Department of Information and Communications Technology (DICT)

Philippines tech sector will benefit from new government department

November 17, 2015

Primary article contributor – Kevin Lass

Team Leader following the Philippines – Cameron Torrens

Keywords: Philippines, Technology Economy, DICT, ICT, Cyber Security, Internet, BPO, Policy Reform

In October 2015, the House of Representatives approved creating the Department of Information and Communications Technology (DICT) as the principal government body responsible for the development and promotion of the Philippines Information and Communications Technologies (ICT) sector. The final version of the agreement is expected to pass through a bicameral committee in the coming months. The DICT will address Internet connectivity and other communications issues in order to enhance services across the country. Ultimately, merging the multiple ICT-related offices and agencies is expected to speed up industry growth and foster competitiveness.

Last year, the Philippines broadband speed averaged 3.6 megabit per second, lagging behind Malaysia, Cambodia, Vietnam, and Thailand. As a result, businesses and civil society organizations have pressured lawmakers for improvements that include open Internet access in public spaces and government offices, made possible through the DICT.

This harmonized framework will allow for knowledge, resources, and databases to be shared and linked together. The DICT is expected to increase efficiency by improving government transactions, including the transfer of records and requests for documents under an integrated database. The DICT will be tasked to grow the industry by promoting investment opportunities for ICT firms, and ease the process to create local and global partnerships. Establishing international linkages will expand the Philippines technology sector by attracting more investment opportunities for ICT firms. The measure will also be consistent with other ASEAN economies that include cabinet-level departments for their ICT sectors, especially necessary for the business process outsourcing (BPO) industry.

Support for the DICT remains strong in the private sector where both Filipino and international businesses and chambers have urged government to prioritize information technology. Initially, this long-anticipated bill was buried in parliament for several years, as critics suspected that creating the DICT would lead to unnecessary bureaucracy at a financial expense. However, there was broad recognition of an urgent need to have a consolidated department in order to enhance cyber security and data protection. Furthermore, there is no sufficient evidence to suggest that the DICT could become an industry regulator for BPO. As a result, the risk of increased industry regulation continues to remain low. Instead, there is far greater potential that the DICT will boost the Philippines’ position as a globally competitive investment destination and strengthen existing relations with the business sector.