US aid body USTDA is backing a fourth 5G network in the Philippines, opening up the newest front in the widening US-China tech contest. The assistance package, announced during Vice President Kamala Harris’ visit to Manila in November, was signed with Now Telecom last week.
The operator’s parent company, Now Corp, said in a filing that the aid would provide design and planning for the phased implementation of its 5G project, including pilots in Manila “to validate network performance, test 5G use cases, and provide data to inform larger scale deployment.” Importantly for a small and under-funded operator like Now, the aid also includes assessment of potential financing schemes including government grants, equity or debt financing and the level of interest of funding organizations.
The USTDA’s financial contribution is small – just US$1.5 million – with Nokia Bell Labs providing the technical expertise.
(Source: Philipp Dimitri / Westend61 GmbH / Alamy Stock Photo)
Tepid 5G take-up
But even so, this is a rather unusual project, with the Philippines already being served by three 5G networks.
At this stage the two big telcos, PLDT Smart and Globe Telecom, say 5G take-up is so tepid they don’t even bother reporting their subscriber numbers. Consumers are said to be deterred by the high handset prices.
US interest is likely sparked in part by the introduction of a new China-backed player, Dito Telecommunity, which is 40% invested by China Telecom and uses ZTE network equipment. Additionally, it may also be responding to concerns of new President Ferdinand Marcos Jr., who has repeatedly vowed to improve connectivity.
But here is the big question: is the US government genuinely committed to backing this 5G rollout and how will it fund it?
Now Telecom is privately held and doesn’t disclose its financial figures. It has 3.5GHz and 2.1GHz spectrum and recently acquired 26GHz frequencies after buying local media player Newsnet. Its parent Now Corp, a fixed wireless access provider, reported revenue of just 196.4 million Philippine pesos (US$3.6 million) and 70 employees in 2021.
No matter how well these trials go, Now’s 5G aspirations are a heavy lift.
SOURCE: LIGHTREADING
The U.S. Trade and Development Agency has awarded a grant to NOW Telecom Company, Inc., for a feasibility study and pilot project to support the development of a nationwide 5G mobile and fixed wireless network in the Philippines. NOW Telecom has selected New Jersey-based Bell Labs Consulting, part of Bells Labs, the research arm of Nokia, to conduct the study.
“This grant demonstrates USTDA’s ongoing commitment to support the development of quality digital infrastructure and increasing access to affordable connectivity in the Philippines,” said Enoh T. Ebong, USTDA’s Director. “At the same time, this project will expand opportunities for U.S. companies and trusted technology partners to deliver next-generation network solutions in one of the region’s fastest-growing telecommunications markets.”
The study will provide NOW Telecom with the necessary analysis, designs and plans for phased implementation of its nationwide 5G and broadband network, including a 5G network pilot at multiple sites in Metro Manila to inform large-scale rollout.
“Our goal is to deliver a clean and secure 5G network that will help achieve social and financial mobility, reduce inequality, improve health and education, and spur economic growth for the Filipino people,” said NOW Telecom Chairman and Chief Executive Officer, Mel Velasco Velarde. “Our partnership with USTDA will help us achieve this important mission.”
“The advisory and deployment of Nokia’s technology for NOW Telecom’s standalone 5G network will be a game changer for the Philippines. It will help to meet the growing demand for reliable and secure digital services from households and industry, using trusted technology,” said Stefan Wilhelm, Head of Bell Labs Consulting. “By funding pilot projects such as this, USTDA brings something unique to the table. It catalyzes a new way of developing infrastructure where innovation, partnership, and mutual benefit all meet.”
USTDA’s support for this project advances the Partnership for Global Infrastructure and Investment and the Indo-Pacific Economic Framework, with the goal of developing, expanding, and deploying secure digital infrastructure to power economic growth and facilitate open digital societies.
The U.S. Trade and Development Agency helps companies create U.S. jobs through the export of U.S. goods and services for priority infrastructure projects in emerging economies. USTDA links U.S. businesses to export opportunities by funding project preparation and partnership building activities that develop sustainable infrastructure and foster economic growth in partner countries.
SOURCE: USTDA
MANILA—The Philippines and the United States have agreed to expedite the completion of projects in existing agreed locations under the Enhanced Defense Cooperation Agreement (EDCA) and finalize procedures for the adoption of additional agreed locations.
This came after senior Philippine and US foreign affairs and defense officials convened in Manila for the 10th Philippines-United States Bilateral Strategic Dialogue (BSD) on Thursday and Friday.
There are no specifics yet on the new locations.
“We have agreed to finalize the procedures for the additional agreed locations. In fact, it is a work in progress. Sooner or later, in a few months, hopefully, we would be able to give the exact response to your question. But right now, it’s a work in progress,” DFA Undersecretary Ma. Theresa Lazaro told reporters in a joint press conference.
“When it comes to issues related to EDCA and Mutual Defense Treaty, I come here to reiterate America’s iron-clad commitment to the security of the Republic of the Philippines and iron-clad commitment to meeting our obligations under the Mutual Defense Treaty,” visiting Assistant Secretary of State Daniel Kritenbrink told reporters in a joint press conference.
“As part of our alliance cooperation, of course, we engage on that which is related to EDCA. I think you’re aware of the importance of the EDCA agreement to our ability to further cooperation as allies, to contribute to further modernization of the Armed Forces of the Philippines.”
A joint statement issued following the meeting also said that the Philippines welcomed the offer of the United States “to hold regular consultations with a view to identifying joint maritime activities that the two countries can undertake.”
“Reiterating the importance of maintaining and promoting an international law-based maritime order in the South China Sea, in accordance with UNCLOS and the 2016 Arbitral Tribunal decision, and recognizing the value of an integrated and comprehensive approach to addressing maritime issues, the Philippines and United States plan to convene this year the 2nd Maritime Dialogue, which will build on the outcomes of the inaugural Dialogue held in Manila in April 2022,” the joint statement said.
The United States will serve as host of the 2nd Maritime Dialogue.
To prepare for and respond to emerging threats, the Philippines and the United States committed to complete “a full assessment of the cyber threat landscape in the Philippines, and establishing next steps to counter cyber threats, among other measures.”
At the end of the meeting, the United States government, through the U.S. Trade and Development Agency (USTDA) announced that it is providing NOW Telecom Company, Inc. a P118 million ($2.15 million) grant to fund a feasibility study “for the development of reliable and secure nationwide 5G mobile and broadband networks in the Philippines.”
It aims to support “the digital transformation of the Philippines by helping to meet the growing demand for high-bandwidth, reliable, and secure digital services from households and industry in the Philippines.”
“Filipinos can and should be secure online. Securing against malicious cyber activities is difficult even in the best of times but it is infinitely more difficult when the risk comes from the entity that built and may maintain access to a telecommunications network,” Kritenbrink said.
SOURCE: ABS-CBN
Metro Manila (CNN Philippines, January 13) The US government sealed a deal with NOW Telecom, an affiliate of media and technology holding firm NOW Corp., to expand the 5G network in the Philippines.
In a disclosure on Friday, NOW Corp. said the letter of intent was signed by US Trade and Development Agency (USTDA) Director Enoh Ebong and NOW Telecom Chairman and Chief Executive Officer Mel Velasco Velarde during the 5th Annual Indo-Pacific Business Forum in Japan.
Under the agreement, a USTDA-funded technical assistance would provide NOW Telecom with “analysis, designs, and plans for phased implementation” of the project’s nationwide rollout of 5G mobile and fixed wireless network. The company earlier secured the US government’s support to finance the advancement of the network in the Philippines.
The company is set to conduct a 5G pilot network in multiple sites in Metro Manila.
The White House’s previous statement said teaming up with NOW Telecom for the deployment of 5G would “provide faster and more reliable digital services and increased broadband internet access for Filipinos countrywide.”
SOURCE: CNN PHILIPPINES