MikeLigalig.com

By Business Mirror

Phone giant Philippine Long Distance Telephone Co. (PLDT) was recently issued a permit extending its franchise to operate and maintain the Bohol Municipal Telephone Network—a government project which involved the installation of public calling offices (PCOs) to 48 unserved municipalities—until 2028.

The National Telecommunications Commission in an order dated December 4, granted the application of PLDT for a certificate of public convenience and necessity (CPCN) to operate and maintain the Bohol network.

This network is a project of the Department of Transportation and Communications (DOTC) and the Municipal Telephone Project Office (MTPO), which involved the installation of PCOs in Bohol and a telephone exchange in Tagbilaran City.

This project is one of the MTPO projects offered for privatization and which was subsequently awarded to PLDT. 

The said agreement binds the MTPO and PLDT on the operation and maintenance of the network while its ownership remains with the DOTC. The network will be leased for 15 years, and after which, PLDT was given the option to purchase upon payment of the transfer price.

But PLDT filed in 2006 a request for arbitration with the Philippine Dispute Resolution Center Inc. (PDRCI) for the termination of the financial- lease agreement between PLDT and DOTC. The phone giant also requested that the DOTC be directed to take over the facilities of the network.

For its part, PDRCI allowed the ownership transfer from the DOTC to PLDT, provided that the phone firm will continue providing for and serving the telecommunications needs of the people of Bohol.

Thereafter, a new agreement was signed between the DOTC and PLDT in July 2008. This accord gives the phone giant all the rights, title and interest on the facilities covering the Bohol network.

“There is a need for PLDT to continue operating the Bohol Municipal Telephone. It is for this reason that PLDT is praying for issuance of CPCN,” explained the phone company.

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i wonder why PLDT is still interested in spending millions of pesos to operate a land-based telephone system in for the whole province of bohol. the cell phone is more accessible and more practical. unless PLDT envisions that every home in the future will require internet connection. but have they not given it a thought that by then, satellite phones may have become the norm and thus would render their land-based system useless? well, i guess that's the risk that they have to take.

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