PLDT to pursue convergence masterplan

The Department of Transportation and Communications (DOTC) is determined to pursue the formulation of a master plan that would address the convergence of telecommunications, computers and broadcast.

This was the thrust of a speech delivered by DOTC Secretary Vicente Rivera Jr. during the Asia-Pacific Economic Council (APEC) fourth ministerial meeting on telecommunications and information industry being held at Cancun, Mexico.

Rivera said the master plan will include a comprehensive policy framework and specific recommendations for regulatory and institutional reforms.

According to him, there is now a need to create a communications architecture that can provide open and flexible access capable of interconnectivity and inter-operability.

"One of our objectives is to be able to move from the old system of multiple single-purpose networks towards a single multi-purpose network," he said.

Likewise, Rivera said the government must also address the socio-economic aspect of convergence which is expected not only to help achieve universal access to telecom services but also provide much cheaper and affordable rates.

"We envision a time when interconnection can be facilitated among various systems and provide for services as they exist and develop over time and ultimately, to establish a network of interconnected communities throughout the country," he said.

Incidentally, the DOTC has already tapped the United States Assistance for International Development (USAID) to fund a study to determine how convergence could best be applied to the local scenario.

On the legal and regulatory aspect, he said the DOTC through its attached agency, the National Telecommunications Commission (NTC), is committed to foster healthy competition and self regulation among the players.

Thus, he said regulatory barriers should be eliminated to encourage access to such services.

Since prevailing laws and policies fail to reflect the realities of modern technology, the DOTC is also contemplating the possibility of filing a convergence bill after the study is completed.

At present, there cannot be complete convergence between telecom and broadcast due the Constitutional limitations.

Since the Charter provides that there should be 100-percent Filipino ownership of broadcast entities, only those telecom firms without any foreign interest can go into media.

On the other hand, broadcast firms can dip their hands in telecom since the latter's foreign ownership restriction has a 40-percent limit.

Another hitch to the ownership issue is a provision in Republic Act 7925, of the Telecommunications Law which prohibits the issuance of a single franchise to cover broadcast and telecom.

Aside from telecom and broadcast, the DOTC and NTC are also trying to address the growing demand for data and Internet-based applications which entails the need to tackle the bottlenecks in broadband information infrastructure development.