Globe, Nextel resolve dispute

Leading mobile phone service provider and local exchange carrier Globe Telecom and trunk radio operator Nextel Communications Phils. Inc. have finally resolved their long-standing dispute after signing an agreement yesterday that lays out the commercial terms of their interconnection.

Under the terms of the agreement, Nextel will pay Globe an access charge of P4.50 per minute for calls made to its cellular mobile telephone system (CMTS). For local calls made from Nextel trunk radio network (TRN) to Globe’s local exchange (LEC), an access charge of P2 per minute will be paid and for toll calls, P2.75.

Meanwhile, Globe will have to pay Nextel a P3 per minute access charge for calls made from Globe CMTS. The same rate of P3 per minute will be levied for local calls made from Globe LEC to Nextel TRN, as well as toll calls.

For calls made from Globe’s international gateway facility (IGF) to Nextel TRN, the access charge will be $8.5 cents.

Prior to the interconnection agreement, each network charged their subscribers P9.50 per minute for a call to the other network. And of the P9.50, Nextel gets P3 and Globe, P6.50, the National Telecommunications Commission said.

According to the agreement signed between Globe vice president for carrier business group John W. Young and Nextel first vice president for external affairs Rolando Alarcon, there will be no network access charge under this arrangement. The new access charges will be applicable starting Jan. 1, 2002.

While the direct interconnection facilities are not yet operational, the current set-up for traffic routing will remain. This means that traffic between Globe and Nextel will be temporarily routed through a foreign carrier, with the rates based on national long distance (NDD/LEC) charges which is P10 per minute.

Both parties shall meet the P0.1 grade of service and the initial interconnection facilities shall consist of seven E1’s for Globe CMTS to/from Nextel TRN, four E1’s for Globe LEC to/from Nextel TRN, and one E1 for Globe IGF to/from Nextel TRN.

Telecommunications companies are required by law to interconnect. The interconnection agreement basically identifies how much each company is supposed to pay the other company for passing through its network.

Had Globe and Nextel not agreed bilaterally on the commercial terms of an interconnection agreement, the National Telecommunications Commission (NTC) was ready to intercede and impose its own terms.