Technology and Telecommunications

A Win for ICT: Towards a Department of Information and Communications Technology

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The creation of a Department of Information and Communications Technology (“DICT”) is perceived to be the next logical step pushed by various organizations and sectors in response to other government initiatives to centralize Information and Communications Technology (“ICT”) related initiatives.

These government initiatives started in 2004, when President Arroyo issued EO 269 which created the Commission of Information and Communications Technology (“CICT”), composed of the National Computer Center, the Telecommunications Office, and other offices of the Department of Transportation and Communications (“DOTC”), with the National Telecommunications Commission, and the Philippine Postal Corporation as attached agencies.

In 2011, President Aquino issued EO 47, which reorganized the CICT into the Information Communications Technology Office which is under the supervision of the Department of Science and Technology.

Several bills have been filed in both the upper and lower houses of congress to push for the creation of the Department of Information and Communications Technology (“DICT”). Most of the bills filed intend to effectively reorganize the current structure of the Department of Transportation and Communications (“DOTC”), transferring all functions and powers of the said department regarding communications to the DICT while renaming the DOTC as the Department of Transportation.

The primary objective common to all the bills is to create a department which will exclusively focus on issues relating to ICT and to promote utilization of ICT as “a vital tool for nation-building and economic growth that is government-enable, private sector-led, citizen-centric and market-based.”

 

House Bills

The movement for the creation of the DICT in the House of Representatives started in the 14th Congress with House Bill (“H.B.”) No. 4300 authored by Representatives Cajes, Santiago, Villafurte , Arroyo, Golez, Romualdez, Solis, Garcia, Angara, Daza, Lapus, Tan, Chong, Vinzons-Chato, Domogan, Chatto, Aggabao, Hofer, Lim, Fabian, Lagman, Joson, Dayanghirang, Codilla and Teodoro. The bill passed third reading and was transmitted to the Senate on August 11, 2008. No action was reported to be taken by the Senate.

During the 15th Congress, seven bills were filed for the creation of DICT. These are H.B. No. 16 by Rep. Roilo Golez, H.B. No. 64 by Rep. Luis Villafuerte, H.B. No. 498 by Rep. Juan Edgardo Angara, H.B. No. 1230 by Rep. Winston Castelo, H.B. No. 1508 by Marcelino Teodoro, H.B. No. 1896 by Rep. Ben Evardone and H.B. No. 4667 co-authored by 25 representatives including the six representatives who filed the earlier bills. Out of said seven bills, only H.B. No. 4667 successfully passed three readings and was transmitted to the Senate. However, though both houses passed their versions of the DICT bill, they failed to convene the bicameral conference committee before the close of the 15th Congress.

In the 16th Congress, there are currently three bills filed for the creation of the DICT. These are H.B. No. 937 filed by the MAGDALO Party List Representatives Francisco Acedillo and Gary Alejano, H.B. No. 1516 again by Rep. Marcelino Teodoro and H.B. No. 1815 also by Rep. Ben Evardone. All three bills have all been referred to the Committees on Government Reorganization and on Information and Communications Technology. No actions have been taken by said Committees.

 

Senate Bills

Bills pushing for DICT’s creation in the Senate started as early as the 13th Congress. Two bills were passed during said period, S.B. No. 1749 (filed on Sept. 2, 2004) and 1795 (filed on Sept. 21, 2004), both filed by Sen. Magsaysay Jr. Both bills are substantially the same: both seek to reorganize DOTC into two separate departments, the Department of Transportaion and DICT. The only difference was that in the latter bill, a proviso was inserted: “[t]o establish a strong and effective regulatory system that will ensure consumer protection and welfare and foster a healthy competitive environment” to replace duplication in the stated policies sought by the law. The 13th congress ended with the both bills pending with the Committees on Science and Technology and on Civil Service and Government Reorganization Finance.

In the 14th Congress, two bills were filed for DICT’s creation. These are Senate Bill (“S.B.”) No. 920 by Sen. Legarda, and S.B. No. 2546 by Sen. Ejercito-Estrada, Sen. Angara and Sen. Legarda. Both bills contained substantially the same provisions as the house bills mentioned.

For the 15th Congress, four bills were passed (S.B. No. 1352, S.B. No. 1040, S.B. No. 178 and S.B. No. 50), all calling for the reorganization of the DOTC into two separate departments of Department of Transportation and the DICT to address the distinct needs of the communications and transportation sectors.

In the present Congress, the latest bill filed in connection with DICT is S.B. No. 2686. This bill substituted five bills previously filed for the creation of DICT (S.B. Nos. 358, 818, 1234, 2144, 2638), S.B. No. 53 and S.B. No. 1091 the creation of Magna Carta for Philippine Internet Freedom, and S.B. No. 1467 for the creation of National Council for Information Technology and Development Act. Said bill has recently passed its third and final reading. [1]

 

Features of the bills

All bills refer to Article II Sec. 24 of the Constitution for the rationale of the creation of DICT, which states that “the State recognizes the vital role of communication and information in nation building”.

The earliest bills filed were that of Sen. Magsaysay Jr. in 2004, S.B. 1749 and 1795, with the latter basically just being the final draft of the proposed law. These bills became the framework used by all subsequent bills pushing for the creation of the DICT. All bills are almost indistinguishable, save for minor differences. The latest bill, S.B. 2686 is likewise very similar to all the bills that have been filed since S.B. No. 1975, with only minor additions.

The key policies provided by the bills creating DICT are:

  • The development of strategic, reliable, cost-efficient and citizen-centric ICT infrastructure.
  • The convergence/harmonization of ICT Initiatives between government agencies.
  • To promote an environment that fosters market-led development of the ICT sectors.
  • To ensure universal access to high speed connectivity at reasonable cost.
  • To promote accountability through a transparent government.
  • To ensure the growth of ICT and ICT enabled sectors, and promote ICT expertise
  • To ensure the protection of consumer welfare, as well as foster an environment of healthy competition

S.B. No. 2686 expands the list by adding:

  • To promote digital literacy, ICT expertise, and knowledge-building among citizens to enable them to participate and compete in an evolving ICT age;
  • To empower, through the use of ICT, the disadvantaged segments of the population, including the elderly, persons with disabilities and indigenous and minority groups;

The primary mandate of the DICT remains the same in all bills, and the current wording as per S.B. No. 2686 is that it is “to be the be the primary policy, planning, coordinating, implementing, regulating and administrative entity of the executive branch of the Government that will plan, develop, and promote the national ICT development agenda.”

The powers and functions of the proposed DICT focus on four areas – i)policy and planning, ii) improved public access, iii) resource and capacity building and iv) consumer protection and industry development.

As for policy and planning, one of DICT’s main functions is to formulate, recommend, plan and implement, national ICT plans policies and programs, and to provide an integrated framework in order to optimize all government ICT resources and networks for identification and prioritization of all e-government systems and applications consistent with the government’s E-Government Masterplan.

As for improved public access, the senate bill provides the DICT should establish a free internet service that may be accessed in government offices and public areas using the most cost-effective telecommunications technology.

The department’s other powers revolve around the following:

  • To regulate and negotiate the Philippine interest on ICT matters in international bodies;
  • To develop and maintain ICT development plans, and administer integrated programs considering advances on convergence and emerging technologies […] and the power to invite any agency, corporation or organization, whose development program in ICT is an integral part thereof to assist in the preparation and implementation of such programs;
  • To provide a framework to optimize all ICT resources for the identification and prioritization of all e-Government systems of the government;
  • To develop the government’s ICT capabilities;
  • To encourage and establish guidelines for the use of public-private partnerships in the implementation of ICT projects;
  • To assess review and support ICT research;
  • To establish and provide rules and regulations for ICT services in unserved and underserved areas;
  • To assist with technical expertise in the development of guidelines with the Intellectual property office;
  • To ensure consumer protection;
  • To promote the development of ICT in education;
  • To facilitate the creation of the Chief Information Officer (CIO) Council; and
  • To administer the e-government fund.

 

Proposed Structure of the DICT

The DICT would be composed of a Secretary, Undersecretaries and Assistant Sectaries. The bills differ as to the number of undersecretaries and assistant secretaries, and as to their qualifications.

S.B. No. 1759 proposed 3 Undersecretaries and 3 assistant secretaries, while S.B. No. 2686 currently provides for 4 assistant secretaries.

As to their qualifications, common among the bills is a requirement for citizenship, residence and possession of good moral character and proven integrity. Some bills also proposed that a number of undersecretaries/assistant secretaries be members of the Philippine Bar. S.B. No. 2686 as it stands now mandates that at least one assistant secretary be a licensed Professional Electronics Engineer.

One notable distinction of S.B. No. 2686 is the requirement that to be a Secretary, Under Secretary or Assistant Secretary one must possess at least 7 years of competence and expertise in any of the following: information and communications technology, information technology service management, information security management, cybersecurity, data privacy, e-commerce, or human capital development in the ICT sector, which is an improvement of the requirement in older bills that they must come from ranks of existing government information and communications agencies or qualified ICT professionals in the private sector.

Bills filed subsequent to S.B. No. 1759 likewise provided for a Chief Information Officer (CIO) which would be a third ranking executive in charge of ICT matters in every department, bureau of the government. These CIOs would be members of a Council which is a coordinating body tasked to assist the Secretary in the establishment of policies, standards and initiatives in ICT for e-governance.

Another new feature under S.B. No. 2686 is the Sectoral and Industry Task Forces which are working groups or bodies composed of representatives from sectors like the academe and private industries, the LGUs, GOCCs and IT professionals, which will aid the Department in the furtherance of its objectives.

 

Absorbed and Attached Agencies

The creation of DICT would effectively restructure and reorganize the current DOTC. S.B. No. 2686 abolished the following agencies and have their powers and functions transferred to DICT:

  • Information and Communications Technology Office (ICTO/CICT) ;
  • The National Computer Center (NCC);
  • The Telecommunications Office (TELOF);
  • The National Telecommunications Training Institute (NTTI); and
  • All DOTC operating units with communications functions.

The following agencies on the other hand are attached to the DICT:

  • National Telecommunications Commission (NTC);
  • National Privacy Commission; and
  • Cybercrime Investigation and Coordination Center (CICC).

In older bills, there was an express provision for the attachment of the Philippine Postal Corporation to the Department and the delegation of the Exclusive power and authority to regulate postal delivery services industry. This is notably lacking in the latest bill.

Likewise present in older bill was the provision that despite NTC’s attachment to DICT, the latter shall not exercise any power which will tend to influence or effect a review or a modification of the quasi-judicial functions of the NTC. This is also absent in the latest bill which seems to imply that the DICT shall exercise supervisory and review powers over all acts of NTC.

The DOTC would be renamed as the Department of Transportation and shall retain all offices, services, divisions, units and personnel not covered above.

 

Current Status of the DICT Law

The law creating DICT has been one of five priority reform measures sought to be passed the Aquino administration before the middle of 2015. In fact, in an investors’ forum on March 3, 2015, Senate President Franklin Drilon committed to seeing the law pass by June of the same year.[2]

S.B. No. 2686 was filed a few days later, on March 11, 2015 as a consolidation of the bills filed by several senators. As of June 1, 2015, it has been approved on its third and final reading by Senate, just days before the Congress adjourns. The bill has been sent to the House of Congress on June 4, 2015 for their concurrence.

Senate President Pro-Tempore Ralph Recto, one of the sponsors of the bill, said the measure is a huge step forward in this age of computers and internet while Senator Drilon said the bill addresses the need for the Philippines to be at par with other ASEAN economies which have cabinet level departments for their ICT sector. [3]

Proponents of the law push for the creation of the DICT in order to institutionalize an e-government response to the challenges of the rapid developments in technology, and to take advantage of ICT being one of the strongest drivers of economic growth in our country.[4] The creation of a Department on ICT presents a good opportunity for centralizing policy-making and implementation which will reduce the red-tape encountered by citizens and investors due to uncoordinated ICT policies between government offices.

On the other hand, its critics often raise issues related to the difficulties of dealing with government bureaucracy which has a tendency to mutate agencies and multiply regulations.[5] Concerns are raised against the permanence of creating a government department, in light of the understanding that the challenges raised by ICT can be independently resolved by existing government agencies and offices.

Read more about the Technology and Telecommunications practice at Disini & Disini Law Office

 

 

[1] http://www.senate.gov.ph/press_release/2015/0601_prib3.asp

[2] Melissa Lopez, 5 Priority Bills OK’d by June, Business World Online, Mar. 3, 2015, available at http://www.bworldonline.com/content.php?section=Nation&title=5-priority-bills-ok&8217d-by-june&id=103712.

[3] Id.

[4] Ralph Recto, Sponsorship Speech: Future Proofing Our Country: Why DICT is an App we Need, Ralphrecto.Ph, Mar. 15, 2015, available at http://ralphrecto.ph/future-proofing-our-country-why-dict-is-an-app-we-need/.

[5] Id.

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