New broadband network project won’t turn into another scandal, says science chief

MANILA, Philippines — Science and Technology Secretary Mario Montejo assured the public on Monday that the planned revival of the National Broadband Network (NBN) project would not deteriorate into another scandal comparable to the one that erupted over the scuttled deal with China’s ZTE Corp.

A change of name from the NBN to the Government Broadband Network (GBN), reduced cost and transparency in all stages, are the hallmarks of the revived project, according to Montejo, the guest during Monday’s Kapihan sa Diamond Hotel.

In 2008, then president Gloria Macapagal Arroyo was forced to cancel the US$329-million NBN deal with ZTE Corp. following allegations of kickbacks and padding of costs in the contract.

Although Montejo could not say yet if the new GBN project would be approved a hundred percent by President Benigno Aquino III and other members of the Cabinet, he said government planners have been targeting to make it operational within a year’s time in Metro Manila, where almost 70 percent of government transactions take place.

The Department of Science and Technology (DOST) secretary maintained that if implemented, the GBN, now under study by the agency’s Information and Communications Technology Office (ICTO), would enhance efficiency in government operations and improve the delivery of vital social services.

The Philippine digital strategy being developed by the DOST-ICTO, through extensive consultation with ICT stakeholders, pursues four priority programs: e-governance; internet-for-all; further growth of the ICT-Business Process Outsourcing industry; and cyber-security.

“Broadband is definitely a necessity. The challenge now is for government to address this requirement by way of a technically advanced and, more importantly, cost-efficient solution,” he emphasized.

Montejo stressed that GBN would cost only P1 billion or less and transparency would be observed in all phases of the project.

“The cost is not that big. It is not like before, P14 billion. We will put measures to avoid (another ZTE)… We will be transparent.  As far as the media and other sectors would want,” he said.

To meet the requirements of technical advancement and cost-efficiency, he explained, the DOST study has been looking into: using existing yet underutilized government fiber-optic and other assets; bidding out to the private sector the opportunity to co-develop assets and maintain the broadband infrastructure; exploring other means to control assets in dealing with commercial broadband network operators to achieve high-speed and high-capacity broadband at low costs.

“The study is considering the use of existing government fiber optic assets and microwave facilities that are currently underutilized to serve as a backbone for a possible government broadband structure,” he pointed out, explaining that fiber optic assets are found in transportation and communications transmission lines of the Metro Rail Transit and Light Rail Transit, as well as Telecommunications Office (TELOF) facilities nationwide.

The operation and maintenance of the fiber optic backbone, which include the right of way, the fiber optic, and the equipment to light it up, would have to be bid out to the private sector.

“We are looking at a five-year contract. If they (private business firm) will not satisfactorily operate it, the operator may be changed… We are benchmarking ourselves against the best practices in other countries,” Montejo said.

Asked if ZTE could join the bidding, Montejo responded, “Their project before was wireless. These are wired, fiber optic. I do not know if they are also into that.”

One of the priorities of the project, he said, would be to eliminate long queues in government agencies, such as the National Bureau of Investigation (NBI), for the delivery of social services.

Another is the timely financial reporting by different government agencies to achieve transparency at all levels.

“Broadband will forever change the way we receive services from the government, how we teach our school children, how government will provide health care and save people from natural disasters. We hope to see the day when Filipino job-seekers applying for work here and abroad need not endure agonizing queues just to obtain all the clearances they need because all the requirements like NBI and other documents can be secured online,” he pointed out.

He further said, “We also recognize the need to provide adequate bandwidth throughout the country to ensure ICT access in underserved and un-served areas, especially in schools.”

Asked why the ICTO and the GBN project were delegated to the DOST instead of the Department of Transportation and Communications, Montejo pointed out that his department has been tasked by President Aquino to oversee the concerns of industries and sectors linked to cyber technology.