12th OEK, The Senate CTT Committee Oversight Hearing with BSCC 5/14/26

Added: 2026-05-21

[00:00:14]satellite officable corporation.

[00:00:36]preset senator, vice presidente floor there Mario Garcia, Senator Basilio, director member committee, Senator Rudim Vice Chairman, Senator, Senator Pedro, Director Member, Senator Direct Al, Senator Talams, Member Committee, Senator Talwal, director member committee, Senator Direct, Chairman Submarine Cable Corporation at this time.

[00:01:57]Senator Chairman, President Senate, Treasurer Timothy, Secretary Conrad Carson Cullen Carlson [snorts] Reinhardt commercial manager Freing operations manager chairman whips Senators CEO Reinhardt.

[00:03:11]Opening statement.

[00:03:13]Yeah.

[00:03:15]for the opener.

[00:03:19]See youas [cough and clears throat] chairman president senate floor leader vice presidente floor leader Mario Senate of the era management invitation cable corporation.

[00:04:13]Understanding Senate Senate chairman formally joined years before Lord management position.

[00:05:45]questions.

[00:05:59]Other question Mr. In the interest of time, Senator Mr. Annual reportunication last year and referred Annual report.

[00:08:02]Basically, as we have stated, at least again for the last uh five years at least PNCCO telecom Mobile Communications Corporation formally PMCC.

[00:09:10]Oh, PNC 10 kick 10 kick at 22 uh kick every month and pay $220,000 222 $100,000 tax 244,000 or so.

[00:09:40]Tele uh 750 mech, not even a kick.

[00:09:48]$37,500 a month.

[00:09:54]So moving on to the smallest customer retail service provider Pala Wi-Fi 200 Mac 13,500 a month every month customers Uh, Senator Chairman straight line game.

[00:11:02]How much gab available% uh terms of sale that's in BC's sphere of or jurisdiction.

[00:11:34]RSP in terms of a PC1 existing liveable cable 500 K.

[00:11:54]At the moment, retail service providers inventory subscriber 11 roughly 11 kick >> all together.

[00:12:08]>> All together that's 2% of the or >> it's very small.

[00:12:19]2% proposal PC2 original structure 500 scale down 400 kick 500 subscription Subscription costs 500 on a 15year uh list right to use. So we pay that up front. 6 point some million 6 point somehow for 15 years.

[00:13:30]Uh okay. On a 15-year lease six million even with a flat growth last five years.

[00:13:50]Just give me a second.

[00:13:55]Uh about 2017.

[00:14:04]So eight years now. M 15 years uh 10 from basically to the this year >> more nine years >> got another five years on that cost 500 enough time to not worry about PC2 which we are trying to activate later this year. It's an investment that we have taken >> very quickly 2% out of the PC1% PC2% PC1 for who resilience.

[00:15:07]Okay, we need resilience. We saw back in July 2023 single point of failure July 2023 4 and a half days or 4 days overall economy I'm sure you would appreciate enormously GM Clean network, clean network, including rip and replace due to security matters, clean network, including a rip and replace. Let me uh I think I need to clarify something there.

[00:16:12]reason why we went into PC2 resilience at that time network in terms I think what you're probably trying to recollect there investment PC2 uh was done in collaboration with parties to Indopac right uh Australia, US, Japan India support network for security purposes.

[00:17:07]platform and seek assistance from our friends for security purposes rip and replace is for security purposes free collaboration so maybe we can ask our friends helping 2% out of this collaboration toward security. Good point.

[00:17:57]I'll be happy to share in the original financing scheme inject couple of million dollars financing envelope.

[00:18:17]uh they do the guided partners especially Australia continue to monitor their project uh provide a support as needed help was part of our presentation the Omega general update to real opportunities for reasons.

[00:19:22]chairman.

[00:19:32]I know there's been a frustration service July 23 out project concept design 2018 2020 22 first day I'm happy to report on behalf uh as of yesterday final contract variation Connecting point 15 km 6 miles station 70 80 miles 2022 Congratulations at this timeman Senator Ald Vice President Going back to the beginning, self financing package 20 30 million roughly 30 million including USA, Australia, AFP.

[00:22:14]Of course, we would expect 500 400 or wavelengths of 100.

[00:22:34]within the last year last July president of state was there and they said it it's unrecorded mto the descent question apparently sensitive% okay the PC2 In the future, minimum 400 minimum 2015.

[00:24:36]Second gable in 2018.

[00:24:50]more than 30 days.

[00:25:07]Neighboring island Senator, shortly after FSM jointly for Indonesia.

[00:26:04]Take a big step.

[00:26:20]economic status.

[00:26:23]Financing, financial access around that time.

[00:26:43]Access World Bankman Partners Australia Found FSM cable Eastern Micronia cable few months ago.

[00:27:27]Senator Chairman Chairman CEO remember Mr. Robin Justifications, projections, objectives, procurement, e-commerce In the next five years achieve a level digital uh technology required.

[00:29:02]procure.

[00:29:08]US military at some point with the military build up.

[00:29:21]remember argument support need for US military objectives projections as a board Where are we on?

[00:30:00]And what what can we do as a board?

[00:30:23]And again, we we all have to plan.

[00:30:46]to maximize activity, economic activities. The promote Not only at some Replacement financial report.

[00:31:53]In fact, Fore slow moving team to I would rather see the only move into e government.

[00:32:44]Printing cost savings improve.

[00:33:25]to build on their own data storage economic development team. So with the use of AI with We cannot go back.

[00:34:22]We have to find ways to maximize the use of the cable.

[00:34:35]Okay.

[00:34:56]Senator investment of the transition.

[00:35:17]Transformable for example goes down our business model goes with it and I you know we I agree with uh what you've said and we've had conversations about diversifying Um Senator online just give a few example online we're utilizing it supplier registry that we're doing supplier register online procurement we started that project we launching it this week we have the corporate registry FIC already online. So all these government services are coming along and we're because the first cable will start to utilize and start putting government services online. We we also have uh upcoming projects like e passport that we're doing. Uh that's going to be a a big uh project that we're doing that's going to utilize a lot of the internet.

[00:36:58]Senator Basilus, chairman, chairman, director club.

[00:37:22]They'll be at least upgrade improve service.

[00:37:51]Fore implement cable.

[00:38:11]Fore which is a good thing.

[00:38:38]And we want to see for pricing competition in the market.

[00:39:14]But still yet again, technical issues, technical problems, and I'm pretty sure market.

[00:39:38]What's the future plan Mr. questions and answer.

[00:40:27]Do we still need floor leader?

[00:41:00]Yeah, cable.

[00:41:32]One internetellite system motor.

[00:42:04]service cable 2% to 1% activate cable forgottable.

[00:43:56]400 400 megabytes gab.

[00:44:38]chairman.

[00:44:54]Okay.

[00:45:02]Senator Montal wholesaler connectivity we've taken the route that's a policy matter interest primarily service providers. So recommendation and this is recommendation.

[00:45:53]for about second cable timeline accept provisional acceptance 26 it takes about one quarter connect. So at the earliest early next hearing according to what we cable owners I hope uh Florida 2017 I think 500 megaby 11 11 GB Right. So justification the pricing capacity or the speed available service.

[00:47:58]Uh, word of blood under PC2.

[00:48:59]terms going forward projection as best as we can study the market business When you look at our report here, has been flat last at least last five years.

[00:49:35]International Studies.

[00:50:00]with the investments they're putting into their historical lessons actual practices.

[00:50:12]There is still a lot lot of room for growth.

[00:50:19]It's a fact.

[00:50:31]biggest factor slow return recovery from prior to that trend.

[00:50:43]We do expect PC2 unlike PC1 PC2 both ways Singapore in terms IP transit offer competitive rates with prices within our control D helper customers crow. So really the crow the rest with the tree customers.

[00:51:29]I hope say help or question and then earlier.

[00:51:55]I hope it's minimum.

[00:52:44]activate early next year.

[00:53:00]decision for the pricing mechanism refer to opportunity.

[00:53:36]Little cable for history BBFN bubble fiber network 5.6 6 million mile investment services.

[00:54:56]Make sure terrestrial infrastructure.

[00:55:00]Infrastructure ship to that limited access.

[00:55:25]Fore driver connection Medicare airport.

[00:56:26]cable response.

[00:56:34]I understand microwave as of late last year, early this year. Early this year.

[00:57:16]Wholesaler.

[00:57:40]for lay out it in a simple diagram.

[00:58:19]service.

[00:58:36]After that, Capacity access point.

[00:59:02]Thus will help speed up fiber connectivity.

[00:59:27]No, no. PLC is connected to us.

[00:59:42]Okay.

[00:59:44]Understand that.

[00:59:47]Wi-Fi understand wholesaler.

[01:00:31]You're making a distinction as a wholesaler domestic network terrestrial fiber.

[01:00:52]Yes, I agree with you. Main line of business connectivity infrastructure capacity access point fiber loop.

[01:01:16]80% or more for use depending environment.

[01:01:32]It's an investment we made up PNC to the premises connecting point or shadow boxes.

[01:02:04]take it from there.

[01:02:11]I hope extension service revenue >> extension asset.

[01:02:32]revenue generating.

[01:02:40]Exactly.

[01:02:48]started by fee charge reasonable put so much pressure.

[01:03:14]They're just making their investments upgrade.

[01:03:36]Money Gable Corporation PCC PNC I believe.

[01:04:22]Okay.

[01:04:37]Okay.

[01:04:51]Second cable.

[01:04:54]cable.

[01:04:57]Second cable at the same time.

[01:05:18]Yeah. already.

[01:05:36]At the same time, Fore diverse.

[01:06:04]Of course.

[01:06:18]confidential.

[01:06:21]Well, understanding >> [clears throat] >> Okay.

[01:07:19]Okay.

[01:07:43]Two sets of loans.

[01:07:56]understand investment.

[01:08:12]Okay. investment.

[01:08:16]I see. I see. Okay.

[01:08:23]Investment foreign.

[01:08:52]Okay.

[01:08:57][laughter] at the same so for investment of President Senator Talams.

[01:09:38]Mr. 25 million development PC2.

[01:10:18]PC2 Senator Tamson. Uh roughly financing envelope 8 million loan mobile SNBC Australia 8 million we're talking a total of 16 plus 7 million and US grant 7 million 23.

[01:11:20]Prra.

[01:11:23]Good.

[01:11:38]Um to my understanding uh recollection initial part project PC2 RO loan to PSC 1% interest I have to check the regularly that's My rec recollection 40 million 8 million Australia 16 million 7 million documents mention >> 14 million Senator loan PC2 4 million SMBC 4 million JIC Australia 8 million plus 7 million agreement subordinate loan.

[01:13:17]>> So we're talking a total of 159 23 million.

[01:13:27]It was a hook agreement that I'm familiar with in Larsson total loaner for PC2 32 15 19 23 23 23 million grant Uh, external loan.

[01:14:25]PNC monthly payment service 1.2 million.

[01:14:54]Satellite service provide connectivity islands.

[01:15:03]satellite service business transaction PNG outside the jurisdiction submarine.

[01:15:17]So I wouldn't know there Senator 32 million 7 million lead grant 7 million rent outside.

[01:16:32]Senator Chairman loans per here.

[01:17:02]Uh, okay.

[01:17:14]Generally, Senator Basilusa December 1.2 million every 6 months. No. In a year 2.3 2.2 some million. Okay.

[01:17:44]3.2 million. So okay. So so there is profit number one. Yes. Maybe in a pure business sense [laughter] the services to date up until recently we've sustained ourselves with lack of growth.

[01:18:32]other factors.

[01:18:42]Uh there's no denying pressure stemming from challenges translate challenge actual challenge June beginning of June medic.

[01:19:14]This is a problem that has been known for identifying couple of years back.

[01:19:21]We tried to do something Lasman First 2022 will take over in a situation like this. Best restructuring loan especially ADB loan for good and own beginning toward the end of 2025.

[01:20:19]beginning last oh 24 and 24 beginning at 25 through the boards knowing direction.

[01:20:37]So they gave it to consideration.

[01:20:50]Infrastructure maintenance fund.

[01:21:10]So again we table that help pay that fiscal buffer insolvent.

[01:21:36]was made consolidation fund 2026 uh uh debt repayment budget FY26 budget Search update.

[01:22:34]Senate chairman, members of help.

[01:22:53]Telecomable support objectives digital transformation including our government fiber to the premises win for all.

[01:23:31]Retail service providers.

[01:23:42]Fore first options.

[01:24:12]The fellow submarine cable corporation committee senator director loan for important parting.

[01:25:10]And how long are we going to keep on sustaining important moratorum?

[01:25:23]It's a big part three without thinking it seems there's no other What can we do instead?

[01:25:55]We need to find the way.

[01:26:01]Of course, we need to find the way.

[01:26:18]True to the fact maybe I'll put them into grandfathercc give them a timeline.

[01:26:31]Explode.

[01:26:58]I just want to be very clear what you're asking.

[01:27:07]Is that correct?

[01:27:10]And you're talking about that fiber loop network.

[01:27:17]>> Yeah, that thing.

[01:27:18]>> Okay. So, you're trying to find a buyer, either PNC or the national government.

[01:27:25]>> Okay. How much did you spend on it?

[01:27:28]>> 5.6.

[01:27:30]>> Okay. And then Maria invoice due January 1st. June 1st. I mean June 1st.

[01:27:41]Invoice >> ADB loan repayment.

[01:27:43]>> Okay. Ela 978,000.

[01:27:48]Is that an annual payment or a by by annual >> with a expected JV mid June >> 400,000?

[01:28:02]>> So you got 979,000 invoice due on June 1st.

[01:28:07]>> June 1st. Yes.

[01:28:08]>> And then you have a JVIC loan >> loan repayment >> on June 15 >> or 16 >> for 400,000.

[01:28:17]>> Yes. And how much money do you have in the bank >> at the moment?

[01:28:34]You're you're owned by the government.

[01:28:37]Okay.

[01:28:39]Okay. Okay.

[01:28:49]Senator Whips at the moment we have uh uh 2.5 million >> the I had to pay we had to pay BSC had to pay 576,000 splicing work >> and that's not the only invoice for 80%.

[01:29:20]Let me go back to the account >> at the moment. 1.9 plus million the 1 roughly 1 1.4 for 1,378,000 1.9 reserve grantf PC2 related project that's been there since inception project. So 500,000 left. Mhm.

[01:29:57]>> So back to question Senator Basilus. So you have $500,000 to pay 1.3 million.

[01:30:06]Obviously you can't.

[01:30:08]And then in 6 months you got to pay both of those that 1.3 million again.

[01:30:14]>> We we have to pay another similar amount December.

[01:30:18]>> Okay.

[01:30:19]>> Mhm.

[01:30:21]>> Clearly now it's clear you got a problem. Okay.

[01:30:31]loan interest rate or subsidy from the government in exchange for some value.

[01:30:59]give considerations support.

[01:31:18]Yes, he's aware of it. Okay.

[01:31:33]Well, with all supplemental budget and I'll leave it there.

[01:31:54]report to the minister of finance of finance aware of it oversight for the particular was established by spy Create a moratorum local service providers.

[01:33:14]Anticipate service providers.

[01:33:33]Uh well justify especially Revenue.

[01:34:29]We appreciate the fact challenges potentially.

[01:34:49]He will come to you by surprise senators.

[01:35:11]You put us in a very bad position.

[01:35:28]Island cable service provider convenient.

[01:35:56]service providers.

[01:36:18]Explore more practical solutions.

[01:36:36]Whatever existing infrastructure system.

[01:37:00]Regular consultation agencies up [laughter] Chairman, President budget.

[01:38:22]President to be fair chairman CEO members board staff Senator Ald The bell communication app exchange. Uh but uh again to be fair CEO miscellaneous communication miscellaneous is in dire financial situation they need help. Uh, I made the announcement on record leadership follow.

[01:39:38]were in talks.

[01:39:55]Fruitful exchange communicate. Engage.

[01:40:16]I dye the Yes, we will address this further address you a proper channel to be president representative shareholder minister of finance president writing they given the urgenc times without to avoid triggering a default next month.

[01:41:18]Pick up a loan payment as we operations finances in the coming months and try to work with a long-term solution.

[01:41:32]Okay. So along the lines CEO chairman 47B 2015 consistently 2018 2022 rates both times important reduction and translate users naturally.

[01:42:16]Well, two two things BCC provide more bandwidth capacity bandwidth capacity at a lower cost unit and moral service providers.

[01:42:30]individually in the generally cost reduction undertake should be expected as translating into lower cost consumers quality service. So that's how I would respond to and we will continue to opportunity and moveenator sense of direction in two years.

[01:43:33]End of next year.

[01:43:40]Protect local industries local service before I'll expale.

[01:44:17]If you have to charge a fee, Whether foreign government, foreign even President Senate Chairman President Fore president chairman whips Mr. Chairman, President Senate Ples.

[01:46:03]Lord there respond by your own schedule.

[01:46:42]management for exercise situation.

[01:47:08]for a perception.

[01:47:23]Chain of command Mr. Possible solutions, CT process others management team.

[01:48:18]Phone call away.

[01:48:30]Chairman President Marenator There's chairman Senator Senator Chairman Chairman CEO RC was for wheelch.

[01:50:08]BC,ch.

[01:50:57]times. Come on.

[01:51:00][applause]