PH government aims to cut cost of free Wi-Fi program by P5B
MANILA, Philippines – The Department of Information and Communications Technology (DICT) is looking to slash the cost of delivering free internet services to Filipinos by a hefty P5 billion, citing the need to review the current Wi-Fi program.
Jeffrey Ian Dy, DICT undersecretary for info-structure management, cybersecurity and upskilling, said they were in talks with internet service providers that could charge less expensive rates under a long-term deal.
At present, the DICT official said the country was spending about P6.5 billion annually for free internet covering over 7,000 locations.
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But “there are more cost-effective alternatives if we enter into long-term agreements,” he said in a statement on Monday.
For example, he said a satellite internet company could potentially provide a discount if the contract would have a 10-year term.
“The provider has offered an aggregated 200 Mbps (megabit per second) of internet for 10,000 school locations at only P1.5 billion per year, provided the procurement is through a 10-year contract,” he said.
The amount is P5 billion or 77 percent lower than the current annual price.
9.8M users to benefit
The free Wi-Fi program is seen to benefit 9.8 million users across 1,401 cities and municipalities, including 3,040 geographically isolated and disadvantaged areas.
This program aims to improve internet connectivity in public places across the country, including hospitals, basic education institutions, state universities and colleges, airports and seaports.
Meanwhile, Dy said that President Marcos had ordered the department to budget P5 billion for the expansion of cell site towers by “subsidizing a portion of the cost for telcos and common tower providers.”
The common tower policy or tower sharing is seen as a cost-effective solution that enables telecommunication operators to expand footprint across the country without putting up more facilities. Instead, operators will lease the towers from the independent tower companies that allow multiple users at a time.
