PSAC urges gov't to allot ₱240 B for internet infra
The Private Sector Advisory Council (PSAC) said it is optimistic that the government will heed its recommendation to allot around ₱240-billion budget for the development of internet infrastructure in the country.
Following their meeting with President Ferdinand Marcos Jr. on April 19, PSAC, led by its Lead Convenor Aboitiz Group President and Chief Executive Officer (CEO) Sabin Aboitiz, urged the government to ramp up spending on internet infrastructure in order to reach its 65 percent internet penetration target or double the current 33 percent.
PSAC is an advisory council composed of the country’s top business leaders that offers guidance to President Marcos for the achievement of the country's economic objectives. The council noted that the ₱7.6 billion six-year funding allocated to the Department of Information and Communications Technology (DICT) from 2018 to 2024 is significantly lower than the amounts that the private sector is investing in digital infrastructure.
For instance, Globe Telecom Inc. has poured ₱265 billion in capital expenditures (capex) and ₱263 billion in operational expenses (opex) in the past three years for its network development, according to a statement released by the telco on April 24.
Aside from increasing the general budget for internet infrastructure, PSAC is requesting the allocation of at least P60 billion annually in order for the DICT to “lease towers, build lastmile facilities, and optimize existing telco facilities,” to provide internet access to 125,000 public facilities, including schools, hospitals, and health centers over a four-year period.
This is aligned with the council's goal of building 35,000 new cell sites through a commercial partnership between the public and private sectors.
To support these initiatives, Globe President and CEO Ernest Cu stressed the need to reform policies, particularly in reducing or outright removing lease fees in buildings for telco towers and other internet-related works, as well as consistently implementing Executive Order No. 32 to streamline permit processing for telco infrastructure.
“Telco and the internet must be widespread, robust, and meaningful, enabling full participation in the digital economy. Currently, policy gaps hinder expansion into rural and underserved areas,” said Cu.
The workforce, which will drive the digital sector, must also be prioritized, remarked PSAC’S digital infrastructure sector head Uniondigital Bank President and CEO Henry Aguda.
"We advocate for a Presidential directive to ensure that all relevant agencies are fully aligned in executing all training and job promotion activities to achieve this ambitious job creation target,” he said.
“By aligning the private sector's strengths with the government's supportive mechanisms, we are setting the stage for a rapid and sustainable enhancement of our nation’s connectivity,” Aboitiz added.