President Ferdinand Marcos has approved the flagship P16.1-billion digital infrastructure project that aims to complete the national fiber backbone and enhance internet connectivity down to the grassroots.

In a press briefing, Department of Information and Communications Technology Secretary Ivan Uy said the initiative is the largest of its kind in the country,

The government previously launched the first phase of the project in April, connecting Baler to Laoag and Metro Manila.

This year, phases two and three will extend the fiber backbone from Metro Manila to Southern Luzon, and the project will further involve laying submarine cables to link the Visayas and Mindanao regions.

In addition to expanding the national fiber backbone, the loan will fund 772 free Wi-Fi sites, primarily in Mindanao’s Regions XI and XIII.

This focus on Mindanao addresses significant disparities in internet access; while the national internet penetration rate is 73.6%, some areas in Region XIII have rates below 17%.

Uy stated that the flagship project would also help the country’s economy, citing the boost in the growth of consumption through the improvement and ease of access to the digital supply chain.

“So basically, it’s about reaching more customers. It’s like when you build roads to connect different areas for trucks to travel, we’re doing the same thing but with digital infrastructure to improve communication and e-commerce,” Uy said.

The national fiber backbone and broadband program have long been part of the Philippines’ digital vision. Completion of the backbone is anticipated by 2028, aiming to reduce internet costs and enhance speeds to match those of ASEAN counterparts.

“We should be able to bring down the cost of internet and to also increase the speed of internet at par with our regional counterparts in the ASEAN for this project,” Uy said.

NEDA Secretary Arsenio Balisacan, on the other hand, said the project will help spur economic development by giving more Filipinos access to different markets.

“Broadband services have already opened up numerous opportunities for Filipinos, from work-from-home arrangements to digital access to critical public and private services,” he noted.