MANILA, Philippines — Philippine Telegraph and Telephone Corp. (PT&T), which is vying to become the country’s third telco player, has signed an agreement with National Transmission Corp. (TransCo.) for the possible use of the government’s national fiber optic backbone facility to build a broadband network.
In a statement yesterday, PT&T said the memorandum of understanding with TransCo. would involve the creation of a technical working group (TWG) to firm up the preparation for the eventual use of dark (unused) fiber in the country’s network of transmission lines for building a broadband network.
Through the TWG, TransCo. would be able to validate the technical feasibility study conducted by PT&T more than a year ago.
The technical feasibility study presented to the TransCo board shows how PT&T can connect the existing network of fiber optic cables to the power grid.
By using the dark fiber on the grid, PT&T would have a true national backbone to allow it to compete with that of existing telco players PLDT Inc. and Globe Telecom.
“The MOU puts us one critical step closer to having a national fiber optic backbone. We have began looking at this from a technical standpoint more than a year ago, knowing that it would take time to develop a national/regional rollout plan that includes this backbone. This was before the third telco discussion began to take shape in November of last year,” PT&T chief operating officer Miguel Bitanga said.
“With the third telco bidding, all this means is we save on time should we be awarded and can effectively roll out this segment of a cellular network more quickly. Without cellular/third telco it gives our fixed broadband plans greater access to more areas nationwide,” he added.
Leasing the TransCo assets will also enable PT&T to save five to 10 years of construction time and capital expenditures compared to building one on its own.
As PT&T studies how to use the dark fiber for building a broadband network in the country, the company is hopeful the issues between TransCo and the National Grid Corp. of the Philippines (NGCP) over the country’s transmission assets will be resolved.
PT&T is also open to discuss the issues with Department of Information and Communications Technology (DICT), Transco and NGCP if necessary.
NGCP, which holds the 25-year concession contract to operate the country’s power transmission network, is comprised of Monte Oro Grid Resources Corp., Calaca High Power Corp. and the State Grid Corp. of China as technical partner.
The concession agreement allows the government to keep ownership of the transmission assets through TransCo.
Late last month, the NGCP said DICT officer-in-charge Eliseo Rio Jr. expressed the agency’s commitment to partner with the grid operator on the use of transmission facilities as backbone for the National Broadband Plan for the duration of its concession agreement.
The DICT is currently finalizing the terms of reference for the selection of a third telco player.
President Duterte wants a new major telco player to enter the market to compete with incumbents and allow consumers to have another option and experience improved services.