APPARENTLY convinced that its future lies in new Internet-enabled businesses, the Philippine Communications Satellite Corp. (Philcomsat) is now offering local Internet service providers the infrastructure for satellite-based Internet access.

At last week's launch, Philcomsat said that it is also exploring the possibility of playing a role in RPWeb. An initiative of Rep. Leandro Verceles Jr., RPWeb is mandated by Administrative Order 332 to link up all government agencies via the Internet.

"We are starting to talk to government agencies regarding RPWeb. We're still discussing it with a few people, but I can't say anything more than that at this point," said Phillip Pastoral, Philcomsat's executive assistant to the president for corporate affairs.

Philcomsat is bringing ISPs its links to the International Communications Satellite Organization's global network of 30 geostationary (also called geosynchronous) satellites or GEOs.

By relying on the Intelsat network of satellites and earth stations, an ISP's Internet traffic would not have to pass through several local and regional Internet exchanges. This means that the data can bypass areas of congestion by using wireless connections.

In an e-mail interview, however, Verceles said that the ability to support satellite-based Internet services would not necessarily give ISPs an edge in being chosen for RPWeb.

"The closest we can get to a criteria that will give some benefits to a satellite-based Internet access provider is that they must likewise be an Internet exchange or connected directly or indirectly to an exchange," Verceles said.

Before an ISP can be considered for RPWeb, House Resolution 890 requires that it must be part of a local Internet exchange. At present, the Philippine Internet Exchange is the sole exchange operating in the country.

"That is why we are still waiting for another entity to set up an exchange. Only at this point shall we get both--PHIX and the new entity--registered with the National Computer Center and require them to interconnect with each other. Then we will work for NCC to issue out a circular enjoining government offices to only entertain ISPs that are directly or indirectly connected to the two exchanges for their Internet connectivity needs," Verceles explained.

While stating that Philcomsat has not yet discussed RPWeb with him, Verceles said that satellite would be a good option for areas that are not covered by landlines.

"For Philcomsat to play a role in RPWeb in a grand way, however, they should apply as an Internet exchange. Being an exchange is like a magnet for ISPs to connect to if they want to avail of the benefits of the RPWeb system. Philcomsat could also simply become an ISP with a huge gateway and connect to an exchange," he said.

Pacific Internet Philippines is the first ISP to avail of Philcomsat's new service.

"With this tie-up between Pacific Internet and Philcomsat, we have a fully activated T3 link to the United States, transmitting 45 megabits per second using the Intelsat 174 via Teleglobe and Philcomsat. As a result, our current capacity is now equal to the total bandwidth of 660 local ISP resellers combined, which can serve far greater than the needs of the entire Philippine Internet subscriber market today," said Rowena Blas, Pacific Internet's sales and marketing director.

Blas said some of their subscribers may already be experiencing faster downloads as part of the ISP's test period, which is nearing completion. She said, however, that the full benefits would be available within the next two weeks.

"To optimize customer benefits and enjoyment from the Internet, we believe that satellite will offer the best option in delivering faster and more reliable downloads. At the same time, this will be more cost-effective," Blas said.

Though GEOs have already been tried and tested as the platform for satellite communications, critics have said that the high altitude of 35,800 kilometers that these must maintain results in latency or transmission delay. This is why the Teledesic constellation backed by Microsoft Corp. will rely on low earth orbit (LEO) satellites.

Joby de Belen, Philcomsat's executive assistant to the president for marketing, said, however, that they feel they can take the lead in the local market before Teledesic becomes fully operational in the next two to three years.

"First, we feel that we can capture the market before they come in. Secondly, there are advantages and disadvantages to using LEOs, the advantage of course being that LEOs are closer. But the disadvantage is that since they will be starting a new business, the service would be expensive initially," De Belen said.

Asked whether Pacific Internet would still have the option to switch to Teledesic or another provider in the future, Blas did not answer the question directly.

"As a company operating in a highly competitive and fast-paced environment, our decisions will always aim at harnessing the best technology and infrastructure out there that will keep us ahead of the race in cyberspace--especially in providing best value service to our subscribers," she said.