Globe pushes interconnection with other telcos

GLOBE TELECOM, Inc. wants to beef up interconnection with Philippine Long Distance Telephone Co. (PLDT), Bayan Telecommunications Inc. (Bayantel), and Digital Telecommunications Philippines, Inc. (Digitel) this year in key cities outside the National Capital Region.

Froilan Castelo, Globe Telecom's head of corporate and legal services, said in a statement the company wanted to complete more interconnection agreements by the end of this year.

"Even if competition in the local telecommunication industry is intense, we must be able to put this aside for the public good. Interconnection is a win-win for everyone," he said. Globe Telecom pointed out that interconnection meant residents and business establishments in the provinces and cities can make local calls to other telcos without extra charges.

"Without interconnection, a Globe Telecom landline subscriber has to pay long-distance rates to call a Digitel, PLDT or Bayantel landline subscriber within the same area, and vice-versa," it said.

The company plans to pursue interconnection talks with PLDT for Zamboanga City, Baguio, and Pampanga within this year, he said. "The interconnection plans are done following the successful interconnection of the two telecommunication companies in Davao City last July. Also in the lineup are Laguna, La Union and Batangas," Globe Telecom said.

Globe Telecom also said it wanted interconnection with Digitel for the provinces of Ilocos Sur, Nueva Vizcaya, Bataan, Lucena, Quezon, and Camarines Norte by end of 2010, after the link-up of their local networks in Zambales and Isabela last month.

"[When] the last five Points of Interconnection (POIs) between Globe and Digitel [are] completed, the two firms will have achieved 100% total interconnection in all areas where they operate nationwide," Globe Telecom said.

Meanwhile, Globe Telecom said 90% of common areas with Bayantel have been interconnected, the most recent of which is in the province of Eastern Samar, which took effect last Sept. 6.

The National Telecommunications Commission requires interconnection of public telecommunications carriers under Republic Act No. 7925, or the Public Telecommunications Policy Act of 1995 which broke PLDT's monopoly.

Mediaquest Holdings, Inc., a unit of the Beneficial Trust Fund of PLDT, has a minority stake in BusinessW

NTC gives nod to Clark, Subic phone interconnection

The National Telecommunications Commission (NTC) has given the go-ahead signal to an initiative to interconnect the two telephone systems operating in Clark and Subic Freeports, saying the interconnection “are within NTC existing rules and regulations.”

The go-ahead signal is contained in a letter sent by NTC Commissioner Gamaliel Cordoba to Clark Development Corp.’s Angelo “Sonny” Lopez Jr. in response to the latter’s query on the legality of such interconnection.

Lopez, through the Metro Clark Advisory Council (MCAC), has requested a certificate or clearance showing that the proposed interconnection of phone lines has not violated NTC rules and regulations.

The MCAC has been pushing for the interconnection of Clark and Subic phone lines following the success of the interconnection of Clark phone lines with other telecommunications providers in Pampanga.

CDC President Benigno Ricafort, Lopez, PLDT Clark manager Lito Mercado, PEP TV President Dennis Uy and Cabinet Secretary Edgardo Pamintuan have been the forerunners of the interconnection project which has been cited by President Arroyo.

In December 2008, President Arroyo bestowed an award to Clark officials led by CDC’s Ricafort for the telecommunications interconnection project that was one of the top winners of the 1st Gawad Pampublikong Korporasyon (1st GPK).

Ricafort said the CDC’s winning entry was conceived in 2001 and aims to interconnect Clark’s telephone lines with those in Angeles City and the City of San Fernando, as well as other areas in the province of Pampanga.

He said that the interconnection project was an initiative of the MCAC – an influential partnership group between the CDC and contingent local government units within the Metro Clark area.

Lopez said the project paved the way for phone companies like the PLDT, Smart Telecommunications and Digitel to provide toll-free call to its subscribers in Clark abd the rest of Pampanga.

Lopez, who heads MCAC secretariat, said the residents, locators and investors inside the Clark Freeport are now saving at least 13.2 million yearly on long distance calls because of the project.

“The CDC alone was saved as much as P1.2 million per year since this project was implemented,” he said.

--Daily Tribune

Interconnection of phone lines in Subic, Clark backed

CLARK FREEPORT -- The Angeles City council has endorsed a proposal for the interconnection of phone lines along the Subic-Clark growth corridor in a resolution unanimously approved by its members last Tuesday.

In the resolution sponsored by Councilors Jesus "Jay" Sangil and Ruben Maniago, the members of the city council stated they are "endorsing the move of the Metro Clark Advisory Council (MCAC) to press for the immediate interconnection of telecommunications facilities in Clark Freeport Zone with those in Tarlac and Zambales."

"It would definitely fast-track business undertakings and greatly minimize costs to local residents," Sangil said, referring to the MCAC-initiated project which was earlier lauded by President Arroyo. Sangil likewise called on other officials of local government units (LGUs) situated along the Subic-Clark corridor to support the move, saying this will attract investors and provide jobs for the people.

"I am urging our counterparts in government in the cities, towns along the SCTEx to follow suit and support the same as it will invite investors and eventually create employment for our constituents," Sangil said.

In the resolution, the city council stated that the "Clark Freeport and the Subic-Clark-Tarlac Growth Corridor are foreseen as one of the world’s major economic hubs and catalysts for development, hence a major employment generator in North Philippines."

Also, "the development and improvement of infrastructure facilities, including the establishment of state-of-the art telecommunications facilities in the Metro Clark Area (Clark FZ, Pampanga and Tarlac) enhance the viability of the Metro Clark area as a choice investment destination."

The city council noted the importance of providing interconnected telephone exchanges, saying it "is vital in minimizing costs to investors and their clientele that includes government offices."

"Interconnecting telephone exchanges in Metro Clark Area is in keeping with the integration policy of the National Telecommunications Commission (NTC) in which long distance and other toll charges are waived," the resolution also said.

"The general welfare clause of the Local Government Code, among other provisions, obliges us to support moves of major employment generators," it further stated.

In December 2008, President Arroyo bestowed an award on Clark officials led by Clark Development Corp. (CDC) President Benigno N. Ricafort for the telecommunications interconnection project that was one of the top 10 winners in the 1st Gawad Pampublikong Korporasyon (1st GPK).

Ricafort said CDC’s winning entry, which was conceived in 2001, aims to interconnect Clark’s telephone lines to Angeles City and the City of San Fernando, as well as other areas in Pampanga.

He said that the interconnection project was an initiative of the MCAC, "an influential partnership group between the CDC and contingent LGUs within Metro Clark." By FRED ROXAS - Manila Bulletin

NTC sets new interconnection rules

THE National Telecommunications Commission (NTC) will issue new rules designed to curb anti-competition practices.

The proposed circular on so-called reference access offers (RAO) will be the new template on interconnection agreements spelling out the prices, terms and conditions a public telephone entity would offer another telecom company or value-added service provider for access to its network, facilities, systems or customer base.

The NTC said an effective and efficient interconnection is key to sustainable competition in the industry.

The regulator said technological changes, expansion of market boundaries and the emergence of new services and business practices underscore the need for new and more substantive rules for access to and interconnection of networks.

Interconnection refers to the linkage, by wire, radio, satellite or other means, of two or more existing telecom carriers or operators to allow their subscribers to access or reach each other.

“A regulatory framework to ensure that markets function effectively for interconnection agreements to be fair, reasonable and non-discriminatory is in the best interest of consumers,” the NTC said.

The regulator said the greater transparency in access arrangements will reduce access-related disputes and protect non-dominant service providers against discrimination and abuse of market power by their more dominant rivals.

Under the draft circular, all telcos are required to submit to the NTC a RAO for each of the access services applicable to it that have been specified by the regulator within 90 days from the date of effectivity of the circular.

“The prices, terms and conditions stipulated in the RAO should represent an access provider’s definite offer, sufficient in substance and form so that an access seeker that accepts the offer may not be refused access,” the circular said.

The circular said the access services that must be offered under RAO includes fixed and mobile network termination service, mobile internet, broadband access services, mobile data termination service, among others.

The NTC said that an access provider is not allowed to modify or withdraw its RAO after it has been submitted to the regulator, unless otherwise approved upon petition, by the same.

“Any access agreement adopted pursuant to an approved RAO may not be terminated by an access provider prior to the end of the period at which the RAO is valid, without the approval of the Commission,” the NTC said.

The regulator said the terms and conditions of the access agreement that is entered into pursuant to a RAO may not be modified or amended except by mutual written consent of the parties concerned and with the approval of the NTC. By Darwin G. Amojelar, Manila Times

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