In order to fix the problems related to slow Internet speeds, the Depart of Science and Technology (DOST) states that IP peering among service providers might be the solution. IP peering allows Internet and data services providers to exchange data more efficiently by localizing foreign content and cutting down Internet traffic. The current hindrance to faster Internet speeds is that much of the popular foreign content has to travel through undersea cables in order to reach local data centers. The U.S. government has also participated in resolving this issue through legislative action.

According to Interaksyon.com, the Phillippine Long Distance Telephone Co. has opposed a draft memorandum around the National Telecommunications Commission (NTC) mandating all Internet service providers (ISPs) to connect with the IP exchange of the DOST Advanced Science and Technology Institute (DOST-ASTI). The proposal suggests that IP peering among local ISPs should be hosted by PHOpenIX, an Internet exchange managed by DOST-ASTI. The private sector assumes a large responsibility in making sure that networks are secure and functional.

The government is already moving towards this direction by issuing AO 39 in July of last year. This orders all government agencies, financial institutions, and government-owned corporations to have their websites hosted under the new Government Web Hosting Service (GWHS). AO 39 mandates that Information and Communications Technology Organization (OICTO) set up a government IP exchange facility, allowing all data traffic between government agencies and the rest of the country to pass through the exchange for faster rendering of online services and transactions.

“From the government’s point of view, it does not make sense that consumers pay for international transit talking to someone who could be his neighbor. It does not make sense to charge consumers just because the telcos couldn’t agree with one another. IP peering can solve that,” said Louis Napoloeon Casambre, executive director of the Depart of Science and Technology (DOST) Information and Communications Technology Office. “This is our own strategy to improve Internet speeds despite the lack of mandatory net-neutral IP peering. Migration is already happening and sooner or later, all government traffic must be exchanged at the government exchange.”