#PartnerForChange. LUZON BYPASS INFRASTRUCTURE EXECUTIVE SUMMARY 12 December 2017
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1 #PartnerForChange LUZON BYPASS INFRASTRUCTURE EXECUTIVE SUMMARY 12 December 2017
2 $30* $22-$50* *monthly rate paid by consumers
3 ASIA PACIFIC STATE OF INTERNET Q Average APAC Internet Speed $ Mbps Mbps $ $ 22 Average Global Internet Speed $ Mbps $ $ $ $ $ $ $ INDONESIA PHILIPPINES INDIA SRI LANKA MALAYSIA VIETNAM AUSTRALIA THAILAND TAIWAN CHINA NEW ZEALAND JAPAN SOUTH KOREA HONG KONG SINGAPORE Source:
4 Luzon straits is a popular corridor for internet connectivity 11 cables 75,640 Gbps 240,000 Gbps additional capacity is forecasted in the next 10 years.
5 The Luzon Strait is a dangerous place for submarine cables Red lines indicate cables destroyed in 2006 Hengchun earthquake.
6 JAPAN TOTAL AREA: 377,972 km 2 POPULATION: 126M LANDING STATIONS: 17 PHILIPPINES TOTAL AREA: 300,000 km 2 POPULATION: 105M LANDING STATIONS: 7 SINGAPORE TOTAL AREA: km 2 POPULATION: 6M LANDING STATIONS: 7
7 I have also ordered the newly created DICT to develop a national broadband plan to accelerate the deployment of fiber optics cables and wireless technologies to improve internet speed. WIFI access shall be provided at no charge in selected public places including parks, plazas, public libraries, schools, government hospitals, train stations, airports and seaports. Continue current economic policies Institute tax reform Increase Philippine competiveness Increase infrastructure spending Promote rural productivity Automate land titling process Invest in human capital Promote inclusive growth Improve social programs Strengthen implementation of RH law President Duterte (SONA, 2016)
8 NATIONAL BROADBAND INFOSTRUCTURE 1 INTERNATIONAL SEGMENT DOMESTIC SEGMENT 3 LAST MILE SEGMENT
9 Luzon strait is a popular corridor for internet connectivity 11 cables 75,640 Gbps 240,000 Gbps additional capacity is forecasted in the next 10 years.
10 SOLUTION TO DRASTICALLY IMPROVE PHILIPPINES INTERNET Luzon Strait is an earthquake prone area dangerous for submarine cables. It causes billions of pesos of damage each year. Luzon Bypass Infrastructure provides international submarine cables a safe alternative path across Luzon Strait. In exchange, international submarine cables provide PH government use of their cable, initially 2,000,000 Mbps (50x increase of current government capacity*). *As of October 2017, total government capacity is 40,000 Mbps based on DOST-ASTI data
11 LUZON BYPASS PROJECT IMPACT ON INTERNATIONAL SEGMENT 1 INTERNATIONAL SEGMENT DOMESTIC SEGMENT 3 LAST MILE SEGMENT PROJECT IMPACT SOURCE OF INTERNET 1 SUBMARINE LINK TOTAL COST / Year 2,000,000 Mbps 1 Quote from Hurricane Electric 3/23/17 Local Private Telco $ 0.35 /Mbps $ /Mbps 2 Php 26 B / Year 2 Quotes based on PLDT 4/6/17 and Hurricane Electric 3/23/17 With Luzon Bypass Infra $ 0.35 /Mbps $ 0.00 /Mbps + Php 97M O&M 3 Php 0.53 B / Year 3 Project implementation cost is P975M OTC $1 = Php 51
12 PROJECT COMPONENT BCDA and DICT will be responsible for the development of the following: Luzon Bypass Infrastructure (BCDA) a 240 km multi-duct cable conduit path which will connect the western (Poro Point, La Union) and eastern (Baler, Aurora) modular information technology facilities Backhaul Infrastructure (DICT) internet network between the landing station in Poro Point, La Union and mutually agreed location within BCDA economic zones Last Mile Infrastructure (BCDA) internet network within the BCDA area of jurisdiction San Fernando New Clark City Clark Freeport Bataan Technopark Poro Point Camp John Hay Bonifacio Global City Baler
13 DOMESTIC BACKBONE Backbone with Middle Mile Connection to international submarine cable linked TO ASIA Connection to international submarine cable linked TO USA Legend: Population per square kilometer
14 FRAMEWORK AGREEMENT Signed 08 Dec Purpose: Framework: Outline the framework of a joint development project which will be implemented through mutual beneficial collaboration and sharing of resources BCDA to assist DICT on Luzon Bypass Infrastructure s funding and construction. DICT to share portion of the exchanged capacity to BCDA for its economic zones.
15 LANDING PARTY AGREEMENT Signed 15 Nov CABLE OWNER Purpose: Framework: Outline the exchange of usage of and payment for the Luzon Bypass Infrastructure by the submarine cable owners Cable Owner to use a portion of the Luzon Bypass Infrastructure, in exchange for DICT and BCDA to use a portion of its submarine cable spectrum (2,000,000 Mbps at the minimum).
16 FIRST CABLE TO USE LUZON BYPASS INFRASTRUCTURE Notable Features Highest capacity transpacific cable in the history First direct connection from HK to US (12,800km) Backed by world s best technology companies
17 How much is 2,000,000 Mbps? e-healthcare e-education PLDT 1,100,000 Mbps DICT / BCDA 2,000,000 Mbps 2,000,000 Mbps PLDT self-reported total international capacity during August 2015 Senate Hearing DICT/BCDA initial international capacity upon signing of the Landing Party Agreement e-government Inclusive growth
18 TRADED CAPACITY 2,000,000 Mbps Equivalent to PhP 4.8B* / year * Based on DOST-ASTI procurement of international capacity in HK / Tokyo C A B L E O W N E R Construction: PhP 6,700 M (now ) O&M: PhP 8,375 M ( ) Construct, Develop, Operate, Maintain and Secure the Submarine Cable System (with other system owners) B C D A Construction: PhP 975 M (now ) O&M: PhP 0 M ( ) Construct and develop the Luzon Bypass Infrastructure D I C T Construction: PhP 23 M (now ) O&M: PhP 2,438 M ( ) Operate, Maintain and Secure the Luzon Bypass Infrastructure
19 MILESTONES CONCEPT FRAMEWORK AGREEMENT LANDING PARTY AGREEMENT Project Concept MOU signed between DOST-ICTO and Cable Owner Letter of Intent OGCC Contract Review OSG Contract Review Framework Agreement OGCC Contract Review OSG Contract Review DBM Clearance DOF Clearance GPPB Clearance NEDA Certificate Waiver of Sovereign Immunity Landing Party Agreement
20 MILESTONES PREPARATORY WORKS Bidding of the Project Fronthaul On going survey of the 240km Terrestrial Roadwork Finalization of the Detailed Engineering Design CABLE LANDING STATION (CLS) Baler, Aurora CLS Poro Point, La Union CLS Construction 2018 Ready for Equipment 2019
21 Benefits of the Luzon Bypass Infrastructure egovernment ehealth eeducation ebusiness egovernance eservices Gov Agency Connecitvity Hospital Connectivity School Connectivity Go Negosyo! PhilGEPS Free Public Wi-Fi National Datacenter Telehealth Centers eclassroom Community ecenter BIR E-reg MOSES elgu PhilHealth Online Tech4ed Next Wave Cities evoting Project NOAH PHOpenIX CHITS Med Records e-library BaLinkBayan E-NBI Clearance Traffic Cameras NaRMIS RxBox Public School elearning LEAP Business epermit TV White Space
22 LONG TERM VISION Photo credit: National Telehealth Center For every 10% increase in nation s broadband penetration, GDP increases by 1.34% Based on World Bank and numerous other publications For every 10 people connected to the internet, roughly 1 person gets lifted out of poverty Based on Deloitte research High technology industries Land Value Capture
23 Photo credit: National Telehealth Center Government can create an enabling environment by promoting competition through sound regulation and liberalization The Global Technology Report 2015 Thank you
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