MORE DIGITALIZATION INVESTMENTS President Ferdinand Marcos Jr. leads a meeting with representatives from the Private Sector Advisory Council in Malacanang on April 19, 2024. The PSAC sought an increase in government spending on telecommunications infrastructure to realize the government's goal of having cheaper Internet services and increasing the country's internet penetration rate to 65 percent. PNA
The government should invest up to PHP240 billion to develop the country's internet infrastructure and achieve a robust digital economy, the Private Sector Advisory Council (PSAC) said.
The Department of Information and Communications Technology's (DICT) infrastructure budget is at P 7.6 billion for six years, from 2018 to 2024.
"This is dwarfed by private sector spending. Globe [Telecom Inc.] alone has invested P265 billion in capital expenditure and P 236 billion in operational expenses in the past three years to enhance its network capabilities to improve the country's digital infrastructure," PSAC said.
The increase in infrastructure budget, it said, would help realize the government's connectivity goals of having cheaper internet services and increasing the internet penetration rate in the country to 65 percent from the current 33 percent.
It also sought a commercial partnership between the government and the private sector to build 35,000 new cell sites and to ensure the "full and consistent implementation" of Executive Order No. 32, which aims to streamline and expedite the permitting process for telecommunications (telecom) infrastructure.
The group requested an annual allocation of PHP60 billion for the DICT to lease towers, build last-mile facilities, and optimize existing telecommunications infrastructure.
It suggested these actions go hand-in-hand with the government and private sector collaboration.
"These are essential steps toward achieving comprehensive national coverage by 2028," it said.
If approved, it said these actions will help transform the Philippines into a leading digital economy in Southeast Asia.
"We advocate for a Presidential directive to ensure that all relevant agencies are fully aligned in executing all training and job promotion activities to achieve this ambitious job creation target," it said.
These were discussed during a meeting between PSAC members and President Ferdinand R. Marcos Jr. in Malacanang on April 19.
The PSAC was led in the meeting by lead convenor and Aboitiz Group president and CEO Sabin Aboitiz, with PSAC digital infrastructure sector leader and UnionDigital Bank president and CEO Henry Aguda, Globe president and CEO Ernest Cu, and former president and CEO of PLDT-Smart Al Panlilio.
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