Former Department of Information and Communications Technology (DICT) undersecretary Eliseo Rio Jr. created a stir on Sunday, May 30, as he questioned the satellite-based Internet connection contracts that the agency awarded to private contractors worth P466,594,250.
In a widely shared Facebook post, Rio provided screenshots of the VSAT (very small aperture terminal) contracts that the DICT gave to four local firms on December 18, 2020.
The four VSAT-provider companies and the project cost awarded to them are as follows:
- PhilComSat – P112,5000,000 for 250 sites (Luzon Lot 1)
- We are IT Philippines Inc. (WIT) – P115,650,000 for 257 sites (Luzon Lot 2)
- IONE Resources – P97,829,000 for 215 sites (Visayas Lot 3)
- eBIZ Solutions Inc – P140,615,250 for 313 sites (Mindanao Lot 4)
Despite the huge budget totaling almost half a billion pesos, Rio pointed out that the project is for 1,035 sites only and will run for just a period of five months.
VSAT terminals are usually used in remote areas where there are no cable or fiber broadband infrasturcture. It is more costly than the traditional Internet connections as it sends or receives data, voice, and video signals over a satellite communication network.
The VSAT initiative was undertaken pursuant to Republic Act 11494 (Bayanihan to Recover As One Act) where procurement may be done without the bidding process for providing Covid-19 response and recovery interventions, according to Rio.
The purpose of the award was clearly stated as procurement of “Managed Internet Service — VSAT Network Services for Quarantine Centers and Medical Facilities”, said Rio.
“Yet almost all Quarantine Centers and Medical Facilities involved in the COVID-19 Response and Recovery are located in Areas adequately served by local commercial terrestrial telcos/ISPs that can give much more economical, cost-effective and sustainable services for this Free Wifi Project of DICT than these very expensive VSAT providers that were awarded almost half a BILLION pesos for a period of only five (5) MONTHS.
“It almost seems that the Terms of Reference for this Project were tailor-made to eliminate these commercial telcos/ISPs in favor of these VSAT providers, without the bidding process. And how in heaven’s name can a period of 5 months even make a dent in a pandemic crises that may take several months?” Rio commented.
The notice of award, which have all been accepted by the Luzon-based contractors, was signed by DICT secretary Gregorio Honasan II.
