The Filipino’s purchasing power in 2024 is undeniably less than it was several years ago; the Philippine Statistics Authority reported in its summary inflation report in September that the value of one peso in 2018 is now just P0.83.
The value of money is getting less, so every peso counts. This is not lost on internet service providers aiming to get the average Filipino the best deal he can get at the lowest price, hence, the birth of the prepaid fiber.
Looking again at data from Philippine think tanks, like the Philippine Institute of Development Studies (PIDS), the cost of the internet monthly takes a significant chunk of the Philippine household’s wallet. The PIDS reported that in 2019, families in urban areas spent around P1,407 monthly on an internet subscription while those in rural areas spent slightly less at P1,008. Given that the same organization says that half of Philippine households are still low-income earners, affordability is still a main concern.
For leading Philippine fiber broadband provider Converge ICT Solutions Inc., the landscape of broadband in the Philippines still paints a picture of unequal access to connectivity, hence its introduction of a prepaid fiber product, called Surf2Sawa or S2S, in 2022.
“Surf2Sawa or S2S as we call it, is to us, an opportunity to live out our mission to serve the unserved and underserved. With the high prices of goods today, some people trade off internet connection for, say, their child’s schooling or a week’s groceries. We came up with this product so they don’t have to face that trade off. They get to enjoy a reliable, high capacity broadband connection and still buy their essentials,” said Converge CEO and Co-Founder Dennis Anthony Uy.
Going down to the essentials, what prepaid fiber broadband offers is a triple treat advantage, especially for the D market. According to Conrado “Dhing” Pascual, Vice President and Product Management Business Unit Head of Surf2Sawa it is “unli, mura, walang kontrata!” (unlimited data, cheap, no tied contracts). Who can resist such a deal?
It seems many can’t. Surf2Sawa logged over 242,000 subscribers at the end of September 2024, more than double of its subscriber count by the end of last year. This is indeed a good trajectory given that it was only introduced a year before.
“Ang maganda sa S2S, affordable s’ya – magaan sa bulsa kaya pang-masa talaga. Since naka-fiber tayo, stable ‘yung internet connection na gusto ng mga customer. Affordable and good service kaya maganda ‘yung nagiging market namin dito sa Batangas and Mindoro,” said Liezel Adaya of KFB Internet Communication Services, a Surf2Sawa dealer in Batangas on what makes Surf2Sawa attractive to the market.
[“What’s great about S2S is it’s affordable – it’s easy on the wallet so it’s really suitable for the masses. Since it’s fiber-based, the internet connection is stable, which is exactly what customers are looking for. With its good price and reliable service, it’s no wonder we’re doing so well here in Batangas and Mindoro.”]
The company is hopeful, optimistic even, that its share in the revenues will grow considerably in the short term.
In the case of Converge, what stands out is its novel approach in selling to the D market, intertwining selling with job creation in the low-income communities it serves.
Bringing the Fiesta To Your Neighborhood
Perhaps another trademark of the broadband company’s innovative spin is its creation of ‘Barangay S2S’, its high-energy, fiesta-like celebrations in select barangays where it stages a bonanza of community activities meant to spread S2S’ main message: ‘We’re here to serve you.’
Converge literally paints these communities pink and yellow, provides merchandise to sari-sari stores, installs food carts for residents, and offers free services like haircuts, manicures, and massages. These events also include games and prizes to heighten the celebratory and festive atmosphere. For the dance enthusiasts, the Barangay S2S also provides a platform to showcase their creative performances. This is through the Dance2Sawa segment where various dance groups representing different barangays in the area compete with each other, putting their unique spin on the Surf2Sawa jingle.
Converge S2S also stages ‘Sugod Barangays’, where the company gives away free internet to three winners in the community – documented in a variety-show fashion with a celebrity host and livestreamed on Facebook. Bringing the internet closer to the home is quite literally what S2S does; agents knock on a person’s house and surprise them with the free internet connection.
As prepaid fiber continues to broaden access of low-income earners to connectivity, it will only be a matter of time until the S2S hits critical mass and becomes a nationwide product, said Uy. In that scenario, Uy’s motto to ‘Leave No One Behind’ will become less of an aspiration and more of a reality.
