Misortel needs strategic partner to be competitive
Cagayan de Oro City (17 June) -- THE Misamis Oriental Telephone System, Inc. (Misortel) is looking for a strategic partner to remain competitive.
According to Governor Oscar S. Moreno that in order to make Misortel at par with the other big players, there is a need for its lines and equipment to be upgraded to continually and efficiently serve its subscribers in Misamis Oriental, most of them in Cagayan de Oro.
During the Misortel regular board meeting last May 11 this year, Moreno who chairs the Misortel board, directed operations manager Relio B. Acero to facilitate the requirements for auditing work that will be undertaken by SyCip Gorres Velayo (SGV) accounting firm.
Acero assured the Misortel board that SGV may be able to start its auditing work on Misortel within the month once the documentary requirements are ready.
The governor, who also sits as the President of Misortel, also congratulated its collection team for performing well in the recent months.
Started as a common battery system in 1958, then known as Misamis Oriental Provincial Telephone System was changed to a cross-bar type in 1966 with 3,500 lines. In 1987, digital equipment (SL-IN PABX) replaced the cross-bar type and domestic direct distance dialing was introduced. Five years later, fully digital equipment (Samsung TDX) with an initial capacity of 6,150 lines was installed.
The SL-IN equipment was then transferred to Gingoog City and the cross-bar system was totally discarded. Subsequently, the Misortel system was interconnected with five telecommunication companies even as it installed additional lines with a maximum capacity of over 16,000 connections for both international and domestic direct distance dialing service.
Due to an improved collection system and revenue generation program, Misortel has been remitting its loan repayment to the Development Bank of the Philippines(DBP) out of its collections already since August last year, unlike in previous years where these have to be taken from provincial government coffers. In effect, the funds saved by the capitol are now spent for basic services in the province.
Misortel's corporate treasurer Amelita G. Pacuribot said they will be remitting to DBP P15.6 million of the semi-annual loan payment in August this year.
Last February, this year, Misortel paid DBP P13.8 million consisting of principal of P7.153 million and interest of P6.655 million, of which the outstanding principal balance was then P134.305 million.
It may be recalled that Misortel availed of a P268-million loan from DBP in 1998 payable in 15 years. And this, after it had another P144-million loan from the Department of Finance in 1991, also payable in 15 years. (Misamis Oriental Provincial Press Office) [top]