DICT nearing deal to use NGCP fiber optics
THE DEPARTMENT of Information and Communications Technology (DICT) is finalizing talks with the National Grid Corp. of the Philippines (NGCP) on the possibility of using the latter’s fiber optic network as the main line for the planned national broadband project.
DICT Secretary Rodolfo A. Salalima said yesterday that the inspection of sites and facilities is ongoing as part of an inventory of fiber optic cables that can be used for the project, with the target to start the operation of the broadband network by year’s end remaining on track.
“We’ve spoken to NGCP, and they allowed us to inspect their facilities and sites and fiber optic networks that can be used for broadband,” Mr. Salalima said in an interview at the sidelines of the launch of the free Wi-Fi service in MRT-3 stations yesterday.
“The fiber optics will make up much of the broadband… we will use the NGCP’s facilities if the talks go well,” he added, noting that the DICT has received a draft Memorandum of Understanding involving the department, NGCP, the Department of Energy and the state-run National Transmission Corp. (TransCo).
“If we agree, we’ll sign. We want to use the NGCP line so it’s up and running quickly. Using the facilities, we can have a broadband network in one year’s time from the time we tap the NGCP line,” Mr. Salalima said.
DICT earlier said the NGCP has “more than 5,000 kilometers” of fiber optic cables running from north to south which it is looking to utilize to fast-track the project with the approval from the firms that own the right of way, as well as the cables of NGCP.
“I think we can still start this year, the working infrastructure is one year from our start, but hopefully we can start this year,” Mr. Salalima said.
Asked for the cost of the project now that DICT has decided to use the NGCP’s fiber optic network, Mr. Salalima said “it will be less” than the initial estimate of P77-P200 billion which applies if the government were to start the project from scratch.
The newly- created department submitted the proposal to the President in February, which contained Mr. Salalima’s recommendation to put up a “working physical infrastructure” — which the government intends to use to reach parts of the countryside not serviced by commercial telcos. Since the government will build and manage the network, it could allow private companies to lease the network to serve so- called ‘missionary’ areas.
Since the department is considering a “hybrid” system, aside from renting out the infrastructure to telco operators, the “services of the telcos, including their physical components, may also be tapped as part of that broadband plan, whatever will be more costeff icient for the government.”
Sought for more comment on the project, DICT Undersecretary for Developmental and Innovations Denis F. Villorente said the department is formalizing the discussions with NGCP although he did not mention when the groups could close the deal.
“Talks with NGCP will form part of the implementation plan. It’s essentially formalizing arrangements so that government can use that fiber optic, ” Mr. Villorente said in a separate interview.
The project, flagged by DICT as one of its priorities, comes after the abandonment in 2007 of the $ 329.5- million National Broadband Network deal with China’s state-owned ZTE Corp. amid a corruption scandal involving alleged overpricing and irregularities in the procurement process.
The department expects a national broadband system to be up and running within the term of the President which ends in 2022 but Mr. Salalima last month said that since the DICT is looking to use existing government assets,it may be able to put up a working infrastructure faster.
The project has drawn the interest of foreign companies, including three Chinese firms, one Japanese, two companies from the US, at least two from Europe and an Israeli firm.
Mr. Salalima said yesterday that possible stakeholders include those that will supply the facilities, those that will provide the service, and also a company that will maintain the network.