Philippines: Business
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PCCI calls for thorough and transparent review of Government’s
Broadband Contract
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29 MAY 2007
The Philippine Chamber of Commerce and Industry (PCCI)
is calling for a thorough and transparent review of
government’s contract for the installation of a
broadband network.
The contract created mixed reactions from the public and
from various institutions and organizations, that, “a
more thorough, public review may be warranted, for the
sake of demonstrating good faith from our institutions
and agencies and calm the growing questions on its
appropriateness and timeliness. This will ensure sound
economic, technological basis for our financial
commitments and guarantees,” PCCI said in a statement.
PCCI noted, per its preliminary analyses of what is
publicly known of the general outlines of the contracts,
it would appear that the government may be able to
achieve optimal benefits for the objectives of using
technologies for government efficiency and education, at
a more affordable and reasonable cost, without
commitments to technologies that the industry expects to
drop drastically in price very soon.
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“Given that we charge relatively higher communication
rates in ASEAN, at the same time, the only country
raising overall rates instead of lowering them, we need
to be very careful with how we allocate our resources,”
the PCCI statement said.
“Having in mind the need to improve our competitiveness
that will eventually translate to lower cost of doing
business, makes it very clear of our responsibility to
at least review the contracts, and make the best
possible deal out of them. Even if financing terms are
‘soft’, a project should still be examined on its merits
as it will have substantial implications to our
country’s debt burdens that are passed on to our
children,” the statement suggested. |
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Samie Lim, PCCI president |
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Samie Lim, PCCI president said, “government’s vision of
computerizing and creating a national communication
network between government agencies, educational
institutions, and other entities is clearly a positive,
exciting, and very important initiative. It will have
wide ranging impact on the efficiency, transparency, and
development of the whole country in all sectors. Let us
get all related and expert organizations together to
work towards this landmark undertaking.”
At the same time, PCCI rallies the country’s biggest
telecommunications companies to work extensively in
reducing the cost of communications, to administer a
more conducive and viable telecommunications sector at
par with global competition and technology penetration.
“PCCI is ready and willing to help coordinate with
government and private companies, in formulating
measures and developing benchmarks for comparative
system and cost studies, adjusted for the fast moving
technologies in the world today,” Lim noted.
Approaching the visionary objective of convergence and
connectivity aimed at improving the country’s
communications infrastructure to benefit various
segments of the society, PCCI calls on both government
and private companies to develop a coalition to work out
a more economically viable, detailed and comprehensive
plan, and execute such, to help improve the country’s
global competitiveness.
PCCI is a non-stock, non profit organization comprised
of 1,200 direct members, 98 local chambers, 122 industry
associations, and 30 foreign business councils, all
working together for more vibrant Philippine economy,
and to improve the viability of businesses in the
country.
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