TransCo, NGCP agree on use of fiber optic cable for gov’t broadband plan

MANILA, Philippines — State-run National Transmission Corp. (TransCo) and the privately-owned National Grid Corp. of the Philippines (NGCP) have finally agreed to use the transmission grid’s fiber optic cable network in support of the government’s National Broadband Program (NBP).

TransCo and NGCP will enter into a tripartite agreement with Department of Information and Communications Technology (DICT) to use the fiber optic capacity in the NBP, Energy Secretary Alfonso Cusi said in an interview with reporters yesterday.

“I was told that they (NGCP) are already willing to sign with TransCo,” he said. “And that’s a good thing. That’s what I’ve been saying from the very beginning, that it be used for the benefit of the Filipinos.”

TransCo president Melvin Matibag said the memorandum of agreement (MOA) will be signed after it is presented to their respective boards.

“We’re targeting it before the end of the month. We’re setting a meeting next week with DICT also. One of the conditions is to present it to the board,” he said.

Under the agreement, TransCo and NGCP will work together in the broadband project without affecting other issues between them to be able to help government implement the NBP.

“One of the provision is we agreed that the MOA will not affect claims of TransCo and NGCP, and it cannot be used in other forums as to the other claims except for the purpose to push for the broadband project,” Matibag said.

“The purpose of this is to support the desire of the administration to give better service,” he said.

Through the 25-year concession agreement, NGCP operates about 5,000 to 10,000 fiber optic cables that run from Luzon to Mindanao for internal communication purposes.

The transmission grid’s existing fiber optic cable network enables real-time communication between transmission facilities and with generators and distribution utilities (DUs).

The fiber optic capacity uses transmission facilities and allowing government or third parties to “piggy-back” on this transmission communication backbone will be critical in the immediate implementation of the NBP.

TransCo and NGCP were at odds on the use of the fiber optic network since the state-run firm was not part of the previous agreement with DICT.

TransCo said it should be part of any agreement on the use of the transmission grid’s fiber optic network since it is   the agency of government protecting these assets.

However, NGCP said it can legally enter into a bilateral agreement with government without TransCo.