Camiguin is the recipient of the Phil-German Rural Communications Project, an accomplishment of Pres. Corazon Aquino, during her state visit to Germany in 1989. GTZ was tasked by the German government for the implementation of the project. Among the 3 candidate sites, Camiguin was selected.
The German government granted about P50-million (1992 figures) for the initial telephone network for initial 400 subscribers using Alcatel 1000 S12 exchange EC-3 as the heart of the network. CAMTECO was granted local-metering at P1.00/minute. The network started operation and formally inaugurated by then Usec. Josefina Lichauco on February 12, 1994.
Although the network operation started in February, it was only 3 months after that the billing system became fully operational. The PC-based billing system was a breakthrough since billing systems offered by telecom manufacturers are huge and expensive (about the same cost as the exchange). For a small network, it is prohibitive. The billing system was developed by Alcatel Phils and a front-end processor by the CAMTECO manager.
After two years of operation, CAMTECO earned enough revenue that it was able to undertake a major expansion. The Alcatel S12 exchange was upgraded to the latest EC-7 version (more capacity and more line features), additional TDMA system was procured (higher capacity and it has a trial DECT wireless local-loop system) and the expansion of cable network.
After 2002, CAMTECO installed two refurbished Siemens PABX at Bug-ong, Mambajao and the town of Mahinog to fill the demands of telephone lines. As a consequence, all the advance features of the S12 were no longer available to subscribers connected to these PABXs.
CAMTECO entered the Internet market in 2002 by offering pre-paid service with 16 dialup lines. By the end of 2007, there are 5 DSL broadband subscribers and still 16 dialup lines.