<p>This study assesses the economic impact of broadband in the Philippines. Drawing from the wealth of research literature on economic effects generated on the basis of cross-sectional analyses (e.g. for OECD, Latin American and Arab States), it applies econometric tools and techniques to measure the impact of broadband on a single nation. The Philippines telecommunication sector plays a critical role in contributing directly to the country’s economy. Telecommunication revenues account for 2.5% (or US$ 5.3 billion) of the country’s Gross Domestic Product (GDP), contributing some $267 million annually to economic growth and generating 1.0% of total tax collections. Furthermore, the sector employs 525,000 skilled workers and professionals. Beyond the direct economic impact of telecommunications, the indirect contribution of broadband through spill-over effects over the rest of the economy is estimated by constructing a structural econometric model for the period 2000-2010 specified for the fixed and mobile broadband sectors. While the model estimates that the fixed broadband market in the Philippines is not yet sufficiently mature for it to contribute significantly to the wider economy, mobile broadband adoption was found to contribute an annual 0.32% of GDP. This represents 6.9% of all GDP growth for the economy during the past decade, given that GDP in Philippines grew at a compound annual average rate of 4.6%. In addition, given the acceleration of mobile broadband penetration since 2005, the impact of the technology has almost doubled, reaching 0.61% of GDP and representing 7.3% of all economic growth in the country. This result further reinforces the increasing returns to scale hypothesis for network infrastructures. The challenge for the Philippines telecommunication sector remains in applying the lessons from mobile broadband, and integrating mobile with fixed to accelerate fixed broadband adoption and expand fixed network access and coverage. In parallel, the development of applications in the areas of education, public health, media and entertainment and government services, will act as incentives to further increase broadband adoption. </p>