The Department of Information and Communications Technology said it is spending less than P20 billion to roll out the national broadband network plan nationwide, lower than the original budget of P77 billion.
Acting DICT Secretary Eliseo Rio said the lower budget for the NBN project came after the government signed a tripartite agreement with National Grid Corp. of the Philippines and the National Transmission Corp. for the use of spare optical fiber to speed up the implementation of the project.
The agency earlier said the NBN project would require an investment of P77 billion and could reach as high as P200 billion if the government could not use existing infrastructure.
Rio said the NBN project was expected to be rolled out by 2019 and to be completed within two to three years.
The DICT under the agreement received an indefensible right of use for certain fiber optic cores, vacant lots, tower space and related facility of NGCP, the current concessionaire of the Transco-grid.
NGCP, the private-sector led operator of the power grid, earlier expressed firm commitment to help improve internet speed and exploit its partnership with the Department of Information and Communications Technology to roll out the national broadband program.
“We welcome this opportunity to take part in the National Broadband Program of the government to address the longstanding issue of internet connection quality in the Philippines,” NGCP said in an earlier statement.
The total length of the dark fiber network is 6,154 kilometers, spanning from Luzon to Mindanao.
Under the partnership, the NBP, the agency’s blueprint in accelerating the deployment of fiber optic cables in the country, is coming to fruition as the NGCP’s transmission facilities can act as the network backbone interconnected with to-be constructed Luzon Bypass Infrastructure.
The two major broadband projects, once completed, are seen to save time, manpower and resources of the government of about $2.6 billion, while helping address the need for faster and more affordable internet connectivity.
President Rodrigo Duterte earlier ordered the DICT to craft a national broadband plan in a bid to provide Internet services in unserved and underserved areas.
The national broadband network plan under Arroyo administration was abandoned because of allegations of overpricing and graft in procurement.