Santiago said the National Telecommunications Commission (NTC) should come up with an incentive scheme that would allow telcos to earn credit points for each phoneless barangay served.
He said the credit points may then be used by the telcos to claim incentives such as additional frequencies for cellular mobile telephone system (CMTS) operations, or licenses for new or value-added services.
Earlier, NTC chief Eliseo Rio Jr. disclosed that over half of the country’s 45,000 barangays still have no access to telephone service.
The problem is worst in Mindanao, where 8,242 barangays or one-third of all villages, have remained phoneless.
Santiago, a former NTC chief, said that among telcos, CMTS operators "would be in the best position to serve phoneless barangays."
"However, we cannot just compel CMTS operators to put up cell sites near or in phoneless barangays because of the huge expense required. So we have to offer them incentives," he said.
Each cell site costs several millions of pesos to put up. And cell sites in rural barangays hardly offer financial rewards because of few subscribers.
Among CMTS operators, Santiago said Smart Communications Inc. is in an excellent position to provide services through its satellite GSM mobile phone service.
"A public calling office (PCO) powered by a satellite phone would go a long way in improving the lives of residents in rural villages," he said.
Smart, in partnership with sister firm Aces Philippines Cellular Satellite Corp., has been putting up satellite phone-backed PCOs or Tawag Centers in unserved areas.