Abad: Cabinet to decide on NBN

MANILA, Philippines - President Aquino’s Cabinet will have the final say on the proposal to establish a government national broadband network (NBN), Budget Secretary Florencio Abad said yesterday.

“There is a policy issue that needs to be resolved in the Cabinet, and this is, is it desirable and feasible for the government to develop and maintain a broadband network/backbone?” he said in a text message to The STAR.

“Once that is settled, the funding issue will be resolved,” he said.

However, he indicated that if the administration decides to have its own broadband network, the earliest it could start it is 2013 as there is no money for it next year.

“This is a new project that is not contemplated in the 2012 budget,” Abad said.

The Department of Science and Technology (DOST) is pushing for an NBN project similar to the one under the Arroyo administration but less costly. DOST Secretary Mario Montejo has already sent a proposal to President Aquino.

The previous administration’s NBN project – with ZTE Corp. of China – cost $329 million or nearly P14 billion. Then Transportation and Communications secretary Leandro Mendoza signed the contract for the government in Boao, China.

Despite her husband’s being in a hospital recovering from a life-threatening heart surgery, then President Gloria Macapagal-Arroyo flew to China just to witness the signing of the contract. She later had to cancel the deal when allegations of kickbacks involving then first gentleman Jose Miguel Arroyo and former elections chief Benjamin Abalos Jr. came to light.