NTC receives interconnection fees plan from Globe

The National Telecommunications Commission’s (NTC) has received a proposal from the country’s second largest operator, Globe Telecom, concerning a plan to reduce interconnection rates over a three-year period, commencing 31 January 2012. The Sun Star paper reports Globe as saying the proposed glide path would afford operators more time to adjust their business model and operating strategy going forward. The telco has suggested reducing voice (mobile) interconnection charges to PHP2.50 (USD0.058) per minute in year one, falling to PHP2.0 the year after and PHP1.50 in the third year, while SMS rates would fall to PHP0.25, PHP0.20 and PHP0.15 over the same period. Meanwhile, Globe has suggested cutting fixed line interconnection charges to PHP2.0 in year one, followed by cuts to PHP1.50 and PHP1.00 in each of the subsequent years. However, with the NTC pushing for voice interconnection fees to come down to PHP1.00 per minute within three years and for text fees to fall to PHP0.15, rival Sun Cellular is thought to prefer a five-year glide path, the paper writes.