luzon bypass infrastructure executive … bypass...bcda and dict will be responsible for the...
TRANSCRIPT
LUZON BYPASS INFRASTRUCTURE
EXECUTIVE SUMMARY12 December 2017
#PartnerForChange
$30*
$22-$50*
*monthly rate paid by
consumers
13.20 13.4118.33 19.18 20.74 24.43 25.52
37.4544.23
57.0364.32
69.87
121.49
145.17
156.67
TH
AIL
AN
D
ASIA PACIFIC STATE OF INTERNET Q1 2017
IND
ON
ES
IA
PH
ILIP
PIN
ES
Source:
www.Speedtest.net
www.Numbeo.com
IND
IA
SR
I LA
NK
A
MA
LA
YS
IA
VIE
TN
AM
AU
ST
RA
LIA
TA
IWA
N
CH
INA
NE
W Z
EA
LA
ND
JAPA
N
SO
UT
H K
OR
EA
HO
NG
KO
NG
SIN
GA
PO
RE
$ 40.96
$ 33.99
$ 16.82
$ 23.71
$ 38.03
$ 22
$ 25.70
$ 56.41
Mbps
Average APAC
Internet Speed
55.40Mbps
Average Global
Internet Speed
30.85Mbps $ 14.58
$ 17.73$ 20.19
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.
The Luzon Strait is a
dangerous place for
submarine cables
Red lines indicate
cables destroyed in
2006 Hengchun
earthquake.
SINGAPORETOTAL AREA: 719.1 km2
POPULATION: 6M
LANDING STATIONS: 7
JAPANTOTAL AREA: 377,972 km2
POPULATION: 126M
LANDING STATIONS: 17
PHILIPPINESTOTAL AREA: 300,000 km2
POPULATION: 105M
LANDING STATIONS: 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.”
President Duterte (SONA,
2016)
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
NATIONAL BROADBAND INFOSTRUCTURE
1
INTERNATIONAL
SEGMENT
2
DOMESTIC
SEGMENT
3
LAST MILE
SEGMENT+ +
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.
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
LUZON BYPASS PROJECT IMPACT ON INTERNATIONAL SEGMENT
PROJECT
IMPACT
SOURCE OF
INTERNET 1SUBMARINE
LINK
TOTAL COST / Year
2,000,000 Mbps
Local Private Telco $ 0.35 /Mbps $ 21.32 /Mbps 2 Php 26 B / Year
With Luzon Bypass Infra $ 0.35 /Mbps$ 0.00 /Mbps
+ Php 97M O&M 3
Php 0.53 B / Year
1
INTERNATIONAL
SEGMENT
2
DOMESTIC
SEGMENT
3
LAST MILE
SEGMENT
+ +
1 Quote from Hurricane Electric 3/23/17
2 Quotes based on PLDT 4/6/17 and Hurricane Electric 3/23/17
3 Project implementation cost is P975M OTC
$1 = Php 51
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
PROJECT COMPONENT
San
Fernando
Baler
Poro Point
Camp
John Hay
New Clark
CityClark
Freeport
Bataan
TechnoparkBonifacio
Global City
DOMESTIC BACKBONE
Backbone with Middle Mile
Legend:
Population per square kilometer
Connection to
international
submarine
cable linked
TO ASIAConnection to
international
submarine
cable linked TO
USA
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.
FRAMEWORK AGREEMENT
Signed
08 Dec 2016
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).
LANDING PARTY AGREEMENT
Signed
15 Nov 2017
Purpose:
Framework:
+CABLE
OWNER+
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
How much is 2,000,000 Mbps?
2,000,000 Mbps
e-Healthcare
e-Education
Inclusive growth
e-Government
PLDT
1,100,000 MbpsDICT / BCDA
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
TRADED CAPACITY
C A B L E O W N E RConstruction: PhP 6,700 M (now - 2018)
O&M: PhP 8,375 M (2019 - 2043)
B C D AConstruction: PhP 975 M (now - 2018)
O&M: PhP 0 M (2019 - 2043)
D I C TConstruction: PhP 23 M (now - 2018)
O&M: PhP 2,438 M (2019 - 2043)
Construct, Develop, Operate,
Maintain and Secure the Submarine
Cable System (with other system
owners)
Construct and develop the Luzon
Bypass Infrastructure
Operate, Maintain and Secure the
Luzon Bypass Infrastructure
2,000,000 MbpsEquivalent to
PhP 4.8B* / year
* Based on DOST-ASTI procurement of international capacity in HK / Tokyo
MILESTONES
CONCEPTFRAMEWORK
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
MILESTONES
PREPARATORY WORKSCABLE LANDING STATION (CLS)
� Bidding of the Project Fronthaul
� On going survey of the 240km
Terrestrial Roadwork
� Finalization of the Detailed
Engineering Design
Baler, Aurora CLS
Poro Point, La Union CLS
Construction
2018
Ready for Equipment
2019
Benefits of the Luzon Bypass Infrastructure
eGovernment eHealth eEducation eBusiness eGovernance eServices
Gov Agency
Connecitvity
Hospital
Connectivity
School
ConnectivityGo Negosyo! PhilGEPS
Free Public
Wi-Fi
National
Datacenter
Telehealth
CenterseClassroom
Community
eCenterBIR E-reg MOSES
eLGUPhilHealth
OnlineTech4ed
Next Wave
CitieseVoting
Project
NOAH
PHOpenIXCHITS Med
Recordse-Library BaLinkBayan
E-NBI
Clearance
Traffic
Cameras
NaRMIS RxBoxPublic School
eLearningLEAP
Business
ePermit
TV White
Space
Photo credit: National Telehealth Center
For every 10 people connected to the
internet, roughly 1 person gets lifted out
of povertyBased on Deloitte research
For every 10% increase in nation’s
broadband penetration, GDP
increases by 1.34%Based on World Bank and numerous other publications
LONG TERM VISION
High technology industries Land Value Capture
Photo credit: National Telehealth Center
Thank you
Government can create an enabling environment by
promoting competition through sound regulation
and liberalization
The Global Technology Report 2015