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  • Private firms embrace ‘GBN’
    GOVERNMENT GIVES TELCOS FREE HAND TO DRAW UP SPECS
     
    By Lenie Lectura

    Reporter

    PRIVATE phone companies are given a free hand in drawing up the technical specifications of the government’s broadband project, apparently after being stung to the quick by the messy Zhong Xing Telecommunications Equipment Co. Ltd. (ZTE) deal and obsolescence questions on the Chinese-designed network.

    This came about after a two-hour meeting at the National Telecommunications Commission (NTC) Monday afternoon among officials of the Department of Transportation and Communications and representatives of the Philippine Long Distance Telephone Co., Globe Telecom, Bayan Telecommunications Inc., Digital Telecommunications Philippines Inc., Philippine Association of Private Telephone Companies, and the Philippine Chamber of Telecommunications Operators.

    The DOTC now calls the project the government broadband network, or GBN, to distinguish it from the deeply tarnished China-funded national broadband network, or NBN.

    “We have made a short presentation of what the GBN is all about. Basically, it outlines the requirements of the government. Now, the next step is to ask the private sector to come up with their respective proposals on how the project will be carried out. We will pool all their proposals and from there we will determine how the project will be carried out,” said Transportation Assistant Secretary Lorenzo Formoso.

    The GBN is envisioned as a fully integrated single Internet protocol-based platform that will allow secured Intranet and virtual private network services, including secured e-mail services, data transfer and video conferencing; free calls within government nationwide through voice over Internet protocol, or VOIP; server hosting for better security; Internet connectivity; and mobile communications.

    These services will be provided by the private telcos using their existing networks with the necessary coverage and capacity expansion. At present, Formoso said none of the government agencies, except for some GOCCs, have virtual private networks. Government files are usually transferred via e-mail through Yahoo or Google mail, he added.

    Approximately P4 billion is spent by the government in annual communications expenses. In 2004 government agencies spent P1.9 billion; GOCCs, P1.1 billion; and local government units, P700 million.

    He said those amounts are expected to increase annually as more agencies implement e-government initiatives but that a GBN in place would reduce them significantly.

    Based on what the DOTC has presented, the GBN project will be divided into three phases. For Phase One, there will be connectivity for all national government offices. Approximately 2,400 connections will be needed.

    Phase two involves 1,628 connections to put online all provincial and municipal local government units. While Phase Three will entail 22,000 connections to connect to the barangay-level nationwide.

    Each of the phases are planned to be completed in a year. Construction may start next year. “The plan is to start as early as next year. The GBN project will be treated with a certain degree of urgency,” said Formoso.

    He said it is too early to say if the GBN project will be bid out. “Public bidding is still the best way to do it. However, that is one of the issues that will be threshed out by the technical working group. A bidding will also depend on the financial resources of the participating telcos.”

    A week from now, the private phone firms will submit their proposals. If they prefer that an auction be conducted, then they will also propose the terms of reference. Formoso said the DOTC needs two weeks to study these proposals.

    “The budget secretary has assured that such funds will be available. We will make sure the players are well-compensated,” added Formoso.

    For their part, the telcos said they could form a consortium instead of designating one phone company to carry out the GBN project.

    “Once the government has chosen the best proposal then we will know how to go about with the project. It is up to them if they will assign a company or two but another option could be a consortium. In this way, if the capital expenditure is a bit high then we can share the expenses,” said Globe senior vice president Rodolfo Salalima.

    Smart Communications Inc. is willing to participate in the GBN project. “Until we know from them how they plan to carry out the project, then we cannot comment further. We will submit our proposal. The government has the final say. It is good that they sought the assistance of the experts,” said Smart legal counsel Roy Ibay.

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