The President’s issuance of Executive Order 32 to streamline the bureaucratic gauntlet of permitting processes that, for decades, has stymied the construction of telecommunications and internet infrastructure may be one of the most important and will hopefully be a game changing policy reform that will enable our potential of becoming a competitive player in the evolving global digital economy.
The EO was one of the first recommendations of the digital infrastructure group of the Private Sector Advisory Council and the Anti-Red Tape Authority (ARTA).
The recommendations are intended to sustain and enhance the expiring Joint Memorandum Circulars that resulted in the quickening of tower builds with the drastic reduction of permitting timelines that had to go thru so many national agencies and local government requirements.
It used to take four to six months and in some cases could delay a project by almost a year before construction could start.
EO 32 now requires all government agencies and local government units to comply with the set of guidelines for the issuance of permits, licenses, clearances, certifications, and authorizations of telecommunications and Internet infrastructure projects.
The following construction activities are included: setting up, fixing, operating, and maintenance of Shared Passive Telecommunications Tower Infrastructure (PTTIs); and, putting up poles, laying down aerial and underground cables and facilities, underground fiber ducts, ground terminals, and other telecommunications and Internet infrastructure and facilities that transmit digital data and telecommunications signals.
The EO spells out the list of permits that will be required and explicitly directs that, “No other national or local permit or clearance shall be required in the construction, installation, repair, operation, and maintenance of telecommunications and Internet infrastructure.”
A clear warning to some LGUs imposing their own set of permits, licenses, and fees delaying telco projects to the actual disadvantage of their constituents who have been waiting for fast internet services.
Streamlining these requirements shall benefit key digital infrastructure stakeholders such as: Public Telecommunications Entities that are holders of Certificates of Public Convenience and Necessity or Provisional Authorities granted by the NTC, Cable TV operators registered as Value-Added Service (VAS) Providers and authorized to provide internet services, registered VAS Providers under the DICT Free Public Internet Access Program, ICT Technology Providers or Physical Infrastructure Contractors, Independent Tower Companies registered with the DICT, Distribution Utility Owners, and all contractors authorized by these enterprises.
All cities and municipalities are also mandated to set up a One-Stop Shop for Construction Permits and to implement a Zero Backlog Policy in all applications for permits and clearance covered by EO 32.
DICT Secretary Ivan Uy said in his published statement, “The issuance of EO 32 is a crucial step in our goal of attaining a digitally inclusive nation” and that this measure “will be a vital component in ensuring that no Filipino will be left behind in this digital age through the deployment of shared PTTIs and other ICT infrastructure, especially in geographically isolated and disadvantaged areas.”
EO 32 will hopefully speed up the DICT’s digital infrastructure programs one of which is the 240-kilometer Luzon Bypass Infrastructure project which is a fiber line that will link the cable landing stations in Baler, Aurora East of Luzon and Poro Point in La Union in the West.
This was targeted for completion by June this year.
This is a key component of the 12,800-kilometer undersea cable system project under the Pacific Light Cable Network (PLCN) which is envisioned to significantly lower the cost of internet services and improve broadband speed in the country.
When activated the plan was to light up 28 nodes of the national fiber backbone located in 12 provinces in Luzon.
This will be a game changer as the enabling effect for both the government and all the end users of this network will be on a national scale.
Digital infrastructure is a key driver for innovation and economic growth. Like power and water utilities, it is now considered as critical infrastructure that has become indispensable for enabling all business models to compete and seize new opportunities in the fast growing and borderless digital market.
According to a report by McKinsey, digital technologies could add up to $2 trillion to global GDP by 2025. Moreover, a secure, robust, and accessible digital infrastructure is a requisite for a systemic and societal digital transformation that will effectively harness the power of technology in developing sustainable and inclusive ecosystems.
This is indeed a laudable move by the President that should also give impetus for prioritizing the allocation of more government resources to be invested in strategic digital infrastructure projects as what other states in the region, which enjoy much faster broadband services, have been doing for so long.
We look forward to the DICT’s fast action on the Implementing Rules and Guidelines of EO 32 and the strict compliance of all government agencies and LGUs as this is critical infrastructure that we all need ASAP.