DICT hopeful on deal with NGCP, TransCo for use of fiber optic cable

MANILA, Philippines — The Department of Information and Communications Technology (DICT) is hopeful it could sign the memorandum of agreement (MOA) with the National Grid Corp. of the Philippines (NGCP) and National Transmission Corp. (TransCo) for the use of their fiber optic cable network to deliver services in far-flung areas not served by telcos before Christmas.

“We hope that this could be done before Christmas,” DICT officer-in-charge Eliseo Rio Jr. said in a text message. 

He said the MOA is being finalized by the NGCP and TransCo. 

He said the signing of the MOA with the NGCP or TransCo for DICT to use their fiber optic cable as the main backbone for the Domestic Wideband Information Network, which includes the government’s backbone and middle network, is among the items the agency wants to accomplish within the year.

Talks with the NGCP for a MOA for the possible use of their fiber optic cable network to implement the National Broadband Plan (NBP) started under former DICT secretary Rodolfo Salalima.

The NBP was approved by President Duterte last March.

It serves as the blueprint for broadband infrastructure to interconnect government offices in the country, and for providing internet access to individuals particularly in areas currently not served by telcos.

During the term of former president Gloria Macapagal-Arroyo, the government was looking to build a national broadband network with China’s ZTE Corp.

The plan was dropped, however, due to corruption issues. 

Earlier, Rio said the DICT would also want to identify before the end of the year, the possible third or fourth telco player.

He said the government would make frequencies available for the possible players to allow them to effectively compete with existing telcos.

During the bilateral meeting held with Chinese Premier Li Keqiang last month,  Duterte offered China to be the third telco player in the country.

A third telco player is expected to break the duopoly and allow consumers to enjoy better mobile and internet services.