Policy reversals and the NBN

Policy reversals and the NBN

egitimate issues about the project to install a government-owned Internet NBN—a national broadband network—are being drowned out by exciting but peripheral noises. This is unfortunate.

Allegations of bribery and other forms of corruption, violations of the law, the incompetence of officials who lost their copies of the contract, questions about whether there is indeed a contract between the government and the ZTE corporation, etc. have been making the headlines.

They give a lot of titillation. But they keep the public from understanding the proposed government-owned NBN project and what sound reasons there are for not going ahead with it.

If there is indeed a deal, the government’s national broadband network is supposed to be installed by China’s ZTE corporation. The Internet NBN is supposed to serve as the backbone of a multi-media communications system among the Philippine government’s multitudinous branches, extensions and smallest local units and subunits in our archipelago of more than 7,100 islands.

Most experts agree that there is a need for such a backbone to insure fast Internet and multi-media interconnectivity among government offices.

An issue we would like to raise is the question of whether this government-dedicated NBN should be owned by the government.

There are at least two private sector Philippine corporations that can provide the NBN—PLDT and its Smart subsidiary. Globe, ABS-CBN/SkyCable and others can also form consortiums and do everything that ZTE (or its Chinese and American competitors) can do.

Have we abandoned the principle of allowing the private sector to do the work and allow business to profit from the country’s infrastructure projects? Are we about to launch a new period of state capitalism?

Does this mean that government should now also go into shipping? The leading companies in the passenger and cargo shipping industries are not expanding fast enough to meet the economic-productivity and basic-commodity price reduction and price stabilization goals of the Arroyo administration. Should the government therefore also fund and operate a mammoth national shipping network and compete with, or even swallow up, the existing shipping companies? We are sure China will only be too happy to provide the multibillion US-dollar loans for this supershipping project.

Is government going to dispense with the services of the many private contractors hired to build our roads and highways that year in and year out have to be repaired after every rainy season?

Another issue that has not been raised in the media is the claim of proponent government officials that a government owned NBN will save the government half of the P4 billion it now spends on “communications expenses.” This claim seems to ignore the meaning of savings. If you have a budget of P4 billion to achieve some work and you spend only P2 billion you have indeed made a saving of P2 billion.

But in this case, the government has to spend about P16 billion (exclusive of the 3-percent annual interest) to pay for ZTE’s setting up of the NBN. Government will also have to spend for the network’s operation. Where then are the savings? And IT is constantly advancing so that prices are always going down. Wouldn’t the P4-billion communications costs today be much less three years from now using private-sector facilities?

Apparently President Arroyo herself had questioned the need of a “government broadband.” This was, apparently, during a meeting of the Cabinet and the experts of the National Economic and Development Authority (NEDA) in Malacañang in November 2006. The NEDA had told the President and the Cabinet that it was indeed necessary to link all the central government agencies with all government sub-units. But Socioeconomic Planning Secretary Romulo Neri batted for creating the connectivity through the private sector. The President herself then insisted that the NBN be handled as a build-offer-transfer project, not a government-owned project to be financed with a loan that the national treasury would have to shoulder for years. Why has this policy been reversed?

These policy reversals are very serious issues. They have far more enduring consequences for our nation’s future than the exciting side issues surrounding the ZTE deal.

The truth about the bribery, overpricing, incompetence and other sensational matters must, however, also be exposed.

No longer amusing

GAME shows and quiz programs are closely monitored in other countries because the fabulous cash prizes could promote cheating. In 2001 it was discovered that the winner of the 1-million pound prize in the British Who Wants To Be A Millionaire had been coached by a fellow contestant. In the 1950s, several contestants on the US quiz show Twenty One admitted they were coached by the producers.

Sen. Mar Roxas, chairman of the Senate Committee on Trade and Commerce, has filed a resolution seeking an inquiry, in aid of legislation, to strengthen protection of consumers or contestants who join TV game shows.

“Millions of Filipinos watch these game shows and send text messages or purchase products so they could become contestants, hoping that they win and uplift their lives with the prize money,” he said.

Allegations of cheating erupted over a recent edition of the popular ABS-CBN game show Wowowee. The host had reportedly switched the winning numbers to avoid giving away P2 million to a contestant. The studio blamed the incident to a “technical glitch.” But some viewers and a rival studio took potshots at the Wowowee host and producers.

With the proliferation of game shows and the millions given away, we must ensure fairness and transparency on TV and determine the government action needed to regulate them and ensure the protection of consumers and contestants. The Roxas resolution is timely.

Everyone’s at risk

Everyone’s at risk

The technology that unites the mighty and obscure, the wealthy and the humble of means, isn’t television (class lines get delineated by the programs people choose to watch) but the cell phone. Politically, the battle for hearts and minds since 2000 has been waged by means of text messages. And whether it’s President Gloria Macapagal-Arroyo sending instructions to her subordinates, an overseas worker keeping tabs on the kids at home, bankers or security guards, the ties that bind are maintained by means of the cell phone.

When news first broke that a conversation allegedly between the President and Election Commissioner Virgilio Garcillano had been intercepted and recorded, a troubling thought sent shivers down the spines of many people. If it can happen to the President, people said, it can happen to anyone. That troubling thought has once more gained currency following the revelations made by Sen. Panfilo Lacson in a privilege speech last Tuesday.

We will set aside, for now, why Lacson’s witness, retired T/Sgt. Victor Doble, took so long to detail the circumstances surrounding the tapping of Garcillano’s phone. Doble explained how the phone tapping was done. He says it was undertaken by the Intelligence Service of the Armed Forces of the Philippines (Isafp) with the assistance of someone, or some people, at Smart Communications Inc. The media relations machinery of Smart then kicked in, taking pains to deny that the company has a policy of conniving in the tapping of its subscribers’ phones. It also denied that its officers or rank-and-file condone, much less assist, wiretapping activities.

But the allegation has been made, and what’s more, what was alleged is not beyond the realm of possibility, according to the statements of Smart itself. It is possible, the company said, that someone, acting in an unauthorized manner, might have consorted with the Isafp and helped it. Of course, it can be said that anything is possible, but the question is: Did it happen? And if so, how could it have happened?

The privacy of communication is a constitutionally protected right; it applies to everyone, the exceptions being clearly spelled out in our laws. Our laws are so zealous in this regard that the anti-wiretapping law tries very hard to make any intercepted communication of little or no value in court.

Still, the allegations are grave enough, in terms of their implications to not only national security but to civil liberties, as to require a thorough investigation. There are fundamental issues of governance -- not just political, but corporate -- at stake here. There are issues involving civilian control over the military, and combined politico-military influence over private enterprise, or people who work for private corporations.

If the Isafp did conduct surveillance operations, who ordered it? If an officer did, why didn’t the civilian authorities know about it? If a civilian official authorized it, on what basis? And if somehow, Smart or some of its employees assisted the Isafp, how could it happen without management finding out, or being able to properly determine how it might have happened once allegations were made? Of course, there is a more sinister question: Could Smart have resisted at all a military “invitation” to assist in eavesdropping?

There are technological questions that need to be resolved, as well. Lacson, by way of Doble, suggests intercepting cell-phone calls is quite easy, as is recording conversations for future use and abuse. We have no shortage of technologically knowledgeable people who can verify or dispute this claim, outside of the private firms and public agencies that have a vested interest in dismissing such allegations out of hand.

Good corporate governance, not just effective public relations, suggests Smart would be wise to undertake a more thorough investigation of these allegations. If the Isafp can snoop on its subscribers, then kidnappers and extortionists can do the same, if all that eavesdropping requires is a pliable low-ranking technician. The economy in general, not just Smart, can ill-afford a blue-chip stock taking a hammering in the local or New York bourses because of investor concerns over the vulnerable security of telephone communications in the Philippines.

Pinoys abroad are abreast of local news

Pinoys abroad are abreast of local news

THANKS to satellite communications feeding live television broadcasts to major cities around the world, and the ubiquitous mobile phones (cellphones to us), Pinoys abroad are kept abreast with news at home.

In some major cities in the US and Canada I visited recently, Filipino communities were up-to-date with major developments at home.

Their main interest, as expected, is politics. For example, the SoNA of President Arroyo was well-received by Filipino-Americans in these cities. However, there are some who readily disagreed with what she enumerated as her achievements in 2006.

Next to politics, showbiz’ happenings occupy Pinoy’s leisure hours at home. Typical of Filipinos pastimes they are all in the latest gossips in the local movieland.

The Filipino Channel (TFC) appears to have more subscribers than GMA’s Channel 7. The patronage includes Willie Revillame’s noontime show, TV Patrol and ANC news programs.

I would say that Eat Bulaga and 24-Oras news hour of Channel 7 are getting an increasing number of following and subscribers (average monthly subscription is $ 30).

One advantage of ABS-CBN is that it is now offering to Pinoys who are TFC subscribers money-transfer services, with service fees much lower than bank rates. The broadcasting company is likely to hit pay dirt here.

And the ubiquitous cellphones? Believe it or not, cellphone cards are selling like the proverbial cakes in Filipino stores in major cities in the US and Canada. Texting to friends and relatives back home has become a pre-occupation of Fil-Ams.

In fact, what Pinoys are now saying is that it was they who taught Americans how to send short messages (including the use of unique abbreviations). To friends from their cellphones.

And yes, it has now become easier for Pinoys to communicate with their families here with the use of the cellphone as to when is the next Balikbayan box is to arrive here.

CELLPHONE ROAMING RIP-OFF. When Globe wireless telecom advertised in different newspapers last June about its prepaid roaming World Widest Service, I took advantage of it thinking that it would be convenient for one who was to be out of the country for more than a month. There was no such international service. Instead I was fleeced of P700.

While in the US and in Canada, I received only one call and three TXT messages from the Philippines. Worse, I could not reply either by calls or TXT.

Instead, I received nearly two dozens of "Welcome to the USA/Canada" messages and other "advisories" from Globe. Each of those meaningless messages, I understand, were charged to me.

Arriving here last Monday, I immediately dialed Globe for a de-activation of that supposedly worldwide (in 100 countries, "daw") calling and texting service. Believe it or not, this is what Globe answers:

"Sorry, your request cannot be processed. No active roaming yet."

Help, National Telecommunication Commission!

This trick of naming roads, etc., after VIPs

This trick of naming roads, etc., after VIPs

NAMING GAME: They say that one way of ensuring government support for a project, especially big ticket infrastructure, is to name it after somebody dear to the President. I don’t know if the trick works, but I won’t be surprised if it does.

In my province, for instance, local politicians pulled a scoop when they named Clark Field, the former home base of the US 13th Air Force, the Diosdado Macapagal International Airport.

If you were President Gloria Macapagal Arroyo, would you allow a major airport named after your dear father go the way of ordinary weather-beaten infrastructure standing as monuments to government neglect?

But what rules are there, if any, governing the naming of public structures after notable persons, dead or alive?

* * *

DIVISIVE: Reader Jorge B. Navarra, a Butuanon, has written the National Historical Institute to ask if the renaming of the “2nd Magsaysay Bridge” in their city as “Diosdado Macapagal Bridge” complied with NHI requirements as prescribed by law.

Navarra reported: “This multibillion-peso bridge project spans the Agusan river about three kilometers upriver from the old Magsaysay Bridge in downtown Butuan. It was temporarily called 2nd Magsaysay Bridge.

“When it was inaugurated before the May 14 elections, its name was 2nd Magsaysay Bridge. The people of Butuan knew that a permanent name would be given in due time.

“Not a few Butuanons wanted ‘Butuan Bridge’ to identify this landmark with Butuan and inculcate pride of place among its citizens. This was a monumental project for Butuanons and naming it Butuan Bridge will inspire unity. This name will avoid the divisiveness caused by naming public structures after politicians, their relatives and their benefactors.”

* * *

RECOMMENDATORY: Navarra recalled that during the Butuan visit of President Arroyo last July 10, the bridge suddenly sprouted signs identifying it as “President Diosdado Macapagal Bridge.”

Then the President was reported on TV, radio and the newspapers to have accepted the resolution of the Butuan City Sangguniang Panglungsod giving the Macapagal name to it.

Did the Butuan City Sangguniang Panglungsod officially confer this name to the bridge? “If it did,” Navarra said, “was this not done in violation of the Local Government Code?”

He noted that Section 13 provides that local governments can exercise authority only over structures owned by them. It so happened that the Butuan bridge is funded by a national government loan from Japan’s ODA-granting agency.

If the Butuan Sanggunian passed a resolution endorsing to the President or to Congress the naming of the new bridge, Navarra said, this resolution is merely recommendatory.

* * *

CONSULTATION: The Macapagal name cannot as yet be adopted, he added, yet it has been placed on signs at the structure, carried in media and used by bureaucrats in referring to it.

Until a presidential proclamation is issued or a law is enacted naming the bridge, its project name “2nd Magsaysay Bridge” remains. The preparing of the proclamation or passing of a law must involve public consultations, Navarra said.

“We have no issue with the credentials of the persons being honored by naming public structures after them,” he said. “We are questioning the practice of naming highways, bridges, buildings, airports, etc., after persons using procedures that do not conform to the law.”

* * *

WHERE’S MONEY?: Sen. Mar Roxas is pressing Malacañang to tell the people where it would get the billions needed to fund the ambitious infrastructure program that President Arroyo outlined in her last State of the Nation Address.

This makes sense, because it is easy to draw up a wish list of supposed projects and wave it before an expectant population — and another thing to produced the money to make the wish come true.

Roxas said the President mentioned only these fund sources: P1 trillion from state revenues, with tax reforms, and orders to the BIR and Customs to meet their collection targets, P300 billion from government corporations, and more billions from state financial institutions, private sector investments, local government equity, and foreign loans and grants.

But after you add up the money, he said, there is still a big deficiency.

* * *

MASINLOC SOLD: The government announced the sale, finally, of the 600-megawatt Masinloc coal-fired power plant in Zambales.

This is significant because Masinloc is the most valuable among the power-generating plants of the National Power Corp. and has been the subject of questioned attempts to sell it to favored bidders.

The Singaporean-led consortium Masinloc Power Partners Co. Ltd. won the auction after submitting a $930-million bid. It will be asked to pay 20 percent of that price up front after the official transfer of the plant.

The MPPC is affiliated with Singapore’s AES Transpower Pte. Ltd., an investment holding and service company for entities involved in generating, accumulating and trading electricity.

Losing bidders included big names: Masinloc Consolidated Power Inc. (which bid $588 million), Masinloc Holdco Inc. ($606 million), Anglo Cayman Energy Development Co. Ltd. ($650 million); First Gen Luzon Power Corp. ($710 million).

* * *

BID CANCELLED: The first round of Masinloc bidding in 2004 failed because the only buyer, the supposed winner, would not pay the required deposit until it is assured of signing a firm supply contract with a generator or distributor.

In that bidding in 2004, YNN Pacific Consortium offered $560 million. But it failed to deliver the 40-percent up-front payment of $270 million.

The Power Sector Assets and Liabilities Management which oversaw the bidding forfeited YNN’s performance bond of $14 million in July 2006.

Another major transfer of power assets months ago was of Mirant — the biggest independent power producer — selling its assets in the country to a consortium of Tokyo Electric Power and Marubeni Corp.

Asean at 40

Asean at 40

Regional integration is never easy. National interest, often defined by the personal interests of national leaders, trumps regional needs. Local politics and power play can derail initiatives that will benefit the region. Some governments base policy-making on long-term considerations; others can’t afford to look beyond a year or two.

Despite such complexities, the Association of Southeast Asian Nations has managed to achieve significant progress in regional cooperation since it was created 40 years ago. The foreign ministers of the founding member countries — Indonesia, Malaysia, the Philippines, Singapore and Thailand — signed the ASEAN Declaration in Bangkok on Aug. 8, 1967, creating a grouping that was meant to prevent the spread of communism in Southeast Asia.

From that original objective, ASEAN has expanded both its areas of cooperation and membership, taking in Brunei, Cambodia, Laos, Myanmar and Vietnam. A larger membership is more unwieldy, especially in a grouping with a policy of non-intervention in each other’s internal affairs. This is evident in ASEAN’s efforts to set up a human rights body and include a provision in its proposed charter committing respect for human rights. Myanmar, whose repressive junta opted to have the country relinquish the revolving ASEAN chair rather than implement democratic reforms, is strongly opposing the regional initiative on human rights.

ASEAN has a population of about 600 million with a combined gross domestic product of $2.75 trillion. If the grouping can market itself as a unified economic bloc, ASEAN can wield more clout in international trade negotiations. But economic integration has also been slowed down by differences in quality standards and disagreements on product qualifications and tariff systems, among other things.

Other areas of cooperation, however, have been less contentious. Regional cooperation has worked well in efforts to fight terrorism and transnational crimes as well as prevent the spread of diseases such as bird flu. The region, which has not seen war since the end of the Vietnam War, understands the benefits of peace and prefers to settle territorial disputes through non-violent means. There is also general support for nuclear non-proliferation.

Life, it is said, begins at 40. More progress lies ahead for ASEAN as its 40th Ministerial Meeting opens today and regional cooperation becomes stronger.

Filipinos send 500M text messages daily

Filipinos send 500M text messages daily

Darwin G Amojelar

FILIPINOS sent an average of 500 million text messages a day last year, doubling the number of text messages sent in 2005, the National Telecommunications Commission (NTC) said.

Edgardo Cabarios, director NTC’s Common Carrier and Authorization Division (CCAD), attributed the increase to the promotional gimmicks offered by mobile-phone service providers like unlimited text messaging, voice call discounts and the rising subscriber number.

Data from the NTC show that the country’s subscriber growth rose by 23 percent to 42.87 million subscribers last year from the 34.8 million in 2005.

Of the total, Smart Communications Inc. has 17.2 million subscribers; Globe Telecom, 16.7 million; Pilipino Telephone Corp., 6.97 million; and Digital Telecommunications Philippines Inc. (Digitel), 2 million.

In addition, Next Mobile has total subscribers of 22, 411; Extelcom, 10,374; and Connectivity Unlimited Resources Enterprise (CURE), 1,000.

“We expect this trend to continue,” Cabarios said.

He added that the strong economic growth and the overseas Filipino workers (OFWs) remittances to the country boosted consumer spending for cell-phone handsets.

The number of landline subscribers also rose by 7 percent to 3.63 million last year from 3.37 million in 2005.

The PLDT landline subscribers dropped to 2 million last year, from 2.04 million in 2005, or a total market share of 55.23 percent.

Piltel’s total subscribers are 46,202; Innove, 329,908; BayanTel, 227,057; Bell Telecom, 271,000; Philcom, 53,098; ETPI, 22,467; and PT&T, 14,193.

Earlier, the International Data Corp. (IDC) reported that the country’s telecommunication industry projected to grow by 11 percent over the next five years.

The international research firm attributed the growth to the data services segment that is expected to post stronger performance, boosted by strong uptake of texting and Internet connectivity, coupled by price pressures and data communication substitutions on voice services.

Last year the IDC estimated that the market grew by 6 percent year on year, posting $2.956 billion in annual SP revenue.

The mobile-services market continued to dominate the telecommunications market with 68-percent revenue market share, while telecom network services and Internet access services segments had 25 percent and 7 percent, respectively

But the voice market was inhibited by aggressive price drops and promotions as well as the expanding availability of alternative data means of basic communications.