MANILA, Philippines — Midway into the Marcos administration, the government is switching up its approach to achieve universal connectivity, this time splitting its P6.5-billion budget to build WiFi sites and distribute free SIMs.

The Department of Information and Communications Technology (DICT) is reforming the Free Public Internet Access Program (FPIAP) to bring down the cost of bringing internet access to public schools and remote communities.

Information Undersecretary Paul Mercado told The STAR that the DICT may only need as low as P3.5 billion to operate and maintain free WiFi sites in 50,000 locations.

DICT plans to sign a long-term deal with satellite provider Starlink to beam internet in up to 30,000 sites for P1.5 billion yearly. The agency will seek a multi-year contractual authority from the Department of Budget and Management (DBM) to ensure funds are available annually.

Still, the DICT would require another P2 billion to serve the remaining areas that are contracted out to different providers. Mercado said this recalibration is needed to sustain the FPIAP without having to ask the DBM for more budget yearly.

On top of this, Mercado said the DICT is allocating P3 billion for the procurement of one million SIMs that would be given out primarily to teachers and students in underserved areas.

The project, called Bayanihan SIM, will provide beneficiaries with a monthly data allocation of 25 GB and the DICT will roll it out for three years, or until the end of the Marcos administration in 2028.

Mercado said the Bayanihan SIM would pressure telco providers to set up cellular towers in the areas where the beneficiaries are located.

If not, the telcos would be barred from bidding for the contracts on SIM requirements. Likewise, Mercado said the DICT is inserting a committed information rate in the deals mandating telcos to deliver a minimum quality of service.

“We will make sure that the telcos would commit to an internet rate that if they fail to deliver, we can penalize them. If they don’t fulfill (their obligations in the contract), we won’t pay them, and we can even seek liquidated damages,” Mercado said.

As of May, the FPIAP, also known as the free WiFi program, extends connectivity to 18,849 sites in 9,769 locations nationwide, benefiting more than 11.2 million Filipinos.

Under the Marcos administration, the aim is to build 50,000 free WiFi sites by 2028, as the DICT works on expanding internet penetration to 60 percent as outlined in the Philippine Development Plan 2023-2028.

For 2025, the DICT is receiving P7.5 billion to support the rollout of the FPIAP, but the agency in previous years was given just P2.5 billion.

The FPIAP takes its funding from the spectrum user fees paid by telcos, which averages around P5 billion annually. Given this, the DICT is finding ways to lower the cost of the FPIAP so that it can still offer free internet even if resources fall short.

The Philippine Chamber of Telecommunication Operators (PCTO) is backing the DICT in efforts to improve the FPIAP. PCTO vice president Roy Ibay said the Private Sector Advisory Council (PSAC) reporting directly to President Marcos has called for this recalibration long ago.

The PSAC is proposing a public-private partnership to build new cell towers to cover 25 million Filipinos living in 7,063 barangays classified as geographically isolated and disadvantaged areas.

“The PCTO, through PSAC, is supporting these initiatives (of the DICT),” Ibay told The STAR.

Under the current setup, the FPIAP delivers connectivity access, whether by fiber or satellite, to government offices and schools in remote areas as a way to narrow the digital gap.