The Private Sector Advisory Council (PSAC) has asked government to set aside P240 billion to enhance internet infrastructure.
The group, in its fifth meeting with President Ferdinand Marcos Jr. on April 19, also proposed legislative and policy measures to support the digital infrastructure sector.
PSAC also requested at least P60 billion in annual allocation for the DICT to lease towers, build last-mile facilities, and optimize existing telco facilities to provide internet access in 125,000 public facilities, including schools, hospitals, and health centers, over a four-year period.
The government has set ambitious connectivity targets, aiming to increase the internet penetration rate to 65 percent from 33 percent and make it more affordable to Filipinos.
However, government spending on internet infrastructure has been traditionally on the low end, with the Department of Information and Communications Technology’s (DICT) total funding for internet infrastructure at P7.6 billion for six years from 2018 to 2024.
This is dwarfed by private sector spending, PSAC said.
It added Globe Telecom alone has invested P265 billion in capital expenditure and P236 billion in operational expenses in the past three years to enhance its network capabilities to improve the country’s digital infrastructure.
PSAC is optimistic the government will positively respond to its recommendation to set aside at least P240 billion to enhance internet infrastructure.
It hopes to explore a commercial partnership between the government and the private sector to build 35,000 new cell sites.
In his State of the Internet presentation, Globe Telecom president and chief executive officer Ernest Cu identified the following legislative measures that will support the digital infrastructure : streamlining the permitting process, energizing telco towers, rationalizing spectrum user fees, and amending the national building code to exempt telco and ICT facilities from lease fees in buildings and other developments.
“Telco and the internet must be widespread, robust, and meaningful, enabling full participation in the digital economy. Currently, policy gaps hinder expansion into rural and underserved areas,” said Cu.
PSAC also called for the full and consistent implementation of Executive Order No. 32 which the president issued last year to streamline and expedite the permitting process for telco infrastructure, which had been a roadblock to network expansion.
