NGCP denies talks on internet over power lines

Transmission superhighway operator National Grid Corp. of the Philippines (NGCP) has denied having discussions with Laguna-based electronics manufacturer Cirtek Holdings Philippines Corp. on using the national grid for mobile infrastructure.

“Apart from a tripartite agreement with the Department of Information and Communications Technology (DICT) and National Transmission Corp. (Transco) signed in June, NGCP is not involved in any talks regarding partnership for the use of its transmission network as telecommunications backbone,” NGCP said in a statement.

It was earlier reported that Cirtek was in discussions with NGCP and the Department of Energy on how existing transmission assets could be harnessed into a telecommunication infrastructure.

NGCP is a privately owned corporation in charge of operating, maintaining and developing the country’s state-owned power grid, an interconnected system that transmits electricity from where it is made to where it is needed.

“The operation of the power transmission grid, including all its inherent parts, belongs exclusively to NGCP. As transmission service provider, and in accordance with NGCP’s rights under its concession agreement and its franchise under Republic Act No. 9511, NGCP should be the primary counterpart to any proposal for the use of the transmission facilities,” NGCP said.

“As of Aug. 22, no discussions at any level have been made by NGCP with Cirtek Holdings Philippines or any of its authorized representatives,” it added.

The tripartite agreement signed in June advanced the government’s plan to provide high-speed and inexpensive internet to public areas. The pact unlocks 6,154 kilometers of “dark” or spare fiber lines from Luzon to Mindanao, the commercial use of which was the subject of a long-running dispute between Transco and NGCP. These dark fiber lines are currently used by Transco and NGCP to monitor their electricity distribution points around the country.

With a deal in place, DICT can use the fiber lines for its key initiatives such as the National Broadband Project and its goal of providing free Wi-Fi connectivity to thousands of public sites such as schools and hospitals in the next few years.

Eliseo Rio Jr., acting secretary of the DICT, said they could now reach even the most remote areas in the Philippines.

“Around 40 percent of the country is underserved or unserved by the commercial telcos,” Rio said, referring to the duopoly of PLDT Inc. and Globe Telecom, which do not see certain areas as viable enough for them to enter.

Under the agreement, the DICT obtained an “indefeasible right” to use or access certain spare fiber optic cores, vacant lots, tower spaces and related facilities of NGCP, which is the concessionaire of Transco, the owner of the country’s power transmission assets.

The DICT estimates that its broadband project, once completed, will save around $2.6 billion in terms of manpower, time and other costs.