Government to undertake alternative communications program

Government is set to undertake an ambitious multi-billion peso, three-year alternative communications program (ACP) to be funded mainly by the private sector as a means of bridging the digital divide and to provide telephone and even Internet access to the remotest barangays.

According to National Telecommunications Commission (NTC) Commissioner Eliseo Rio, there will hardly be any investments on the part of government, unlike the junked Telepono sa Baranggay program which would have entailed a P62-billion government fund outlay.

In other developments: government may seek legislation that will convert the NTC into a much broader National Information and Communications Commission;

The Department of Transportation and Communication is looking at the possibility of either leasing or selling to the private sector all government-owned local exchanges (50 of them), national earth station facilities, 675 public calling offices, and the government owned national backbone in order to upgrade them.

Rio estimates that since the ACP will provide a lot of incentives to participants from the telecommunications sector, government’s stake will probably reach around P500 million in terms of unrealized income.

"Because of this, we may need approval from Congress to undertake the ACP since it would mean less income for government," Rio told The STAR. The incentives will come in the form of spectrum users’ fee as well as supervision and regulatory fee reductions for ACP participants.

Transportation and Communication Undersecretary for Communications Agustin Bengzon said the plan provides for the telephone companies to put up multi-purpose telecenters in 1,525 municipalities as well as a payphone at least in clusters of barangays.

Right now, of the 42,000 barangays, around 36,000 have no phones. There are also 1,400 municipalities that have no access to telephones.

Bengzon said the program will be funded and operated by the telcos which not only have the financial, managerial, and technical expertise but which also can implement the program faster.

The role of government, he emphasized, is to provide policy coordination and incentives.

For his part, Rio explained that as planned, areas will be assigned to each telephone company which within a three-year period, has exclusive right to put up telephones in the area.

The ACP is also seen as a replacement to the local exchange carrier (LEC) service area scheme (SAS) which is also considered a failure since the telcos put up phones in so-called profitable areas but neglected the "missionary" or less profitable ones.

The SAS also resulted in a highly underutilized capacity. Only 58 percent of the seven million phone lines installed were utilized with the remaining 42-percent unsubscribed.

Meanwhile, Bengzon said that the lack of universal access to information technology, also known as the digital divide, will be partly addressed by the ACP.

"Government has the responsibility to make our information and communications technology (ICT) build communities not only in profitable areas but also in rural remote areas," he said.

Bengzon noted that no less than President Arroyo said there is a need to accelerate the ICT (information and communications technology) sector and help the country reach the peak of the new economy.

But he said there are many challenges that need to be addressed. He revealed that in order to reduce the period (several months to one year) within which telcos negotiate before they interconnect, the DOTC and NTC are looking at a time-bound arbitration process that could force companies to interconnect within 60 days.

"The parties will be asked to appoint their respective arbiters. If they fail to agree one month after notice to interconnect is served, then the parties will have to select a new neutral arbiter. If they still disagree after 30 days, the neutral arbiter will have to decide in 30 days and his decision will be final and executory," Bengzon said.

He also said that while there is already an e-commerce law, there is still a need for comprehensive legislation on ICT.