“The entire NBN project is a solution in search of a requirement … “—this is so true!

Instead of the government build its own infrastructure and invest on it and take revenue for services after, they would rather buy something outside and increase more country’s debts (although theyre claiming zero expenses). Philippines has enormous resources and talent and even budget if spent well to invest in such engineering feets…we just need to wake up and make things happen.

There is a basic flaw in the whole idea that needs to be re-thought. I have 20 years expereince moving government microwave networks back onto commercial fiber and microwave backbones. It sounds enticingly cheap for a government to buy microwave backbone equipment and set up their own ‘pipes’ without paying charges to PLDT and their cohorts. The US did it for years … nearly 10,000 miles in Japan/Korea alone.

By properly negotiating contracts with commercial carriers we moved nearly every mile of this onto commercial connectivity and saved millions of dollars per year in maintenance cost, even after subtracting the connectivity charges by the carriers.

This plan, sad to say, is based on 40 year-old thinking and in some cases 40 year-old technology … buying channelized equipment, like T-1 or E-1 components is dark ages stuff … you don’t need anything like 64 kbps channels for voice today. Building a network like the NBN is currently envisioned would cripple the government with operational costs even if the network itself was free to build.

The entire NBN project is a solution in search of a requirement … it really needs to go back to the beginning and determine what the needs of the government actually are rather than proposing a juggernaut of a technical solution. When you let the department of forestries and a cable TV marketing exec determine a country’s communications future, your have a problem, ZTE, JDV or any other entity notwithstanding.

*sigh*

The architecture, at first glance, appears sound and achievable. Note, though, that there are already precedents for this: PREGINET, DA VSAT, etc. Boosting the TELOF infra will help. But… remember “Telepono sa Barangay”?

I’m not arguing here that they should get a cheapo 2-page per minute printer instead of a high-performance 15-page per minute network printer. I am merely pointing out that the $804.20 budget is within a commercial range of HP’s printer line-up $179.99 to $2,799.99. In short, if they got an HP Laserjet printer for $804.20, the price is just right within current market figures. In essence, the figure was not padded.

It’s a different thing if they listed there an Epson LX 300 (that slow ribbon printer) and put a price of $840.20 when we know the market price for such printer is just $80. Now there’s the clear padding of prices.

Then again, I’m pretty sure that this single printer will not be used by a government office. This printer, laptop and PC will be used by the engineers during the implementation period. If it were for a government office, I don’t think they’ll buy just 1 unit.

An HP Pavillion dv2700t is around $2,500 (fully upgraded)

An HP Compaq PC Desktop dc7800 Series costs between $800 - $2,500, fully loaded.

I believe this *single unit* will be used in the Remote Office during implementation. These will not be bulk orders for each offices.”

So are you saying that our goverment offices are that high-tech that a sub Php 5,000 office printer won’t do the job?

Come on, we’re talking about government offices here.

I did not end up with a solid conclusion because I don’t have 3rd party evidence to say the service prices were padded by how much.

Go back and look at the topology again and you will see that commercial operators are still a major part in the network. Majority of the cost in the equipments will go to microwave transmitters and WiMAx base stations.

You need to take a look at the BoQ again yourself to see the nitty details and breakdowns.

Download it here.

You failed to point out that ZTE manufacture those products. And the plus side is what? Even if they sold this at negative or zero profit they earned a free marketing material that everyone will say ZTE. That’s more profitable than what they are getting from us filipinos.

quote:
Is there overpricing in the services component? I cannot categorically say ‘yes’, but there’s some semblance of it. Besides, service charging is mostly a guesstimate so you can fairly say that they’ve somehow padded these prices a bit. If by how much, I cannot say. Only way to calibrate that is by asking 2 other suppliers to send in their costing for the same project.

Site Prep & Civil Works: $48,571,040
System Implementation & Engineering: $20,607,490
Site Engineering for Remote Office Site: $28,686,840
Service for IDC Construction & Integration: $8,287,281
Joint Project Management Office: $5,995,000
Link Charges: $6,498,000
Training: $1,948,505
Managed Services: $14,875,507

Total Price: $135,429,662

take a look at system implementation and engineering. HOW MANY ENGINEERS DO YOU THINK IT WILL TAKE TO CONFIGURE THOSE ROUTERS AND SUCH? The things should come pre configured from china. Plus remote access cost 20m? and link charges? 8million? why would they ask for link charges IF THEY ARE ALREADY CHARGING FOR IMPLEMENTATION? and links from what?

Plus The network design is a security nightmare from the start. Government Network piggy backing the internets!?!?! I dont presume being even adept at security but common sense requires to be used at a times like this.

lastly that alan tan is an idiot. please use common sense next time before posting anything. or better yet ask somebody who knows a little bit about the price difference from buying in VillMan from buying in gilmore and buying directly from a supplier to buying directly to the factory who made that stuff.

excerpt:

“Because you are just another carbuncle on Manila’s ballast tanks.”

Well in this case as if they have asked for a big discount price for the equipment.. That is why equipment manufacturer opt not to includ this item in their price..

Your post was indeed a great source of information.

Well if there is a padding in this kind of contract it will always be at at the engineering side of the project. This is where nobody can question since this is not physically visible.

At last, an honest look at the pricing of the contract. Although not totally conclusive, it shows that the dunderheads at the Senate have been making fools of the Filipino people all along. All of them should hang by their balls a million times over!

Thanks for this post.

http://www.cellphones.ca/news/post002981/

I just can’t believe how these politicians sleep at night. Or do they?

An HP Pavillion dv2700t is around $2,500 (fully upgraded)

An HP Compaq PC Desktop dc7800 Series costs between $800 - $2,500, fully loaded.

I believe this *single unit* will be used in the Remote Office during implementation. These will not be bulk orders for each offices.

The laptop and desktop units are also somewhat expensive for a government office. Can’t generic computers, which will only cost Php30,000 or below, meet their (government) needs?