PLDT, Globe sign IP peering deal after 6 years

MANILA, Philippines – After 6 years, PLDT Incorporated and Globe Telecom Incorporated have finally agreed to sign an Internet protocol (IP) peering arrangement that is seen to improve local Internet linkages and raise the quality of Internet in the country.

“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,” Ernesto Alberto, executive vice-president and head of enterprise of PLDT, said in a statement on Thursday, June 16.

For Gil Genio, Globe chief technology and information officer: “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.”

With the peering arrangement, PLDT and Globe will now allow direct local exchange of traffic between PLDT’s Philippine Internet Exchange (PhIX) and Globe’s Globe Internet Exchange (GIX) destined to each other’s own broadband and mobile customers.

For Genio, the telcos would be able to save $20 million a year in capital spending budget, which then lead to more affordable Internet services.

Local caching

The other complementary effective measure is local caching, said Ray Espinosa, PLDT head of legal and regulatory group, in a media briefing in Makati City on Thursday, June 16.

“PLDT is working with global Internet players like Google, YouTube, Facebook, and Microsoft to store more popular Internet content in the Philippines so Filipinos can access this more quickly,” he added.

“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 said.

Senator Paolo Benigno “Bam” Aquino IV witnessed the signing of the memorandum of agreement (MOA) between PLDT and Globe held in Makati City.

The agreement paves the way for the initial phase of bilateral peering which is localized IP traffic exchange between PLDT and Globe broadband and mobile subscribers.

This should be completed 30 days after the execution of the MOA, Globe’s Genio said.

This dictates that the two telcos will work towards executing a fuller bilateral peering agreement within 90 days after the initial phase has been accepted. – Rappler.com