Globe and PLDT agree to cut internetwork voice calls

Local Telco giant Globe Telecom has recently signed a memorandum of agreement with PLDT to reduce the interconnection rate for voice calls between the two operators.

This means the price of domestic mobile and fixed line calls between Globe and PLDT-Smart will be reduced, effectively benefitting consumers.  The reduction of interconnection rates will not affect Globe to Globe (intra) calls as these are not subject to interconnect charges and are already offered to consumers in an unlimited basis.  International calls will likewise not be covered.

The agreement is related to the issuance by the National Telecommunications Commission of a memorandum circular providing for a reduction in the interconnection rate between the two networks. Under the circular, interconnection charge for voice calls shall not be more than P2.50 per minute from P4.00/minute previously, representing a 38-percent reduction.

Globe Chief Technology and Information Officer Gil Genio, said, “For many years now, Globe has been strongly advocating the rationalization of interconnect access charge between the two telcos. We are confident that a reduction in the cost of interconnection for voice calls will eventually redound to a more robust economy, providing our customers with an affordable and easily accessible way of communication.” 

The reduction shall take effect not later than January 1, 2017.