Big telecom firm faces trouble in tourist town

By Gina Dizon

SAGADA, Mountain Province – One of the largest telecom companies of this country is facing trouble from residents and officials of this tourist town who want a slice from its earnings.

           

Following shutdown of  SMART  signal afternoon of  June 14,  SMART representatives came here faced  the  land owners  of the cell site  and barangay officials  who demanded an increase in rent among others.     

In  negotiations here at the municipal  hall, barangay officials  led by  Balugan chairman  John Polon called on SMART for increased rental from  P40,000  a year to P50,000 a month. 

Land claimant Bernard Batnag also asked an  increase of  rent from   P50,000 a year  to P100,000 a month.

Security manager  Ariel Emock  who spoke for SMART said it would be  difficult to lay basis for an increase of  rentals, but said he will recommend proposed rates to SMART.

Polon and Batnag said  SMART had been  adding disk plates and other antenna without the community people’s consent.

They said the added antenna and disc plates apparently connected to other cell signals was basis for increased  rental due to more users as a result of wider signal coverage.    

Former  barangay captain John Yogawen and other former officials said  SMART took advantage of the  ignorance of the people on cell site rentals.

Batnag said felt the same way. He said the  P50,000 rent a year  was  low, compared to other rentals of cell sites.  

His father’s 15 year contract of lease with  SMART ended May 2012.

Not having arrived at  an agreement with  SMARTrepresentatives,  negotiation  was  moved  to July 11 this year.

SMART pays real property tax  to  the local government here.

Vice Mayor Richard Yodong said  SMART representatives  were  given a copy of  the aerial wealth  ordinance by the  Sangguniang Bayan for their information and compliance.  

SMART negotiations began in 1996 with the community of  Balugan and the land claimant  which led to the  building of the cell site  tower  in 1998 atop Mt  Pakad  1900 meters above  sea level.

The tower  overlooks  the municipalities of  Mountain  Province including  Tadian, Bauko, Sabangan, Sagada, Besao and the fringes  between Ilocos Sur, Ilocos  Norte, Quirino, Abra, and Apayao.       

Initial rent was pegged at  P8,000 a year  which  increased to P12,000 a year over a  25 year contract,  following hesitations of  having exceedingly low rent with the giant telecommunications company.       Apart from the yearly rent, SMART promised the  following benefit to the community: communication center within Balugan, scholars,  medical mission, and employment.

The promised benefits had not been given till now except employment of  two security guards at the tower site.

In 1997, the community was beset by  issues  on the construction of the SMART  tower whether it shall be erected or not. 

Issues focused  on perceived radiation effects on health of people, animals and  plants. People also were not in favor of  the cell site with perception that the rent was low as compared to the  profits that the telecommunication  shall generate.

With the nod of elders, the telecommunications tower was eventually erected in 1998 and activated in 2001.

It was also during this time that payment for  two years which had not been  paid from 1998 to year 2000  had been paid by SMART. 

In year 2001,  the community wanted the rent to increase to P100,000 a year.  

Lawyer Anthony  Fernandez  representing  SMART,  negotiated  with the people resulting to the increase of  rent from  P20,000 to  P40,000  per year with an escalation rate of 10% every year. 

The earlier agreement was revised and eventually signed by  barangay officials in 2001.

John Yogawen said the written agreement was brought to the SMART head office for their (SMART) signatures.

He said SMART officers  promised to return the MOA  back to the people but this was never returned.