Olongapo Telecom & Information Technology

Sunday, February 17, 2008

NTC: Interconnection is key to lowering rates

In an effort to bring down international call and data rates, the National Telecommunications Commission (NTC) is keen on ordering interconnection of backhaul networks to international cable landing stations in the country.

“Currently, only the company that has put up a cable landing station can extend this connectivity to the mainstream network, say in Manila, and from there other telcos can interconnect for last-mile connections,” NTC Commissioner Jorge Sarmiento said in an interview. “There could be potential savings for the other telcos if they can hook up to the cable landing station itself.”

NTC common carrier division chief Edgardo Cabarrios explained that it was like “coming from abroad and having to land first in Manila and getting a connecting flight to Cebu.”

“There could be savings in flying straight to Cebu,” Cabarrios said. “That is the analogy of what we would like to do.”

Cabarrios added that backhaul interconnection would give end-users an option on which telco service to use since they would all be connected at competitive rates.

The three existing backhaul facilities were individually put up by the Philippine Long Distance Telephone Co. (PLDT), Globe Telecom Inc. and Digital Telecommunications Philippines (Digitel).

Two more facilities are in the pipeline.

PLDT is set to spend more than $50 million as the Philippine landing party in the Asia-America Gateway or AAG, a cable project which will provide Southeast Asian countries their first direct, high capacity cable connectivity to the US mainland. It is also upgrading its existing APCN2 (Asia Pacific Cable Network 2) system.

Globe Telecom is spending $40 million just for the cable landing station of the TGN Pacific network which will link the country to Japan, Guam and the United States.

Digitel, which is part of the East Asia Crossing (EAC) submarine cable system, said through spokesperson William Pamintuan that it first wanted to get industry feedback at a hearing this Wednesday on the matter.

Digitel has been asking the NTC to make PLDT bare backhaul charges to non-capacity owners of its existing cable landing station.

PLDT and Globe could not be reached for comment.
By Riza T. Olchondra - Philippine Daily Inquirer

Labels: , , ,

0 Comments:

Post a Comment

<< Home