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The wireless unit of Philippine Long Distance
Telephone Co. has obtained the regulator’s green light to operate
payphone service until 2010, paving the way for its expansion into
the unserved and underserved areas nationwide.
The National Telecommunications
Commission has granted Smart Communications provi-sionary authority
to install, operate and maintain public calling offices (PCOs) and
payphone services nationwide until January 4, 2010.
The telecom regulator said it
“interposes no objection to the extension of the permit for three
years, subject to the same terms and conditions and penalty
surcharge due to late filing of the renewal application.”
Smart’s PA was first issued in
July 2005 valid until January of last year and a year after the
company asked for an extension.
The NTC also required Smart to
submit a status report of its wireless GSM (global system for mobile
communications) PCOs and public payphones.
In earlier documents submitted to
NTC, Smart said it would spend P177.14 million for the installation
of 9,600 payphones nationwide, of which 7,100 will be operated
through phone cards and 2,500 using coins.
Through its Public Access
Department, Smart will operate and manage the nationwide payphone
service using PLDT facilities.
Smart operates PCOs under the
brand Smart Tawag Center.
The company said it expects gross
revenues of P1,950 a month per payphone for card-operated and P1,175
for coin-card operated during the first year.
The telco projects to earn
P165.14 million in the first year, P160.29 million in the second,
P155.07 million in the third, P150.97 million in the fourth, and
P149.83 million in the fifth.
“For conservatism we assumed a
gradual decline in revenue over five years primarily because of the
increase in penetration of cellular service,” Smart said.
Smart will charge its users P1
per minute for local calls, P3 per minute for national direct dial,
P6.50 per minute for mobile phones calls, and $0.40 per minute for
international direct dial calls.
--Darwin G. Amojelar
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