DICT looks at using NGCP lines to speed-up internet connection

The Philippines is likely to use existing power transmission lines to save on cost and achieve blazing speeds in internet connectivity under the national broadband plan, according to the Department of Information and Communications Technology (DICT).

"There [are] about 5,000 to 10,000 fiber optic cables running from North to South. If we can make use of that, nandiyan na ang component mo para mapapadali (ang implementation ng national broadband plan)," Information and Communications Technology Secretary Rodolfo A. Salalima told reporters on the sidelines of the 1st DICT Summit in Makati City on Tuesday.

He was referring to the fiber optic cables of the National Grid Corp. of the Philippines (NGCP), the consortium which holds a 25-year concession and a 50-year franchise to operate the country's power transmission network.

The consortium comprises Monte Oro Grid Resources Corp. (led by Henry Sy Jr.) and  Calaca High Power Corporation (led by Robert Coyiuto Jr.), with the State Grid Corporation of China (SGCC) as technical partner.

The government may start negotiating with the NGCP on how to tap into the power transmission highway, Salalima noted.

The DICT intends to implement a national broadband scheme next year, and is now in the final stages of coming up with the plan.

President Rodrigo R. Duterte has ordered the DICT to develop a national broadband plan "to accelerate deployment of fiber optics" in the country.

Setting up a national broadband system could cost between P77 and P199 billion.

"Kung wala tayong land, wala tayong existing fiber optics. The government is starting from scratch," Salalima said, noting the cost could be lower with the national broadband system riding on NGCP fiber optics.

Globe Telecom Inc. noted the concept is feasible from the point of view of telcos. “It will relieve operators of capital expenditures. We can rent broadband facility from the government instead of building everything on our own which we do today,” Yolanda C. Crisanto, Globe vice president for Corporate Communications said in a text message.

“Note that higher capex (capital expenditures) put pressure on income which will also put pressure on future investments,” she added.

"Kung may infrastructure ang government, mababawasan pa 'yan," he said. The option of building state-funded broad infrastructure has been conveyed in the form of a recommendation to the President.

Salalima noted two other options have been relayed to Duterte: 1.) the government investing on the infrastructure after which telecom companies may use to provide broadband service, and 2.) the government entering the picture as a third telco player, on top of the so-called Globe Telecom-PLDT Inc. duopoly.

"We are waiting for the President's decision on which option or plan the government wants, but even as we wait the government's final decision on the kind of broadband plan we are going to make, we have already put flesh in some of the plans which needed some details," he added. — VDS, GMA News