Introduction

 

   Excellent means of communication will generate savings in time and capital across different sectors of the economy. Improvement in communications technology will generate forward and backward linkages in terms of industries and related businesses, thus generating employment.  

 

Situational Analysis

 

   The objectives, strategies, policies, programs and projects laid down in the MTRDP 2004-2010 under this sector were partially implemented and therefore shall be continued for 2008-2010. In addition, there are new emerging concerns that likewise need to be addressed.

  

   The Telecommunications Office (TELOF) and Philippine Postal Corporation (PPC) are two government entities affected by technology advancement with the entry of international players in the telephone industry and the cellular phone or digital communication facilities of Smart and Globe. Telephone and telegraph facilities operated by TELOF have become uncompetitive compared to the communication services offered by private service providers. This agency therefore needs to be privatized before it becomes obsolete. The PPC, currently in the negative with expenditures exceeding revenues, needs subsidy from the government.

 

   The TELOF was originally planned to be rationalized and to be merged to the Department of Information and Communications Technology (DICT). Pending the merger, the President issued EO 269 creating the Commission on Information and Communications Technology (CICT) which is not merely advisory in nature but serves as the primary policy, planning, coordinating, implementing, regulating and administrative entity of the executive department on e-commerce initiatives. However, there is a plan to bring it back under the supervision of DOTC to effectively carry out its functions.

 

   Typhoons Milenyo and Reming destroyed telecommunications facilities like buildings, telephone lines and cell sites in the latter part of 2006, particularly in Albay, Camarines Sur, Catanduanes and Sorsogon. Hence, there is a need to restore and safeguard these facilities and expand service coverage to far-flung areas. During the restoration period, broadband (wireless phone) was introduced, such as SPAN for Bayantel and Mango for Digitel, which covered areas affected by the typhoons. However, the extent and magnitude of coverage also depend on the cell sites available throughout the region.

 

   The level of service in terms of communication is measured by the telephone density in the region which increased from 0.037 per 1000 population in 2004 to 2.37 in 2006. This figure will improve if private companies provide statistics on the service coverage and if Cellular Mobile Telephone System (CMTS) will be accounted. There are 62 mobile phone dealers in the region registered with NTC as of June 5, 2007.

 

   In terms of efficiency, the current communication using mobile phone can reach as far as Pandan in Catanduanes and Placer in Masbate. Growth centers, tourism and production areas are now accessible through mobile phone as a means of transacting business. However, there are still dead spots and more cell sites need to be put up by the service providers to increase coverage, depending on the market demand. The locations of cell sites of the different service providers in the region are being required by NTC to be submitted for updating to assess their accessibility.

 

   On internet connectivity, 49.12 percent of the total municipalities in the region have internet access as of May 2007. The six provincial governments have internet connections. Likewise, about 13.33 percent of the LGUs adopted the government electronic procurement system (G-EPS). Some LGUs have no internet access yet due to the inability of telecommunications companies to provide service, the unreliability of electricity in far-flung municipalities and lack of financial capability of lower class municipalities to acquire and maintain computers for internet purposes.

 

   Web presence in national government agencies (NGAs), state universities and colleges (SUCs), and local government units (LGUs) as targeted for year 2006 was barely attained. The NGAs, SUCs and the provincial LGUs generally have established their websites. However, among municipal LGUs, only 7.89 percent were able to establish and maintain their websites as of May 2007. The DILG established a Regional Local Governance Resource Center (RLGRC), an e-library and knowledge center, where LGUs and other stakeholders can directly access updated information through the use of ICT facilities. The DOST in 2005 has installed Voice-Over-Internet Protocol (VOIP) to facilitate coordination of the Philippine Research, Education and Government Information Network (PREGINET) for research and education purposes. However, such facility was destroyed by typhoon Reming in 2006.

 

   There are fourteen (14) telephone service players in the region --- thirteen (13) private operators and one (1) public facility. The number of facilities did not increase compared to 2004. The landline telephone industry is dominated by Bayantel and Digitel that are spread over the region. With the liberalization policy of the industry, telephone density had increased from 0.037 to 2.37 per 1000 population (2004-2006).

 

   The number of telegraph stations decreased from 122 in 2004 to 113 in 2006. This indicates that the telegraphic means has a lesser patronage in terms of information communication compared to digital means. The facilities are served by private and public facilities operated by TELOF. There is the possibility that telegraph facilities will weaken in the market due to the entry of digital communication facilities like the Cellular Mobile Telephone System (CMTS) which are more effective and efficient means of communication.

 

   There are 69 privately-operated cable TV stations registered with NTC in the region as of June 5, 2007. The breakdown per province is: Albay-7, Camarines Norte-9, Camarines Sur-23, Catanduanes-5, Masbate-11, and Sorsogon-14. In the latter part of 2006, the facilities in Albay and Camarines Sur were destroyed due to typhoons Milenyo and Reming and need to be fully restored. These facilities also help distance learning more accessible in the far-flung barangays and unserved areas.

 

   There are 139 Post Offices as of 2006, which had increased compared to the previous year's 135. The region was divided into seven district operations covering 41 areas.

 

   The postal products and services that are not affected by the advancement in communications technology, as can be noted from the increased transactions in 2006 compared to 2005, include: Postal ID, Rent Income, 1^st Class Mail (Newsweek), M-bags, Philpost Product Sales and Philatelic Stamp Sales.

 

Objectives

 

   The overall framework is to have effective and efficient communications facilities and universally accessible, interconnected and affordable information infrastructure and services that will facilitate the operation of socio-economic activities in the region.

 

      The specific objectives are as follows:

1. To privatize government telecommunication facilities.

2. To safeguard, rehabilitate, improve and expand service coverage by the service providers.

3. To improve learning capabilities of the people in far-flung areas or in underserved areas.

4. To study or re-invent the viability operation of the postal services.

Strategies

 

   The strategies to achieve the objectives are:

1. Continue implementation of the rationalization plan and merging of the TELOF and the Department of Information and Communications Technology (DICT) or retain TELOF with the DOTC.

2. The government should support service provider initiative in safeguarding the facilities by enforcement of laws, rehabilitation, improvement, and expansion of their facilities and services.

3. The government must support service providers through the installation of stations and cell sites in far-flung or underserved areas so that broadband means of communication can be effective.

4. Re-invent the postal system to be viable in its operation by doing the following sub-strategies:

1. PPC to review and recommend the appropriate organizational structure and activities that would beviable for operation. This includes the operational study on postal operations in US, Japan, and Australia which are known to be effective and viable.

2. Remove the “free use” (Franking Privileges) of postal services by government entities like Congress, COMELEC and Department of Justice in order to increase PPC revenues.

3. Study the possibility of having the Postal Office do the election, particularly in sending the election results at the precinct level to the higher level to avoid cheating in the election.

5. To adopt and support national objectives relative to digital infrastructure improvement.

   To reduce the cost of connectivity:

1. The government will continue to promote investments that support the provision of physical infrastructure for high-speed connectivity, high capacity and secured services at low cost.

2. The sustainability of these investments in physical infrastructure will depend heavily on market demand for broadband, which will be achieved by the provision of market attractive value-added features.

3. A prime market attractive value-added feature of a progressive digital infrastructure is VoIP or Internet telephony.

4. The private sector will lead the deployment and expansion of digital infrastructure, especially to unserved and underserved areas, as well as the convergence of telecommunications, IP technology, broadcast-media, cable TV, and other technologies to realize the full potentials of ICT as a tool for knowledge creation and sharing.

5. The requirements of major government ICT projects will be met. The efficiency of internal government processes will be improved through ICT. Existing government network infrastructure will be rationalized to enable sharing and interconnection of network resources among all branches of government to facilitate the seamless transfer of knowledge within the government. Where the gaps between networks cannot be addressed by sharing of government resources, the services of the private sector will be tapped by sharing of necessary infrastructure ”bridges” to close the gaps.

   ICT human resources shall be developed.The government shall provide opportunities for skills development and training and adopt a national standards certification system comparable to the rest of Asia to ensure the supply of quality ICT professionals and workers.

   To pursue regulatory and legislative reforms:

1. The Department of Information and Communications Technology (DICT) will be established as a venue to achieve a web-based Philippines, capable of participating in and contributing to the global economy.

2. The National Telecommunications Commissions will be strengthened and its independence in performing its regulatory function will be ensured, particularly in carrying out decisions and imposing sanctions and penalties for regulatory noncompliance.

3. The passage of the Convergence Bill will be pursued to address current regulatory issues such as Cable Television Classification and Frequency Spectrum Management that will permit the infusion of much-needed investment capital into the industry and enable the development of cable technology for convergence.

4. The Public Telecommunication Policy Act of the Philippines (RA 7925) reviewed and Congress will be asked to amend RA 7925, taking into consideration new technological developments, speeding up the realization of universal access goals, achieving adequate distribution of basic telephone services throughout the country and encompassing the needed institutional strengthening, sectoral reform and ICT expansion goals.

Major Programs and Projects

1. Full implementation of the rationalization plan for TELOF and merging it to the DICT up to 2010 or retaining it with DOTC (needs confirmation)

2. Privatize TELOF facilities within 2008 – 2010.

3. Support service providers in their efforts to safeguard, rehabilitate, improved and expand inclusive for broadband coverage to cover unserved areas.

4. Study the viability of using the power lines of the Bicol electric cooperative as broadband for internet cable communication.

5. To adopt the NTC programs and projects for 2004 onwards as follows:

1. Decentralizing Development Through Digital Network Infrastructures

2. Addressing Problems on Government Regulatory Issues

3. Addressing Problems Associated with Investors, Telecommunications and Broadcast Service Providers

4. The NTC ICT Agenda—a five-year computerization framework of the agency that intends to utilize IT as a strategic tool in pursuit of its mission

5. Addressing Consumer Complaints

6. Reforms instituted to intensify revenue collection processes