do not appeal to local banks. Insurance requirements and bank account with high maintaining balance imposed by payment gateways discouraged entrepreneurs with small capital. Many attempted to sell products online but had to shut down their sites at the start of the millennium due to lack of a payment facility. However, there are few who persisted and availed of foreign payment gateway services. Terms like high charges, twice a

If significant economic growth takes place in the next 10 years, these estimates may even double or triple. E-commerce merchants in the country who managed to survive and thrive online owe their continuous existence to Filipino migrants. Websites like Turoturo (http://www.turoturo.com), YesPinoy (http://www.yespinoy.com), Divisoria (http:// www.divisoria.com), PinoyDelikasi (http://www. pinoydelikasi.com), MyAyala (http://www. myayala.com), and PadalaKo (http://www. padalako.com), among others, sell products and services to Filipinos abroad and to those who would like to send gifts to their loved ones in the country. Overseas Filipino workers (OFWs) are the primary customers of local websites. However, based on a small survey, the OFW Internet Habits Report, that we did in 2003, we discovered that only 25% of OFWs have access to the Internet and even less, only 16%, buy online. The passage of the E-Commerce Law— Republic Act 8792 contributed to the adoption of e-commerce among major corporations in the country. The biggest showcase is BayanTrade.com (http://www.bayantrade. com) where the top six conglomerates in the country, with 250 buyers, converge to trade with various suppliers online. Another highlight worth flaunting is SM Supermarket. Its company, Super Value Inc. (SVI), started harnessing the power of e-commerce as early as 1994. With 1,500 suppliers and growing, SVI has made a bold move of trading only with suppliers capable of conducting e-commerce. thebiggerpicture

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The Tech-Savvy Filipino There’s no doubt that Filipinos have never been as tech-savvy as they are today. These days, almost all courses in college have a computer literacy component. This is also being pushed in elementary and high school. Efforts to push the use of computers and the Internet are ongoing in the public high schools. The government’s PC for High School Project plays a major role in this initiative. However, it will take some time and additional resources before the nearly 50,000 elementary schools nationwide will have access to computers and the Internet. Apart from students, local government units, cooperatives, and barangays are main targets as well of these capacity building initiatives by bringing technology to them. These facilities are also referred to as community telecenters. These include the B2BCenters of B2BPriceNow.com (http://www.b2bpricenow.com) and Barangay. net.ph (http://www.barangay.net.ph).

note that they need to be tech-savvy not only by understanding ICT and Internet but by being productive users of these as well. The Pro-Active Filipino SMEs are aware of the importance of e-mail and having a website in the context of today’s business setting, although it may not be an urgent requirement due to budgeting priorities. Those we interviewed in our surveys are currently not using e-mail and Internet have but plans to do so within the year. Most policy makers today recognize the significance of ICT in terms of achieving productivity and its contribution to job creation and economic growth. Most politicians, even if they are not Internet users, have an e-mail address where they can be reached. Some even have their own websites and use these during the campaign period. Senator Ramon Magsaysay Jr. and Former Congressman Leandro Verceles Jr. were the primary champions of e-commerce in the country. Not only did they push for the passage of the E-Commerce Law or Republic Act 8792, they personally use the Internet, e-mail their friends, and buy products online. Schools like the University of the Philippines (http://upou.org) and the Polytechnic University of the Philippines (http://www.pup. edu.ph) launched their respective e-learning initiatives with the intent of allowing Filipinos wherever they are to earn degrees, diplomas, and certificates from the school.

The challenge is to make sure that these telecenters will be sustainable and able to meet its purpose of empowering the community. Often, the people heading and running these telecenters lack ecommerce skills, experience, knowledge, and confidence to assist SMEs in their area to trade online. The same goes for educators teaching Internet and e-commerce to students. Training the trainors and community telecenter leaders will be very important and must be done continuously. If there’s any cluster of individuals that are important to be tech-savvy but are partly lagging behind are our politicians and judges. But with the Internetliterate younger generation of judges taking these important positions in the next 10 years, I believe that this will all change for the better. Note that by 2010, internet access will be available to majoriy of voters, whose numbers can make or break an aspiring president. Future politicians must take 12

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The Filipino as Online Activists The Internet has allowed new communities and groups to be formed as like-minded individuals meet online. This is especially true in the case of the Philippine Internet Commerce Society (PICS). I started floating the idea of creating the Philippine Internet Commerce Society (http://www.pics.org.ph) in August 1997 during a discussion in the PH-ISP list—a virtual community started by Miguel Paraz composed primarily of Internet Service Providers (ISPs). There were a lot of interested parties that lead to the creation of the PICS discussion list. When it became a registered non-government organization, the PICS community gathered about 700 members where everyone received about the organization’s activities, debates

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on Internet issues, and lobby support for the passage of the E-Commerce Law. As PICS pushed for the passage of the Y2K Law, every potential ally that we met on the field became part of the community. The multi-sectoral composition allowed for people from various interest groups to come together and unite in pushing for the passage of the E-Commerce Law as well.

ICT progress can be triggered by concrete results-oriented programs. The private sector will play a major role in spurring these developments. We need more social entrepreneurs like Edgardo “Tedjie” Herbosa of B2BPriceNow.com (http:// www.b2bpricenow.com). By partnering with strategic organizations like the Landbank of the Philippines, Polytechnic University of the Philippines, Department of Agriculture, World Bank, Tedjie was able to educate numerous cooperatives in using the Internet and how they can trade using B2BPriceNow.com. The Internet and computer literacy among personnel agricultural cooperatives today can be attributed to this initiative. The next 10 years will be important in benchmarking the economic output of these projects. There’s also lack of funding in the dotcom sector and this has resulted to Filipino websites operating from small offices or from homes to survive. Their offerings are fairly simple and unhyped.

Prior to the Internet, one can only become part of a policy making body by getting introduced or endorsed by a member of that group. In the year 2000, the Information Technology Electronic Commerce Council (ITECC) headed by former Department of Trade and Industry Secretary Mar Roxas gave room to a democratic body. Anyone who has interest in helping or learning, were welcome to attend, observe, or participate. In the legal cluster that I headed then, minutes of the meeting were posted online (http:// groups.yahoo.com/group/ecomm-irr) for viewing and comments by those who don’t have time to attend the face-to-face meetings. No matter how much it has changed today, ITECC, now known as the Commission on Information and Communications Technology (CICT), remains a multi-sectoral policy making body composed of government, private sector, NGOs, and academe, among others. It works to make favorable policies and programs that will support the growth of ICT. Scarce resources If there’s one painful reality, it’s the lack of resources. There are still many towns and municipalities, especially in rural areas, that have no phones,much less an Internet connection. Although foreign aid has been used by some in bringing ICT to the rural areas, there were also research expenditures that have not translated to any concrete projects. In the next 10 years,

As with the dramatic entry of HatchAsia.com and IdeaFarm.com, among others to entice project ideas for funding, some were shocked with the decisions these companies have made. Failed investment projects placed a doom spell and poor faith in the quality of decision making. Today, many Internet entrepreneurs are still reluctant in trusting venture capitalists in their capability on what will “click”. There are also venture capitalists hesitant in investing and still think that they know more than most dotcom start-ups do. The next 10 years Aspiring Internet entrepreneurs in the next 10 years must be willing to start small and adapt to the changing market. With the possibility of serving 41 million Filipino Internet users in by 2014, patience, perseverance, humility, and hard work can bring great rewards. thebiggerpicture

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When the Americans left in 1991, many thought

that Subic has seen the writings on the wall. Doomsday scenarios have been written all over its once pristine image. Soothsayers predicted, the once bustling community would turn out to be a huge wasteland devoid of any future with out the US military presence. But, as in most cases, the soothsayers were proven wrong. The resiliency, courage, patience and the genius of the Filipinos worked wonders in transforming Subic from an ammunition depot to a world class free port - admired not only locally but in the international community as well. Last year alone, the Subic Freeport, being managed by the Subic Bay Metropolitan Authority (SBMA), registered 293 more new projects amounting to over P3.025 billion worth of fresh investments- a clear indicator that no doubt the Subic Freeport plays a huge role in the local and national development. “The entry of new companies clearly shows a vote of confidence of investors who have seen the prospects of Subic Freeport to become one of the emerging economic hubs in the Asia Pacific region,” SBMA Chairman and Administrator Felicito C. Payumo said. And the huge volume of investments in the Freeport is not just a fluke of nature but a constant and a rising indicator, owing to the effective management of the SBMA administrator. By end 2003, SBMA has already recorded a whopping US$4.102 billion worth of investments, a marked 58% increase compared with investment figures in 1998 when Chairman Payumo assumed office. This will be surpassed this year as latest data shows, the Freeport has already registered US$4.112 billion worth of investments as of May 2004. The number of companies has also been steadily rising due to the improved economic conditions and business climate in Subic. From a measly 304 locators in 1998, the figures now ballooned by a stunning 203% to 922. This year, the Freeport continues to attract companies who want to set up businesses - a clear indication of businessmen’s seal of approval for the SBMA leadership. As of May 2004, 976 locators have set up shop in Subic.

INVESTMENTS 1998

2.591 B

1999

2.831 B

2000

3.082 B

2001

3.922 B

2002

4.047 B

2003

4.102 B

(58% increase over 1998)

4. 112 B

Jan-May 2004

0

1

2

3

4

5

INVESTMENTS IN BILLION US$

Companies: Cumulative-committed investments

As a consequence of the steady rise in investments, thousands of jobs were also created thereby providing livelihood to thousands of families to nearby cities, towns and provinces. As of May 2004, the Freeport employs close to 56,000 skilled workers. Jobs range from office personnel, to technical specialists, production workers and highly specialized managers.

EMPLOYMENT Standing Workforce (Excluding SBMA/FSC Employees) Corroborated by DOLE – REGION 3

304

1999

342

2000

449

2001

552

1998

7756

1999

16348

2000

30139

2001

45742 48874

2002 2003

51486

(563% increase over 1998)

55745

Jan-May 2004

0

0

200

400

600

Companies

800

1000

3.658 3.986

2002

2.195

0.5

1998

1.58

1999

1.89

2000

1.90

2001

2.96 2.61

2002

1.5

2.0

2.5

3.0

3.5

4.0

1994 to 1998 1999 to May 2004

3.712 B (17%) 17.636 B (83%)

Total:

21.348 B (100%)

3.21

(103% increase over 1998)

TOURISM

1.46

Jan-May 2004

0

1.0

The improved business climate and the additional theme park attractions and recreational facilities brought about by the new Subic investments have also tremendously boosted tourism in the Freeport. In fact, Subic is considered by the Department of Tourism as one of its prized eco-tourism enclaves. Since 1998, local and foreign tourists have flocked to Subic to enjoy the serene and lush environment and the beautiful beaches in the area. From 1994 to May this year, Subic has attracted more than 48 million tourists.

PAYROLL

2003

3.323

(16% increase over 1998)

10000 20000 30000 40000 50000 60000 Employees

0.5

1.0

1.5

2.0

2.5

3.0

3.5

Payroll in PhP Biilions

Tax collection has also been on the rise much to the delight of the National Government, which acknowledges Subic as one the major pillars of national development. Latest data shows that Subic has contributed close to P26 billion to the national coffers from 1994 to May 2004, which is 30 times the P850 million equity of the National Government to the SMBA.

REVENUE CONTRIBUTION BIR Collections (5% Tax on Gross Income + Withholding Tax 1998

463.1

1999

505.9

2000

554.5

2001

747.7 635.4

2002

601.4

(30% increase over 1998)

270.9

0

976

Jan-May 2004

2.175

2001

Customs Revenues (Billions PhP)

Jan-May 2004

922

(203% increase over 1998)

2.299

2000

0.0

100

200

300

400

500

600

700

800

629

2003

2.871

1999

Jan-May 2004

BIR Revenues (Millions PhP)

2002

1998

2003

2003 1998

REVENUE CONTRIBUTION Customs Collections (5% Tax on Gross Income + Withholding Tax

1994 to 1998 1999 to May 2004

1.304 B 3.316 B

(28%) (72%)

Total:

4.620 B (100%)

1998

2.353

1999

3.468

2000

6.740

2001

6.935 7.972

2002 2003

7.886

(235% increase over 1998)

2.910

Jan-May 2004

0

1

2

3

4

5

6

7

8

Visitor Arrivals (Millions )

But it was not all bed of roses when Chairman Payumo took his oath as the second SBMA administrator. During his assumption to office, he had to face the onslaught of the Asian financial crisis that has swept all emerging markets in the Asia Pacific leaving behind unimaginable disaster. He also had to assume his office marked by a bitter squabble with the first SBMA administrator, leaving behind a divided SBMA. But all these did not deter Chairman Payumo who, even as a congressman representing Bataan during the 8th, 9th and then 10th Congresses, has already formed his vision for the development of Central and Northern Luzon with the Subic Freeport as its central catalyst. Hence, he immediately instituted wide-ranging policies aimed at putting into place structures that will further promote Subic as a world-class facility. Chairman Payumo has also pioneered an integrated four-pronged approach for the freeport’s sustained development that is in tune with the challenges of the 21st century: Expanding Horizons, Port Development, Development of Nature Theme parks and CyberSubic With these policies in place, SBMA is fast realizing its dream as globally competitive economic, financial, and tourism hub.

Dreaming of CyberSubic SBMA Chairman Felicito Payumo has a dream. His dream is for the Freeport to become accessible online anytime, anywhere, 24/7. And his dream is finally at hand and well on its way to realization. First stop: automating all systems within the SBMA. And SBMA is very successful in this regard. To date, some 14 application systems are already fully functional each serving its respective clientele. Among these include: • Ecology Center Information System: it is an Oracle-based client-serve database application designed to assist to manager, analyze, monitor and display environmental conditions of the Freeport. The system is capable of presenting computerized comprehensive land-based information consisting of environmental and natural resources of the Freeport. • Asset Information System: it is a GIS (geographic information system)-based application system designed to enhance the monitoring and management of the SBMA assets and facilities (buildings and structures). • Subic Bay Freeport – GIS: it is a GIS-based application system designed to provide and display information such as the socio, economic, and physical profile of the Freeport. • Identification Badge System: it is a flexible platform for designing and producing identification badges. It features magnetic stripe encoding, bar coding, and color coding to distinguishing attributes of different types of badges. • Investment Handling System: A computerbased application designed to automate the investor handling process which facilitates SBMA assistance to investors from the time the latter inquires about Subic Bay up to the time they establish themselves as Subic Freeport enterprises. • Housing Reservation System: a reservation system for the tourists/guests who would like to rent housing units at the Binictican. • Tourism Reservation System: a reservation system for tourists that visit SBMA who will rent and reserve for a certain SBMA tourism facilities/ spots. • Locator Registration System: a database for tracking the history files of the licenses of a locator.

SBMA Chairman Payumo says these systems form the hard core of his dream of CyberSubic. These are the infrastructure that will further make Subic more attractive to multi-billion dollar investments. “We have to put in place systems that will make us more competitive than our competitors. Admittedly, the competition is tough, but we at SBMA strives to offer our clients world-class facilities that are truly unrivaled”, the SBMA administrator said. The challenge now for SBMA is to make all these application systems to be web-enabled. “It is not enough that we have these automations in place. Since our clientele is not just based here in the Freeport, we are always in the constant search for ways to attract those who are outside Subic and outside the country. Hence, we believe, we have to be web-enabled. This is the fruition of our dream of a 24/7 Subic Freeport,” Chairman Payumo said. Another innovative high-tech component of the CyberSubic program is the Mobile Alarm Remote System. An added feature of the SBMA’s Emergency Response System, the mobile alarm remote system, is a global system for mobile communication and subscriber identity based software, which by using cellular phones, will allow residents, visitors, business and commercial establishments located within “highend” community like the Subic Bay Freeport Zone, a direct communications link to police, fire, medical and rescue team. The system will also help the SBMA to answer public inquiry, give advice and update to the public. “We are doing all that we could to continue providing world-class services to our clients. After all, we are in the business of providing world-class public service,” SBMA Chairman Payumo stressed.

by Miguel Paraz and Janette Toral

T

here are many attempts in trying to document how the Internet has evolved in the Philippines. While making this publication, we realized that there’s hardly any attempts to record IS evolution, especially outside Metro Manila.

deals. Some of the early players were lucky as prime movers, but some are not as fortunate. In addition, the desire to make transactions over the Internet, often referred to as e-commerce, bonded the industry to push for the passage of the E-Commerce Law. They are listed here.

Various publications were used as a resource in coming up with this timeline. We were fortunate since there are useful sites like the Internet Archive WayBack Machine (http://web.archive. org) that allowed us to go back to old articles and websites online.

• Culture – As Filipinos go online, various forms of online activities are performed. From email to SMS over the web, this timeline intends to show the trends that caught the Filipinos’ attention.

The timeline shown here are based on the following: • Content – This shows how Internet content has matured. Websites that have come and gone through the years, especially those that became popular. • Communities and events – The Internet has allowed users to join various communities, interact, collaborate, and even debate on issues. This part will show the various communities that were formed and events that brought the Internet community together. • E-commerce – Through the Internet, entrepreneurs and big enterprises were able to trade services, form partnerships, and close 16

• Partnerships and cooperation – The Internet has brought a new dimension to public, academe, and private sector partnerships. International organizations like the World Trade Organization, Asia Pacific Economic Cooperation, United Nations, also started having an Internet and E-commerce work program agenda. This part intends to show the various partnerships and cooperation that have been formed. • Investments – The Internet has also stimulated investments in the country. From dotcoms to IT and Internet-enabled services like call centers, web development centers, and web animation studios, new opportunities that were not as accessible in the past became a reality. Some ventures went well while others failed to survive. This part shows some of these investments that have come and gone.

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CONTENT EVOLUTION 1980’s – 1994 The earliest cyberspace content was text-based. The slow links of the time, starting at 300 bits per second, could not transfer graphics. Information systems such as Bulletin Boards and Online Services delivered their content through low-speed links. Bulletin Board Systems were oriented towards files containing freely-available text information. Online Services such as Binary Information Exchange (magazine) and Compuserve offered their subscribers licensed content and real time information such as stock prices. Compuserve (http://www.compuserve.com) and America Online (http://www.aol. com) eventually set up Manila access numbers for their services, but do not market their services locally. Compuserve planned its launch for Asia-Pacific services in 1996. 1993 The E-Mail Company (http://www.emc.com. ph) launches EMC Online, “the first Online Content Service in the Philippines which allows its subscribers to forge a strong and dynamic Online Community via Online chat forums.” This online service originated on the Macintosh platform using the FirstClass software, and was originally run separate from the Internet. Along with the forum systems that emerged later on, it promoted a self-contained community where everyone communicates on the same system.

1994 Binary Systems Holdings, Inc. puts up a commercial online service, called Portal Inc. (http://www.portalinc.com) that offered “a commercial online service (much like that of Delphi, Compuserve, even AOL) which, like the humble BBS, was the precursor to the ubiquitous Internet Service Providers we have now. [The system] was a proprietary online system with its own viewers (precursor to the browsers), email, etc. It started as a commercial online service that was available to its subscribers, 24-hours a day.” This ran along the same lines as EMC Online. The systems back then were “proprietary” since no unified standard for online systems has emerged, prior to the World Wide Web and today's standard HTML-based interfaces. 1

Chuck Gardner puts up the first high profile website, the soc.culture.filipino (“SCF”) homepage. It is now located at http://www.cyberbayan.org. This is the home page for the SCF newsgroup. Various Filipino-made web sites started going online showing the potential of Filipino content on the web, and inspired other webmasters to build their own sites. In a foreshadowing of the censorship moves, the PHnet trustees agreed on less regulation. This became a question early on since the unrestricted availability of content would certainly be opposed by some sectors.

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1995 Cebu City ISP GSILink puts up G-Spot (http://www.gsilink.com/gspot), the first public Filipino search engine. It indexed keywords from websites using the Open Source software engine, but required users to manually add sites to its catalog. This showed that Filipinos wanted to look for content located within the country, which could not be satisfied by foreign engines of the time. No Filipino search engine has been able to do actual indexing of local content, until Google started offering country-specific searches.

1996 Public interest in the Internet leads to the rise of Internet publications. These include 1969, Internet World, , and The Web. Only The Web survived and is known today as Enterprise (http://www.enterprise. ph). Cybernet Live (http://mnl.cyb-live.com) developed a media portal called Powerhouse. Net (http://www.powerhouse.net/) to house websites for the leading print publications of that time. This site disappeared when Cybernet Live shut down. In the words of Alan Robles, editor of : “at that time (1996), the Internet was on a definite growth curve, everything was coming up Internet -- the excitement was palpable. It was my idea to get Nicholas Negroponte as a columnist (it was expensive) -- and there were all sorts of plans, but the management infrastructure and culture weren't up to the vision.” was a glossy Internet lifestyle magazine published by Benpres Publishing (now ABS-CBN Publishing).

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Companies connecting to the Internet became aware of their corporate image. Ayala Corporation—which would later be a dotcom player—started its website. Even while top companies like Ayala Corporation (http:// globe.com.ph/~isd/ac_home.htm) got press coverage when it went online, countless smaller companies have also built an online presence. Many of these started out as extensions of the personal pages built by company staff members who were the first to go online among their peers. 2

Internet pioneer and chronicler Jim Ayson puts up the Philippine Cyberspace Review website, featuring his original writing and reprints from Computerworld, which had no website at that time. It was then under his homepage at http://www.europa. com/~jra/ and now archived at http:// web.archive.org/web/19961222155753/ http://www.europa.com/~jra/~jra/stac/ stacfaq.html. This served as a rich source of information at a time that the mainstream news media did not publish its content on the Internet. The site evolved into the PHCyberview group at egroups, later Yahoo! Groups, which became a rich source of discussion and information on the local Internet. This is now at http://groups. yahoo.com/group/ph-cyberview with archives spanning back to August 1998 when the group started. Many historical events are documented there.

Internet censorship started to spark interest among governments and legislators around the world. The Philippine Senate called for a hearing on pornographic material on the Internet, and summoned Internet pioneers to testify. DOST Secretary William Padolina declares that he would rather “err on the side of freedom” when faced with the censorship issue. 3

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1997 Yehey (http://www.yehey.com) was founded. It is still the country’s most prominent search engine or directory. At the time it competed against the EDSA directory. Since then, Yehey has branched into a general-use portal and ecommerce service provider with the PayPlus+ system. A portal is a general-purpose Internet site which caters to users seeking information or accessing common services such as checking email.

Content-rich media websites went up. Newspapers such as the Manila Bulletin (http://www.mb.com.ph), Philippine Star (http://www.philstar.com), Manila Times (http://www.manilatimes.net) and the Philippine Daily Inquirer (http://www.inq7.net) put Philippine news on the web.

The BusinessWorld Internet Edition, now BusinessWorld Online (http://www. bworldonline.com) was the first to go online, in October 1995. It put a large amount of regularly-updated content on the Web, satisfying readers abroad who sought Web versions of their daily Philippine reads.

ABS-CBN Interactive (later known as Pinoycentral – http://www.pinoycentral.com) and GMA Network (http://www.gmanetwork. com) started deploying content online as well.

1998 The first Philippine Webby Awards – later called the Philippine Web Awards (http:// www.philippinewebawards.com) – was held at the Hard Rock Café, Glorietta Mall, Makati City. The Awards was patterned after the US Webby awards, as it was originally organized by The Web Philippines magazine. The Web Magazine US ran the original awards. The sites that made up the entries and finalists served as a snapshot of the state of the Web industry, and with the number of sponsors involved, it became important commercial tool.

Bert is Evil (http://www.fractalcow.com/bert/ bert.htm) won the prestigious Webby Award (http://www.webbyawards.com) in San Francisco. Dino Ignacio is the first Filipino to win a Webby Award. (March 6, 1998)

PhilRadio (http://www.philradio.com) began its live Filipino radio programming on the Internet. It caters to Filipinos abroad who miss radio shows back home. 4

Legmanila (http://www.legmanila.com) and Localvibe (http://www.localvibe.com) started operations as independent companies. Both sites featured original writing and content. In 2000, they would be acquired and merged by Singaporean dotcom GetAsia.com. Later on, GetAsia Philippines would close down, and ClickTheCity.com, an online events and reviews site, started. 5

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2000 Mp3manila (http://www.mp3manila.com) was one of the more prominent dotcoms during their rise to prominence. It was funded by the dotcom venture company, Ajonet Holdings, and sought to promote local artists by hosting their music. While it became public through hype, it quietly faded away. I asked one of the founders, Nono Felipe, about this. His response: “On why or how we closed down, all I can say is that during the dot com era, business principles were not as sound as they are now. I mean let's face it, not all business models then were proven to be viable. Add that to an immature market like Manila, where the penetration of electronic commerce is negligible... the bottom line is that the Philippines was and is still not ready for digital rights management (DRM). And that was one of our biggest potential drivers. Setting up the whole infrastructure of DRM costs so much, yet no one wanted to buy digital music here. Add that to the fact that you could get pirated CDs for less than a hundred bucks. And it came just in time with the dot com bomb in the US.

2001 US-based Pinoy artist Dino Ignacio created the “Bert is Evil” site as a spoof. Sympathizers of Osama bin Laden used it to make the 9/11 leader look good, so Ignacio shut it down. This gave him worldwide fame. Dino Ignacio is the artist behind the animated “Maritess versus the Superfriends” (http://www.fractalcow.com/ rex/) cartoon, performed by Fil-Am comedian Rex Navarrete. 6

A lot happened. Market factors, financial factors, etc, etc. The way I see it, all good things come to an end. They can speculate all they want. They can guess what happened... But at the end of the day, it doesn't matter why or how we closed down. The mere fact that we built it still amazes me to this very day.”

“Maritess vs. the Superfriends” (above) and “Bert is Evil” are two of Dino Ignacio’s creations that put Filipino creativity on the Internet map.

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COMMUNITIES & EVENTS 1986 - 1994 The BBS community was formed online. BBS systems offer private messaging and message boards, based primarily on Fidotech technology. They interconnect to form BBS networks and exchanged messages called “echoes” since they echo or copy each others’ messages. The individual messages were called “echomail.” Since these systems were based on regular phone lines, and had no Internet connection, only one or a few users could log in at a time. The term “EB” was first applied used by the online community to mean meeting in person. It came from the language of the Citizen’s Band (CB) Radio community.

1988 The Science and Technology Advisory Council is formed to coordinate “expatriate human resources in key development programs of the country.” Its electronic network STACnet is important because it brought interest to the fledgling Philippine Internet from those around the world, with focus on the scientific community. The first email sent from the first live Philippine Internet connection at the University of San Carlos was addressed to STACnet, on March 29, 1994. 7

1994 Live Internet access brought access to facilities such as the Internet Relay Chat (IRC) chatrooms, and custom services accessed via the telnet protocol. These protocols allowed interactive connections which were impossible with the store-andforward systems used previously. The custom services included Multi-User Dungeons (MUDs), the forerunners of today’s graphical role-playing games and MMORPG’s (Massive Multiplayer Online Role Playing Games). Mosaic Communications established its own popular telnet-based chat server called “Chat Manila.” Real-life communities formed around these systems.

1990 The soc.culture.filipino (SCF) discussion group is formed by Aimee Manosa. Its charter provides “an open discussion on issues concerning the Philippines.” The group started with the Filipino Internet veterans abroad. The topics primarily reflect the point of view of the overseas Filipino and interested observers. The message archives are available at Google Groups: http:// groups.google.com. SCF uses the Usenet system where servers around the world exchange messages in categories called newsgroups. This system is separate from electronic mail, and uses the Network News Transfer Protocol (NNTP). It is no longer commonly used by today's casual Internet users. The system did not catch on in the Philippines due to the huge amount of bandwidth required. 8

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1996 ISP Sky Internet put up an IRC chat room called “The Lounge” which became popular among the local community. The Cyberspace Live ISP/online service established “eForums,” the first local webbased forum and discussion system. This was a precursor to the web-based bulletin boards that became popular in the late 90’s.

June 1996 The Philippine Internet Service Organization (PISO) was formed with Albert Velasco (of Mailstation Net) as the first president. This was the fruit of discussions among ISP officers since late 1995. The ph-isp mailing list served as the online forum for these initial discussions. On August 20, the officers and trustees were inducted in Malacañang by President Fidel V. Ramos.

September 1996 Internet World Philippines, the first local Internet show, was held at the EDSA ShangriLa Plaza Hotel. At this event, PLDT announced its acquisition of Infocom Technologies, marking its venture into the ISP business. This event also hosted the “Browser Brawl” between Microsoft Internet Explorer and Netscape Navigator, where representatives of the latter failed to show up. August 1997 February 1998 Local ISP’s IPhil Communications, Mindgate Systems and Worldtel Philippines host the third APRICOT (Asia Pacific Regional Internet Conference on Operating Technology). This technical conference was held at the Makati Shangri-La Hotel. Internet Engineering experts from all over the world came to hold technical sessions and tutorials. This conference has been held every year since 1996, and is hosted by a city in the AsiaPacific region. The event is also an important face-to-face social gathering for industry professionals. 9

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WS Expositions organized the Internet Commerce Expo Manila 1997 (ICE Manila 97) at the Shangri-la Hotel Makati City. This event introduced the WS Group to Fiesta Online, known for Yehey.com. 1999 PinoyExchange.com forum started operations. It became one of the largest online communities in terms of message volume, users and mind share. iAyala, the Internet venture arm of Ayala Corporation, made an investment in 2000. Several other forums followed. It is still running to date, surviving slowdowns and a system crash.

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2001 Blogs and online journals became common. These are text-oriented sites that reflect the daily opinions or chronicles of their publishers. They add fresh content from a personal point of view, as opposed to the corporate view espoused by mainstream websites. Blogs allow bits and pieces of information from the Philippines make their way to Filipino readers abroad. Online games (not gambling) become available with local servers. Mindgate offers pinoybattle.net, which provide action and shooting-oriented games. Surf Shop operates gamena.com, offering board and card games.

2003 Level Up! Games licenses the Oz World and Ragnarok online games. These become popular among young players, increasing growth in Internet usage at home and in cybercafes, and promoting e-commerce through online ordering of credits. The company is adopting the Korean model of multiplayer online gaming. 10

The Philippine Internet Commerce Society launched its PICS SME IT Excellence Awards in the 2nd E-Commerce Congress and recognized Godiva for its efforts in adopting ICT and Internet use.

2004 PLDT vs. PLDT The dispute over PLDT.COM between the Philippine Long Distance Telephone Company (PLDT) and Gerry Kaimo peaked on January 29, 2004. A judge of the Quezon City Regional Trial Court denied the request by PLDT for a preliminary injunction. PLDT accused Kaimo of infringing on the intellectual property of the trade name and “engaging in unfair competition for using the trade name.” This is not yet the end of the story, which started on in September 1999 when PLDT filed a 1.35 million peso lawsuit against Kaimo. Kaimo expected that PLDT would appeal the case to higher courts, while preparing his own 50-million peso countersuit against PLDT. ii phillipineinternettimeline

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E-COMMERCE 1996

1989 Jose Emmanuel “Joel” Disini administers the PH domain, the top level domain for the Philippines. He obtained the rights from thenadministrator of the global DNS services, Dr. Jon Postel. He operates an e-mail service called the E-Mail Company. 11

The Philippine Internet Commerce Society (PICS) was formed to advocate e-commerce. Internet banking starts. In December 1995, Urban Bank announced its plans to start a virtual bank. In 1997, the bank introduced its Home Virtual Banking service. According to Janette Toral: First investment bank website (information) is BPI Capital (http://globe.com.ph/~bpicapr/) (early 1996). First savings bank website (information) is BPI Family Bank (http://www.bpi.com.ph). (December 1996)

1997 The WS Expositions Group organizes the Internet Commerce Expo in September 1997. This shows that Internet commerce deserves its own events. The ATM network Bancnet operates an ISP for its member banks. This made use of the existing connections between the Bancnet system and its members.

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Today, many banks offer transactional services over the Internet, allowing their customers to access their bank accounts and services.

1998 San Miguel Draft Beer goes online. This is the first full e-commerce site operating from the Philippines. The proponents were World Port (an Internet services consulting firm), IBM, San Miguel Corporation, and Equitable Card Network; with the support of Intelligent Wave Philippines, and Infocom Technologies Incorporated; working with the Department of Trade and Industry (DTI) and the E- Commerce Promotion Council of the Philippines (ECPC). This showed that the Philippines is capable of facilitating online commerce. 12

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1999

2000

Auction sites flourish, following the trend in the US, with popular services such as eBay. These include eAuctions.ph, which closed and reopened as Avalon.ph; PinoyAuctions, which was acquired by ABS-CBN and merged with PinoyCentral; SurfingBananas, which has closed down; and Bidshot, which offers SMS-based bidding. These make use of a C2C (Consumer to Consumer) model where the buyers and sellers transact directly and the website merely facilitates the meeting of the two. E-Store also began its e-commerce store operations. 13

2001 Various developments heated up the issue over the PH domain. The group opposed to dotPH and Joel Disini organized PhilDAC (Philippine Domain Authority Convenors). dotPH president Jose Emmanuel Disini sues Fernando Contreras, Jr., president of PISO (Philippine Internet Service Organization) and ISP Inter.net.

The E-Commerce Law—Republic Act 8792, was signed into law on June 14, 2000. It has a scope much wider than the “e-commerce” in its name, as it also covers digital signatures and “hacking” activities. The salient features of the E-Commerce Law are listed here: ht tp://w w w.digit alf ilipino.com/writing _ article.cfm?id=19

B2B Business Exchanges started operating, to offer services for corporate buyers and sellers. These include Bayantrade, formed by a consortium of large companies; SourcePilipinas, from the Yapster group; B2B Price Now; and PhilBX (Philippine Internet Business Exchange) from the SSI group. These systems allow companies to achieve savings and increase efficiency by bidding and procuring online. Since the companies involved have existing relationships, this avoids the B2C (Business to Consumer) problem of Philippine e-commerce where payment systems are not well developed. 14

Prosperity.com is found guilty of selling and distributing securities under an illegal pyramid scheme. It was selling expensive websites. During this time, Multi-level Marketing (MLM) schemes became popular on the Internet. 15

Yahoo Computer Services, a local company, loses yahoo.com.ph to Yahoo! Inc. This is the first time a Philippine company enters into a domain dispute with a foreign corporation and a well-known Internet brand. This shows that the scope of well-known Internet names is global, and Internet companies are concerned about misuse of their name even for local domains. 16 phillipineinternettimeline

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2003 Online merchants outside the country block transactions originating from the Philippines and some other countries. This measure is intended to prevent credit card fraud by blocking customers en masse, instead of addressing fraud on a case-to-case basis. One merchant with this policy is the domain registrar GoDaddy.com, which now blocks IP connections from the Philippines. Their blocking strategy affected local domain owners who used them to register domains. The Philippines is known among merchants to have high incidence of online fraud. 17

PLDT offers the Cyber Madness promo. It partners with dealers to offer computers on an installment basis when tied up with a dialup or DSL broadband subscription. This expands their consumer base beyond customers who already have PC’s, and aims to improve the low domestic PC penetration which hurts Internet expansion. 18 To this date, low credit penetration due to low income is a barrier to e-commerce adoption. Traditionally, Internet commerce systems have been dependent on credit cards. Fraud concerns also stop people abroad from using their cards on local sites.

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PARTNERSHIPS/COOPER ATION 1988 The Science and Technology Advisory Council is formed to coordinate “expatriate human resources in key development programs of the country.” Its electronic network STACnet is important because it brought interest to the fledgling Philippine Internet from around the world. The first e-mail sent from the live connection at the University of San Carlos was addressed to STACnet. 7

1992 Dr. William Torres was the managing director of the National Computer Center, the government agency promoting computerization in the country. At that time, the US academic, non-profit Internet was of the NSF (National Science Foundation) network. The NSF was headed by Steve Goldstein. The two met and Dr. Torres was convinced that a full-time Internet connection was necessary. 3

1993 Setting up the first live Internet connection was a cooperative effort of different groups. Dr. Torres approached the Manila Electric Company (Meralco), and the Philippine National Bank, since they were well-funded entities. Both declined to fund the project. DOST Secretary Ricardo Gloria heeded Dr. Torres' proposal for the Philippines to connect to the Internet. He included it in the Science and Technology Agenda for National Development. (STAND). Dr. Rodolfo Villarica of the Industrial Research Foundation (IRF) was put in charge. Philnet was formed. Dr. William Padolina became DOST secretary and oversaw the project. 3 Philnet started out with an email connection for “Phase I,” performed through a dialup UUCP (Unix-to-Unix Copy Protocol) connection made between the Ateneo de Manila University and the Victoria University of Technology in Australia. De La Salle University and UP Diliman joined the dialup network to receive international e-mail through the Ateneo gateway. This connection used UUCP to batch up mail to and from the Internet from the participating institutions. The DOST made a grant of PhP 12.45 million to the IRF to implement Philnet “Phase II,” for a direct, live connection to the Internet. The DOST contracted Computer Systems Network Corporation (ComNet), a networking equipment vendor to implement the network linking the

Dr. William Torres, Father of Philippine Internet.

various and universities and organizations. Arnie del Rosario, then chair of the Ateneo Computer Science Department, informed the chair of ComNet, the late Dr. Willy Gan about the project. Dr. Gan drew up the PHnet network design and convinced PLDT to deliver the facilities in time for the March 29, 1994 launch in Cebu. This was to coincide with the E-mail Conference headed by Dr. John Brule, a friend of Dr. Villarica and a visiting professor at the University of San Carlos. Benjamin “Benjie” Tan headed the technical part of project. Later, Philnet is renamed to PHnet to avoid a naming conflict with another group, a “philosophers’ network.” 19

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1994 March 29, 1994: The historic activation of the Philippine’s first Internet link with a permanent TCP/IP connection. This was a 64 Kilobit per second line using PLDT and Sprintlink, the IP service of US telco Sprint. Benjie Tan did the activation on the router co-located at the PLDT premises in Makati City, while Richie Lozada of Ateneo handled the Cebu end. This was in time for the target date, the day of the E-Mail Conference led by Dr. Brule, held at the University of San Carlos. The 64 Kilobit per second line run by PHnet is upgraded to larger capacity links, until the point where PHnet buys service from Bayantel's Internet service instead. This is when the institutional members of PHnet shifted their uplinks to commercial ISPs. 3

INVESTMENTS & BUSINESS Before 1994 Only multinational companies with external links to their home countries had Internet connections. These connections are linkedup to the commercial Internet at their home countries, passing through their corporate gateways and firewalls. This was because the Internet connectivity was only secondary to the goal of accessing Internet resources. When the Philippine Internet became more established, this situation reversed and most multinationals accessed their parent networks through encrypted Virtual Private Networks (VPN's) instead.

1995 More companies enter the ISP business. The number peaks at around 200 ISPs in 1999. An ISP directory went up (unfortunately, it is now closed) to count the growth, since the Philippines was proud to have the largest number of providers in the ASEAN region.

1998 Internet-focused consulting companies become prominent. They include Worldport, k2ia and 25by8. They offered Internet solutions and partnerships with service providers to provide useful utilities to the Internet public. 20

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1994 ISPs were the first type of Internet business. Companies with interests in IT and telecommunications were natural choices to study the possibility of Internet as a business opportunity. Most telcos were not aware of this potential and regarded the Internet as a threat to their traditional businesses. 1997 The Asian Currency Crisis affects sectors of the industry that depend on imports such as bandwidth, and capital expenditures like routers and servers. Some Internet providers had to adjust their rates or peg them to the US Dollar to keep up wih this development. Singaporean ISP Pacific Internet partners with local provider Primeworld Digital Systems to set up Pacific Internet Philippines. This was the first large foreign ISP to set up locally. Primeworld was started in 1996. The Philippine Stock Exchange offers online, real-time stock quotes with the help of ISP Portal, Inc. This coincided with the stock market boom, where many people including foreign investors were interested in the data.

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1999 Established companies start moving into the dotcom boom. Ayala forms the Ayala Group Technology Business Development Group, which later becomes iAyala. The Benpres group of the Lopez family forms eLopez. PhilWeb. Com acquires majority control of South Seas Natural Resources, an exploration company— the first backdoor listing into the Philippine Stock Exchange. Acoje Holdings, a real estate company, becomes AJOnet. JG Summit sets up Latitude Web Philippines. This shows that the Internet has become mainstream in terms of business interest, both for complementing their existing business, and for opening avenues for investment in new ventures that were then considered lucrative – before the dot com crash. 21

2000 The dotcom boom hit the Philippines in full force. This included unbelievable hype from some players. The enthusiasm spread into venture capitalism, as investors looked for high returns on their investments. Startups became fashionable, and incubators such as HatchAsia (Helping Asian Technopreneurs Change Asia) became prominent. HatchAsia held a camp for start-ups, cashing in on people's interest in joining the craze. Business plan competitions took place to fish out new ideas from more people. 22

Timeline Tidbit Alan Robles, former editor-in-chief of magazine, described Philippine dotcom mania in his article “World Wide Wackiness: Silly Season in the Philippines”. http://www.hotmanila.ph/ leantech/silly.htm. I asked him if he felt vindicated when his predictions came to pass. His reply: It wasn't really hard to see it coming: despite all the predictions about a "new economy" and growth not subject to the normal laws of economics, anybody who'd read a few books and business magazines could see that what came up had to come down. As early as 1998 I remember telling my friends at Link how the exuberant (i.e., reckless) growth based on the disregard of due diligence couldn't last for long— it was all going to come crashing down. And of course once you saw it coming in the US, it was only a matter of time before the effects rippled down to our country. It didn't really help much that when the wallets of investors opened, the best that local companies here could think of were "me-toos" — free email, auction sites, medical sites. Nobody paid attention to the distributed nature of our working population— seven million Filipinos scattered around the world, many of them wired because of sheer necessity. Journalist Bill Huang says that the dotcom boom is (in hindsight: was) an April Fool’s joke. http://www.codewan.com.ph/CyberDyaryo/ commentary/c2000_0406_01.htm. US ISP and “Internet Supercarrier” PSInet acquires two local ISPs—IPhil Communications and Internext (I-Next)—as part of its global expansion. It merged the two into PSINet Philippines. In 2001, PSINet sells the local company to its spin-off company, Inter.net. PSINet later declares Chapter 11 bankruptcy, and Inter.net worldwide becomes an independent organization. SAGE (Sports and Gaming Entertainment) operates an Internet-based casino. It is licensed and monitored by PAGCOR (Philippine Amusements and Gaming Corporation), the only government body which can authorize gambling activities. The virtual casino is accessible from both Internet connections and kiosks set up at malls. 23

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CULTURE Filipino Internet Culture Filipino Internet culture started with the novelty of e-mail and chatting. When access to Web spread, personal homepages became popular. These were typically hosted on the space provided by the ISP, until free, ad- supported web space became common. Instant messengers made chatting more accessible to the casual user. ICQ was the first to be adopted. Extra messenger applications such as games, voice chat, and web cameras became popular and drove up usage. In 2003, Internet culture was shaped by Friendster social networking and the Ragnarok game. Friendster became the new “e-mail address,” as people connected to each other. While foreignbased social networks became popular, a local social network went up—funchain.com—by Jason Banico. The youth played—and got addicted to—the Ragnarok multiplayer game franchised by Level Up! Games. Internet use has cultural influences. Internet adoption echoed real world pop culture. The popularity of anime, cell phones, and music were copied into the virtual world. Websites that catered to particular communities emerged, such as Femalenetwork. com for women, ManilaTonight.com, MyGimmick, and others for “gimmicks”, and Tsinoy.com for the Filipino-Chinese community. Technology-oriented people had their share of communities for its different aspects. Sites such as Yahoo! Groups made it easy for people to create their own online communities for whatever purpose. Many of these online communities crossed over into real-life, with some becoming formal, registered organizations. The New Worlds Convention— http://www.newworlds. tk/—was organized twice by science fiction/ fantasy fan groups which were formed online.

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Traditional Culture The Internet has clashed with traditional Filipino culture. The issue of Internet pornography and inappropriate content recurs because of the easy availability of material through the Web and peer to peer file/sharing applications. “Scandal” pictures and videos have been circulated, and organized Internet pornography operations have popped up. The Philippine Catholic Church, traditionally a big influence in public morality, has spoken out against pornography. Filtered access was the main premise behind establishing the failed CBCPnet venture in 1999. This was intended as a large-scale Internet service provider, but ended in financial and legal ruin in 2002. Today, CBCPWorld.com is online again, with new partners. Instead of serving the consumer market, the ISP is connecting Catholic schools nationwide. It also provides Internet literacy capacity building or training to elementary and high school teachers focusing on how technology can be used in boosting the quality of education. Current ISP’s that offer filtering are Infocom’s Netsafe (http://netsafe.info.com.ph) and Uplink (uplink.com.ph). 24

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Politics Despite the relatively small number of users, the Internet has been used for Philippine political purposes. Government offices and politicians have websites. The most prominent use of the Internet was during the ouster of President Joseph Estrada in 2001. ELagda sought to obtain one million online “signatures” to petition Estrada to resign. Other sites included Transparent Accountable Governance (tag.org.ph) and Guerilla Information Network (gin.ph, now closed). NAMFREL (National Movement for Free Elections) count of the 2001 Senatorial elections was run with the cooperation of ISPs which helped collect the results. The campaign for the 2004 elections saw the candidates with websites serving as the online equivalent of their real world campaigns. The candidate websites are complemented with online analysis. Blogs show people's perspectives on current events.

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SOURCES/REFERENCES 1 Email of Portal founder, Patrick Deakin, to the digitalfilipino group: http://groups.yahoo.com/group/digitalfilipino/ message/1853 2 Ayala Corporation Web Page Goes On-Line, by Joseph Dennis A. Cuan Computerworld Philippines - August 31, 1995, archived at: http://web.archive.org/web/19961224173725/ www.europa.com/~jra/cyber/news/ayala.htm 3 RP Marks 7th Year on the Internet (Computerworld Philippines, March 26, 2001) By Chin Wong and Melba-Jean Valdez h t t p : // w w w . i n f o . c o m . p h / ~ c h i n w o n g / RP%20marks%207th%20year.html 4 • Recollections of Heinz Bulos. http://www.heinztein.com/archives/2003_11_ 01_archives.htm • PhilRadio announcement at http://groups.yahoo.com/group/digitalfilipino/ message/5 5 Interview by Ruel de Vera for Sunday Inquirer Magazine, January 7, 2001 http://web.archive.org/web/20030605092817/ http://www.clickthecity.com/info/press4.asp 6 Urban Legends Reference Site. http://www.snopes2.com/rumors/bert.htm 7 • The STACnet FAQ archived at: h t t p : / / w e b . a r c h i v e . o r g / w e b / 19961224045743/www.europa.com/~jra/ stac/stacfaq.html • Source: Danilo Caacbay’s recollection at: http://www.pinoyfirst.com/oneinternetday/ caacbay.htm 8 • SCF: Flips in Cyberspace: Somewhere on the Internet, a virtual community of Filipinos has found a home by Jim Ayson. Archived at: http://web.archive.org/web/19961224173946/ www.europa.com/~jra/scf.htm • More SCF recollections from the early days are at: http://www.pinoyfirst.com/oneinternetday/ index2.htm 9 Reference: http://www.apricot.net/apricot98/ 10 Korean-born online games invade RP, by Erwin Lemuel E. Oliva, INQ7.net. http://www.inq7.net/inf/2003/may/11/text/ inf_2-1-p.htm 11 Facts and issues about the PH domain issue are presented at ITNetCentral: http://www.itnetcentral.com/special_reports/ dotph/introduction.htm 12 Site of the Times, Volume 1, No. 6, October 1998 http://web.archive.org/web/20010729014408/ www.msc.edu.ph/wired/internetbeer.html 13 • eAuctions.ph article by Janette Toral. h t t p : / / g r o u p s . y a h o o . c o m / g r o u p / digitalfilipino/message/4 • E-Store article by Janette Toral. h t t p : / / g r o u p s . y a h o o . c o m / g r o u p / digitalfilipino/message/18 • ABS-CBN buys into PINOYAUCTIONS.COM By Veronica C. Silva, Businessworld IT Matters, August 3 2000. h t t p : / / i t m a t t e r s . c o m . p h / n e w s / n e w s _ 08032000a.html 14 Text of RA 8792: h t t p : / / w w w . p i c s . o r g . p h / e - c o m . asp?action=view&id=7 15 SEC threatens to revoke Prosperity.com’s license, Catherine C. Junia, Businessworld Online: h t t p : / / i t m a t t e r s . c o m . p h / n e w s / n e w s _ 06152001e.html 32

phillipineinternettimeline

16 • The WIPO (World Intellectual Property Organization) decision: http://arbiter.wipo.int/domains/decisions/ html/2001/dph2001-0001.htm • The story of local Internet credit card thieves is: Hacker’s Paradise by Daffyd Roderick, Time Magazine. http://www.time.com/time/asia/digital/printou t/0,9788,105665,00.html 17 E-commerce sites discriminating against Filipinos? By Eleanore C. Sanchez, Businessworld IT Matters, June 13-14, 2003 h t t p : // i t m a t t e r s . c o m . p h / n e w s / n e w s _ 06132003a.html 18 Telco promo seeks to grow PC and net service in RP homes, Maria Patricia Anne L. Perez, Businessworld IT Matters, May 19, 2003 h t t p : / / i t m a t t e r s . c o m . p h / n e w s / n e w s _ 05192003h.html 19 • Philnet program shifts into high gear by Edwin P. Boon, ComputerWorld Philippines, Dec 15, 1993. Included in the old soc.culture.filipino FAQ, archived at: http://faqs.jmas.co.jp/FAQs/filipinofaq/part2 • Mosaic Communications profile at: http://www. mozcom.com/company/profile.html 20 Local software companies look for niches amidst problems and competition, by Helen S. Andrade, BusinessWorld IT Matters, October 27, 1999. http://itmatters.com.ph/features/features_ 102798.html 21 • Philippines: The number's up for fixed lines by Mary Ann L Reyes, Asia Times Online July 18, 2001. http://www.atimes.com/reports/ CG18Ai01.html • Summit ties up with Singapore-based Internet Consultant by Helen AndradeJimenez, Businessworld I.T. Matters, September 21, 2000. h t t p : / / i t m a t t e r s . c o m . p h / n e w s / n e w s _ 09212000d.html • iAyala Profile. http://www.iayala.com/profile.htm • PhilWeb press release. h t t p : / / w w w . p h i l w e b i n c . c o m / t e m p l a t e . asp?target=news/2000/p_jan21_ssnr • AJONET website. http://www.ajonet.com/about.html 22 • RP still looking for global dotcom by Joey G. Alarilla, Inquirer Infotech, July 17 2000. http://www.inq7.net/infotech/jul2000wk3/ info_2.htm • Internet business plan contest launched in Asia, Businessworld IT Matters, September 21, 2000. h t t p : / / i t m a t t e r s . c o m . p h / n e w s / n e w s _ 09212000b.html 23 RP online gambling launched in August by Sol Jose Vanzi, Philippine Headline News Online. h t t p : / / w w w . n e w s f l a s h . o r g / 2 0 0 0 / 0 6 / s i / si000544.htm 24 The CBCPNet scandal, Basic rules ignored. By Helen A. Jimenez, Senior Reporter, Businessworld IT Matters http://itmatters.com.ph/features/features_ 07172002.html ii • h t t p : / / w w w . i n f o . c o m . p h / ~ c h i n w o n g / runningstories.htm • http://www.inq7.net/inf/2004/feb/04/inf_1-1.htm

by Janette Toral lobally, we’ve gone a long way in using the Internet. It is estimated that there were 490 million Internet users in 2001. By 2005, this figure is expected to reach 1 billion. The Computer Industry Almanac predicts that, in 2005, an increasing portion of Internet users will be using wireless devices such as web-enabled cellular phones and personal digital assistants (PDA) to go online. In the Philippines, from less than 5,000 Internet users in 1994, we now have an estimated 6 million in 2004. By 2014, we expect to have 41 million Filipino Internet users. In our research, the majority of Internet users as of 2003 are women (58%) compared to men (42%). In the first nine years of the Internet, men comprised the majority of users. Today, men may spend less time online but are more advanced in their Internet use. As the trends in this chapter will show, the Internet usage habits of a Filipino Internet user is greatly influenced by the infrastructure, cost, and resources available.

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• The Philippines has an estimated 100,000 Internet users. • In the Philippines, estimates quoted by a study recently published by the Carlos P. Romulo Foundation for Peace and Development noted a mere US$1.6 million worth of business done through the Web in 1997, with only about 6% of those are Filipinos with Internet access who purchased products online. The forecast sees a jump to US$383.7 million by 2002, with the ratio of Net-connected Filipinos participating in such electronic commerce (or e-commerce) expected to grow to 30%. 1

Mr. Garcia said the country is also getting the critical mass of Internet users that an Internet-based service requires. “As of end-1998, we had 350,000 Filipino Internet users, not counting those abroad. By 2001, it is predicted that one million Filipinos will be on the Net. By 2005, there will be five million,” he said. 4

Mr. Alvin Yong, Asia Pacific technology office vice-president of Citibank NA Singapore, noted that Internet banking has grown at an annual rate of 174.5% from 1995 to 1998 with World Wide Web users totaling about 130 million. 5

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• There were about 100,000 to 150,000 Internet users in the country, according to a report by W3 Business Communications. • Cisco Systems Philippines country manager Manuel Rivera said the Philippines is second only to the United States in terms of people with the highest inclination to adopt the the use of Internet in their activities. This finding is based on the results of a study, conducted by a Singaporebased firm, on the local Internet market. "On the average, the study said Filipinos use the Internet three hours per week," he said. It also showed that the average user maintains subscriptions with two Internet service providers or ISPs. Most of the Filipinos on the Net belong to the B and C economic classes. 2

1 9 9 8

The Social Weather Stations (SWS) also in the same year reported that only one percent of Filipino households have Internet access. This amounts to about 146,000 homes based on 1999 population estimates. 3

Neil Hortillo of WS Research Corp said there were an estimated 217,121 Internet users in the country as of end1998. Of this number, about 75% had access to the web. In 1998, only about 6% of Web surfers bought products through the Web. 6

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• The 1999 Philippine Internet User Habits and Demographics Survey was released. It was conducted jointly by Web Philippines, Business-World Online and Market Frontiers Research. • There are more male (57%) than female Internet users and the average age of the user is 27.67 years. • Majority of the users (46%) belong to the 25 to 34 age bracket while 37% are within the 19 to 24 age bracket. • Fifty-one percent (51%) have finished college, and 32% are pursuing graduate work. • A majority (57%) use the Net more than once a day. Still, a significant numer (19%) do so only once a day. • Internet connections are usually done at home (69 %) while 35% said they log on both from their homes and offices. • The Internet is used primarily for e-mail (89%). Other uses, as confirmed by both studies, are research and conducting of business. 3

In the Philippine Communication Satellite Corporation (Philcomsat) April-May 1999 survey of 974 respondents in Metro Manila, Philcomsat found that at least “60% of Internet subscribers were unsatisfied” with their service provider. Their most common complaints include abrupt disconnections (34%), busy signals for dialup accounts (34%), and slow download times (45%). 8

Latest figures from market research firm International Data Corp. (IDC) Asia Pacific show e-commerce revenue from the Philippine market is expected to reach $153 million and $193 million in 2002 and 2003, respectively. 9

The Philippine Communications Satellite Corporation (Philcomsat) conducted a survey on Internet usage among 974 Filipino business professionals in 1999 Results shows that: • 60% of Internet subscribers in the Philippines are not satisfied with their current service due to frequent disconnections, busy signals or slow downloading times. • Electronic mail makes up the most of Internet usage in the Philippines at 88%, then web surfing at 60%. Internet chats came in at 29% and newsgroups at 17%. The survey also showed that downloading files in the Philippines is still the most popular of use of the Internet. 7

Internet commerce in the Philippines will rise at a compounded five-year growth rate of 250%, while Internet commerce worldwide and in Asia-Pacific, will grow at only 131% and 200% respectively, in the same period, said Neil Hortillo, research director of WS Research Corp., a local affiliate of United States-based International Data Corp. (IDC). Mr. Hortillo said the number of Filipino users of the World Wide Web who actually buy goods over the Internet will rise to about 30% by 2002. As of March 1999, the number of Internet users worldwide is estimated at close to 154 million. The number is broken down as follows: 27 million were in AsiaPacific, 87 million were in the US and Canada, and 34 million were in Europe. 6

Pacific Internet sales and marketing director Rowena Blas claimed that Pacific Internet has cornered 20% of the Internet market in the Philippines. Based on estimates made early this year, the number of Internet users in the country is about 220,000. 8

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• ACNielsen reported that PhP2.41 billion was spent on online shopping in the first half of 2000. • PhP13,100 online spending per person in the second half of 2000 and PhP9,800 per person in the first half of the same year. 10

2 0 0 0

2 0 0 1

• ACNielsen estimated that PhP3.24 billion was spent in the second half of 2001 by Filipinos for online shopping. • PhP1.64 billion was spent by Filipino online shoppers in the first half of 2001. • PhP14,400 spending per online shopper in the second half of 2001. 10

DigitalFilipino.com estimates there are 2 million Internet users at this time.

DigitalFilipino.com launched the first e-commerce book in the Philippines in June 2000, followed with the StatsReport series with the intent of reviewing Internet developments in the country.

In the Filipino Online Shopper Report published in June 2002, the following findings were highlighted: Responses from online buyers show that the top 5 out of 20 products and services, Filipinos buy online are books (54%), computer software (33%), domain name (31%), web hosting (25%), and computer hardware (24%). The top 5 sites, out of 79 named, where Filipino buyers shop are Amazon (http://www. amazon.com-54%), E-Bay (http://www. e-bay.com-11%), MyAyala (http://www. myayala.com-11%), Network Solutions (http://www.netsol.com-8%), Barnes and Noble (http://www.bn.com-6%), and Register.com (http://www.register. com-6%). About 66% of computer owners access the Internet from their homes. With Internet access also available in the workplace, home use is done on a “per need basis.” In the provinces, there are those who don’t use it at home because there are no avalable telephone lines. Internet cafes continue to be a popular venue for access. However, as the number of PC usage at home increases, offices, and schools, the cafés will not be as popular. 23% connects to the Internet from these places from time to time.

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philippineinternetreview

What Filipinos Buy Online (2001)

What Filipinos Buy Online (2000) • Books • • Computer software • • Music • • Computer Hardware • • Catalog/Mail Order •

Where do Filipino Online Buyers Surf • • • • • • • • • • •

Where Filipinos Buy Online (2000) • Amazon • • Barnes and Noble • • Ebay • • Yahoo • • CDNow •

Internet Access from Cafes 16 and below 17-20 21-24 25-28 29-32 33-36 37-40 41-45 46-55 56 and up Age Group

10

20

30

40

50

60

70

Yahoo.com Google.com Inq7.net CNN.com Hotmail.com Philstar.com Yehey.com   bworldonline.com DFNN.com PinoyCentral.com PinoyMail.com

Where Filipinos Buy Online (2001)

Top Mobile VAS Applications

75% 17% 33% 29% 21% 11% 14% 7% 8% 17% 0

• Books • • Computer software • • Domain name • • Travel services • • Web hosting •

• Logos and icons • • Ring tones • • Picture messages • • Daily News • • Banking • • Games • 80

Percent (%)

Buyers' profile online Bankers

16 and below 17-20 21-24 25-28 29-32 33-36 37-40 41-45 46-55 56 and up

Age Group

Internet Access from Home

Age Group

100% 53% 62% 66% 74% 61% 97% 38% 77% 20% 0

20

40

60

Percent (%)

80

21-24

64%

25-28

45%

29-32

63%

33-36

45%

37-40

43%

41-45

0%

46-55

14% 0%

56 and up 0

100

10 20 30 40 50 60 70 80 Percent (%)

• 21-24 years old – Books, computer software, information services • 46-55 years old – Books, travel services, music CD • Shopping site – Amazon.com • 25-28 years old – Books, computer software, domain name, web hosting • Shopping sites – Amazon.com – Network Solutions – E-Bay • 29-32 years old – Books, domain name, web hosting • Shopping sites – Amazon.com – E-Bay – Register.com • 33-36 years old – Books, computer software, home electronics, travel services • 37-40 years old – Books, computer hardware • Shopping sites – Amazon.com – MyAyala.com

Where do Filipinos Buy Online (2001) Amazon (54%) Ebay (11%) MyAyala (11%) Network Solutions (8%) Barnes and Noble (6%) Register.com (6%) US$522.13 average annual purchase per user

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• An ACNielsen survey titled, "The Online Consumer and E-commerce in the Philippines" which covers the first half of 2002, showed books are still the favorite products Filipinos buy online. • Other popular products are musicrelated items, travel bookings, DVDs and video cassettes, computer hardware (peripherals), magazine subscriptions and non-educational software. • As of 2002, there estimates indicated 935,000 regular Internet users in the country out of the 3.4 million Filipinos whose lives have been touched by the Internet. 1.3 million are occasional Internet users. • Regular Internet users are defined as those who use the Internet at least once a week. 59% of regular users are male, while 41% are female. • 380,000 access from their homes, 471,000 from work and 84,000 using other access points. • 223,000 online shoppers • 290,000 online bankers • Among the online shoppers, some shop online regularly, others have shopped only once or twice. • A total of PhP3.66 billion (US$68.245 million at PhP53.63=$1) was spent on online shopping. • Online spending per person is pegged at PhP16,400 during the first half of 2002. • 83% of regular users earn wages from a variety of white-collar occupations. 11

Filipino Internet Users Typical Email Received

39% of email received are personal 35% are work/business related 26% are spam 38% have been hit by a computer virus this year

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On August 2002, the DigitalFilipino. com Filipino Internet User Report Part 1 highlighted the following findings depicting Internet users’ habits: • Research is the top reason for going online, followed by email, browsing, business transactions, news, entertainment, chatting, downloading, and shopping. 40% connects to the Internet from their homes with a prepaid card. Rebel Internet lead in prepaid card sales. • Pacific Internet and Infocom are fierce competitors for combined post-paid and prepaid subscriptions. 95% uses the Internet on a daily basis with the majority staying online for an average of three to four hours a day. • In the past, e-mail has proven to be the application leader and the main purpose of those going online. However, the increase in the popularity of text messaging and having the capability to send and receive e-mails over the cellular phone have affected local email communications. Our list of top websites does not differ much to the 2001 rankings. Yahoo.com leads as this dotcom never seems to run out of steam in its offerings. • Google.com moved up in our ranking as Filipinos began to rely on it more when looking for information online. • Inq7.net’s readership base grows at a continuous pace. Its strategy of coming up with new content online contributes to its staying power. • Hotmail.com entered our top 10 for the first time as it gained acceptance as a free email tool among Internet users of all ages. • Yehey.com held on to our top sites list. To think that a lot of people are saying that portals are dead, Yehey.com as a pure dotcom player is surviving and now provides more offerings. Its shift from a mere search engine to a high value-added services company contributes to its relevance among today’s Internet users.

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Filipino Internet Users

Length of Internet use

Internet use per day

2 hours 1 hour 3 hours 5 hours 4 hours 8 hours < 1hour 10 hours 6 hours

By Daniel Escasa

23% 18% 18% 9% 7% 6% 5% 4% 4% 5

0

10

15

E

20

25

Percent (%)

Purpose of Using the Internet Research Email Just Browsing Business Transactions Entertainment News Chat/Messaging Download Bills Payment/Shopping

44% 21% 8% 7% 6% 6% 4% 3% 2% 0

10

20

30

40

50

Percent (%)

Top ISPs for Home Internet Users

Pacific Internet (17%) Infocom (12 %) Mozcom (9%) Globe (5%) Sky Internet (4%) i-Manila (2%) PLDT DSL (2%) Digitel One (2%) Prepaid Internet (40%) - Rebel - PhilWorld - Bl@st - Flash - PhilWeb Provincial ISPs (7%)

Top 10 Websites (2002)

Percentages are based on the number of Users who named the sites 69% 34% 24% 22% 16% 15% 14% 10% 8% 6%

Website

Yahoo.com Google.com Inq7.net Hotmail Yehey.com CNN.com MSN.com PinoyCentral ABS-CBN.com Microsoft 0

10

20

30

40

50

Percent (%)

60

70

80

ven before the Philippines got the live IP connection to the Internet, a few hundred Filipinos already got a taste of Cyberspace through dialup Bulletin Board Systems (BBSes). For the uninitiated, a BBS is a dialup service that takes data calls from their users and allows them limited access to the PC hosting the BBS through a “green screen” menu. This access comes in the form of message boards similar in content to newsgroups and discussion mailing lists. BBSes also had file areas similar to ftp sites which allowed users to download files onto their computers and, if they had files they wanted to share, upload these to the host PC. The vast majority of BBSes were operated free of charge by hobbyists on their home PCs, using a residential phone line. Consequently, almost all BBSes were single-line affairs, and complaints (albeit good-natured) from users about busy signals and difficulty in connecting became a status symbol among System Operators (SysOps), being a sign of popularity. A BBS was not necessarily stand-alone however. Fidonet technology provided protocols for creating an ad-hoc dial-up network through which participating BBSes synchronized message boards and shared files from their respective file areas. Several BBSes banded together to form such a network, linking users not only in Metro Manila but also those in Cebu, Baguio, San Fernando (Pampanga), and Davao. Then, courtesy of US ServicemenSysOps in Clark Air Base and Subic Naval Base, the Philippine network got a connection to the international Fidonet community. Philippine BBSes therefore provided users the means to interact with varied cultures, although only through the message boards. The BBSes brought about the culture of sharing. Filipino users’ experiences of the early BBS served them well in the larger world of the Internet. In fact, many BBS SysOps went on to become system operators of the first Philippine Internet Service Providers (ISPs). As for the

rest of us, we were, for the most part, country bumpkins (“syano” in local parlance) on our first visit to the big city. We stumbled through newsgroups and discussion mailing lists but still managed not to make absolute fools of ourselves. After all, those were similar enough to BBS message boards. Besides, Fidonet International had a means of gating between Fidonet message bases on the one hand and newsgroups and mailing lists on the other. We had therefore absorbed much of Cyberspace culture even before we started our adventure into the Internet. On the other hand, we had only an inkling of the technical aspects of the Internet. We were in awe of receiving a near-instant reply to an e-mail we’d sent out only moments earlier. Those of you who’ve connected only to the Internet and not to BBSes take that for granted. Remember that Fidonet created only an ad-hoc dial-up network and that it could take hours before a message could even leave the BBS host computer, let alone get to its intended recipient. It then takes several more hours before a reply, if any, can come back. All told, you might get a reply only after a day you have sent the message. The other service that held us in awe was Internet Relay Chat (IRC). There we were, exchanging pleasantries with dozens of users the world over. Our only previous real-time chat experience was with a one-on-one with a BBS SysOp. (Recall that most BBSes were single-line hobbyist services.) Eventually, we adapted. We even thrived, and some of us even distinguished ourselves. Gerry Kaimo’s parody site pldt.com consistently places among the top 50 in Google’s news/satire directory. In another chapter of this book, we saw kabayancentral.com’s Netscape Open Directory Cool Site rating. Remember the mailing list service e-groups which Yahoo! purchased in the late ‘90s and transformed into Yahoo!Groups? Leo Mercader’s eforums.com predated egroups by about a year.

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37 to 40 A summary chart showing our findings on the Internet usage habits per age group. Similarities and variations are obvious among those in close age ranges.

16 and Below • Top Websites - Yahoo.com - Google.com - MSN.com • 42% male, 58% female • 33% are PC owners • 50% go online primarily at Internet Cafes

17 to 20 • Top Websites - Yahoo.com - Hotmail.com - Google.com - MTVAsia.com - PinoyCentral.com - Yehey.com • 22% male, 78% female • 50% are PC owners • 50% go online primarily from Schools

25 to 28 • Top Websites - Yahoo.com - Google.com - INQ7.net - Hotmail.com - CNN.com • 60% male, 40% female • 78% are PC owners • 42% go online primarily from Work • Pacific Internet is the preferred ISP • Spends P897/month for Internet Access

41 to 45 29 to 32 • Top Websites - Yahoo.com - Google.com - INQ7.net - Yehey.com - CNN.com - Hotmail.com • 63% male, 37% female • 83% are PC owners • 42% go online primarily from Work • Pacific Internet is the preferred ISP • Spends P1147/month for Internet Access

33 to 36 21 to 24 • Top Websites - Yahoo.com - Google.com - Hotmail.com - CNN.com - INQ7.net - MSN.com • 44% male, 56% female • 68% are PC owners • 34% go online primarily from Work • Pacific Internet is the preferred ISP • Spends P1250/month for Internet Access

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• Top Websites - Yahoo.com - INQ7.net - Google.com - CNN.com - Hotmail.com • 68% male, 32% female • 82% are PC owners • 45% go online primarily from Home • Pacific Internet is the preferred ISP • Spends P573/month for Internet Access

• T op Websites - Yahoo.com - INQ7.net - Yehey.com - Google.com - Hotmail.com • 67% male, 33% female • 86% are PC owners • 60% go online primarily from Work • Infocom and Mozcom are the preferred ISPs • Spends P782/month for Internet Access

• Top Websites - INQ7.net - Yahoo.com - CNN.com - Hotmail.com - MSN.com • 63% male, 37% female • 87% are PC owners • 60% go online primarily from Work • Spends P1100/month for Internet Access

46 to 55 • Top Websites - Yahoo.com - INQ7.net - CNN.com - Google.com - Hotmail.com - MSN.com • 58% male, 42% female • 80% are PC owners • 53% go online primarily from Work • Pacific Internet is the preferred ISP • Spends P1358/month for Internet Access

56 and up • Yahoo.com is the Top Website • 83% are PC Owners • 50% Access the Internet from Work

philippineinternetreview

On its frequently visited sites, Yehey.com finally entered our top 5 list as Hotmail.com stepped down. As far as the local sites are concerned, it is interesting to note the entry of SunStar publication in our top 5 list as BusinessWorld Online, DFNN, and PinoyMail.com slipped.

Where do Filipinos Buy Online (1999 - 2002) Amazon (50%) MyAyala (10%) Network Solutions (9%) eBay.com (8%) Barnes and Noble (5%) Register.com (5%) Others (13%) US$513.50 average annual purchase per user

How Much do Filipinos Buy Online?

THE FILIPINO ONLINE SHOPPER

(per year) Computer Software Outdoor Equipment Shoes Music CD Video Computer Hardware Books Web hosting e-learning Travel Tickets/Movies Information Services Apparel Gifts Financial Services Domain Names

• 23% of the Internet Users interviewed are online shoppers • 76% Male, 24% Female

BUYERS’ PROFILE • 39% PDA Ownership • 83% access the Internet from Work • 93% Computer Ownership - 74% access the Internet from Home • ISP Subscriptions – Pacific Internet – Infocom, Mozcom - PLDT DSL - i-Manila

400% 325% 323.5% 289% 263% 191% 190% 148% 145% 134% 124% 97% 84% 74% 73% 70% 0

50 100 150 200 250 300 350 400 Amount in US$

Top Filipino Websites (2002) Percentages are based on the number of Users who named the sites

Online Bankers 16 and below 17-20 21-24 25-28 29-32 33-36 37-40 41-45 46-55 56 and up Age Group

0% 0% 64% 45% 63% 45% 43% 0% 14% 0% 10

20

30

40

50

60

70

24% 16%

PinoyCentral

10%

ABS-CBN.com

8%

PhilStar.com

5% 5

0

10 15 Percent (%)

20

25

Top 10 Websites (2002)

Percentages are based on the number of Users who named the sites

80

Percent (%)

Buyers' Profile 48% do Online Banking BPI (43%) UnionBank (15%) Citibank (13%) Equitable PCI (11%) HSBC (8%) UCPB (3%) Others

69% 34% 24% 22% 16% 15% 14% 10% 8% 6%

Yahoo.com Google.com Inq7.net Hotmail Yehey.com CNN.com MSN.com PinoyCentral ABS-CBN.com Microsoft

Website

0

Inq7.net Yehey.com

Website

Buyers' Profile

0

10

20

30

40

50

60

70

80

Percent (%)

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Where do Filipino Online Buyers Surf?

We found more buyers as we increased our respondent base in 2002. 23% or 128 of survey respondents are online shoppers, with 76% being male. It is important to note, though, the amount people spend online. Filipinos buying from Amazon.com spend an average of US$162 per year. Admittedly, there are a lot of figure adjustments as the number of survey respondents increase. We took a particular interest on the ranking of ISPs where online buyers are subscribed. In the first issue, Pacific Internet, PLDT DSL, Infocom, Mozcom, and DigitelOne emerged as the top 5 ISPs. For this update, DigitelOne dropped in the top 5 ranking while I-Manila came stronger. Our ranking of online shopping habits didn’t change that much although figures continue to change. Since 2002 was still not over, we could not see whether or not there was a decline on the online shopping habits of Filipinos for that year. It is important to note the amount that people spend for online shopping. The respondents’ combined purchase amounted to US$64,000 from 1999 to the present.

Where do Filipino Online Buyers Surf? • Yahoo.com • • Google.com • • Inq7.net • • CNN.com • • Yehey.com •

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Popular Local Sites for Online Shoppers • Inq7.net • • Yehey.com • • PinoyCentral.com • • PhilStar.com • • Sunstar.com • • ABS-CBN.com

33 to 36 • What do they buy online? – Books – computer software, domain name – Music cd, videos • Shopping sites – Amazon.com – MyAyala.com – GoDaddy.com • Spends an average of US$429 online annually

21 to 24 • What do they buy online? – Books – Tickets/Movies – Computer software – Information services • Where do they buy online? – Amazon – MyAyala – eBay • Spends an average of US$397 online annually

25 to 28 • What do they buy online? – Books – domain name – computer software – Music CD, web hosting • Shopping sites – Amazon.com – Network Solutions – E-Bay • Spends an average of US$276 online annually.

37 to 40 • What do they buy online? – Books – Computer hardware – Computer software • Shopping sites – Amazon.com – MyAyala.com • Spends an average of US$953 a year online.

41 to 45 • What do they buy online? – Books, travel services – Domain name – Web hosting – Information services • Shopping sites – Amazon.com – Network Solutions • Spends an average of US$323 online annually

46 to 55 29 to 32 • What do they buy online – Books – Computer software, domain name – web hosting – Computer hardware, financial services • Shopping sites – Amazon.com • Spends an average of US$910 online annually

• What do they buy online? – Books – Computer software, travel services – Apparel, music cd • Shopping sites – Amazon.com – MyAyala.com • Spends an average of US$552 online annually

philippineinternetreview

DigitalFilipino.com in its Filipino Internet Banker Report also found that only 15% of Internet users bank online. By end of 2003, it was estimated that there are 525,000 Internet bankers in the country but less than half were active users. The male segment of society leads the early adopters having a 68% share in the survey and 32% of online bankers were female.

Most Popular Banks for Internet Banking by Gender Most Popular Banks for Internet Banking

Citibank - 16% 18%

BPI - 58%

Unionbank - 6% - 14% Age Group

Age Group

BPI - 58% - 58%

Equitable-PCI - 6% - 6%

Citibank - 18% Unionbank - 11%

Equitable-PCI - 9%

HSBC - 3% - 11% 0

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20

30

40

Percent (%)

50

60

HSBC - 5% 0

10

20

30

40

50

60

Percent (%)

DigitalFilipino.com published the Filipino Internet User Report Part 2 in September 2003. This report highlighted that there are more women (58%) online than men. Additional findings as follows:

Internet Connection at Home by Gender: Total

Male Telephone Modem - 94% DSL - 5% Others - 1%

Female Telephone Modem - 97% DSL - 1.4% Others - 1.6%

Internet Access The school is the most common access point for the majority of respondents. This very much reflects our population where the young represents the majority. The penetration of computers and Internet in the school helped greatly as well to this development.

Internet Connection at Home: Total

Internet Use at home 72% of the respondents have personal computers at home. Similarly in past surveys, more male Internet users have computers at home compared with women users.

Telephone modem 94% DSL 5% Others 1%

filipinointernetuserevolving

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philippineinternetreview

Most Common Access Points to Internet Users

Internet Online Activities by Male DSL Users E-mail 12% Instant messaging 19% News reading 8% Entertainment information 5% Shopping 1% Hobbies 3% Travel 1% Medical 1% Games 6% Banking 1% Browsing 10% Chat 1% Jobs 2% Music 20% School work 2% Work at home 5% Sex 2% Distance learning 1% Government website 2%

School - 54%

Home - 46% Work - 20% Friends - 12%

Activity

Access Points

Internet café - 52%

Library - 5% Others - 1% 0

10

20

30

40

50

60

Percent (%)

Most Common Access Points to Internet Users per Gender School (Male) - 44% (Female) - 61%

0

Internet café - 50% - 54%

5 10 15 Time Spent (Percent %)

20

- 39%

Most Popular Internet Activities by Gender

Work - 26% - 16% Friends - 12% - 10% Library - 4% - 6% Others - 1% - 1% 0

10

20

30 40 50 Percent (%)

60

70

80

Number of Years Online Total by Gender

E-mail (Male) - 84% (Female) - 85% Web surfing or browsing - 60% - 55% Instant messaging - 50% - 60% Accessing entertainment - 44% information - 50% Reading news - 50% - 46% Doing school work - 37% - 41% Chat - 34% - 40% Games - 37% - 30% Music - 33% 25% Hobbies - 32% - 20%

Activity

Age Group

Home - 56%

0

20 40 60 80 100 Percent (%)

Overall Most Popular Internet Activities Number of Years Online Total

E-mail - 85% Web surfing or browsing - 57%

Female