Planned national broadband to cost gov’t up to P200B

A government-backed plan to deliver high-speed internet services to far-flung areas would change the lives of millions of Filipinos for the better—but it also comes at a steep cost.

The Department of Information and Communications Technology (DICT) said the creation of a “north to south” national broadband network, serving the requirements of government and areas in the countryside unreached by the telcos, could cost anywhere from P77 billion to almost P200 billion.

DICT secretary Rodolfo Salalima said during a hearing before lawmakers Wednesday the figure assumes they would be starting the network from scratch. He said the projected capital spending could go down if the DICT were allowed to utilize the existing “passive” infrastructure of the government.

The proposal, which would use a combination of technologies including fiber optic cables, still needed fine-tuning, Salalima said.  Under this plan, the government would build the broadband infrastructure while telecommunications providers would be leasing the assets.

Salalima said the national broadband network still required the approval of President Duterte.

“It can be done within three years from the time the President issues an executive order,” Salalima said.

The development comes as the country’s two telco providers PLDT and Globe Telecom continue to dodge criticisms over “slow and expensive” internet. However, a study covering the second quarter of 2016 showed the Philippines improving over its regional peers when it came to mobile internet speed.

The proposed national broadband network was among several options given to President Duterte, Salalima said. Another option was for the government to pursue this development, while becoming a “full-blown telco operator” itself.

But Salalima noted the latter was not yet presented to Mr. Duterte, given the high cost and risk it would entail as well as the government’s lack of expertise on the matter.

“If we want to be a full time operator, we have to do a feasibility study first,” Salalima said.

The last attempt to build a national broadband network was a $329-million (P16 billion) project with China’s ZTE. This was ultimately scrapped due to corruption issues during the Arroyo administration.

The National Telecommunications Commission said the wide gulf in cost projections between then and now was likely due to different technologies involved, as well as the scope of each of the two projects.

The need for a national broadband network would also be incorporated in the implementing rules and regulations of the DICT. Salalima said they hoped to soon finalize this.

The need for a national broadband plan was earlier outlined under a recent policy brief presented to the Joint Foreign Chambers of the Philippines last February.

According to the brief, the plan should outline clear steps on how to reach broadband goals, including how to make internet services more accessible and affordable to the broader Filipino population.