DICT strikes US$2-B Deal with HyalRoute for Fiber Network Investment
(SDN) — ANOTHER partnership for the Department of Information and Communications Technology (DICT).
This time is the DICT headed by Acting Secretary Eliseo M. Rio, Jr. striking a deal with HyalRoute Group through its subsidiary Philippine Fiber Optic Cable Network Ltd., Inc. (PFCON).
The deal is for HyalRoute Group investing US$1 billion in the Philippines’ fiber network requirements for a better, hopefully faster and smoother, internet connectivity.
In a press release sent by DICT to SDN — Science and Digital News, it was learned that HyalRoute is a telecommunications (telecom) company operating out of Singapore, and is known as “the leading provider of shared communication fiber network in Emerging Asia.”
To implement their collaboration, the two partners signed a Memorandum of Agreement (MOA) on Thursday, May 2, in Quezon City.
The accord is anticipated to lead to strengthening the network connectivity of the Philippines through PFCON’s Fiber Optic Cable (FOC) Network investment with a valuation of from $1 billion to $2 billion to be accumulated in various places spanning 2019 to 2028.
On the other hand, the DICT will provide assistance to PFOCN in procuring the needed permits and licenses for the successful implementation of their initiative.
Rio, a former general in the Armed Forces of the Philippines (AFP), DICT Undersecretary John Henry Naga, HyalRoute CEO Dana Dong, and Vice President Guowei Tang led the signing ceremony.
DICT and HyalRoute Group/PFCON executives display the MOA they signed for the latter’s US$1 billion to $2 billion investment on fiber optic cable in the Philippines. (DICT)
The DICT noted the partnership’s significance to the country’s telecom services.
“There is a need for more fiber optic cables in this country, thus this partnership will greatly improve our telecommunication services. We can now have cable networks that anybody can use and this jives with our National Broadband Plan (NBP),” Rio pointed out.
He assured that the roll-out of the fiber optic cable as a result of the collaboration will also be used for the DICT’s Free Public Wi-Fi network aimed at connecting the country’s “unserved” and “underserved” areas.
HyalRoute Chairman Huang Xinglong feels confident of the impact of his company’s investment in the Philippines.
“We believe this investment project will greatly improve the status of communication infrastructure, particularly fiber network, while improving broadband penetration rate and speed to meet the needs of the general public,” he said.
Fiber optic cables provide greater bandwidth capacity and allows for faster speeds with wider range. Once established, it will become the new shared network infostructure (information infrastructure) in the Philippines.
With the inking of the MOA now completed, the DICT and HyalRoute’s PFCON subsidiary will closely coordinate to start the FOC Network’s implementation.
It can be recalled the as part of the government’s preparations for the new major player (NMP) in the country’s telecommunications industry, the DICT has been engaging with various organizations including builders of telecom towers.
Rio said the country needs more telecom towers for better connectivity. (SDN)