Dispute between Smart, Nextel likely to drag on

The interconnection dispute between Smart Communications Inc. and Nextel of Infocom Communications Network Inc. is likely to drag on despite the lapse of the 30-day period given by the National Telecommunications Commission (NTC) for both parties to temporarily resolve the issue.

NTC Commissioner Joseph Santiago, however, gave assurance that interconnection would take place by middle of next month despite a motion for reconsideration filed by Smart last week.

"Although this is not yet final and executory, definitely they will still have to be interconnected by mid-February. If they don't do it, then we will impose sanctions," Santiago said although he refused to say what the penalties will be until decided upon quasi-judicially.

At present, Smart continues to block calls from Nextel subscribers although Nextel allows calls from Smart to pass through.

In an eight-page motion, Smart questioned the basis for the regulatory body's link-up order issued on Dec. 23, 1999 compelling the two companies to pay each other an interim amount of P1.50 per minute for calls passing through their respective networks.

The amount is equivalent to 50 percent of the lowest rate being imposed by mobile phone providers on their subscribers.

Smart, though, proposed a P0.50 per minute interconnection charge which is lower than the P1.50 and P1 per minute arrangement it has with Isla Communications Co. (Islacom) and Globe Telecom, respectively.

Smart explained that fixing of interconnection rate between a trunked radio and cellular phone operator should be done with the consideration that the two networks are different and, therefore, cannot be treated in the same light.

"If an interconnection charge is mandated, then, it should be equal to one half only of the existing interconnection charge between the two leading cellular phone operators. Smart maintains that what is fair and reasonable is P0.50 and that P1.50 is excessive and unreasonable," the motion said.

The cellular phone giant added that since Nextel is a trunked radio operator, it has no authority to charge the same rate as that of other mobile phone providers.

Nextel originally asked for P5.50 per minute on top of the prevailing airtime rates but was refused by Smart.

According to Smart, the NTC's order is contradictory to the NTC's acknowledgement of the fact that Nextel is a trunked radio operator.

"Clearly, there is no basis for the said amount considering the fact that Smart is even paying less to Globe which is a CMTS operator," the motion stated.

Antonio Urera, Infocom president and chief executive officer, however, said that there is nothing new in Smart's arguments which still centered on the amount both parties should pay for interconnecting their facilities.

Urera stressed that the amount is temporary, with the final figure to be based on the cost manuals which the two companies are required to submit since compensation is dependent on how much each firm has to spend for the calls.

"We don't have anything against the P1.50 because first, it is temporary, and second, because we are prepared to submit our cost manual to prove the cost of our network," Urera said.

Urera, though, expressed apprehension that interconnection might be further delayed because of the motion.

"My understanding is if there is an order that has not become permanent or executory, when somebody files a motion for reconsideration, then we stop the process. The next step is either we have an agreement among ourselves or that it is resolve hopefully as quickly as possible by the NTC," he said.