PLDT, Globe sign deal to lower interconnection fee
From Left: PLDT Regulatory Affairs Head Ray C. Espinosa, PLDT EVP and Head of Enterprise, International, and Carrier Business Eric R. Alberto, Senator Bam Aquino, Globe Chief Technology Information Officer Gil Genio, Globe President and CEO Ernest Cu. Image grabbed from PLDT
Smart Communications, which is owned by PLDT Inc., and Globe Telecom subscribers can expect cheaper rates for voice calls between networks by early 2017.
The agreement signed by the two telecommunications giants states that the interconnection fee will be cut from P4.00 to P2.50 per minute starting January 1, 2017. The Department of Information and Communications Technology and National Telecommunications Commission (NTC) officials were witnesses to the signing last Monday (November 28). The act is in response to President Rodrigo Duterte’s pronouncement for telecommunication companies to lower rates or improve services or he will open the markets to foreign players.
“We made a study and compared it with other countries. The standard is between P2.20-P2.50 in other countries. Reduction is about 40% from the existing P4 per minute,” NTC Commissioner Gamaliel Cordoba said.
For PLDT, the lowered interconnection rates would reflect a 40% drop in interconnection charges. While the new rates mean a 38% reduction in charges for Globe.
