PLDT, Globe interconnect internet platforms

MANILA, Philippines - PLDT Inc. and Globe Telecom Inc. have entered into an agreement to allow both local internet service providers to directly connect with each other to provide customers a better internet experience.

The two telcos said they signed a memorandum of agreement (MOA) to establish a bilateral Internet Protocol (IP) peering arrangement, a move expected to allow customers to have a better internet experience.

The two firms will begin the initial phase of bilateral peering by allowing exchange of localized IP traffic between PLDT Group broadband and mobile subscribers and Globe Group subscribers, which should be completed in 30 days.

After the initial phase, the two telcos will also work on having a formal bilateral peering agreement within 90 days.

With the peering arrangement in place, PLDT and Globe will now allow direct local exchange of traffic between PLDT’s Philippine Internet Exchange and Globe Internet Exchange.

The arrangement means content and applications hosted by the PLDT group which are being accessed by Globe customers will be treated as local content, and will not have to be routed overseas, removing additional IP transit costs, delay in data transmission and latency in downloading sites.

About 20 percent of internet traffic is local or originates and terminates within the country.

“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,” Eric Alberto, PLDT executive vice president and head of enterprise said.

Globe chief technology and information officer Gil Genio said the Ayala-led telco also expects the arrangement to provide benefits to customers.

“With an effective domestic internet peering in place, Globe customers will gain direct access to content and applications hosted by PLDT data centers and vice-versa. We are confident that this agreement will redound to a better experience on internet services benefitting customers of both parties and the country as a whole,” he said.

Apart from reaching an IP peering arrangement to improve internet services, both telcos have also resubmitted the notices they filed with the Philippine Competition Commission  in relation to a recent transaction involving their joint acquisition of San Miguel Corp.’s telco assets.