New subsea cables fuel Philippine call center growth
MANILA, PHILIPPINES — The Philippines is set to enhance its call center industry through the completion of a new submarine cable network, which promises to extend stable internet connectivity to the country’s most remote islands and potentially create new job opportunities.
The Philippine Domestic Submarine Cable Network (PDSCN) — a collaborative effort involving internet service provider InfiniVAN and telecommunication companies Globe Telecom and Eastern Telecommunications — represents a significant investment of $150 million.
Spanning 2,500 kilometers, the network connects Luzon to Mindanao and is designed to withstand the rapid currents of the surrounding waters.
Philippine President Ferdinand Marcos Jr. hailed the project as a “game changer” during a February launch ceremony, emphasizing its role in the nation’s digital transformation and internet interconnectivity. The PDSCN is expected to be fully operational with related facilities by April this year.
While major cities such as Manila and Cebu already enjoy stable internet, the Philippines’ geography of over 7,100 islands has left many areas with unreliable connections. The new network is anticipated to foster economic development and job creation across the nation.
The business process outsourcing (BPO) sector, which generated $35.4 billion in revenue and employed 1.7 million people in 2023, has traditionally been concentrated in larger cities due to the need for dependable online access.
With the PDSCN, there is potential for expansion into less urbanized regions, tapping into the country’s English-speaking workforce and competitive labor costs.
InfiniVAN Chairman Koji Miyashita expressed that the PDSCN will serve as an “open gateway” for various companies, potentially reducing network fees significantly.
This development aligns with the Philippines’ move to attract more foreign investment by easing restrictions, including the removal of a 40% cap on foreign ownership in telecommunications.
The PDSCN kickstarted its development last July 14, 2022, aiming to have a total cable distance of roughly 2,500 kilometers. Since then, the cable network has landed at several points across the country, including Siargao and Cebu.
