Ex-NTC chief backs end to broadband deal

LONE Catanduanes Rep. Joseph Santiago has backed the business community’s clamor for the Philippine government to “diplomatically abrogate” its controversial $330-million contract with ZTE Corp. for the supply and construction of a national broadband network.

“This is definitely the right thing to do -- for the Philippine government to find ways to persuade the Chinese government, which controls ZTE, that a mutually agreed voluntary dissolution of the contract has become imperative,” said Santiago, former chief of the National Telecommunications Commission.

Santiago made the statement shortly after an influential alliance of business groups put out newspaper advertisements criticizing the “highly questionable” deal with ZTE, and urging the diplomatic cancellation of the contract.

The paid advertisements, titled “Broadband for Barangays or Better Education and Health?” were put out by the Management Association of the Philippines, the Bishops-Businessmen’s Conference for Human Development, Makati Business Club, Foundation for Economic Freedom and the Financial Executives Institute of the Philippines.

“A central government that is electronically linked to local government by broadband is a good idea. However, spending on an expensive broadband technology, instead of maximizing and expanding existing networks, is not the best option,” the business groups said.

“There already exist national broadband networks that our telecommunications companies operate. Our national government agencies can lease bandwidth from them at market rates,” they pointed out.

According to the business groups, the law clearly states that a fundamental objective of government is to develop and maintain a viable, efficient, reliable and universal telecommunication infrastructure using the best available and affordable technologies. “In doing so, the law emphasized that public telecommunications services shall be provided by private enterprises,” they said.

They added: “The country still lacks 41,000 classrooms, even as our Constitution mandates that education should be the top priority in the national budget. Ask any poor family what their greatest fear is and the answer would most likely be health-related.”

“In remote barangays and in quite a few municipios, access to water is still a basic need. The ZTE contract value of $330 million (P15 billion) could be spent inbuilding 36,000 classrooms, or 6,000 rural health centers or 120,000 artesian wells,” the business groups said.

“Building a national broadband network puts government in the business of business, and in one that it regulates. This sends wrong signals to those who have already invested in the telecommunications industry and to potential investors in this country,” the groups warned.

“The government should have learned from its failed Telepono sa Barangay program. The dwindling number and deteriorating condition of public calling stations are also proof of the government’s lack of capacity to operate and maintain its own network. As a result, the infrastructure has deteriorated and the investment was unsuccessful,” the groups lamented.

“We strongly oppose the contract with ZTE. We respectfully call on the President to diplomatically abrogate the contract and to commit the funds to education instead, where the nation can benefit the most,” the business groups concluded