Smart bares 'substantial' landline rollout compliance

Smart Communications Inc. has reported to the National Telecommunications Commission (NTC) that it has substantially complied with its landline rollout obligations under current telecom laws and regulations by extending telecom services to more rural communities.

In a report dated April 13, the company said it had installed as of April a total of 762,105 lines in its designated service areas, consisting of the Ilocos region, Central Luzon and south Metro Manila (Pasay, Parañaque, Muntinlupa, Las Piñas and Taguig).

As part of the conditions attached to its licenses to operate a cellular phone service and an international gateway, Smart is required to install 700,000 lines.

Of the total installed lines, 669,122 were put up in the urban areas, and 92,983 in the rural areas. These figures indicate that Smart had attained a 1:7.2 rural-to-urban ratio in the deployment of its lines -- markedly better than the required 1:10 ratio.

Out of the 264 towns listed under Smart's provisional authority, 218 were covered by the firm's rollout program. This means that Smart has attained a compliance rate of 82.6 percent, which is considered Class 2 or "substantial compliance."

"With this performance, Smart has not only been able to effectively address the concerns earlier raised by the commission, but also substantially contributed to meeting the telecommunication needs of rural communities," said lawyer Rogelio Quevedo, head of Smart's external, carrier relations and regulatory affairs.

Last February, the NTC issued a show-cause order to Smart because its records indicated that, though the company exceeded the total number of landlines required by law, only 42 percent of the towns in its assigned service areas had been provided lines.

To extend its fixed-line service to more rural municipalities, Smart provided additional landlines and set up public calling offices (PCOs). Smart was able to rapidly deploy these PCOs by using wireless technologies, including both analog and GSM fixed cellular terminals. As a result, the company exceeded its formal commitments.

In La Union, for example, the commitment to install 4,120 lines was surpassed when Smart set up 5,558 lines or an additional 1,438 lines. Pangasinan's total installed lines reached 42,919, up 18,019 additional lines from the target of 24,900.

In Region 3, Bulacan surpassed the target by 5,526 lines from the original 45,830, bringing the province's installed lines to 51,356. Pampanga similarly enjoyed 19,044 additional lines from the target 22,000 when Smart put up 41,044 lines in the province.

PCOs helped in the rapid deployment of Smart's facilities. The company has deployed over 700 PCOs nationwide on the back of its extensive analog cellular network and plans to deploy a similar number this year, this time using GSM facilities. PCOs are run by local entrepreneurs using Smart facilities.

"To deliver these services, we've built a network of business partners all over the country. So PCOs have not only helped provide telecom service in rural areas, but also helped promote local entrepreneurship," Quevedo said.