MANILA, Philippines -- Setting up a national government broadband network remains a priority project of the Department of Transportation and Communications (DoTC), officials said during a televised press conference.

DoTC Secretary Leandro Mendoza stressed that what was cancelled was the NBN contract, and not the idea of setting up a national broadband network.

?It was the contract with ZTE Corp. that was cancelled. But the NBN project is still a priority project of government. It is still within our medium-term development program,? Mendoza said.

The NBN was designed to provide a nationwide broadband network that will provide a ?nationwide coverage? linking government agencies.

Mendoza said that the agency has started discussions with potential suppliers last year.

DoTC Assistant Secretary Lorenzo Formoso III added that the agency has started ?exploratory? talks with local carriers or telecommunications companies in December 2007. He added that DoTC is currently collating responses from the carriers after the agency made its presentation.

The DoTC executive said the collected inputs from the carriers might be used to produce the terms of reference for a tender, which the carriers can look at.

?But this is all exploratory. Nothing definite yet,? Formoso said. ?It will be open to all.?

The DoTC created last year a technical working group to study how government can slash expenditure on telecommunications and improve Internet connectivity in the country. It tapped the National Telecommunications Commission to convene the local carriers.

This was after President Gloria Macapagal-Arroyo directed the DoTC to talk to local carriers regarding creation of the national broadband network last year.