PLDT, Globe agree on IP peering deal for better internet in the country
MANILA, Philippines, June 16, 2016 – Leading telecoms and digital services provider PLDT has moved to establish a bilateral IP peering arrangement with Globe Telecom that will help improve local internet traffic quality and provide better internet experience for the subscribers of both telco operators.
“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,” said Ernesto R. Alberto, PLDT Executive Vice President and Head of Enterprise.
“The other complementary effective measure is local caching. PLDT is working with global internet players like Google, Youtube, Facebook and Microsoft to store more popular internet content in the Philippines so Filipinos can access this more quickly. Caching is needed because about 90% of internet content frequently accessed by Filipinos come from overseas. This is one reason why PLDT is building more state-of-the-art data centers in different parts of the country,” said Atty. Ray C. Espinosa, PLDT Head of Legal and Regulatory Group and member of the PLDT Board of Directors.
“Effective and efficient use of radio frequencies is another effective measure. Hence, Smart is quickly integrating the newly accessed frequencies from the San Miguel telco businesses into its mobile network rollout plan to provide additional capacity to handle the rapid growth of data traffic. Complementing this, PLDT has stepped up its investment in fiber to the home. We currently have about half a million fiber lines, with speeds of up to 1 Gbps already available in certain areas,” Espinosa added.
With the peering arrangement, PLDT and Globe will now allow direct local exchange of traffic between PLDT’s Philippine Internet Exchange (PhIX) and Globe Internet Exchange (GIX) that is destined to each other’s own broadband and mobile customers.
“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,” Alberto noted.
“This milestone agreement ushers in new ways of establishing partnerships within the industry in order to improve internet services throughout the country,” he emphasized.
Senator Bam Aquino witnessed the signing of the memorandum of agreement (MOA) between PLDT and Globe held in Makati Thursday.
L-R: PLDT Regulatory Affairs Head Ray C. Espinosa, PLDT EVP and Head of Enterprise, International, and Carrier Business Eric R. Alberto, Senator Bam Aquino, Globe Chief Technology Information Officer Gil Genio, Globe President and CEO Ernest Cu.
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. It also dictates that the two telcos will work towards executing a fuller bilateral peering agreement within 90 days after the initial phase has been accepted.
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PLDT is the leading telecommunications and digital services provider in the Philippines. Through its principal business groups – fixed line, wireless and others – PLDT offers a wide range of telecommunications and digital services across the Philippines’ most extensive fiber optic backbone, and fixed line and cellular networks.
PLDT is listed on the Philippine Stock Exchange (PSE:TEL) and its American Depositary Shares are listed on the New York Stock Exchange (NYSE:PHI). PLDT has one of the largest market capitalizations among Philippinelisted companies.