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PLDT protests at subsidy ruling
06 February 2012
Decision to lower Philippines interconnection charges is ‘patently unconstitutional’, PLDT says
Philippine operator PLDT has opposed the regulator’s move to launch cross subsidies with small operators outside of the Manila metropolitan area via a fixed interconnection rate, according to a report in Business Insight Malaya.
The National Telecommunications Commission recently asked Globe Telecom and PLDT to reduce interconnection charges to $0.06 a minute for local exchange carriers and cellular mobile services providers, the publication reported.
The fixed interconnection charge as a subsidy to members of the Philippine Association of Private Telecommunications Companies is “patently unconstitutional”, PLDT said in a motion for reconsideration filing with the commission.
According to the report, NTC has asked Smart, Globe and Paptelco to decide on direct interconnection within 90 days, failure to achieve which would see the commission setting terms and conditions for direct interconnections. GTB
Further reading from Global Telecoms Business:
PLDT plans to reduce foreign stake 10 Jan 2012
PLDT expects $23m from 3G divestment 04 Dec 2011
Malaysia's Celcom sets up MVNO with PLDT 01 Dec 2011
NTT DoCoMo reacquires 20% share in PLDT 28 Nov 2011