Making Sense of the NBN Project


Been watching the live broadcast of the Senate hearing over the National Broadband Network Project for the last 7 hours and I must say that despite the politics behind the issue, I was more frustrated with the Senators asking repetitive questions and making non-sense tech-related conclusions (that goes to Mar Roxas and Dick Gordon).

Allow me to give my few cents worth about this project, minus the kickbacks, politicking and all the controversies.

I believe that among the 3 proposals sent to the DOTC (ZTE, Arescom and Amsterdam Holdings), the ZTE had the most comprehensive solution and the widest national coverage. The Php15 Billion ($329 million) NBN project proposal of ZTE involves installation of 300 base stations, 300 backbone stations, 30 IPMPLS nodes (for an IP backbone), 24,844 customer premise equipment with voice over Internet Protocol and one Internet Data Center and Network Operation Center with a mirror site.

The transmission will be done using WirelessMAN (30 kms line-of-sight) or more commonly known as WiMAX (Worldwide Interoperability for Microwave Access) which will enable the network to cover all of the close to 25,000 municipalities (up to sixth class) and baranggays in the country.

What does each node potentially get?

  • Faster and dedicated connectivity (goodbye dial-up and Smart Bro!)
  • More secured and independent lines (depends on where you’re coming from)
  • Free, unlimited VOIP calls to any points within the national network.
  • Cheaper international VOIP calls to government offices, embassies and other installations around the world (if they’re VOIP enabled)
  • Free, unlimited Internet Fax (less paper waste)
  • Cheaper mobile phone access (using SIP phones)

Of course, you also get some of the inherent benefits of being connected to the internet. In essence, the proposed project is sound and laudable. The question whether all these benefits is worth the Php15-Billion peso price tag is still debatable.

It’s just frustrating to realize that such a technological leap forward is marred with corruption and politics. I was jumping on my seat itching to explain to our dear senators the difference between WiMAX, 3G, CDMA2000 and satellite technologies or why the last mile is the most problematic and costly even to the existing private telcos. But, such is life in this country.

To learn more about the NBN contract, you can read the full copy here. Or, you can read the full transcript of Manolo’s liveblogging the Senate hearing here.

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Avatar for Abe Olandres

Abe is the founder and Editor-in-Chief of YugaTech with over 20 years of experience in the technology industry. He is one of the pioneers of blogging in the country and considered by many as the Father of Tech Blogging in the Philippines. He is also a technology consultant, a tech columnist with several national publications, resource speaker and mentor/advisor to several start-up companies.

55 Responses

  1. Avatar for andresB andresB says:

    Ang issue ng NBN deal ay repleksyon ng kawalan ng early awareness at vigilance sa parte ng mga mamamayan dahil sa kakulangan ng sapat na impormasyon tungkol dito. Ang issue ay inilalabas lang kapag sensationalized na.
    Sana ay gumawa ang media, bilang siyang pangunahing source ng impormasyon ng mga tao, ng pamamaraan na ang mga major projects ng gobyerno ay nailalathala at nagkakaroon ng regular updating ng mga nangyayari, simula sa conceptualization hanggang sa matapos. Ito ay makapagpropromote ng trnsparency sa mga proyekto ng pamahalaan.

  2. Avatar for BrianB BrianB says:

    Hey all of you Inquirer.net traffic, go to my site. Just click BrianB. Thanks.

  3. Avatar for elmer valenzuela elmer valenzuela says:

    nbn project? ung nbn channel 4 nga hindi pa ma-develop..panahon pa ata ng JD at DM Transit ung station na un

  4. Avatar for ceejay ceejay says:

    Ian said:
    “The people behind these projects are competent — heck, I would dare say that they are patriotic, given the measly wages they receive for the amount of service they provide.”

    Thanks for this Ian. I’m not sure if we already met personally. We(PREGINET NetOps) appreciate the recognition on your comment.

    Ian said:
    “That said, I believe we already have similar projects, albeit using private carriers for the long-haul: PREGINET, for example, uses Globe/Innove (last I checked, but I could be wrong since it’s been two years since I have had a chance working with them) for their regional access points, with wireless (for some areas) for last-mile connectivity.”

    Yes, we are currently connected to Globe, PHOpenIX and APAN/TEIN2 network. We have more than 300 Mbs of aggregate outbound bandwidth for the R&D and commodity transit. We are still using wifi as a last-mile solution for remote connectivity.

    Ian said:
    “Speaking of last-mile, I wonder what happened to ASTI’s project with NTT on WIPAS? I was part of the field testing then, and the results were pretty impressive: 40MBps for up to two km. That’s using point-to-multipoint.”

    A failure due to leadership issue. This is what happen when there are too many non-technical person involved on a technical project. :(

  5. Avatar for leo leo says:

    one word: CORRUPTION

  6. Avatar for Mark M.V. Salin Mark M.V. Salin says:

    I’ve been hearing negative feedback about WiMAX worldwide. One of them will be on:

    http://www.telstra.com.au/abouttelstra/media/podcasts_transcript.cfm?ObjectID=6

  7. Avatar for Miguel Miguel says:

    PLDT or Globe can build this network, but maybe the powers that be believe those companies are too powerful already.

  8. Avatar for TimedOut TimedOut says:

    Most of us are techie here so lets settle a bit. Let’s make these senators ask some of these questions to benefit the more percentage of our nation’s non techie ones, including themselves.

    On the other note, I think this project would even cost more than presented value. To maintain this nationwide network would be a pain. If pushed through, i hope it won’t end up being sold to a private sectors in the long term…. and money has gone to pockets of our dear politicians.

  9. Avatar for JC John SESE Cuneta JC John SESE Cuneta says:

    Yah it is true, a senator was asking what BroadBand is. They’re confused between “BroadBand”, “DSL”, “Cable Internet”, add to that, “xDSL”, “aDSL”, “Modem”… then “Dial-Up modem”, “Cable Modem”, “DSL Modem”, then router, then, then….

    The people should be the one to move these stuff forward as our government officials mostly do not have the know-how about tech stuff..

  10. Avatar for angel reyes angel reyes says:

    abe you missed the point or you were not listening intently. basic issues are:
    1. deal was done behind our backs.
    2. there was a dispute on the “amount” (who will benefit, how much is paid to whom, advances, etc)
    3. the government with their resources did not provide a “baseline” specification for the network (so is the ZTE deal comprehensive enough coz they have inside info of what the govt needs).
    4. if it went pushed thru and “everybody happy” it would just be inserted in the annual budget (for your info the annual budget is like reading three pldt directory), we end up paying it without us knowing – just like the north rail project which again is financed by China.
    5. Neda was hesitant at first to endorsed it, signed it at the last minute, and Sec. Neri was transferred to CHED.
    6. Do the math – something is fishy.

  11. Avatar for BlackMarlin BlackMarlin says:

    Bakit wala si Sen.Lito Lapid sa NBN hearing? Gusto ko marinig ang opinyon ng idolo kong senador.

    Pero parang alam ko na sasabihin nya tungkol sa ZTE-NBN contract.

    “LAGOT KAYO SA MISIS KO. Ang dumi ng kontrata o!”

  12. Avatar for BlackMarlin BlackMarlin says:

    It’s a pity just for the heck of it Senators jokey for media mileage hoping to get the maximum exposure competing with Marimar and Margarita for the tv ratings.

    Anyways, the fun side of it is, that is for the IT yuppies out there, the whole world will see the stupidity of Philippine senators in all their splendor.

    Sen. Noynoy Aquino
    “Is this system 100% secured?”

    DOTC Assistant Secretary Lorenzo Formoso III
    “No your honor. There is no system in the world that can claim to be 100% secured.

    Sen. Noynoy Aquino fuming
    “If this system is not 100% secured then why are we entering into this project?”

    DOTC Assistant Secretary Lorenzo Formoso III explains for the benefit of the ignorant son of Ninoy Aquino.
    “As i’ve said your honor, there is no system that is 100% secured.”

    Ang hinahanap ni Sen. Noynoy ay system na 100% secured. Sana may makita sya.

    Sen. Biazon asking Atty. Formoso
    “You say that there are 300+ nodes for this project all over the Philippines and each node has a radius of 30kms. So you cannot cover the whole Philippines?”

    Atty. Formoso
    “Yes sir there are 300++ nodes with 30km radius each but it can cover the entire country.”

    Sen.Biazon
    “You said 30km radius, if i multiply this by 300++ it will not reach the entire country from Luzon to Mindanao coz i did the math.”

    Atty. Formoso
    “The 300++ nodes cover those places that have no wired access sir.”

    Marunong pala mag taymis si Sen.Biazon

  13. Avatar for Miguel Miguel says:

    I would say… commercial backbones for the long haul then a “NBN” wireless network for the underserved areas

  14. Avatar for tulip tulip says:

    I’ve been working in a multinational telecom company for sometime now, even had the opportunity to work with ZTE years ago in a project.I fully understand the deal, and yes even know some “facts” going around the industry but I will not elaborate. I agree with most of Ricky have stated. Generally, I believe a NBN project will be something useful…the problem is the process,etc.
    Honestly, I cant watch the Senate hearing too long by listening with all those non-sense statements from senators who are aspiring to become a president. It only appears they are know-it-all guys but truth is NADA.Nakakairita, nasasayang lang oras. Why not do their homeworks, at least consult a telecom executive before blabbering in the hearing??? Even our neophyte engineers and technicians at the office laughs at them!

  15. Avatar for issai issai says:

    you’re in inquirer again…
    http://technology.inquirer.net/infotech/infotech/view_article.php?article_id=89921

  16. Avatar for Abe Olandres Abe Olandres says:

    Emmanuel de Dios has a point as well. I believe that there are many ways to solve this problem – 1) by using existing commercial backbone; 2) by extending existing government backbone; and 3) by creating a more advanced infrastructure and forward-looking national strategy.

    Yes, I believe the project is costly and the money allotted to this can be used somewhere else. However, the presented methodology solves several issues that the others cannot.

  17. Avatar for Raffy Raffy says:

    Yuga, enjoyed reading your posting, and me not being a tech guy, it cleared some my misconceptions about the technology of broadband. I also read the paper written by Emmanuel de Dios ( http://www.aer.ph/index.php?option=com_content&task=view&id=603&Itemid=63) (Dean of UP School of Economics) on the same issue and basically he does not support the creation of another “backbone” to serve as the goverment’s intranet(among other things), because, again among other things, in fact there are already two existing private and functioning backbones. Would you agree with him from a technological standpoint?

  18. Avatar for Amadeo Amadeo says:

    I commend Mr. Ricky Gonzalez for giving such a concise but clear-eyed additional overview of this project. And in my limited understanding, I envision it as some kind of over-sized but secure WAN owned and controlled by the government. Thus, the propriety of using private IP addresses, which is what some big private telecom companies here resort to.

    And as I recall here in the US, this type of IT network deployment was used in the aftermath of the Katrina hurricane in NOLA, when all essential IT infrastructure was adjudged down and out. And it was rendered effective for its purposes. And I understand this same technology was also used effectively in the ravaged areas during the Aceh Indonesia tsunami.

    But a few more questions. Granted that no private telcos will be used for last mile concerns, how are the remote barangays admitted into the loop? The WiMax’s 6-mile range still will not be sufficient. When we were in a remote barrio in Bukidnon (at least 50kms from the nearest city), we could connect laptops to the internet using cell phones as the media. Conclusion: where ubiquitous cell sites are located, internet access is available. And additionally, access to the government network.

    Mention was made of net neutrality and am not sure how this particular issue factors in this case. I believe it should be net security that would be of primary concern, as aptly pointed out. Net neutrality has now become more of a political issue, whether there should be unrestrained freedom from regulations or restrictions, or not. But I could be wrong.

  19. Avatar for minor minor says:

    “Ano ba ang broadband? Can somebody explain this in layman’s terms?” – some senator

    shoot that man!!!!!

  20. Avatar for Trader Trader says:

    simple lang ang problema……

    This has been happening OVER and OVER again…. a government project that has corruption all over it….

    Why the hell our government officials always needs to BE REACTIVE?

    Why the hell the senate always wants to have a show and waste time with something that can be prevented?…

    Lagi na lang ganyan…. SENATE inquiry CRAP and B*LLSH*T….

    Can we become PRO-ACTIVE? setup rules and guidelines and processes and before signing anything we make sure things are the way they supposed to be?…..

    Kala ko matatalino ang mga asa senado….mga bobo pala….

    or cyempre gusto nila magpasikat…para sila naman ang maiboto sa susunod…

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