Group bucks rural telephone program

The Telecommunications Operators of the Philippines (TOP) is opposed to any revival of the government's P53-billion rural telephone program which the group said could easily be undertaken by the private sector.

In a position paper, the TOP said there is no reason for the government, through the now defunct Municipal Telephone Project Office (MTPO), to engage in providing telecom services to the public.

MTPO ended its 10-year life term last Feb. 8 and is lobbying for an extension so it could push through with the implementation of the controversial Telepono sa Barangay project.

According to the TOP, there is no need for the government to put up additional telephone lines since about three million fixed lines laid down by various carriers remain unutilized.

Even the existing government telecom facilities like those installed and operated by MTPO are underutilized, it added.

MTPO project director and Undersecretary for Transportation Willie Evangelista, however, claimed that none of the existing carriers is interested in taking over the TSB due to its unprofitability and huge capital requirement.

This, he said, is the reason why the MTPO wants to push through with the multi-billion project if only to provide the much-needed telephone facilities in more than 20,000 unserved barangays nationwide.

The TOP said that if the government really wants private sector participation, it should instead offer incentives or subsidy by lending public funds to the private companies at minimal or zero interest rates.

"This way, the government will achieve its purpose but still save itself from the burden of having to spend for the operation, maintenance and upgrading of these facilities and also from the problem of having to privatize them again later," the TOP said.

The group added that the operation and maintenance of the TSB network that is unprofitable and cannot be privatized simply translates into subsidies for an unprofitable service by the government.

Thus, the TOP is proposing that the National Telecommunications Commission (NTC) conduct a survey of all the areas nationwide which are likely to remain unserved within the next five years.

Based on the survey, the TOP said new licenses and incentives may be granted to the private carriers that may be willing to go into unserved areas.

"In such a big project, the private sector would like to participate starting from the planning up to the implementation stage of the project so that financial and technical viabilities can be ensured. We believe that in time of financial crisis, government and the private sector should closely cooperate to provide services in a manner that is widely accepted and favorable to all sectors," TOP said.