JAZA, MVP move to appease Duterte by cutting connection rates
Industry giants PLDT Inc. and Globe Telecom agreed to reduce the interconnection rate for customers to P2.50 per minute effective Jan. 1, 2017.
The signing of the agreement, which will lower the current rate of P4 per minute for mobile to mobile and landline to mobile voice calls, was witnessed by officials of the Department of Information and Communications Technology and the National Telecommunications Commission.
The deal came a week after President Duterte threatened to open up the telecommunications sector to foreign players to improve service and spur competition.
“We are supporting government?s efforts to bring down the cost of telecom services in the country. This agreement will translate in different ways to more affordable voice call rates for our subscribers,” said Ray Espinosa, PLDT director and head of Regulatory Affairs and Policy Office.
The agreement was also triggered by PLDT and Globe’s dwindling revenues from voice calls as consumers shift to internet-based chat and voice services such as Viber and Whatsapp.