Globe Telecom signed a memorandum of understanding with PLDT to reduce the interconnection rate for voice calls between the two operators. This means the price of domestic mobile and fixed line calls between Globe and PLDT-Smart will be reduced, effectively benefitting consumers. The reduction of interconnection rates will not affect Globe to Globe (intra) calls as these are not subject to interconnect charges and are already offered to consumers in an unlimited basis.

International calls will likewise not be covered. Under the agreement, the two telcos committed to take steps to lower retail rates for voice, taking into consideration the reduction in interconnection rates. Both parties also committed to maintain GOS in interconnection.

This means both operators will ensure that sufficient telecommunications circuits or routes are available for efficient transmission of calls. The agreement is related to the issuance by the National Telecommunications Commission of a memorandum circular providing for a reduction in the interconnection rate between the two networks. Under the circular, interconnection charge for voice calls shall not be more than PHP 2.50 per minute from PHP 4.00 per minute previously, representing a 38% reduction.

The reduction shall take effect not later than January 1, 2017.