PSITE-XI pipol (elders, core, officers, members)
May I know the stand of PSITE-X1 pipol regarding the DICT Bill? I firmly believed that this should be in place considering the many benefits our country can get…
I move that we officially endorse this bill ...
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Establishing the Department of Information and Communications Technology
A Position Paper
When the Commission on Information and Communications Technology (“CICT”) was first created by Executive Order No. 269, signed by President Gloria Macapagal-Arroyo on 12 January 2004, it was envisioned to be the precursor to the creation of a Department of Information and Communications Technology (“DICT”). However, it has been four years since EO 269 was enacted and the DICT has yet to materialize. The CICT believes that the creation of the DICT continues to be of major strategic importance to sustaining the country’s global competitiveness and uplifting the lives of its citizens, and there is no better time to pursue this than right now.
ICT is Everywhere
The importance of information and communications technology (“ICT”) continues to grow as it increasingly permeates everything we do. When Filipinos communicate with their colleagues and loved ones, they are very dependent on mobile communications technologies. In fact, the Philippines is widely considered the text messaging capital of the world with 55 million mobile subscribers that sent an astonishing 1.39 billion text messages in 2007. In school or at work, Filipinos are very dependent on computers and productivity software to accomplish their tasks. In financial services, they are very comfortable using ATMs and are increasingly shifting to online banking. Online shopping is an area that has yet to mature but is steadily gaining momentum with online retailers selling flowers, DVDs and many other items. Filipinos, particularly the younger generation, are increasingly meeting new friends through social networking websites such as Friendster and Facebook. The success of the iPod has revolutionized the way Filipinos listen to music and the breakthrough of the Wii has revived the popularity of computer games even with the older generation. It is clear that ICT surrounds us at every turn and its ubiquity will only continue to increase with time.
Cybercrime is a Growing Threat
The CICT believes that cybercrime is an enduring problem in our increasingly technological society. Threats to our ICT infrastructure include hacking, identity theft, spamming, phishing, denial-of-service (“DoS”) attacks, malware, a well-known example of which is the not-so-proudly Filipino made Love Bug or ILOVEYOU virus, and probably the most disturbing, child pornography and cyber prostitution. Cybercriminals are difficult to apprehend because of the global nature of the internet, which means violations can come from computers that are located overseas. To make matters worse, the Philippines currently does not have a framework for defining cybercrimes and prescribing punishments for such crimes. The CICT, in cooperation with the Department of Justice, is currently drafting an Anti-Cybercrime Bill that will hopefully be passed into law.
The CICT also believes cybercrime is a major obstacle to a more rapid adoption of ICT in both government and the private sector. There are numerous reasons why parties are hesitant to adopt new technologies, including resistance to change, capital investment and training requirements, but one of the most persistent roadblocks is the fear of being vulnerable to various forms of cybercrime. If some of these fears can be alleviated through the establishment of a legislative framework against cybercrime, the CICT believes the integration of ICT in all aspects of society will gain more momentum.
ICT is Converging
Not so long ago, the various forms of communication traveled on completely separate and distinct networks. Voice traffic such as phone calls would travel on the public switched telephone network, data traffic such as e-mail would travel on the internet and video traffic such as television shows would travel on cable or satellite television networks. However, with the increasing popularity of Voice over Internet Protocol (“VoIP”) and the emergence of Internet Protocol Television (“IPTV”), all three types of traffic are increasingly being pushed over Internet Protocol (“IP”) networks. The CICT believes there will eventually be just one converged network delivering the various information and communications services, so it only makes sense that the government bodies responsible for this infrastructure are converged as well. The DICT will help resolve this issue by bringing the communications units of the Department of Transportation and Communications (“DOTC”) together with the rest of the CICT.
ICT Creates Jobs
The offshoring and outsourcing (“O&O”) industry, which includes call centers, business process outsourcing (“BPO”), software development, medical transcription, engineering design, animation and game development, among others, is an industry growing at a breakneck speed. As of 31 December 2007, the O&O industry has created a total of 300,000 jobs and has generated annual revenues of almost $5 billion US dollars. The CICT and the Business Processing Association of the Philippines (“BPA/P”) believe these figures can grow to 1,000,000 jobs and $13 billion US dollars by 2010. To help sustain this growth, the CICT, in cooperation with BPA/P, has launched its “Next Wave Cities” initiative that encourages O&O investors to locate their operations in regional ICT hubs outside of Metro Manila. To date, fifteen cities outside Metro Manila are host to major O&O players and the CICT hopes to bring this number to thirty by 2010. Not only do these regional ICT hubs provide jobs, they also support local businesses such as food, housing, clothing, telecommunications and transportation.
The biggest segment of the Philippine O&O industry is call centers, mainly due to the Philippines’ large installed base of English speakers and affinity for Western culture. However, this competitive advantage will not last forever. Global O&O leader India and competitors such as China and Vietnam are aggressively improving their language skills and promoting their respective O&O industries. To remain competitive, the Philippines needs to develop its talent pool and shift away from call centers to higher value added services. The Philippines must also be more aggressive in marketing its capabilities worldwide, particularly in Europe where it has a limited presence. If the Philippine O&O industry does not address its weaknesses, it will only be a matter of time before it is leapfrogged by its competitors. There needs to be a government agency that will focus on this industry and provide the government support needed to maintain its global competitiveness.
ICT Improves Government
The CICT believes that ICT can be a valuable tool for promoting efficiency, transparency and accountability in government service. In support of this, the e-Government Fund was created by the Department of Budget and Management (“DBM”) to serve as the primary resource for the CICT to design citizen-centric ICT applications through a multi-agency approach within the government. The CICT is tasked to lead the review, assessment, selection, and monitoring of mission-critical, cross-agency frontline ICT projects in government that will be financed by the e-Government Fund.
An e-government project in the pipeline is the e-Government Portal, which will provide citizens with easier access to government services by presenting all government services in user-friendly categories such as Employment, Education, Health, and Social Services, rather than by agency or department. The e-Government Portal is comprised of two major system components namely e-PinoySerbisyo, an e-services portal, and e-Bayad, an e-payment gateway facility. Another e-government project is the Philippine Government e-Procurement System (“PhilGEPS”) of DBM, which is the central portal of all public procurement activities that provides both government agencies and suppliers a more open, transparent and competitive environment.
To guide government agencies in the automation and computerization of their vital operations and key frontline services, the CICT strongly encourages each government agency to develop an Information Systems Strategic Plan (“ISSP”). The CICT is responsible for the thorough review, evaluation and monitoring of submitted ISSPs, and their endorsement to DBM for appropriate funding. A stronger government body is needed to effectively push e-government initiatives, because there is currently no sense of urgency on the part of government agencies.
ICT Empowers the Poor
One major misconception of ICT is that it benefits only businesses and the wealthy and does not impact the disadvantaged segments of the population. The CICT believes that ICT can actually empower the poor by creating a more level playing field and providing access to services that normally would be unaffordable or inaccessible. Microentrepreneurs can reach much broader markets over the internet without having to invest much capital. Talented Filipinos can gain instant global recognition over the internet, such as in the case of Charice Pempengco and Christine “Happy Slip” Gambito. News and other relevant information, such as health and employment, are readily available on the internet for free. The emergence of VoIP allows overseas Filipino workers (“OFWs”) to communicate with their loved ones very cheaply. Alternative remittance methods through mobile phones or the internet have steadily driven down the cost of remittance. As demonstrated by the O&O industry, ICT allows Filipino workers to serve the global community without having to leave the country or even their city. ICT also allows citizens to access government services without having to go to the nearest regional office. The CICT believes that the benefits that ICT brings to the poor are practically limitless and we only need to increase awareness and make it more accessible.
Need to Bridge the Digital Divide
One reason the poorer segments of the population have not taken advantage of the benefits of ICT is the persistence of the digital divide. Despite our high mobile penetration rate, the Philippines still has among the lowest PC and internet penetration rates in the region and in the world. The proliferation of internet cafes have partially mitigated this by increasing the number of internet users, but the Philippines still has a long way to go. Some of the reasons for the persistence of this problem are the high cost of PCs, the high cost of broadband connectivity, the lack of connectivity in underserved areas, and the lack of homegrown web content. There needs to be a government agency that will focus on this problem and work with the telecommunications and broadband service providers to come up with creative solutions.
CICT: A Transitory Measure
A fact that is not well understood is that the CICT is merely a transitory measure to the creation of a DICT. EO 269, which created the CICT in 2004, states that,
“WHEREAS, the creation of Department of Information and Communications Technology (DICT) which will more effectively coordinate and implement national ICT programs, projects and other related initiatives is a priority of government, endorsed by ITECC, supported by the private sector and presently under consideration in Congress;
“WHEREAS, as a transitory measure, the formation of a national body that is not merely advisory in nature, and which will have a more active role in streamlining, managing, coordination, and implementing the various ICT-related plans and policies of government, will immediately address the urgent need to harmonize and make the country's approach to ICT development more coherent and efficient;”
Since the CICT was created by an EO, its powers and functions may also be changed or removed by the issuance of another EO. This has already happened twice since the creation of the CICT in 2004. EO 454, signed on 16 August 2005, transferred the National Telecommunications Commission (“NTC”) back to the DOTC. EO 603, signed on 13 February 2007, transferred the Telecommunications Office (“TELOF”) back to the DOTC. This lack of permanence hinders the CICT in the pursuit of its mandates, so it is detrimental to the country’s ICT development for the CICT to remain a commission. The DICT Bill will finally create a permanent entity that cannot be easily altered without the passage of another bill.
DICT Does Not Involve Significant Additional Cost
A common argument against the creation of a DICT is that it will add to government bureaucracy and result in additional budget appropriations. On the contrary, the DICT Bill will not involve an actual “creation” a new body. Rather, the DICT will be composed of existing ICT-related government agencies, including the operating units of CICT, the National Computer Center, TELOF, and the other communications units of DOTC. All of these units have their own approved budgets, so the creation of the DICT will simply result in the reassignment of these budgets. In addition, bringing together these agencies supports the government’s thrust of streamlining the bureaucracy by providing a mechanism for re-engineering existing functions.
Many Other Countries Have One
One final argument for the creation of a DICT is the fact that many other countries, particularly our main competitors in the global O&O market, have ministries or departments focused on ICT. These include leading ICT countries (Australia, China, India, Korea), our ASEAN neighbors (Brunei, Indonesia, Singapore, Thailand, Vietnam), less developed countries (Egypt, Iran, Jordan, Kenya), and even some island nations (Fiji, Mauritius). If we do not act soon, the greater resources and more empowered government agencies of our competitors will enable them to develop their ICT industries more effectively and eventually surpass us.
Conclusion
The strategic importance of ICT to national development and global competitiveness is undeniable. It is instrumental to driving the national economy, creating jobs, improving government services, empowering the poor and improving the quality of life of all Filipinos. As the private sector will attest, the Philippines desperately needs a stronger government body, duly established by law, to oversee the ICT development of the country. The CICT hopes that the time has come to complete the process that was started four years ago with the issuance of EO 269, so it can finally move from being a transitory measure to becoming a permanent entity.
