Manila, Philippines  - In an effort to cut down on its telephone bills, the Philippines is studying the option of installing voice over Internet Protocol or VoIP technology in government agencies.

Tasked to implement the project is the Commission on Information and Communications Technology which is set to pilot test VoIP before rolling it out.

According to INQ7.net, CICT chairman Ramon Rosales said the technology will drastically result to lower telecommunications bill as it uses the Internet instead of traditional telephone networks to route voice calls.

He said the agency initially planned of pilot-testing the project with the seat of government but the Presidential Security Group, which is in-charge of Palace security, expressed concerns over CICT engineers inspecting their telephone systems.

President Gloria Macapagal-Arroyo has given CICT the instruction to introduce VoIP in government offices to cut down government expenses.

An estimate made by the National Economic Development Authority placed initial savings at $3.33 million on the first year of implementation of VoIP technology. Figures from the Commission on Audit show the government spent $ 12.73 million in communications in 2004. In 2003, communications expenses reached $ 11 million.