MANILA, Philippines, June 16, 2016 – Leading Philippine telecom and digital services providers PLDT Inc. and Globe Telecom agreed to establish a bilateral internet protocol (IP) peering arrangement which aims to improve the local internet traffic quality and provide better internet experience for the subscribers of both telecom 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 in a statement posted on PLDT corporate website.

“After years of working at it, PLDT and Globe finally signed a domestic IP peering arrangement. We can’t be real Internet service providers without IP peering.” said Gil Genio, Globe Chief Technology and Information Officer. Genio also added that telcos would be able to save $20 million a year in capital spending budget, which then lead to more affordable Internet services.

From Left: 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. (Courtesy of PLDT Newsroom)

PLDT Head of Legal and Regulatory Group and member of the PLDT Board of Directors, Atty. Ray C. Espinosa said that local caching will be an effective measure. He said that PLDT is working with global internet players like Google, Youtube, Facebook and Microsoft to store more popular internet content locally in the Philippines so Filipinos can access this content more quickly.  He added that 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.

Espinosa said that effective and efficient use of radio frequencies is another effective measure. Hence, Smart Communications, Inc. is quickly integrating the newly acquired frequencies from the San Miguel Corp. (SMC) telco deal, in partnership with rival Globe Telecom, into its current rollout of its network transformation plan which aims to provide additional capacity to handle the expected growth in data traffic. Complementing this, PLDT has stepped up its investment in fiber to the home (FTH) technology.  “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.

Senator Paolo Benigno “Bam” Aquino IV, chairman of the Senate committee on trade and commerce, witnessed the signing of the memorandum of agreement (MOA) between PLDT and Globe held in Makati Thursday. Globe Telecom is yet to issue an official statement regarding the agreement.

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. [Share the Key]