PLDT holds AT&T and the US FCC responsible for any disruption of calls from the US

The United States Federal Communications Commission (FCC) recently ordered all US based carriers to stop paying all Philippine telecommunications companies, including PLDT. The decision was brought about by the complaint filed by AT&T and MCI Worldcom against PLDT and other Philippine telcos due to our decision to reasonably increase our rates for inbound international calls terminating on our network from $ 0.085 cents to $ 0.12 cents.

We maintain that our new rates are reasonable and are much lower than the benchmarks of both the FCC and the International Telecommunications Union which are at $0.19 cents and $0.23 cents respectively. The same rates have also been accepted by nearly 100 telecommunication companies worldwide, as well as the broad base of the market.

We believe that the decision of the FCC is abusive because :

• it overturns, intervenes and cancels valid agreements we already have with numerous US based carriers including MCI Worldcom and Sprint USA.

• the decision orders the US carriers to stop paying us not only for services we have rendered after the February adjustment, but also orders them to stop paying us their previous debts and delinquent accounts.

• The order also demands that we open our circuits to the US carriers without any guarantees of getting paid or without any agreement .

• Finally, the decision threatens further sanctions and actions against us if we don't comply.

In light of the shameful and grossly one-sided decision of the FCC, we are left with no choice but to follow the directive of the Philippine National Telecommunications Commission (NTC) that "absent any provisional or interim arrangement or agreement, there would be termination of service between the parties..".

While we work towards a resolution to this issue, we request that you advise all your friends, relatives, and family in the United States that if they experience any disruption in making calls to the Philippines, to please direct their complaints to their respective US based carriers or the US FCC which they can reach via www.fcc.gov. They have to be made responsible. PLDT is not to be blamed for any disruption in service. We cannot continue service if they refuse to pay or unilaterally terminate their existing agreements with us.

However, rest assured that we shall also abide by the Philippine NTC directive to "seek other routes or options to terminate traffic to the Philippines" . We shall also remain open, as we have always been, to discussions with US based carriers for alternative routes and options that will allow traffic to flow so we can continue to provide our countrymen with the best telecommunications service possible.

Butch Jimenez
VP Media and Communications
Philippine Long Distance and Telephone Company