The Philippines' main carriers agreed to establish a bilateral internet protocol (IP) peering agreement to improve internet speeds in the country.
Under a memorandum of agreement (MOA) signed Thursday, PLDT Inc. and Globe Telecom Inc. will allow the direct local exchange of traffic between PLDT's Philippine Internet Exchange (PhIX) and Globe Internet Exchange (GIX) that is allotted to each other's own broadband and mobile customers.
"The MOA paves the way for the initial phase of bilateral peering which is localized IP traffic exchange between the PLDT Group broadband and mobile subscribers and Globe Group subscribers, which should be completed 30 days after the execution of the MOA," PLDT said in a statement.
The agreement also mandates the telcos to work towards executing a "fuller" bilateral peering agreement within 90 days after the initial phase has been accepted.
“This is a very positive development and is in line with our digital pivot. We are focused on taking effective measures to improve internet services in the country. IP peering is one such measure. By keeping local traffic local, we improve the internet experience of both PLDT and Globe subscribers,” PLDT Executive Vice President and Head of Enterprise Ernesto Alberto said.
“The intention here is to keep local traffic within the country which should lower latency due to less hops and thus, should result in marked improvements in fixed broadband and mobile internet services in the country,” he said
PLDT Head of Legal and Regulatory Group Ray Espinosa said the deal is in line with the company’s efforts to improve connectivity.
“This is a major milestone and is part of the effective measures taken by the PLDT Group in efforts to provide faster, affordable internet services,” he told reporters in Makati.
The Internet may register speeds almost 10 times faster than usual, Globe Chief Technology and Information Officer Gil Genio said that
“The penalty for not having peering is noticeable, sometimes 10 times longer (for processing),” he told reporters in a separat briefing.
“There is a relative ease in peering domestically. It makes the country much better and a highly attractive location,” he added.
A quick hit
“We went for a quick hit... reap the benefits immediately. In the next 90 days we really target to line up other areas for collaboration and synergy,” Gary F. Ignacio, AVP & Head for Corporate and Business Solutions at PLDT, said.
The first thirty days following the deal entails the initial interconnection of the two telecommunications companies, while the next 90 days will be allotted for reviewing and finalizing the “essence and spirit” of the transaction, said PLDT Executive Vice President Eric Alberto,
Globe’s Genio noted the deal has been brewing for sometime, but the companies chose to finalize the agreement on the heels of public clamor.
“After six years of working at it, PLDT and Globe finally signed a domestic IP peering arrangement. We can’t be real Internet service providers without IP peering,” he said.
“Overall clamor for Internet, especially now in the Philippines... The principal mode of accessing Internet today is mobile which requires faster and faster speeds,” he added. – VDS, GMA News