PLDT and Smart, in a 20-page position paper, told the National Telecommunications Commission the proposed circular on interconnectivity is an invalid exercise of police power as the proposed mandatory peering with the Department of Science and Technology-Advanced Science and Technology Institute (DOST-ASTI) internet exchange will benefit only the internet service providers (ISPs).
"Mandating ISPs to interconnect to the DOST-ASTI internet exchange… does not employ reasonable means to attain its objectives, and does not seek to protect the interests of the general public. Rather, it merely seeks to promote the interests of a few private individuals (ISPs)," PLDT said.
Under the NTC draft circular, all ISPs in Philippines with a direct connection to a foreign ISP must connect to the IP exchange of ASTI of DOST.
The ISPs will shoulder the cost of directly connecting with the DOST-ASTI internet exchange. They will also be responsible for the operation and maintenance of their respective links to DOST-ASTI exchange.
NTC said domestic peering will reduce internet cost, encourage developers and content provider to establish business in the country, and ensure efficient use of international bandwidth.
Once the interconnection is in place, internet traffic will no longer need to pass overseas before reaching the target consumer in the country.
IP peering is like interconnection among local telcos for calls and texts, as it involves connecting subscribers and applications of one ISP to another.
The Philippines has 3 million broadband subscribers but the number of internet users who access the net via internet cafes and cell phones stands at 30 million.
