Information and communications technology (ICT) is one of the key drivers of the Philippine economy. Last year the Philippines became the business-process outsourcing (BPO) capital of the world, overtaking India as the leading provider of IT-BPO services. Our local telecom industry contributes 4 percent to 5 percent of our gross domestic product (GDP), while BPOs contribute another 5 percent. According to industry predictions, BPO revenue could reach $50 billion, or 11 percent of GDP by 2020.

ICT-driven growth is a worldwide phenomenon. Telecommunications, computer hardware and software and electronics manufacturing comprise the ICT industry, which in 2008 accounted for over 5 percent of global GDP. This, according to the management consulting firm Mckinsey & Co., is expected to reach 8.7 percent by 2020.

It is also a virtuous cycle of growth: ICT has been a game-changer for many businesses, allowing them to access more markets and provide better services. At the same time, the demand for ICT services has been pushing ICT companies to innovate further.

Governments around the world have responded to this phenomenon by putting in place regulation mechanisms that would provide an environment conducive to ICT growth, and protect the rights and welfare of its citizens. According to the United Nations International Telecommunication Union’s (ITU) 2010-2011 report on “Trends in Telecommunications Reform,” more than 80 percent of the markets around the world have separate ICT regulatory agencies. There are currently 158 ICT regulators worldwide, up from 106 agencies 10 years ago.

Unfortunately, while the rest of the world seems to be moving forward in regulating ICT, the Philippines has recently taken a step back.

The Commission on Information and Communications Technology (CICT) was established in 2004, through Executive Order (EO) 269.  It was created as a provisional measure while Congress has yet to pass a law creating a Department of Information and Communications Technology (DICT).

I have been pushing for the creation of the DICT to give our ICT strategic direction and stability. Since the CICT was created, it has been the subject of several reorganizations, to the detriment of its operations.

When the CICT was initially formed, it was composed of the National Computer Center (NCC), Telecommunications Office (Telof), Philippine Postal Corp. (PhilPost) and all other operating units of the Department of Transportation and Communications (DOTC) on communications.

In August 2005, EO 454 moved the National Telecommunications Commission (NTC) back to the DOTC. The Telof and all other operating units of the CICT dealing with communications were subsequently transferred back to the DOTC in February 2007 through EO 603, leaving the CICT with just the NCC and PhilPost. By January 2009, the CICT regained its original composition through EO 780.

Two weeks ago, the President signed Executive Order 47, “reorganizing” the CICT again, and demoting it to a lesser role in the bureaucracy. The CICT will be renamed the Information and Communications Technology Office (ICTO). While the CICT operated directly under the Office of the President, the ICTO is now under the supervision of the Department of Science and Technology (DOST). And whereas the CICT was headed by a chairman with a Cabinet rank, the ICTO will be headed by an executive director with the rank of an undersecretary.

The NCC and Telof will be transferred to the DOST as part of the ICTO. However, the NTC and PhilPost will remain under the Office of the President.

This perennial reorganization of the CICT gives the impression of instability in our ICT strategy. Entrepreneurs looking to invest in the Philippines’ ICT sector will not know which office or agency to approach. So will our citizens looking to protect their rights and maximize the benefits of ICT.

Further, what is the impact of placing our ICT agency under the supervision of the DOST? Does it mean a refocusing of our ICT strategy? But for what rhyme and reason?

At a time when countries worldwide are crafting and implementing their respective ICT strategies, we seem to be flip-flopping on our own. If we are to look at results, having a separate, independent CICT appears to be an effective approach. We are now the No. 1 BPO service provider in the world. But that should not give us the cause to be complacent, much less to be indecisive. It should push us to do better, and to improve on what actually works for our ICT industry.

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