NG mulls P13.1-B modernization of RP telecom system

The government is considering the modernization of the local telecommunications system by putting up P13.1-billion worth of new technology, a top economic manager said.

In an interview, Socioeconomic Planning Secretary Romulo L. Neri said the multi-billion peso system will result to an estimated annual savings of P2.2 billion to P6.1 billion for the country.

"It seems economically viable," Neri said.

However, Neri, who is also the director general of the National Economic and Development Authority (NEDA), said they are still studying the system being proposed by the Chinese government in cooperation with China’s biggest telecommunication company.

"The Chinese are proposing a project but I want to be sure because I don’t want to be stuck with another white elephant," Neri explained.

Neri said the Commission on Information and Communications Technology (CICT) has already endorsed the system to NEDA but further studies are still being conducted by his agency.

"We want to be very, very clear on the economic benefits," Neri noted.

In order to reduce the project cost, Neri said the government may opt to use the assets of the Gokongwei-owned Digitel.

According to him, he is proposing putting the Digitel assets on the table so that the Chinese firm involved will be willing to participate without government guarantee.

For this to happen, Neri said the Gokongwei family must approve of the project.

The modernization of the telecommunications system entails putting up a backbone with broadband capacity, Neri said. This can improve telecommunications through faster data voice transmission using the WiMAX broadband two-way data and voice system.

WiMAX is designed to extend local Wi-Fi networks across greater distances such as a campus, as well as to provide connectivity to an Internet service provider or other carrier many miles away.