Globe, PLDT to lower voice call rates starting Jan. 2017

PLDT Inc. and Globe Telecom Inc. have agreed to lower the interconnection rate on voice calls starting January 2017.

The telcos on Monday signed a memorandum of understanding (MOU) with the government, which limits the interconnection rates of voice calls at P2.50 per minute from P4.00.

"We made a study and compared it with other countries. The average is around P2.25 to P2.50 (per minute)," National Telecommunications Commission (NTC) Commissioner Gamaliel Cordoba said during the signing ceremony in Quezon City.

According to the Department of Information and Communications Technology (DICT), the new rates must be implemented by January 1, 2017, to give the tecos sufficient time to make the necessary adjustments in their respective billing systems.

"Consumers will enjoy lower rates for voice calls starting next year. The reduced retail rate will depend on the various plans or promos offered by the telcos," it said.

"The interconnection charges shall be subject to an annual review by the NTC," it added.

PLDT

For Pangilinan-led PLDT, the new interconnection rates would reflect a 40-percent drop in interconnection charges.

"The voice business is challenging as the market goes to mobile and fixed. This actually lowers the revenues that we generate," PLDT Chief Revenue Officer Eric Alberto told reporters.

"The market reality is that competition and market demands have actually brought pricing down," he added.

Globe

For Ayala-led Globe, the lower rates mean a 38-percent reduction in charges.

"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," Globe Chief Technology and Information Officer Gil Genio said.

The lower interconnection rate, he said, could actually goad the telcos to act more aggressively when it comes to voice calls moving forward, he added. — VDS, GMA News