PILIPINO Telephone Corp. is giving up its authority to operate a nationwide digital transmission network, which used to serve as the backbone of its local exchange carrier (LEC) services.
Piltel operates six LEC networks in the cities of Baguio, Olongapo and Puerto Princesa and in the municipalities of Subic, Boac and Masbate. All of Piltel’s existing telephone exchanges are digital systems.
Piltel, which has been renamed PLDT Communications and Energy Ventures Inc., is still a unit of Smart Communications Inc., a wholly owned subsidiary of Philippine Long Distance Telephone Co. (PLDT) but no longer engaged in mobile phone business. At present, the 20-percent holding of Manila Electric Co. (Meralco) is its primary asset and source of income.
Its cellular permit was already transferred to Smart Broadband Inc., another unit of Smart.
“The amendment of Piltel’s primary purpose and change of corporate name to reflect this change were approved by the SEC (Securities and Exchange Commission) per certificate of Filing of Amended Articles of Incorporation dated May 25, 2010,” said Piltel.
“Due to the above reason, grantee implemented and pursued changes in its business goals, objectives and directions which now renders inutile, unnecessary, moot and academic the maintenance of a Nationwide Digital Transmission Network,” said Piltel.
The company said there are no subscribers of the said service and who may be prejudiced by the cessation of the service.
Consequently, Piltel is constrained to cease the operation of the said service. “Piltel is willing to surrender its certificate of public convenience and necessity and other permits, frequency clearance and station licenses for its nationwide digital transmission service to this Honorable Commission,” it said in a filing to the National Telecommunications Commission.
“SBI already has the authority to operate a nationwide digital transmission network. This authority allows one to be an inter-exchange carrier (IXC). So, Piltel no longer needs this,” said Smart lawyer Roy Ibay when sought for comment.
IXC is a telephone company that provides connections between local exchanges in different geographic areas
PLDT Communications and Energy Ventures Inc. is taking the lead in the synergies identified between Meralco and Smart. These include broadband over power lines, prepaid electricity and cellular services, fiber optic network, billing system, subscriber base, and other vital facilities that both companies can jointly own and operate.
“Piltel, which was renamed PLDT Communications and Energy Ventures Inc., is now a significant player in the energy industry as a result of its holding in Meralco. Piltel’s investment should ensure that the PLDT Group will be in the best position to harness both operational and strategic synergies with Meralco,” PLDT president Napoleon Nazareno had said.
