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National Broadband Program will help PH government save Php720 million in internet expenses by 2021

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The Department of Information and Communications Technology (DICT) announced that government agencies would soon have access to a more reliable and cheaper internet once the phase one of the National Broadband Program (NBP) enters completion.

Under the National Broadband Program, Philippine government agencies can subscribe to internet services for Php50 per 1Mbps of bandwidth per month.

That’s much cheaper than the current spending of Php350 per 1Mbps bandwidth a month. An agency has a 100Mbps average speed requirement. This means that a whole building spends about Php35,000 a month or Php420,000 a year for internet services.

But with NBP, the costs will be dramatically decreased to Php5,000 a month or Php60,000 for an entire year for the same speeds. The DICT expects that the entire government can save Php720 million in internet subscription expenses just from the initial year of NBP implementation.

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During phase one, the DICT will initiate the Cable Landing Station in Baler, Aurora, which will connect to the National Grid Corporation of the Philippines (NGCP) node in San Fernando, La Union, using the Luzon Bypass Infrastructure.

After that, the DICT will light up 4 DICT nodes and 15 NGCP nodes, which will connect to different DICT equipment. This will then provide internet to nearby govnet clients and beneficiaries of free public WiFi.

Phase 2 will be implemented once the additional budget request of about Php17 billion for 2021 has been approved. Phase 2 will cover Luzon, Visayas, and Mindanao, which will help save the government about Php34 billion in internet subscription costs.

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