The Department of Information and Communications Technology (DICT) said it is seeking the use of spectrum users fees (SUF) as “capital outlay” to fund digital infrastructure programs of the agency.
SUF are collected annually from mobile network operators (MNOs) in addition to all existing fees imposed by the National Telecommunications Commission (NTC).
In the Committee on Good Governance and Public Accountability Hearing on the alleged irregularities in the implementation of the 2018 UNDP Pipol Konek Project last June 1, DICT undersecretary Emmanuel Rey R. Caintic explained that allocations to the DICT’s implementation of the Free Public Internet Access Program from the SUF are currently classified as Maintenance and Other Operating Expenses (MOOE).
As such, the DICT cannot use the collected fees to acquire its own Very Small Aperture Terminal (VSAT) technologies, among others. He added that the allocated budget for the agency is likewise not enough for purchasing such equipment.
This is in response to queries on why the DICT continues to award contracts to suppliers to provide VSAT technologies in geographically isolated and disadvantaged areas (GIDA) instead of purchasing its own VSATs.
“We are simply limited by the funding. We have always been given MOOE on the use of the SUF, so we need to unlock the SUF and also allow it to be used for capital outlay,” Caintic said.
“If we will be allowed to unlock our SUF to both building the digital infrastructure as well as making it a capital outlay, definitely we will be able to create a more sustainable program na hindi taun-taon para tayong nagre-rent lang,” he added.
MOOE refers to an expenditure category for support of the operations of government agencies while capital outlay are expenditures for the acquisition cost of capital assets, such as equipment and infrastructure.
Caintic further stated that the agency is confident it can manage the operation of DICT-owned VSATs if it will be given the fund to buy these technologies.
“In the first couple of years, we will outsource some level of help, but in due time – that’s why we need a good program to manage our digital infrastructure – we will be able to manage it in time. That is the plan at least for national government entities – LGUs and NGAs,” he said.
Members of the House of Representatives are amenable to the call of the DICT to use SUF to be utilized as capital outlay.
Tarlac representative and House ICT chair Victor Yap is calling on the amendment of Republic Act 10929 or the Free Internet Access in Public Places Act to give DICT a leeway in utilizing SUF.
Valenzuela City representatives Weslie Gatchalian and BH party-list representative Bernadette Herrera-Dy also expressed their support in “unbundling the SUF”.
Section 17 of the Republic Act 10929 or the Free Internet Access in Public Places Act created the Free Public Internet Access Fund (FPIAF) under the management of the DICT to provide financing for the implementation of the program. The FPIAF shall be funded out of the Spectrum Users Fees collected by the NTC and other sources to be identified by the Department of Budget and Management (DBM).
At present, the DICT implements the National Broadband Program (NBP) along with the Free Wi-Fi for All Program. Complementing the NBP is the establishment of Provincial Broadband Networks to be linked to the national backbone.
