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The DICT CHIP Implementation Plan

© 2022 by the Department of Information and Communications Technology.

ALL RIGHTS RESERVED. No part of this publication may be reproduced, distributed, or


transmitted in any form or by any means, including photocopying, recording, or other
electronic or mechanical methods, without the prior written permission of the publisher,
except in the case of brief quotations embodied in critical reviews and certain other
noncommercial uses permitted by copyright law. For permission requests, write to the
publisher at the address below:

Information and Strategic Communications Division


Office of the Secretary
Department of Information and Communications Technology
GF, DICT Building, C.P. Garcia Avenue, Diliman,
Quezon City 1101 Philippines

Cover design and book layout by Ruzzel Valdepeña


Contents

v Message from the Secretary

1 Introduction

4 CONNECT: Building the Digital Infrastructure Foundation

13 HARNESS: Investing in Digital Education, Skills, and Jobs

21 INNOVATE: Expanding Digital Government and Business Services

29 PROTECT: Securing the Digital Economy


Message from the Secretary

T
he COVID-19 pandemic changed the way we do things—
the way we work, study, do business, even the way we
live our lives entirely. It impacted and revolutionized
how we interact among ourselves. As social distancing and
other restrictions were implemented to control the spread of
the COVID-19 virus, the world looked to find safer alternatives
to social interactions, and found the benefits of information
and communications technologies (ICT).

All these happened against a backdrop of a slowing


global economy. With digital solutions proving effective
in providing society with the ability to continue with their
regular activities, turning digital has become the clear
direction for many economies to recover.

The same goes for the Philippines. However, we also recognize the need for us to catch
up in terms of digital or Internet connectivity. To achieve widespread participation by the
population in the growing digital economy, this would require people to be more active
online. However, it would require them to be connected in the first place. For this, we need
Internet that is fast, reliable, and is inclusive, lest we risk leaving many Filipinos behind.

As serious as the challenge of connecting every Filipino to the Internet are the
challenges presented by other exponentially growing demands of the New Normal that
require immediate digital transformation in the government and in the country’s industries.

According to the Philippines Digital Economy Report 2020 of the World Bank, there are
four key drivers of digitalization. These four—Connect, Harness, Innovate, and Protect—
constitute the CHIP conceptual framework. This serves as the core that guides this plan.
With this, we aim to determine the means and strategies to allow the country to take full
advantage of the digital economy—the best way forward to effectively accelerate national
digital transformation.

The DICT is steadfast in helping the country recover from the economic impacts of the
pandemic through technology. With the CHIP Implementation Plan we hope to guide both
the present and future programs and projects of the country in digitalization. We believe
that through sound planning and implementation, and through collaboration with other
agencies and sectors, national digital transformation that is inclusive and sustainable can
be achieved.

EMMANUEL REY R. CAINTIC


Acting Secretary, DICT

THE DICT CHIP IMPLEMENTATION PLAN v


Introduction

T
he Philippines has had remarkable economic growth and is regarded as one of Asia’s
fastest-growing economies, with real Gross Domestic Product (GDP) expanding at a
rate of 6.3% on average. The country’s economic production and performance have
improved throughout time thanks to the efforts and initiatives of numerous government
agencies and the private sector. The COVID-19 pandemic, on the other hand, threw the
country’s economy into a recession, wiping out years’ worth of development advances.

The COVID-19 pandemic had a huge impact on the Philippines. The world shifted
from face-to-face interactions towards the utilization of online platforms: students now
attend online classes, many employees have begun working from home, and businesses
have abruptly transitioned their business model in order to sustain operations and income
streams. The significance of digital technology has never been more pronounced than it
is today.

To adapt to these abrupt changes, the Government deployed digital tools and technology
to mitigate the effects of the pandemic. In some ways, the pandemic has hastened the
digital transformation of the Philippines, which continues to progress as new challenges
and solutions emerge.

Although the digital divide has narrowed in recent years, other sectors of society
continue to lag behind. People attempted to cope as best they could as the pandemic spread
across the country, but underlying socio-economic inequities hampered recovery. The ability
of society to stay linked was the most affected. With the lockdowns in place, there was a
tremendous demand for connectivity in order to earn a living, keep up with schooling, and
stay connected to people and services that would enable the Filipino to survive.

With this in mind, the Department of Information and Communications Technology


(DICT) has developed a framework that will assist everyone in moving forward and emerging
stronger than were before.

THE DICT CHIP IMPLEMENTATION PLAN 1


RATIONALE
The Department of Information and Communications Technology, as the lead agency
at the forefront of the country’s digital transformation, has adopted the CHIP conceptual
framework.1 This framework serves as a strategic guide for improving the Philippines’
digital readiness and maximizing the potential of the digital economy.

FRAMEWORK
The CHIP Framework is the Department’s plan to accelerate the digital readiness of the
country in the new normal. The CHIP framework can be used to identify a country’s priorities
based on its context. Furthermore, countries can be classified into three categories based
on their priorities for accelerating digital transformation, namely emerging, transitioning,
and transforming. The framework is divided into four focus areas, as follows: “Connect,”
“Harness,” “Innovate,” and “Protect.”

Connect is about laying the digital foundation to ensure compatibility and interoperability
to guarantee inclusive participation in the digital economy. To achieve this,
the country requires a robust and extensive ICT infrastructure to improve
internet speed.

Harness is about investing in analog complements such as skills and literacy, regulation,
leadership, and institutions in order to leverage the old economy. This includes
improving the ICT skills of citizens so that they can participate and benefit
from the opportunities in the digital economy. It also entails strengthening
local government units’ (LGUs) ability to use ICT as a mechanism for pursuing
socio-economic development.

Innovate is concerned with the development and expansion of new economy services,
business models, digital entrepreneurship, and e-government. This includes
assisting all sectors of society in adapting to the new normal.

Protect is concerned with mitigating cybersecurity and privacy risks, as well as


digital monopoly and opportunity inequality. This is due to the fact that more
businesses, academic institutions, and even government agencies are shifting
their operations online.

The DICT will restructure its existing programs, activities, and projects to make them
more responsive to the current realities and needs of the Philippine ICT landscape.

OVERALL GOAL AND PURPOSE


The Department of Information and Communications Technology (DICT) is mandated
to plan, develop, and promote the national ICT development agenda. It envisions a Digital
Philippines—a nation that is innovative, safe, happy, and enabled by ICT. The digital

1 Philippine Digital Economy Report 2020, World Bank

2 DEPARTMENT OF INFORMATION AND COMMUNICATIONS TECHNOLOGY


transformation of government is required to respond to the new normal’s multi-sectoral
call for improved public service delivery and Internet access.

ACTION PLAN
The CHIP Implementation Plan aims to identify solutions to improve ICT reach within
the Philippines, thereby improving the current state of its digital economy landscape. Given
the country’s challenges as a result of the COVID-19 pandemic, the Department proposes
addressing the digital divide through the lens of the CHIP framework.

THE DICT CHIP IMPLEMENTATION PLAN 3


CONNECT
Building the Digital Infrastructure Foundation

CONNECT is the first step in the country’s digital transformation. CONNECT embodies
the primary responsibility of the Department of Information and Communications
Technology (DICT) to lead the digital infrastructure development in the country – which
serves as the foundation of the digital transformation in order to respond to the multi-
sectoral call for enhanced public service delivery and improved internet coverage and
public access during and after this global pandemic.

Assessment and Challenges


Broadband internet access is a critical enabler of economic growth and competitiveness,
as well as one that can contribute to social and cultural development. It has a strong potential
to be the panacea that will empower Filipinos and lift many out of poverty.

In January 2021, there were 73.91 million internet users out of the 110.3 million
population in the Philippines which led to a 6.1% increase in internet users (Kemp, 2021).2
Despite this progress, the Philippines’ internet services continue to lag behind those of
other countries in terms of affordability, availability, and speed.

According to the Ookla Speedtest Global Index (2021), the Philippines moved up to the
86th spot on the global mobile internet speed rankings in March 2021, with an average
download speed of 25.43 megabytes per second (Mbps). In the same month, the country
was ranked 81st in the global fixed broadband internet speed rankings, with an average
download speed of 46.25 Mbps. Overall, these are higher than the previous year’s rankings.
These, however, pale in comparison to the average global internet speeds of 48.40 Mbps
for mobile and 98.67 Mbps for fixed broadband, respectively. In terms of accessibility,
affordability, relevance, and readiness, the Philippines ranked 18th out of 27 Asian countries
in advancing internet inclusion (Inclusive Internet Index, 2021).3

2 Kemp, S. (2021, February 11). Digital in the Philippines: All the Statistics You Need in 2021. DataReportal –
Global Digital Insights. https://datareportal.com/reports/digital-2021-philippines
3 Inclusive Internet Index. (2021). The Inclusive Internet Index. https://theinclusiveinternet.eiu.com/explore/
countries/PH/?category=overall

THE DICT CHIP IMPLEMENTATION PLAN 5


The majority of the government’s digitization efforts are still carried out in silos by
government agencies. Government agencies have few integrations, data sharing, resource
sharing, and disaster recovery sites for government data. As a result, government services
are delivered less efficiently, and redundant IT infrastructure costs are incurred.

Strategy: Multi-pronged Approach in Building the National Digital


Infrastructure
The Digital Infrastructure Plan (DIP) aims to provide fast, dependable, and affordable
internet access to the entire country (see Figure 1). Digital infrastructure refers to the
physical and logical components that work together to provide connectivity between
users, their devices, and their platforms. It begins with establishing a connection to the
International Network via the International Cable Landing Stations (ICLS). The National
Fiber Backbone (NFB) then distributes broadband internet access across the country. The
NFB is also linked to middle- and last-mile connections, ensuring that broadband Internet
reaches the endpoints or beneficiary entities (e.g., national government agencies, local
government units, government data centers).

Furthermore, connectivity via satellite internet bandwidth will supplement the


efforts of building the NFB by providing instant and reliable broadband communications
infrastructure in areas where commercial telecommunications did not exist or have
performed poorly. Similarly, using the space segment improves the resilience of digital
infrastructure to natural disasters and calamities.

FIGURE 1. The Digital Infrastructure Diagram

6 DEPARTMENT OF INFORMATION AND COMMUNICATIONS TECHNOLOGY


The DIP’s long-term goal is to build a strong fiber network that connects every region,
province, city, municipality, and barangay to the NFB. Its short-term goal is to maximize
impact by connecting metro cities (e.g., Metro Manila, Metro Cebu, Metro Davao) and
economic corridors that will spur growth in its locality and contribute to the Philippines’
overall economic growth. According to the updated Philippine Development Plan 2017-2022,
these centers provide higher levels of economic services and facilities, such as innovation
and advanced services, culture and tourism, education and research, transportation and
trade, manufacturing, and technological development.

Connectivity will be achieved through the following multi-pronged approaches: (1)


build the national and regional fiber networks; (2) partner with private telecommunications
companies (telcos) by leasing existing fiber networks and with local government units (LGUs)
and other government entities for the distribution of connectivity within their respective
localities; (3) co-locate existing telecommunication towers; and (4) utilize the existing space
segment through satellite connectivity to connect missionary or far-flung areas.

National Broadband Program (NBP)


The DICT, through the NBP, aims to accelerate the deployment of fiber optic cables and
wireless technology in order to realize the vision of universal access to broadband in the
country. The NBP will prioritize the construction and operationalization of the necessary
internet protocol (IP) infrastructure facilities.

The NBP intends to implement a robust IP transport system across the country through:

• Building the NFB


• Setting up the necessary network management equipment (e.g. routers, switches)
• Connecting the NFB to the ICLS
• Operating and maintaining the ICLS

In the coming years, the DICT aims to expand and continuously improve the NFB’s
redundancy and resiliency to provide fast, uninterrupted, and low-cost internet access to
its stakeholders.

Free Wi-Fi For All (FW4A) – Free Public Internet Access Program
To align with the Department’s mandate of providing strategic, reliable, cost-effective,
and citizen-centric ICT infrastructure, the Free Wi-Fi For All Program aims to:

• Establish the regional and provincial rings of fiber backbone that will serve as
the middle- and last-mile networks that are connected to the NFB;
• Provide public and government institutions with internet connectivity via satellite;
• Partner with local private telcos for the lease of existing fiber networks and with
LGUs to distribute Internet connectivity to their respective communities;
• Provide free Wi-Fi sites to public places, public schools, and State Universities
and Colleges, among others;

THE DICT CHIP IMPLEMENTATION PLAN 7


• Connect geographically-isolated and disadvantaged areas (GIDAs) by utilizing the
appropriate and cost-effective technologies; and
• Encourage digital literacy and information security for educational, social, and
economic purposes through the provision of internet connectivity.

National Government Data Center (NGDC)


The DICT envisions a more integrated government that deploys online services using
shared IT resources.

In the coming year, the NGDC intends to establish government data centers in strategic
areas of the country in collaboration with LGUs. The LGUs will bear the costs of building
and maintaining the data centers, while DICT leases space for the colocation needs of
other government agencies. The NGDC will be maintained and expanded in response to
user demand.

The NGDC will use the NFB and the middle-mile connections for its primary connectivity
requirements. In comparison to commercial internet providers, this will make data
transmission faster and more secure.

SHORT TERM (1 year) MID TERM (3 years) LONG TERM (5 years)

a. Continue to manage and a. Develop the Cloud Center of a. Conduct technology refresh
maintain existing government Excellence for existing infrastructure
data centers b. Establish a Regional Cloud b. Continue expansion for
b. Establish partnerships with with public cloud service existing government data
Local Government Units (LGUs) providers centers according to demand
for Data Center development c. Continue engagements with c. Continue the partnerships
c. Establish partnerships with LGUs for new government with public cloud providers for
cloud service providers data centers Regional Cloud
d. Develop Cloud Procurement d. Expand existing government
Policy and Revise Cloud First data centers according to
Policy demand

FIGURE 2. NGDC Short Term, Midterm, and Long-Term objectives

The NGDC will also establish the Cloud Center of Excellence that will introduce
international best practices, training, and market advocacy to hasten cloud adoption.

The DICT will collaborate with public cloud service providers in establishing a regional
cloud at government data centers. This will enable government agencies with sensitive data
to store it in the public cloud. It will work with the Department of Budget and Management
(DBM) to enable government agencies to procure cloud services via a government portal.

Major CONNECT Programs, Activities and Projects


International Cable Landing Stations (ICLS)

The DICT has undertaken the development of another ICLS to enhance the country’s
international connectivity. This was operationalized through a Landing Party Agreement

8 DEPARTMENT OF INFORMATION AND COMMUNICATIONS TECHNOLOGY


(LPA) signed by the DICT, the Bases Conversion and Development Authority (BCDA),
and Edge Network Services Ltd. (Edge) for the construction of two International Cable
Landing Stations and a 240-kilometer fiber conduit.

The two cable landing stations (CLS) are located in Baler (Aurora) and in Poro Point
(La Union). These two CLS are linked by a 240-kilometer fiber corridor with repeater
stations spaced 50 kilometers apart. The CLS, fiber corridor, and repeater stations form
the Luzon Bypass Infrastructure (LBI) project. Upon completion, the BCDA will turn over
the facilities to the DICT. The latter will run and maintain the facility for the next 25 years
(extendable for another 25 years). Edge will compensate the Philippine government with
two (2) terabytes per second (Tbps) of cable capacity in exchange for using the LBI.

This ICLS will serve as the gateway for the NFB. Although Edge is the first party to utilize
the aforementioned infrastructure, the DICT intends to expand the existing government-
owned CLS to other submarine cable providers from the private sector.

Backbone Network (First Mile)

National Fiber Backbone (NFB). Once the country is linked to the rest of the world, a
fiber backbone must be installed and cascaded to all barangays. The NFB will eventually
link to middle-mile networks and terminate to last-mile components and digital endpoints.
This project will necessitate the participation of both private (e.g., tower builders, telcos)
and public stakeholders (e.g., LGUs, other National Government Agencies).

The DICT will develop a demand-responsive, neutral fiber backbone for the country.
For the initial phase, it will utilize the National Grid Corporation of the Philippines’ (NGCP)
electrical transmission system through a tripartite agreement among the DICT, the NGCP,
and the National Transmission Corporation (TransCo).

Middle Mile and Last Mile Connections

Regional Rings. Other than utilizing the NGCP electrical transmission system, the
DICT also aims to create regional rings of fiber to provide connectivity to provinces, cities,
and municipalities. These regional rings can be implemented through various modalities
such as public-private partnerships (PPP) to utilize the spare dark fibers from the private
sector (e.g., ISPs and telcos). The DICT will lease these spare dark fibers to create regional
rings of connection that form part of the backbone. The DICT shall prioritize connecting
metro cities and economic corridors through these regional rings.

Provincial Broadband. The Provincial Broadband aims to connect the NGAs, LGUs,
Free Wi-Fi sites, and Government Data Centers to the NFB to establish the government
domestic network. This enables the LGUs and NGAs to form part of the broadband
infrastructure network. This shall connect the provinces and their nearby cities and
municipalities to the NFB either through wired or wireless connection – where the
identified NGAs/LGUs shall be the Point of Presence (PoP) and will be interconnected
via fiber optic link or through wireless technologies, respectively. Each PoP will further
distribute the internet connection to other government agencies (Non-PoP) connected to it
with fiber-optic links.

THE DICT CHIP IMPLEMENTATION PLAN 9


Endpoints

Public Internet Access Program. The DICT shall provide Internet connectivity in select
public places, including public basic education institutions and state universities and
colleges (SUCs). This provision of internet connectivity at the endpoints shall complement
the linking of these public places to the regional and provincial rings as well as the NFB.
The DICT’s Public Internet Access Program shall ultimately lead to the connection of these
public places to the NFB. Furthermore, the DICT shall capacitate and empower LGUs to
build their respective regional and provincial broadband networks and provide free internet
access to identified locations.

National Government Data Center (NGDC). The NGDC aims to plan, design, develop,
implement, and integrate a secure data infrastructure that would ensure the delivery of
speedy and efficient government services to the people. It can reduce government spending
by providing resources to government agencies via colocation or cloud services.

a. Colocation Services

Government agencies can co-locate their IT equipment, such as servers and


switches, at DICT’s data centers instead of building or renting their own spaces.
These data centers operate 24/7 and are fully equipped with the necessary network
equipment and connectivity, data storage facilities, as well as cooling, security,
power, monitoring, and fire-protection systems.

b. Cloud Services

The DICT offers government agencies various resources, such as computer,


storage, and database resources, that they can use for the development of their
applications. These resources are scalable, secure, resilient, and efficient. They
also save on the upfront costs for hardware.

Indefeasible Right of Use (IRU) Satellite Bandwidth

Satellites offer instant and reliable broadband communications infrastructure in areas


that are greatly affected by natural calamities or where commercial telecommunications
never existed or performed poorly. The DICT will purchase satellite broadband internet via
an Indefeasible Right of Use (IRU) arrangement, and will connect access points to ground
stations to provide internet access to the public.

This project provides value-for-money through the bulk purchase of satellite internet
bandwidth through IRU and has significant cost savings compared to traditional modalities
(see Annex A). This shall likewise improve the resiliency of the government’s digital
infrastructure as it offers instant and reliable broadband communications in areas that
are greatly affected by natural calamities.

GIDA initiatives

Cooperative Tower Build in missionary areas. This project will look into more efficient
methods of increasing the number of telecommunications towers in missionary areas.
Making connectivity more accessible and affordable in these areas will enable communities

10 DEPARTMENT OF INFORMATION AND COMMUNICATIONS TECHNOLOGY


to access e-government services and drive economic growth through more e-commerce-
enabled MSMEs.

This requires government investment in tower construction and the development of


collocation arrangements with the private sector. The project fosters open access and low-cost
pricing to address the slow internet speed and low broadband penetration in the country.
The program requires the DICT to invest in the construction of telecommunications towers
in missionary areas, otherwise known as the Geographically Isolated and Disadvantaged
Areas (GIDAs). It also requires the government to help propagate Micro-Small-Medium
Enterprises (MSMEs), enable internet-based jobs in the countryside, and strengthen
industries such as the BPO and the tourism sector.

Space Transmission. In order to provide connectivity to places where the laying of


FOCs is a challenge, the DICT shall use satellite technology and utilize the existing space
segment. The DICT will build ground base stations in strategic locations that shall send
signals to satellites in the Middle Earth Orbit and redirect them to places where satellite
receivers are installed.

Other CONNECT Activities

Aside from the direct provision of infrastructure, the DICT shall also actively participate
in the following activities to help attain the objective of universal access and the use of
the digital infrastructure:

a. Progressive Policy and Regulatory Reforms

The DICT supports the Open Access in Data Transmission Act, which aims to
lower barriers to market entry, fast-track and lower the cost of deploying broadband
facilities, promote infrastructure sharing, and make spectrum management fair
and transparent.

The DICT shall continue to improve the policies governing the processing
time and the requirements for issuing permits, licenses, and clearances needed
for the construction of Shared Passive Telecommunication Tower lnfrastructure
(PTTI). The DICT, together with the Anti-Red Tape Authority (ARTA) and other
relevant government agencies, issued the Joint Memorandum Circular (JMC) No.
01, s. 2020, “Streamlined Guidelines for the Issuance of Permits, Licenses, and
Certificates for the Construction of Shared Passive Telecommunications Tower
Infrastructure.” In 2021, the revised and expanded guidelines for tower permit
was issued through this JMC.

The DICT will also push through with the development of policies for
government-wide cloud adoption, following the release of the “Cloud First Policy”
in 2017. The policy mandates that all Philippine government agencies must adopt
cloud computing as the preferred ICT deployment strategy for both internal
administrative use and the delivery of online government services. This policy
was revised in 2019 to take into consideration the law on Data Privacy.

THE DICT CHIP IMPLEMENTATION PLAN 11


b. Telecom Tower Watch

Complementing JMC No. 01, s 2020, the Department is also developing an


online portal for tower registration and permitting. This aims to digitize the
application procedure for the registration of companies establishing or operating
shared cell towers. This online portal contains information such as the list of
documentary requirements and the procedures on how to qualify and register as
an Independent Tower Company (ITC).

c. Engagement of Public and Private Stakeholders

The DICT will explore various alternative financing options and public-private
partnership (PPP) arrangements for its various digital infrastructure projects.

12 DEPARTMENT OF INFORMATION AND COMMUNICATIONS TECHNOLOGY


HARNESS
Investing in Digital Education, Skills, and Jobs

The HARNESS component accelerates the digital transformation of society, in general,


by bringing ICT-related education and training to the existing and the next generation
workforce. This way, the country can keep pace with the digital skills trends required
by the highly competitive global workforce of digital natives and eventually bridge the
digital skills divide

With the pandemic, the Philippines’ digital economy continues to grow as more
businesses shift to digital platforms to reach their targets. This has opened new opportunities
for the economy, which, if successfully harnessed and leveraged, shall be used to bolster
the recovery efforts to be implemented. Of course, the increased participation in economic
opportunities in the digital economy by all sectors is crucial in ensuring the attainment of
a balanced recovery. It is also to be noted that factors related to the current and potential
comparative advantage, such as individual skills, competencies, and institutional capacities
to participate in the digital economy, are to be considered.

Assessment and Challenges


ICT skills link the effective use of ICT and the extent of impact or changes the digital
economy can bring to society. The gaps in the ICT skills and effective ICT utilization exist
when the technology moves and innovates, while the economy is unable to provide the
workforce with the necessary skills to sustain these innovations. In terms of the Philippines’
digital talent, the following assessment has been observed:

14 DEPARTMENT OF INFORMATION AND COMMUNICATIONS TECHNOLOGY


• Based on the 2021 World Digital Competitiveness Ranking 4 utilizing various
digital/technological skills indicators, the Philippines placed lower than it did
in the previous assessments, ranking it as 57th in 2020 and 55th in 2019. The
country slipped to 58th as a result of falling behind in indicators under the three
main pillars; future-readiness, technology, and knowledge. Based on the “future
readiness” pillar alone, the Philippines fell three spots after performing poorly
in adaptive attitudes, business agility, and information technology integration.
The country also dropped by one place in the “technology” pillar due to a decline
in capital, and plummeted by one spot in the” knowledge” pillar due to ranking
lower in training and education.
• The 2020 Global Skills Index Report of Coursera 5 categorized the Philippines as
one of the countries belonging to the lowest skilled developing economies group.
This classification is based on the performance data of 65 million global learners
hailing from 60 countries that use the said learning platform to gain new skills.
The report shows that the Philippines, together with Bangladesh and Pakistan, is
among the lowest skilled developing economies with a low rate of public spending
on education and a high share of low-skilled workers in the labor force. The
study also noted that the country received an average percentile performance
of 39 percent in Business, Technology, and Data Science courses in the learning
platform, ranking 37th out of the 60 surveyed countries.
• Many Filipinos believe in the importance of equipping themselves with meaningful
ICT skills. A 2020 study by UNICEF entitled Digital Literacy in Education Systems
Across ASEAN shows that Filipino and Singaporean respondents ranked the
highest in their perceived importance of digital literacy, especially in influencing
their future. The study also revealed that, despite having better access to digital
literacy education and a higher degree of digital literacy than their peers from
least developed nations, young people from the Philippines cited more issues of
concern. Furthermore, rural respondents mentioned the issue of a lack of access
to technology gear, proper training, and internet connection more frequently than
their urban counterparts. Girls and boys with disabilities spoke about extremely
particular issues, such as a lack of barrier-free digital platforms and their own
socio-demographic constraints.
• There are numerous factors affecting the digital literacy and skills of the Filipinos
and among those factors are accessibility and affordability of technology. In the
2019 National ICT Household Survey conducted by the DICT, it was noted that
82.35% of Filipino households are still yet to have access to the Internet. This
means that of the 23, 360, 960 households surveyed, only a mere 4, 123, 881 have
internet access. Additionally, the majority (79.7%) of interviewed households do not
own a computer. Individuals that were interviewed mentioned that the primary
reason for not accessing the Internet is not knowing how to use it.

4 2021 World Digital Competitiveness Ranking, IMD (https://www.imd.org/centers/world-competitiveness-center/


rankings/world-digital-competitiveness/)
5 2020 Global Skills Index Report of Coursera (https://www.coursera.org/skills-reports/global?utm_
campaign=gsi&utm_content=gsi-launch-blog&utm_medium=blog&utm_source=enterprise)

THE DICT CHIP IMPLEMENTATION PLAN 15


Strategies
To ensure that every citizen is empowered to participate in the digital economy, the
DICT shall follow the HARNESS: ICT Capacity Development Framework updating the
competency standards and training that will enable the citizens to actively participate in
the digital economy.

Update Standards. The proficiency standards for ICT knowledge and skills of practitioners
shall be updated and expanded to ensure that the training provided by training
service providers are aligned with the internationally recognized standards
and in keeping with recent development. The Department shall also determine
the ICT skills required from government workers and career pathways for
proposed ICT-related government positions.

Provide Access. The DICT shall deliver training through various modalities: establishing
facilities that support training, innovation, and enterprises; developing online
platforms; and mobilizing technology to serve as entry points to ICT-related
training, whether basic, intermediate, or advanced.

Upskill and Retool. In order to ensure the readiness of the local workforce to participate in
and contribute to the digital economy, the DICT shall provide training with
global recognition to address the demands of the ICT and ICT-enabled services
(ICT-ES) industries. It shall also support the Information and Technology
and Business Process Management (IT-BPM) Industry and its sub-sectors by
providing training that develops and strengthens the technical skills of the
talent pool in animation, contact center, game development, shared services,
healthcare information management, and software development sub-sectors
in order to ensure the steady supply of qualified talent pool to support their
operations.

The Department shall also support the digital transformation of the government
by providing capacity and competency development interventions to equip
government personnel with the critical skills, competencies, and knowledge
to drive the digital transformation within their respective organizations.

Finally, the DICT shall actively bridge the digital skills gap by making basic
and intermediate digital literacy training to improve the employability of the
local workforce and enable them to compete for high-value ICT-enabled jobs
regardless of their location. These training activities shall also be targeted
toward the disadvantaged segments of the population, including women and
children, the elderly, persons with disabilities (PWDs), and indigenous and
minority groups, to allow them to have access to economic opportunities in
the digital economy.

Supporting local governments and ICT and ICT-ES businesses. The ICT training provided
by DICT aims to contribute to inclusive growth and bring IT-BPM opportunities
outside of Metro Manila.

16 DEPARTMENT OF INFORMATION AND COMMUNICATIONS TECHNOLOGY


HARNESS Programs, Activities and Projects
Developing ICT Skills Standards
National ICT Competency Standards. The DICT shall review the National ICT Competency
Standards (NICS) to update the basic set of knowledge and skills that Filipino
ICT practitioners across government agencies should be able to demonstrate.
An  updated NICS will ensure that the training being provided by the
Government or training service providers is aligned with internationally
recognized standards.

ICT Skills Framework for the Government Sector. In order to aid the government’s
digital transformation, the Department shall work on mapping out an ICT
Skills Framework. This will determine the roles and responsibilities, career
paths, and ICT skills and competencies guiding the development of relevant
and appropriate training meant to upskill the members of the government
workforce from the entry to upper management levels. The development
of the ICT Skills Framework shall be complemented by the development of
new positions for ICT-related roles in government (CIO, CTO, etc.) and the
identification of the career pathways and skills maps for each career path.
The output of these projects shall become the basis for engaging with the Civil
Service Commission (CSC), the Professional Regulatory Board (PRB), and the
Career Executive Service Board (CESB) in updating the ICT-related positions
and required ICT competencies for government workers.

Fostering ICT skills


Upskilling the government workforce. The DICT shall provide programs that shall upskill
the government workforce to become government chief information officer
(CIO), cybersecurity officer (CYSO), chief technology officer (CTO), etc. The
DICT shall also provide the ICT Training and Educational Program for career
and non-career personnel of government agencies, instrumentalities, and local
governments, and the ICT Career Technical Service Development Program
aimed to develop ICT Professionals in government.

Upon the completion of the ICT Skills Framework for Government Workers, it
is envisioned that aside from receiving the basic digital literacy courses from
the DICT, government employees shall also receive subsequent ICT training
relevant to their roles, responsibilities, and career paths.

The DICT is working on courses that will strengthen the capacity of government
workers in local government units (LGUs) to support the development of the
local IT-BPM hubs outside Metro Manila by providing them with skills that
help them draft plans that will help develop their areas into sustainable
destinations for IT-BPM locators.

Upskilling the local ICT and ICT-enabled services sector workforce. The Nationwide IT-
BPM Scaled Upskilling Program is aimed at the employees working in the
animation, contact center, game development, shared services, healthcare
information management, and software development sub-sectors to ensure the

THE DICT CHIP IMPLEMENTATION PLAN 17


supply of qualified talent pool to support IT-BPM locator operations. Initially,
employees working for the various sub-sectors received upskilling; however,
the project is looking toward upskilling the talent pool in areas within and
surrounding Digital Cities.

In order to further ensure the readiness of the local workforce to participate in


and contribute to the digital economy, the Department is also strengthening
the technical skills and competencies of the workforce by providing training
leading to industry-level certifications (e.g., Microsoft, Cisco, CompTIA,
Huawei, etc.).

The DICT is also in the process of developing courses that will benefit other
members of the ICT and ICT-ES sectors.

Upskilling of the workforce in the countryside. Considering the wide range of employment
opportunities available online, basic digital literacy and intermediate ICT skills
training shall be conducted and made available for those in the countryside.
These training programs shall increase the employability of citizens in the
countryside by allowing them to avail of ICT-enabled jobs in areas where IT-
BPM locators are not present.

The digitaljobsPH (DJPH) Program provides basic digital literacy and


intermediate ICT skills training in the Philippine Countryside. DJPH training
activities are conducted in areas where there is a lack of access to traditional
employment, essentially promoting freelancing, remote work, and online
jobs. The technical training improves trainees’ employability, giving them the
opportunity to compete for ICT-enabled jobs, whether virtual or in person.
Upon graduation, the trainees have the option of becoming independent
contractors providing services to international and local clients through
online platforms.

Bridging the digital skills gap. The DICT provides digital literacy and skills training to the
marginalized and disadvantaged segments of the population, including women,
children, the elderly, persons with disabilities (PWDs), and indigenous and
minority groups, among others, to enable them to have access to economic
opportunities in the digital economy.

The Department has developed training modules for teachers on integrating


ICT in Science, Technology, Engineering, and Mathematics (STEM) and
Cybersafety courses for teachers and students to promote digital hygiene,
both of which are under the Digital Learners Project.

Providing access to ICT-related training and support


Online Platforms. The Skills Window PH (SWPH) is a platform that will enhance the DICT’s
Apprenticeship Program as it will assist in job matching for job seekers,
professionals, educators, and employers; link skills demand and supply; and
enable broader access to high-quality upskilling and reskilling certification
programs by connecting it with the DICT Learning Management System.

18 DEPARTMENT OF INFORMATION AND COMMUNICATIONS TECHNOLOGY


Physical Facilities. The DICT is establishing Digital Transformation Centers (DTCs) in
order to support its capacity development initiatives. These DTCs will also
leverage the Tech4ED Center network in order to bring more ICT skills training
to the countryside. The establishment of DTCs is an Infrastructure Flagship
Project (IFP) of the DICT, and one of the activities under the Three-Year
Rolling Implementation Program of the National Economic and Development
Authority (NEDA).

DICT-owned DTCs have various tiers, depending on the space available through
which training activities, among others, may be conducted:

• Level 1 DTCs are partner-managed Tech4ED Centers that the DICT has
assessed to have met the requirements needed to be upgraded into a Digital
Community Center;
• Level 2 DTCs have a dedicated area for ICT training for at least 25 persons.
This space shall have an Internet Connection and video conferencing
equipment in order to allow those inside the training area to participate
in basic, intermediate, advanced, and complex ICT skills/literacy training
held remotely;
• Level 3 DTCs have an area where ICT training can be conducted. It shall have
two to three training spaces. The DTC shall have Internet Connection and
video conferencing equipment in order to allow those inside the training
area to participate in basic, intermediate, advanced, and complex ICT
skills/literacy training held remotely. It shall also have co-working spaces
that will support local MSMEs and start-ups;
• Level 4 DTCs are Innovation Hubs and will provide necessary capacity-
development support for ICT innovation (e.g., training in technopreneurship,
emerging/transformative technologies), laboratories, and co-working
spaces. This space shall have an Internet Connection and video conferencing
equipment in order to allow those inside the training area to participate
in basic, intermediate, advanced, and complex ICT skills/literacy training
held remotely; and
• Level 5 DTCs are Innovation Hubs that also house Data Centers that will
provide not only a venue for ICT skills training, practice, and knowledge
generation, but also have Tier 4-compliant data centers that are able to
provide colocation and managed network services to government units
and agencies in surrounding areas.
Upon the completion of the Census and Assessment of Tech4ED Centers, there
may be partner-managed Centers that may be classified as Level 2 or 3, or
may become Digital Community Centers. Partner-managed centers that meet
the requirements for Digital Community Centers will receive assistance from
the DICT to upgrade their equipment and/or enable it to provide ICT skills
training.

Mainstreaming Digital Technology. The DICT shall implement a program to improve digital
literacy and digital hygiene. The project’s beneficiaries shall receive devices
and digital literacy and Cybersafe Training.

THE DICT CHIP IMPLEMENTATION PLAN 19


Developing IT-BPM Hubs outside of Metro Manila. The DICT launched the Digital Cities
2025 Program which identified 25 locations that were determined to be the
next business destinations for IT-BPM operations. These cities were assessed
based on an industry scorecard that includes the following parameters: talent
availability, infrastructure availability, cost of doing business, business
environment, and risk management to elevate these locations to their full
potential as thriving IT-BPM hubs.

The Department also provides support for the development of these Digital
Cities, not just through the provision of training facilities and equipment but
through:

• Talent Attraction by promoting careers in the industry; and


• Marketing and Promotion by developing and implementing a comprehensive
marketing and communication strategy to help promote the digital cities
to potential investors, and IT-BPM careers in the countryside.

Overall, the harness component seeks to fully utilize the different initiatives of the
government in order to maximize the current technologies, innovations, and systems
present during these times. Not only will the harness component focus on the flexibility
of the digital economy of the Philippines, but it will also highlight the importance of
increasing accessibility and knowledge of citizens of the society to actively participate and
support the ever-changing technological landscape. With the improvements in the overall
digital economy of the country, the implementation of the CHIP plan seeks to create an
environment where the digital economy continues to display growth and stability, regardless
of the mode of business within the Philippines.

20 DEPARTMENT OF INFORMATION AND COMMUNICATIONS TECHNOLOGY


INNOVATE
Expanding Digital Government
and Business Services

INNOVATE builds the culture of readiness and enablement for digital transformation.
It is a component that provides the enabling environment for the crafting of key policies and
plans that will help spur growth, innovation, and expansion of services in key areas such
as Digital Governance. As new technologies emerge, INNOVATE ensures an environment
wherein the whole ICT ecosystem may find common areas of interest in the journey towards
digital transformation.

Assessment and Challenges


It is the journey towards digital transformation that has helped the country refocus
on the readiness of our digital governance ecosystem. The situations that the COVID-19
pandemic has brought about highlighted the need for the readiness of our e-government
systems as many of our citizens have turned to accessing government services and support
online. The emergency caused by this pandemic had demonstrated very concretely that
the Philippines still has to address its limitations and challenges in e-government. In the
2020 e-Government Development Index (EGDI) 6 of the UN, the Philippines ranked 77th
out of 193 countries, which is two spots lower than its rank in 2018. Where it stands, the
Philippines is still a mid-tier country, bested by some of its ASEAN neighbors such as
Malaysia and Thailand. The UN’s EGDI is a composite index consisting of three indices:
the Telecommunication Infrastructure Index, the Human Capital Index, and the Online
Service Index. Of the three components of the 2020 EGDI, the Philippines’ Online Service
Index had a significant drop from 88% to 73%. The Online Service Index is based on a
four-stage model that measures the government’s online presence and capacity to deliver
services to its citizens.

6 EGovernment Survey, UN Department of Economic and Social Affairs https://publicadministration.un.org/


egovkb/Portals/egovkb/Documents/un/2020-Survey/2020%20UN%20E-Government%20Survey%20(Full%20
Report).pdf

22 DEPARTMENT OF INFORMATION AND COMMUNICATIONS TECHNOLOGY


An important aspect of digital readiness is the capacity to deliver innovative services
online. For government agencies and local government units (LGUs), all the opportunities
to deliver these services are present and in abundance, as all national government agencies
have websites and most LGUs are active users of social media and hold accounts that
essentially function as their portal in lieu of an official website should they have none.
The current pandemic, in all likelihood, drive citizens to access government websites in
their need of services; an occurrence not popular prior to the pandemic and did not fare as
a priority for most citizens in 2019, as results of the DICT National ICT Household Survey
(NICTHS) 7 show. As reflected in the mentioned survey, citizens mostly accessed social
media and educational websites more than they did government websites.

Another aspect of the digital ecosystem is the digital economy. The DICT is highly
focused on seeing this critical component flourish under an already enabling law, which
is Republic Act No. 11337 or the “Innovative Start-up Act” promulgated on 26 April 2019.
Under this framework, the DICT stands as one of three agencies tasked to implement
a national start-up program for the country to strengthen, promote, and develop the
Philippine Startup Ecosystem. This comes at an opportune time as the pandemic has caused
significant economic losses; especially among the Micro, Small, and Medium Enterprises
(MSMEs). These challenges are being addressed by DICT’s programs, such as the Digital
Cities Program, which is geared towards IT-BPM companies outside of Metro Manila and
getting them to help bring these MSMEs back on their feet.

Strategies
Digital Transformation
Digital Transformation as a public policy involves a whole-of-society approach to
digital transformation in response to the “new normal”. For this purpose, the Philippine
Government needs to improve its bureaucracy where the delivery of e-governance projects
and programs is involved and ensure these are carried out in the most efficient and safe
manner. Hence, the DICT shall:

• Create and implement both mid-term and long-term plans for digital transformation
across government sectors through improved interoperability and collaboration
across the Government and ecosystems;

• Improve internal government operations by taking advantage of the digital tools


and applications that would allow end-to-end online transactions, including but
not limited to digital online payments, online validation, and information sharing;

• Establish interoperability frameworks and standards in government ICT programs,


tools and services, data, and processes;

• Encourage public participation online and open governance;

• Foster good governance innovation with the use of data-driven perspectives in


the whole-of-government; such as, but not limited to, open data, data analytics,
and visualizations with the use of reliable data across sectoral and national
government e-services;

7 National ICT Household Survey 2019. https://dict.gov.ph/ictstatistics/nicths2019/

THE DICT CHIP IMPLEMENTATION PLAN 23


• Improve business innovation by establishing efforts on technology adoption in the
business sector in the local government unit and national level; and

• Take advantage of emerging and advanced technologies related to innovations


such as, but not limited to, big data in the Internet of things, artificial intelligence
through research, and the development of e-governance.

Digital Startup Development


The DICT, as one of the lead agencies in the implementation of the Philippine Start-
up Development Program, shall foster an environment where innovation is given every
opportunity to be designed, tested, and turned into actual products. The overall goal of the
program is to establish a strong Philippine Start-up Ecosystem by providing support that
will enrich and strengthen the competitive advantage of Filipino start-ups.

INNOVATE Programs, Projects, and Activities


Digital Economy
Ease of Doing Business Program. The whole-of-government program that seeks to
improve the “ease of doing business” process through standardization, process
improvement, and automation in permits and licensing application at the local
government level and business application at the national level. Components
of the EODB Program include:

• Central Business Portal (CBP) focusing on the national agencies;


• Electronic Licensing and Permitting System (eBPLS) focusing on the local
level;
• Philippine Business Databank – open data for business data validation
and analytics;
• Virtual National Business One-Stop Shop – end-to-end business solution
integrating all the components of EODB; and
• Online logistics and supply chain in the Government.
Digital Payments. Allow online payments in government transactions where the public
can pay anytime and anywhere with the most convenient payment options
available to reduce face-to-face transactions and significantly lessen, if not
totally eliminate, opportunities for corruption, with the use of the following:

• Online payment regulations;


• Technology standards; and
• Electronic official receipts.

Good Governance
National Government Portal and Open Data Philippines. A national-level platform that will
connect the public and Government through a single National Portal (www.
gov.ph) where the public will be able to not only access reliable government
data, information, and services, but also participate in governance

24 DEPARTMENT OF INFORMATION AND COMMUNICATIONS TECHNOLOGY


Digital Government

COVID Initiatives – This shall include projects that will help the government
plan, build and operate systems related to the pandemic response, including,
but not limited to, IT Consultancy Services and systems development of the
Vaccine Information Management System (VIMS) at the national and local
implementation levels. The COVID-19 effort also assists government agencies
to ensure that systems and applications related to the COVID-19 response
are properly vetted and personal data are safe and secured; following and
adherent to international standards on health and data.

Shared Services – To pursue the goals of the E-Government Masterplan (eGMP)


for one Government, the DICT put into place government shared services by
providing ICT interoperability guidelines and systems development of reusable
ICT tools.

Research and Innovations – To explore possible uses of emerging technologies


such as big data, mobile applications, blockchain, and recommend best
practices and guidelines that will guide other government agencies and sectors.

Digital Startup
With the enactment of Republic Act No. 11337 or the “Innovative Start-up Act” last 26
April 2019, the DICT stands as one of the three lead agencies tasked to implement a national
start-up program for the country. To fulfill its role, the DICT is implementing the Digital
Startup Development and Acceleration Program (DSDAP).

FIGURE 3. Digital Startup Development and Acceleration Program Framework

THE DICT CHIP IMPLEMENTATION PLAN 25


To achieve the overall goal and specific objectives of the program, the following program
components will be implemented:

a. Development of the Startup Philippines Portal

 A centralized portal where start-up founders, innovators, and enablers may


find information for government processes and documentary requirements,
grant opportunities, investor information, and industry updates
 Accessible data for investors both local and foreign

b. Establishment of Innovation Studios in strategic areas

 Laboratory studios properly equipped with advanced hardware and software


where innovators can design, test, and showcase their products
 Co-working spaces in strategic locations nationwide intended to serve as
meet-up venues and/or virtual offices that could potentially open the doors
for innovators
 Build partnerships with key start-up players for possible collaboration and
cost-sharing for selected Innovation Studios by securing MOUs and MOAs.

c. Provision of Startup Grant Fund

 Allows access to opportunities for new start-ups which include seed capital in
the form of grant-in-aid, funding for product development, capacity building,
networking events, and operational requirements.
 Benefits under the DICT Startup Grant Fund include:
i. Full or partial subsidies in the grant fund to be provided by DICT as
necessary for research, design, development, validation, and other
activities essential in turning ideas from concept into prototype
ii. Full or partial subsidy for any of the following:

• Registration and cost in the application and processing of permits


and certificates required for the business registration and operation
of an enterprise with the appropriate local or national government
agencies
• Use of facilities, office space, equipment, and/or services accredited
by DICT
• Use of repurposed government spaces and facilities of DICT as the
registered business address
• Registration fees for participation in local and/or international events,
competition, training, seminars, workshops, and other capability
development activities; subject to qualifications, requirements, and
terms
• Participation in local and/or international events and competitions,
subject to the specific qualifications, requirements, and terms
iii. Endorsement to the concerned government agency for the expedited or
prioritized processing of applications

26 DEPARTMENT OF INFORMATION AND COMMUNICATIONS TECHNOLOGY


d. Establishment of the InnovNation Network for Filipino Innovators

 Establish networks of innovators across the country aimed at fostering a


culture of entrepreneurship in ICT, mentorship, and collaboration.
 Conduct activities that will promote a culture of innovation
 Provide solutions to social challenges; solutions that can be delivered by
innovative start-ups
 Create awareness of the opportunities created by start-ups
 Provide learning opportunities to assist aspiring founders in every step of
product development
 Provide initiatives that will support and foster the growth of the start-up
ecosystem

Innovate Institutional Measures


a. Policy Development and Update. review of existing policies in keeping with ICT
innovations and best practices such as secured digital signatures through the
Philippine National Public Key Infrastructure (PNPKI) and online payments in
government accounting and budget rules and regulations

b. Strengthening of collaboration within ICT ecosystems, taking into consideration


the inputs and recommendations of academic experts, the private sector, and civil
service organizations. The DICT shall also need to strengthen its partnership
with government agencies and establish each agency’s relationship roles: other
government agencies/facets as process owners and subject matter experts and
the DICT as a provider of digital transformation advisory and assistance

c. Research and innovation on emerging technologies with the Government taking


proactive measures by providing recommendations on how to take advantage of
emerging technologies in government-specific use cases

d. Strengthen the technology stack skills of the Human Resources of the DICT through
training and certifications needed for innovation and digital transformation.
Through the enhancement of all personnel’s ICT skillsets, the Department shall
exponentially be more effective in assisting other government agencies and sectors
in their way towards being better ICT equipped and ready

e. Assist, guide, and promote strategic partnerships and alliances with local
and international key partners to speed up industry growth and enhance the
competitiveness of Philippine workers, firms, and small and medium enterprises
in the global markets for ICT and ICT-enabled sectors

THE DICT CHIP IMPLEMENTATION PLAN 27


PROTECT
Securing the Digital Economy

With digital transformation, the reality of disruptions caused by either natural or


man-made nuances such as cyber threats and cybercrimes becomes critical. PROTECT
embodies the right of any citizen to continued access to government services and educational
campaigns devoid of cyber threats and cybercrimes. It consists of the various DICT emergency
communications and cybersecurity resilience interventions that seek to protect against
highly disruptive threats such as sophisticated and emerging cyber-criminal activities
done through cyberspace and the Internet, among many others. With the acceleration
of digital transformation, PROTECT is a vital, non-negotiable component of the national
security plan of the country – to ensure that every citizen and child is ascertained their
online safety and protection.

The National Economic Development Authority (NEDA) Ambisyon Natin 2040 aptly
drew the collective long-term aspirations of Filipinos, wherein Resilience was identified
as an administrative priority in ensuring that economic growth is relevant, inclusive, and
sustainable.

Now, more than ever, the world is experiencing increased reliance on the Internet for the
delivery of services, day-to-day public transactions, and business operations. Accordingly,
the Philippines is facing augmented potential threats and challenges in setting up a safe
and resilient digital economy. Impending hazards such as disasters and attacks on Critical
Information Infrastructure (CII), either natural or man-made, increase the threat spectrum
exponentially. With this, the DICT, through the CHIP Conceptual Framework, capitalizes on
existing national and global resilience best practices in creating an enabling environment
where strategic imperatives and programs are instituted to address disruptive issues.

THE DICT CHIP IMPLEMENTATION PLAN 29


A highly protected and resilient CII and augmentative systems are the country’s armor
against both internal and external alerts, be it man-made or natural of origin. As such, the
DICT intends to safeguard these by pursuing goals of ensuring that the integrated digital
economy is not hindered by threat vulnerabilities; establishing effective operationalization
of ICT systems and applications for public service continuity; and instituting intensified
efforts to empower and equip CIIs towards effective risk reduction and mitigation.

Assessment & Challenges


The World Economic Forum Global Risk Report 2021 8 forecasts that among the highest
likelihood risks of the next ten years are extreme weather, climate action failure and
human-led environmental damage, digital power concentration, digital inequality, and
cybersecurity failure.

Drawing from the collective experience of the Philippines and considering its situation
in the Pacific Ring of Fire and the Typhoon Belt, the archipelago is exposed to geographical
vulnerabilities such as earthquakes, tsunamis, and volcanic activities. Add to these are
disruptive local unnatural phenomena induced by various other reasons, including flash
floods, fire, and civil unrest. The challenge then is for the Government to ensure that
the integrated digital economy is not hindered by these environmental vulnerabilities
that the country is either currently confronting or inevitably going to face through the
effective operationalization of ICT systems and applications for public service continuity.
With this taken into account, the rapid deployment of emergency telecommunications in
the aftermath of a disaster is going to prove crucial in the maintenance and upkeep of the
country’s digital economy.

Cybersecurity is essential to protecting the Digital Economy. The Philippines has


been ranked 61st among 194 member states and 13th among the Asia Pacific Regional
counterparts with an index score of 77 in the Global Cybersecurity Index (GCI) 2020
9
published by the International Telecommunication Union (ITU). The GCI measures
the commitment of member states to addressing cybersecurity through the existence
of frameworks, strategies, policies, programs, human capacity, and institutions in the
following pillars: legal, technical, organizational, capacity-building, and cooperation.
The GCI reveals that the Philippines scored high in the legal pillar measures with a 20/20
score. However, much room for improvement is left for organizational measures with
an 11.85/20 score.

Cognizant of the impending global risks, the DICT deems it imperative that these
critical concerns be addressed through the emphasis on efforts towards the use of ICT for
Disaster Risk Reduction and Management (DRRM) and Cybersecurity.

Strategies
ICT for Disaster Risk Reduction and Management
The DICT takes on a leadership role in DRRM by utilizing advanced telecommunications
systems and emerging ICT applications towards cultivating a culture of resiliency, ensuring
economic growth remains relevant, inclusive, and sustainable. The need for a reliable, robust,

8 http://www3.weforum.org/docs/WEF_The_Global_Risks_Report_2021.pdf
9 https://www.itu.int/dms_pub/itu-d/opb/str/D-STR-GCI.01-2021-PDF-E.pdf

30 DEPARTMENT OF INFORMATION AND COMMUNICATIONS TECHNOLOGY


and resilient information exchange platform is the core of ICT for DRRM in facilitating the
enablement of critical lifelines.

The DICT shall strengthen its efforts in the following focus areas:

a) Technology
– Support Infrastructure Build-out
– Enhancement of ICT Resources
– Critical Infostructure Integration

b) Policy
– Policy and Legislative Reform
– International and Regional Benchmarking
– Regulatory and Standardization Efforts
c) Development
– Regional Assets Empowerment
– Skills and Capacity Building
– Private Sector Cooperation

Enshrined in Republic Act (RA) 10844, the DICT Act of 2015, the DICT shall strive to:

a) Assist in the dissemination of vital information essential to disaster risk reduction


by utilizing ICT;
b) Promote the use of ICT for the enhancement of key public services, for safety and
socio-civic purposes;
c) Provide support functions to identified focus areas contributor y to the
implementation of the NDRRMP;
d) Conduct various workshops to assess the various gaps and challenges aimed at
increasing awareness of the use of ICT;
e) Create an innovative, community-driven set of projects and facilitate stewardship
of ICT platforms at both the local and national level; and
f) Update laws to ensure relevance to the available technologies for increased ICT
readiness and service reliability.

Cyber Resiliency
The primary goal of DICT is cyber resiliency, or the country’s ability to prepare for,
respond to, and recover from cyber-attacks.

National Cybersecurity Plan 2022. A country that is serious about improving its cybersecurity
posture has to take stock of its current landscape by identifying its inadequacies
and vulnerabilities so it can develop strategies to achieve its goal. The NCSP
is the framework by which government agencies, military, CIIs, businesses,
and the academe base their strategies.

CERT-PH. The CERT-PH is the highest body for cybersecurity-related activities in the
Philippines and is responsible for receiving, reviewing, and responding

THE DICT CHIP IMPLEMENTATION PLAN 31


to computer security incident reports and activities. It also ensures that
systematic information gathering and dissemination, and coordination and
collaboration among stakeholders—especially between computer emergency
response teams—are maintained to mitigate information security threats and
cybersecurity risks.

Cybersecurity Management System Platform. This serves as the national platform for
intelligence sharing and comprehensive monitoring of threats to defend the
country’s information infrastructure. The platform enhances the country’s
ability to act on threats before, during, and after cyber-attacks. It also serves
as the national cybersecurity operations center of the country.

VA/PT Services for Government Agencies. The Vulnerability Assessment and Penetration
Testing (VA/PT) is used in identifying risks and vulnerabilities in the computer
networks, systems, and applications of government agencies.

Cyber Threat Monitoring and Information Sharing Activities. The DICT regularly sends
out Daily Cyber Intelligence Feeds to designated cybersecurity officers of
government agencies and CIIs. These threats are gathered from research,
reports from other CERTs, and information emanating from what is monitored
by the CMSP.

Cybersecurity Awareness Campaign. The COVID-19 Pandemic has further emphasized


the need for cybersecurity awareness and education.

Issuance of Digital Certificates. Public Key Infrastructure (PKI) is essential in cybersecurity


as it allows users of public networks like the Internet to exchange private
data securely.

PROTECT Major Programs, Activities, and Projects


Government Emergency Communications System (GECS)
The GECS Project is one of the Department’s solutions to fulfill its mandate on
disseminating vital information through the use of ICT for disaster risk reduction and
management (DRRM). The project is supported by the World Food Programme (WFP),
the global lead agency for emergency telecommunications. The three components main
components of the project are:

Mobile Operations Vehicle for Emergency (MOVE). Consists of a rapidly deployable


communications system integrated into specially-engineered vehicles
including a fully customized six-wheeler communication hub truck, a 4x4
dispatch pick-up utility vehicle, and an off-road capable motorcycle.

Disaster Risk Reduction Management and Information System (DRRMIS). A system


that is capable of automating most of the National Disaster Risk Reduction
Management Council’s (NDRRMC) current reporting processes during
operations,

32 DEPARTMENT OF INFORMATION AND COMMUNICATIONS TECHNOLOGY


Capacity Building component. Aims to develop necessary skill sets to lead the Emergency
Telecommunications Cluster (ETC) in facilitating the effective operationalization
of ICT systems as well as various critical infostructure assets.

GECS is envisioned to deliver the following objectives:

a) Establish a Government Command Center – To exercise effective command and


protocol between tactical or strategic units of the participating emergency and
disaster agencies

b) Mobilize a Rapidly Deployable Communication Gateway – To connect with the


national government and NDRRMC when local infrastructure becomes unavailable
due to the damage caused by natural disasters

c) Provide Situational Awareness to Disaster Management Actors – To assist decision-


makers in the delivery of government services during emergencies

Cybersecurity
Protection of Government and Military Networks - Government services and ICT assets
are common targets of cybercriminals and hacktivists. State actors are
also a growing concern as governments now turn to cyber espionage and
similar activities to gain economic and national security advantages over
other countries. In this light, the Armed Forces of the Philippines (AFP)
considers Cyberspace as the fourth domain of warfare. These developments,
among many others, place significance on the need to protect the country’s
Government and military networks. In order to do so, the following programs
have been instituted:

– The establishment of a National Computer Emergency Response Team


(NCERT) and Government Computer Emergency Response Teams (GCERT) that
would respond to cyber-attacks and incidents on government networks and
assets. Together with this, the Computer Emergency Response Structure
would be established, and NCERT would be assigned as the highest body
for all cybersecurity-related activities and to which all CERTs (GCERT,
Sectoral CERTs for CIIs, Military CERTs, and Organizational CERTs) report.

– Establishment of Cybersecurity Officer (CYSO) programs in government


agencies and LGUs that would equip and develop CYSOs to fully perform
their duties. To jumpstart this, a series of training and capacity-building
programs should be done to fully prepare personnel assigned as the CYSO
of each agency.

– Basic Computer Emergency Response Program that would provide basic


computer emergency response awareness training to IT personnel.

– Creating and maintaining a pool of information security and cybersecurity


experts through the establishment of Cyber Training Facilities and
Certification Programs, promotion of the National Cybersecurity Research
and Development Program to attract and cultivate experts, establishment

THE DICT CHIP IMPLEMENTATION PLAN 33


of training programs to develop cybersecurity specialists, and promotion
of Community of Experts.

– Establishment of Threat Intelligence and Analysis Operations Center that


would house R&D, testing laboratories, and live test of threats and threat
scenario simulators. Under this, the DND Cyber Defense Center, NSC Threat
Operations Center, AFP Cyber Command, and NICA Cyber Intelligence
and Attribution Center shall be created.

– Protection of Electronic Government Transactions by using cryptography


tools that would protect electronic documents in transit, at rest, or during
processing. Included in this is the massive promotion of the use of digital
signatures in government documents and processes.

Protection of Critical Information Infrastructure (CII) – The protection of CIIs is a vital


area of national cybersecurity. CIIs are the sectors that, when disrupted, would
significantly impact the economy, security, and social well-being of people.
The NCSP has identified 12 CIIs, namely: Government; land transportation;
maritime; aviation; energy; water; health; emergency services; banking and
finance; business process outsourcing (BPO); telecommunications; and media.

To ensure the resilience of CIIs, the Government would concentrate on two


major activities:

– Cybersecurity assessment and compliance will be composed of three levels,


namely: (1) Protection Assessment (inventory level); (2) Security Assessment
(readiness); and (3) Certificate of Compliance to Cyber Risks. The first two
levels shall become standard practice, complementary to the preparation of
the Information Systems Strategic Plan (ISSP) of all government agencies.
Level 3, on the other hand, is a voluntary program for government agencies
where they may be assessed by a third-party certifying body. However,
it is mandatory for CIIs and government agencies with systems that have
been classified under the National Security System to be compliant with
the requirements relevant to the standards on Information Security (ISO/
IEC 27000).

– Mandatory compliance of government agencies and CIIs to Cyber Drills and


Exercises to sustain the cybersecurity maturity of the country.

Protection of Businesses and Supply Chain. The objectives of business and supply chain
protection are to promote and secure efficient movement of goods and foster
a supply chain system that can withstand evolving threats and hazards. One
major project is identified under it:

– Establishment of the National Common Criteria Evaluation and Certification


Program which includes the ICT Equipment Testing Laboratory and the
Benchmarking Project. The ICT Equipment Testing Laboratory is designed
to test ICT equipment that would be used in government projects, with the
Common Criteria Framework to be used for ICTs that have already been
certified in other countries. The Benchmarking Project, on the other hand,

34 DEPARTMENT OF INFORMATION AND COMMUNICATIONS TECHNOLOGY


is a set of guidelines for benchmarking ICT equipment to ensure that they
are compliant with the established standards of the Government.

Protection of Individuals. It is vital for the DICT to step up and equip netizens with
awareness of cybersecurity to lessen or avoid the impact of cybercrimes and
cyber-attacks on them. The core programs under this strategy are as follows:

– Accelerating learning skills and development by integrating cybersecurity


into the Philippine education system and in the programs offered by the
Technical Education and Skills Development Authority (TESDA);

– Strengthening the cybersecurity outreach program of the DICT through


Cybersecurity Awareness Caravans and the timely release of information,
education, and communication materials on all platforms, including social
media;

– Observing the National Cybersecurity Awareness Month, highlighted by


the conduct of the Philippine International Cybersecurity Conference
(PhCyberCon) on the 3rd week of October;

– Equipping the Government by providing adequate training; and

– Establishing and creating programs for local and international cooperation.

THE DICT CHIP IMPLEMENTATION PLAN 35


IMPLEMENTATION AND SUSTAINABILITY STRATEGY
The success of the DICT in securing the digital economy, as well as in ensuring the
successful societal outcomes expressed in its vision and mandate, calls for implementation
strategies that: 1) guarantee these outcomes and make use of resources in the most
impactful and cost-effective ways, and 2) will accelerate the rollout of ICT infrastructure
to support the requirements of the new normal. With the high cost of ICT investments in
both infrastructure and ICT skills capacity building, the DICT must explore alternative
means to support its key initiatives and comply with new directives.

The following mechanisms comprise the core implementation strategies of the DICT's
Programs and Projects moving forward:

a) Institutional Partnerships. Current inter-governmental partnerships for the DICT's


flagship projects will sustain the momentum going into the new administration.
Nothing less than a whole-of-government strategy will ensure the attainment of
compatibility and inter-operability within Government, and between Government
and constituencies. The DICT has and should continue to strengthen its partnerships
with national government agencies and local government units (LGUs) to help
build their digital infrastructure and connect these agencies and LGUs to the
citizenry. Partnerships at the local level will be strengthened to attain success in
last-mile connectivity under the NBP and Free Wi-Fi Program and for grassroots
participation in national capacity-building programs such as those under the
Digital Workforce initiative.

b) Public-Private Partnerships. Public-private partnerships (PPPs) are essential to


the Government’s “Build, Build, Build” Program. With the Philippine economy in
recession due to the pandemic, PPP modalities are longstanding options to help
accelerate infrastructure development and encourage consumer spending in the
next two years. PPPs comprise a third of the Build, Build, Build Program, with 30
of 104 pipeline projects. 10 With the National Broadband Program now officially a
priority project under Build, Build, Build, 11 the DICT can explore private sector
interest in various components of the NBP, as well as other ICT infrastructure
projects of the agency. It is critical that the DICT build investor confidence in its
infrastructure initiatives through a pipeline of ICT projects that can be published
online, and that will provide a long-term investor perspective. Establishing a PPP
unit may also be a timely intervention.

c) Academe and Civil Society. Partnerships with the academe and civil society need
to be revitalized to create new opportunities for the growth of the ICT ecosystem.
Technologies constantly change and evolve, and thus partnerships with the
academic sector can promote innovation in digital technologies and assure the
DICT of leadership in research and development (R&D). ICT R&D needs to be
strengthened further as a possible track for academic collaboration and the ICT
start-ups community. Partnerships with civil society help strengthen political
capital and reduce the risks of negative impact through an inclusive and transparent

10 https://business.inquirer.net/321028/dof-ppp-projects-to-lead-spending-in-next-2-years
11 https://business.inquirer.net/304612/build-build-builds-new-normal-8-projects-added-13-removed

THE DICT CHIP IMPLEMENTATION PLAN 37


approach to program implementation. The recognition of civil society as an ICT
stakeholder ensures that vulnerable and marginalized groups remain among the
DICT's top priorities in programs on skills development and digital workforce
development. Such partnerships can only help build trust and confidence in
technology-based interventions that are sometimes regarded as exclusive, rather
than inclusive.

d) Financial Resources. Currently, the DICT is heavily dependent on Government


Appropriations for its annual budget. During the pandemic, the financial burden
is even more pronounced with heightened demands for digital acceleration amidst
limited budget appropriations. It is therefore important that financing models are
explored to supplement the Government Appropriations Act (GAA). In addition
to PPPs, Overseas Development Assistance (ODA) funding can be utilized. The
DICT can draw upon bilateral assistance from countries that are established
telecommunications and ICT industry leaders. Multilateral funding can also be
considered. This modality has been a key staple for most of the Department's
organizational development. Multilateral agencies such as the World Bank and
USAID have been providing much-needed capacity building and technical expertise
in improving organizational effectiveness and efficiencies. This mechanism can
and should continue to address the lack of or limited expertise in various aspects
of program development and management. The use of a Universal Service Fund
or spectrum fees as a source of ICT infrastructure funding can also be further
explored to help fund infrastructure and services in geographically isolated and
disadvantaged areas. These financing options are critical in this time of pandemic
as the citizenry migrates to the online environment for almost all social and
economic needs.

Mainstreaming Cross-Cutting Key Components


The DICT aims to institute several key strategy components to improve its implementation
strategies. These key strategy components include:

a) Policy Reforms. Policy reforms should continue to be enacted. Specifically, reforms


that encourage investments and level the playing field need to be the focus of the
DICT. The issuance of Department Circular (DC) No. 008, s. 2020, dated 29 May
2020, which provides the guidelines on Shared Passive Telecommunications Tower
Infrastructure (PTTIs), is a milestone in the pioneering sector of shared PTTIs.
The policy aims to encourage the growth and development of Independent Tower
Companies to expand wireless network coverage in the country and improve the
quality of ICT services. Such policy directives have a great impact on the ICT
environment; hence similar policies to accelerate infrastructure development
should be reviewed and implemented.

b) Risk Assessments and Risk Management. Risk assessment of ICT projects, as


necessary as it is, is often overlooked. Recurring challenges in the management
of programs and projects may be traced to the lack of good risk assessment and
mitigation strategy. Capacity-building in problem tree analysis and risk assessments
may be good investments as the DICT assumes leadership in the highly complex and
multi-sectoral undertakings of the Government's pandemic response strategies.

38 DEPARTMENT OF INFORMATION AND COMMUNICATIONS TECHNOLOGY


It is imperative to strengthen the capacity and capabilities of program managers
and provide a strategy to avoid risks and address them when they arise in ICT
programs and projects.

c) Strategic Communications. Communication plans should be integral to all DICT


Programs and Projects. Communication plans promote a project and help manage
expectations at the same time. It is important for the DICT to help set realistic
expectations among its stakeholders, both internal and external, to avoid project
failure and misplaced negative perceptions. A key strategy is building bridges with
program stakeholders and keeping them informed of and engaged in program
status and achievements.

d) Gender and Development. Gender and Development (GAD) has been building
significant momentum in the DICT. The close collaboration with the Philippine
Commission on Women has resulted in more GAD mainstreaming activities
in DICT projects. Mainstreaming of GAD issues and recommendations can be
integrated as standard project components in Terms of References such as those
operationalized in projects of the NPCMB. GAD mainstreaming should be explored
as a separate standalone activity or as a project component to comply with national
GAD directives, such as the NEDA GAD Checklist and the Magna Carta of Women.

e) Monitoring and Evaluation. Monitoring and Evaluation (M&E) should be further


strengthened because it is through M&E activities that data and information from
the implementation of programs and projects are generated. These data, in turn, are
useful to support program improvements, ICT planning, and policy formulation.
It is important to note that for ICT statistics, it is the DICT that is the primary
source – hence, the need for the institution of a robust M&E strategy. For the whole
ICT sector, monitoring of national ICT indicators needs to be institutionalized to
track sector growth and performance. The DICT should continue to support and
actively participate in the inter-agency mechanism composed of data stakeholders
like the Philippine Statistics Authority (PSA) and the National Telecommunications
Commission (NTC) to ensure the continued growth of relevant ICT statistics in
the country.

The DICT is expected to play a critical role in the realization of pandemic and post-
pandemic mitigation efforts as digital technology is now at the forefront of emergency
preparedness in the New Normal. The CHIP framework is therefore a crucial mechanism
to bring together the DICT's vision, mandate, and interventions into a coherent national
strategy for ICT development and preparedness for digital transformation in the coming
years. The strategy hopes to leverage new and emerging technologies and innovative
interventions into the service of the public sector and, at the same time, promote a greater
awareness of the benefits of the transformative potential of digital technology as the key
driver for social development, economic growth, and disaster resilience among the Filipinos.

THE DICT CHIP IMPLEMENTATION PLAN 39


ANNEX A

Cost Effectiveness of the Indefeasible Right of Use Satellite


Bandwidth Project

As part of its fulfillment of Republic Act 10929 or the Free Internet Access in Public Places
Act, the national government has prioritized providing free public internet connectivity
to Geographically Isolated and Disadvantaged Areas (GIDAs). The prevailing strategy has
been to procure internet connectivity through Fully Managed VSAT Internet Connectivity
Services (Managed Services) for thousands of sites across the country.

However, Managed Services have been using a Contention Ratio of 1:8 when buying
satellite internet bandwidth. This makes the true cost of the internet service they provide
eight times more expensive than their current rate if they were to provide the true Committed
Information Rate (CIR) of 2 Mbps.

Table 1. Cost of Managed Services

Monthly Cost of Managed Services per Access Point for CIR of 2 Mbps Php 30,000.00
Contention Ratio 1:8
True Monthly Cost Of Managed Services (Per Mbps) Php 420,000.00
(Php 210,000.00)

As an alternative to Managed Services, the DICT will procure internet bandwidth with
an Indefeasible Right of Use (IRU) arrangement through the IRU Satellite Bandwidth Project.
IRU is a type of telecommunications lease where the DICT, as the customer, purchases the
right to use a certain amount of the capacity of the system, for a specified number of years.
The DICT, as it aims to be an IRU owner, can then unconditionally and exclusively use the
relevant capacity of the IRU grantor’s network for the specified duration. The right of use
is indefeasible, so the capacity purchased is also non-returnable.

As shown below, an IRU arrangement can cost 62% less than Managed Services while
providing the same or even better service.

Satellite internet bandwidth is currently offered at tranches of 3,000 Mbps. To provide


Internet with a minimum speed of 6 Mbps, the Project will include the purchase of up to a
maximum of 500 VSATs for every tranche of bandwidth. The current list of areas targeted
to have satellite internet connectivity requires 438 earth stations, each with its own VSAT
and access point, giving the Project a CIR of 6.8 Mbps.

The total annual cost for the IRU is projected to be Php 1.6 billion, while the total
annual cost of leasing, operating, and maintaining 438 earth stations is estimated to be
PHP 60 million. This means that the monthly cost per Mbps per access point for the IRU
Satellite Bandwidth Project Project will only be Php 46,446.00.

Compared to the cost of similar bandwidth for the same number of sites, the annual
cost of the IRU Satellite Bandwidth Project is 62% less than the cost of Managed Services.
This represents a significant savings of Php 2.66 billion per year.

Table 2. Annual Cost and Savings

Satellite Overlay Cost Php 1,660,000,000.00


Managed Services Cost Php 4,320,000,000.00
Savings Php 2,660,000,000.00
Percent Saved 61.6%
NOTES

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