In the picturesque yet remote island province of Catanduanes in the Philippines, a transformative initiative is underway, promising to reshape the business landscape for local micro-retailers, colloquially known as sari-sari stores. Filipino startup Packworks, in collaboration with international non-profit Help.Ngo, has launched SariLink – a pioneering program aimed at bringing high-speed, reliable internet connectivity to sari-sari stores through Starlink’s Low Earth Orbit (LEO) technolog
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The pilot phase of the SariLink initiative has already seen the installation of LEO communication terminals in select sari-sari stores, offering a lifeline to small entrepreneurs who have long struggled with unreliable internet access.
These businesses have experienced a significant boost in efficiency and sales following the installation of Starlink internet.
Matthew Cua, innovation director at Help.Ngo, emphasised the real impact of this partnership, noting that enhanced connectivity not only empowers individual businesses but also fosters community resilience.
“Bridging the digital divide, especially in isolated communities, can bring outsized impact on resiliency by giving people the ability to communicate and connect to the internet,” he told Inside Retail.
Improving resilience
A recent study by Packworks found that sari-sari stores in the Philippines drove PHP8 billion (US$139 million) in sales from 8.2 million transactions in 2023.
According to the Asian Preparedness Partnership, there are about 1.3 million sari-sari stores in the Philippines. They are typically run by families and paid employees often earn below minimum wage.
Most of them make do with traditional bookkeeping methods to record transactions, keep track of inventories and handle their supply chain issues.
Cua said that Help.ngo has been a pioneer in telecommunication deployment, including Starlink deployments around the world, including the Philippines.
“Help.Ngo handles the technical component of the LEO connectivity, ensuring that it is running, providing support to the beneficiaries and paying for the hardware and subscription through our donors,” he added.
Nonetheless, the biggest challenge for the team is onboarding local partners to ensure the technology is used in the long run. Cua said the team works with partners to ensure that what they provide has a major impact, and at the same time, drives sustainability through various modalities.
“Since the installation of Starlink in the sari-sari store, store owners have been able to completely digitise their day-to-day operations and offer promotions from different brands exclusive to sari-sari stores,” he noted.
In just a month, Cua said that the team was able to see a significant increase in the number of transactions in these stores, by more than 50 per cent, which also meant added revenue for the sari-sari store.
The long term vision
Beyond the Philippines, Help.Ngo also works with communities in Kenya, Haiti, and Ukraine.
According to Cua, The LEO internet connectivity enables communities to quickly adapt, coordinate response efforts, access resources, and share vital information during and after crises.
“At the same time, access to the internet allows communities to participate in the global economy, increasing their economic capacity and resilience, which in turn allows for the creation of better infrastructure,” he added.
He said Help.Ngo is always looking at new technologies, and works with technology partners around the world as well as international aid agencies, including the UN, to support its mission towards better disaster responses and strengthening the resilience of communities.
“We are excited about the work we are doing in artificial intelligence (AI) and cloud computing that will maximise the connectivity we are currently providing,” he noted.
The bigger picture
According to a World Bank study and the Philippine Statistics Authority, the access gaps between the rich and the poor expanded by far the fastest for broadband internet, from 2019 to 2022.
The World Bank has stated that poor internet access also leads to poor technology adoption and limited innovation and productivity growth by firms, especially micro, small, and medium enterprises (MSMEs).
Updating policies to upgrade internet infrastructure can accelerate the expansion of digital opportunities and spur faster, inclusive economic growth.
The cost of fixed broadband in the Philippines, when converted to absolute USD, is the highest in ASEAN. Household penetration of fixed broadband in the country was at 33 per cent. In comparison, it’s 50 per cent in Malaysia, 58 per cent in Thailand and 76 per cent in Vietnam.
Access to the internet remains Manila-centric, according to the Philippine Statistics Authority. Based on its data, only 56.1 per cent, or 14.79 million households in the Philippines have internet access.