Misamis Oriental-owned telephone company shuts down after 7 decades

The closure, attributed to substantial losses, marks the end of an era for thousands of subscribers who once solely relied on its services, particularly before the widespread use of cellphones

CAGAYAN DE ORO, Philippines – The provincial government-owned telephone company, Misamis Oriental Telephone System Incorporated (Misortel), has ceased operations after 74 years of service.

The closure, attributed to substantial losses in recent years, marks the end of an era for thousands of subscribers who once solely relied on its services, particularly before the widespread use of cellphones and other modern means of telecommunications.

Despite generating millions in revenues annually, Misortel had been operating at a deficit, relying on provincial government subsidies to sustain its day-to-day activities.

Engineer Marlon Libago, the officer-in-charge of Misortel, who confirmed the closure on Tuesday, February 20, said Misortel no longer upgraded its system by acquiring cutting-edge technologies and procured up-to-date equipment to be competitive with the country’s leading telecom giants.

Misortel’s financial status was included in the Commission on Audit (COA) annual report on the provincial government of Misamis Oriental in 2022.

The report showed that the income of Misortel, particularly communication network fees, dropped by P644,138 because its collection of P2,286,941 that year was lower compared to the P2,931,079 in 2021.

In fact, Misortel posted a net loss of P478,273 in 2022 after P2,765,214 expenses were incurred on line maintenance and equipment repairs that year, the COA document showed. 

The provincial telephone system posted net incomes of P10,823 in 2021 and P2,129,881 in 2020.

In 2021, Misortel paid its last and final annual loan amortization of P384,347 with the Development Bank of the Philippines (DBP) for its P40.480-million 10-year loan that was granted to the provincial government in 2011. It was intended for Misortel to migrate into a digital technology then known as the New Generation Network (NGN).

Misortel started in 1950 with a franchise to operate “a wire or wireless communication system” under the Public Service Commission that was created by virtue of Commonwealth Act No. 146 or Public Service Law. It was the only telephone system in Cagayan de Oro and Misamis Oriental then until 2008 when five telephone companies came in.

In 1998, Misortel had 12,439 active telephone lines consisting of 7,541 residential and 4,898 commercial subscribers, including offices of government agencies, in Cagayan de Oro and Misamis Oriental.

In an interview with local broadcaster Strong Radio, Libago said they sent notices to subscribers that telephone landlines would be cut off on February 20, and they may settle their accounts directly at the office of the treasurer at the provincial capitol in Cagayan de Oro.

“When I assumed [as Misortel head] over a year ago, there were already less than a hundred subscribers,” he said.

He said they further lost many subscribers to fires, mostly in Cagayan de Oro. Restoring the lines, he explained, had been hindered by Misortel’s financial and personnel constraints.

Misamis Oriental Governor Peter Unabia, who chairs the provincial local enterprises management board, assured all 40 Misortel regular employees affected by the closure would be absorbed by the provincial government. – Rappler.com