Pilipino Telephone Corp. (Piltel) was awarded a permanent authority by the regulators to construct, install, operate and maintain a digital transmission network.

In a decision signed by the commissioners of the National Telecommunications Commission (NTC) on April 14, Piltel was granted a certificate of public convenience and necessity (CPCN) coterminus with its existing franchise provided under Republic Act 7293.

Piltel was issued a provisional authority (PA) to operate a digital transmission network on October 29, 1997 or up to November 3, 2000, and was subsequently extended up to November 3, 2008.

Based on the recommendation of the NTC’s common carrier authorization division (CCAD), Piltel complied with the terms as provided by its permit. In the order, the NTC found Piltel legally, financially and technically qualified to operate the network.

The NTC also noted that Piltel’s digital transmission network facilities under its coverage area have been installed and are operational.

“In view of the foregoing and considering that Piltel’s service is already in operation and that it is presently providing the service, the technical staff recommends that Piltel’s PA be made a permanent authority,” said the CCAD in a report to the commissioners.

Piltel’s authority covers all the country’s administrative regions, including the National Capital Region and the Cordillera Autonomous Region, except Cagayan Valley (Region II) and Caraga (Region XIII).

The CPCN, however, is subject to certain conditions. Piltel is required to submit a quarterly status report and cannot suspend operations without prior authority from the commission. The NTC told Piltel that it can inspect its facilities anytime.

The digital transmission network serves as the backbone of Piltel’s 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 is 92.1-percent owned by Smart Communications Inc., which is, in turn, controlled by phone giant Philippine Long Distance Telephone Co.