Gov't aims to save P170M a year with VoIP--NEDA exec

By Erwin Oliva INQ7

THE GOVERNMENT aims to save 170 million pesos a year in communications expenses through the use of voice over Internet Protocol (VoIP) technology, an official of the National Economic and Development Authority (NEDA) has said.

Citing figures from the Commission on Audit (CoA), NEDA assistant director general Danny Pabellon said that government spent 649.8 million pesos in 2004 alone on communications. This figure includes expenses for landline telephones, mobile phones, Internet connectivity and other means of communication such as satellite, cable and telegraph and radar. In 2003, government spent a total of 558.3 million pesos for communications.

"Government is spending a lot on communications," Pabellon stressed during a conference on VoIP in Manila. This has prompted the Department of Budget and Management (DBM) in 2005 to require all government agencies and departments to use VoIP to reduce spending by at least 30 percent.

VoIP technology routes phone calls through the the Internet rather through conventional telephone networks, often at much lower cost.

Pabellon said the 170 million pesos in annual savings can help build 500 additional classrooms, and hire around 17,000 new teachers.

Early this year, President Gloria Macapagal-Arroyo instructed the Commission on Information and Communications Technology (CICT) to help propagate the use of VoIP in government.

The CICT is currently drafting guidelines on the procurement and installation of VoIP equipment in government, Pabellon added.

The Department of Education incurred the biggest communications expenses on telephone from 2003 to 2004, at 69 million pesos and 78 million pesos respectively, the CoA report showed.

Meanwhile, the Department of Environment and Natural Resources had the highest mobile phone expenses in 2003 at 13.09 million pesos. But this decreased to 11.39 million pesos in 2004.

Among the government agencies, the Department of Public Works and Highways recorded the highest increase in total communication expenses from 2003 to 2004, the CoA figures showed.

On the other end, the Department of Tourism had the biggest decrease in communications expenses, saving about five million pesos for the same period.

Internet expenditures also increased in government, with the Department of Trade Industry reporting the biggest expenditure from 2003 to 2004. In 2003, the agency spent 3.8 million pesos. In 2004, this increased to 6.9 million pesos.