USAID's Growth with Equity in Mindanao (GEM) Program has been helping the Marbel Telephone System Inc. (MTSI) introduce telephone services in remote areas of the province of South Cotabato. Availability of telephone service has paved the way for the entry of new enterprises, made trade and business transactions easier, encouraged more efficient and effective delivery of government programs and services, and generated significant savings in time, energy, and resources.

A few years ago, GEM linked MTSI to a telecommunications company that supplied a Php70-million wireless local loop (WLL) system that uses radio frequency as a transmission path instead of conventional land cable installations. This technology was suited to the topography of the mountainous province and also met the needs of remote municipalities. Initially, MTSI installed about 1,600 WLL lines in outlying areas of Koronadal City and in remote barangays of Polomolok and Surallah municipalities. MTSI also installed fixed lines in the more accessible locations. The firm also installed a free telephone at one police station in each municipality of South Cotabato province. These were the first telephones available to these police stations.

Agricultural processing companies, rural banks, small-scale businessmen, and people with relatives abroad also rely on MTSI phones as a less expensive and more reliable communication tool than mobile phones. New jobs in the region attributable to the availability of phone services are estimated at 1,300 including some 93 new jobs in the telephone industry itself.

"Providing telecommunication service promotes business activities in an area. By bringing down the cost of services, MTSI increases the profitability of businesses and thereby attracts even more investments," said Benjamin Garcia, MTSI manager.

At present the company has a total of 7,000 WLL and fixed lines in the province. More recently, GEM assisted MTSI in carrying out a feasibility study to widen the coverage area of MTSI to include Sarangani Province and General Santos City and add 5,250 new WLL and fixed telephone lines. The National Telecommunications Commission approved MTSI's expansion in October 2002 and the company is in the process of selecting the most efficient and advanced low cost telecommunication technology to implement its expansion project.