PLDT criticises NTC’s proposed policy on IP peering

10 Aug 2011

The Philippine Star newspaper reports that dominant operator Philippine Long Distance Telephone Company (PLDT) has criticised the regulator, the National Telecommunications Communications (NTC’s), draft proposals on internet protocol (IP) peering policy in the country, saying it would have a negative impact on the market’s development. In its position paper, PLDT argues that forcing internet service providers (ISPs) to hook up via a single internet exchange – as proposed in the draft NTC order – may lead to bottlenecks that could harm rather than improve the service quality of ISPs. The telco’s head of public affairs, Ramon Isberto, said: ‘This is a case where the proposed solution may just compound the problem.’

The NTC’s draft circular on the matter proposes that all ISPs be required to connect with the IP exchange of the Department of Science and Technology-Advanced Science and Technology Institute (DOST-ASTI) with respect to their domestic internet traffic. However, PLDT has criticised the plan arguing that internet service levels could ultimately suffer because the NTC circular does not provide for ‘rigorous and robust arrangements for IP peering’. The telecoms operator also argues that advocates of IP peering (such as rival Globe Telecom) have ‘erroneously compared this to interconnection for voice calls and SMS between phone carriers, except that in this case, interconnection applies to internet traffic’. In PLDT’s view, ‘That is comparing apples and oranges,’ said Roland Pena, the head of the firm’s technology group. ‘IP peering is much more complex than conventional interconnection,’ he added.