Nat’l Broadband Program to save gov’t P720M in internet expenses —DICT

The Department of Information and Communications Technology (DICT) claimed Tuesday that the government will save hundreds of millions of pesos in internet expenses next year with the implementation of the National Broadband Program (NBP).

In a statement, the DICT said it expects the government to save P720 million in internet subscription expenses in the first year of implementation of the NBP.

It said that for the NBP’s Phase 1, the DICT will activate the Cable Landing station in Baler, Aurora and connect to the National Grid Corporation of the Philippines (NGCP) Node in San Fernando La Union through the Luzon Bypass Infrastructure.

The DICT will then activate and light up four DICT nodes and 15 NGCP nodes that will connect with the various DICT equipment.

“From there, we will be able to provide bandwidth to nearby govnet clients and Free-WiFi beneficiaries,” it said.

Through the NBP, the DICT will deploy broadband capacity across the country, especially in areas that are remote, inaccessible, and considered unprofitable by the private sector.

“With this, the government will have access to cheaper and more reliable Internet services that will reduce government spending on Internet subscription,” it said.

“This will begin to happen once the first phase of the DICT-NBP is completed,” it added.

Through the program, the DICT said, government agencies can have internet service at P50 per megabits per second (Mbps) of internet bandwidth per month, compared to the current expense of P350.00 per Mbps of internet bandwidth per month.

“This means that an average size agency which requires a hundred (100) Mbps shared internet connectivity across a whole building spends around P35,000 per month, or P420,000 a year,” it said.

With the NBP, the DICT said, an average government office would only spend P5,000.00 a month, or P60,000 a year for the same speed—“saving the taxpayers money that can be used for other programs and projects, and in improving social services.”

A part of the DICT’s connect-connect-connect initiative, the NBP is the government’s blueprint to accelerate the deployment of fiber optic cables and wireless technologies across the country to provide broader, faster, and more affordable access to the Internet for Filipinos.

By 2022, the DICT said it its additional budget request of approximately P17 billion for fiscal year 2021 is approved, the proposed Phase 2 of the NBP will cover Luzon, Visayas and Mindanao “posing a projected savings of around 34 billion pesos in government Internet expense.”

“In perspective, neighboring countries with similar initiatives, such as Indonesia, Australia, and New Zealand allotted significantly higher budgets for their National Broadband Network,” it said.

“Indonesia is reported to have allocated over $22 billion (P1.07 trillion) for its five-year national broadband plan, while Australia and New Zealand allocated around $37 billion (P1.79 trillion), and $1.19 billion (P58 billion pesos), respectively,” it added.

Other countries such as Singapore are improving their systems by spending around $550 million (P26.72 billion) and opening up their network to all service providers, according to the DICT.

“President Rodrigo Duterte’s directive is very clear- to improve Internet connectivity in the Philippines to help the Filipino people better adapt to the new normal. That is why the DICT is doubling its efforts in accelerating the implementation of various digital connectivity initiatives, especially the National Broadband Program,” DICT Secretary Gregorio Honasan II said.

“We can expect that by the end of 2020, Phase 1 of the NBP will begin operations, and by 2021, we can already feel the effects of said initiative,” he added. — Ted Cordero/BM, GMA News