Telecom operators not keen on serving remote, unprofitable areas

Despite the lack of basic telephone service in about half of the country's municipalities, members of the Telecommunications Operators of the Philippines (TOP) are hesitant to offer their facilities to unserved areas due to business unprofitability.

Epitacio Marquez, TOP president, admitted that most of the private carriers would prefer to stay in profitable areas since their investors, expectedly, do not want them to incur any financial losses.

"Our organization has taken the position that in those areas where the service will really be profitable or at least, breaking even, we will be willing to go," he said.

The statement was supported by Rogelio Quevedo, had, legal carrier relations of Smart Communications Inc.

Quevedo admitted that the company's decision of putting up telephone facilities such as public calling offices (PCOs) has been based on where there is a estimated demand for the service.

He added if there is a demand or proper incentives from the government, Smart will be able to go even to the barangay level.

According to Quevedo, aside from the issue of demand, Smart could not establish PCOs in all municipalities under its service areas due to other reasons such as peace and order problems and some conflict with local officials.

"The feeling is that we are doing a service to these municipalities but there was one instance that we were not able to put up a single line in a particularly municipality because we have been unable to find good relations with the local officials in that area," Quevedo explained.

As a result, despite their mandate to install telephone lines in all the municipalities in their respective jurisdiction, the players have failed to fulfill their obligation.

Edgardo Cabarios, common carriers authorization division chief of the National Telecommunications Commission (NTC), noted that during the three-year telephone roll-out program of the carriers, it was estimated that the number of municipalities and cities to be served will be 85 percent.

However, he pointed out that after the deadline two years ago, only 52 percent out of the projected 85 percent were served by the companies.

The NTC is set to conduct a public hearing to hear the explanations of the carriers on the matter.