PLDT, AT&T ties expected to normalize

Relations between the Philippine Long Distance Telephone Co. (PLDT) and US carrier AT&T are expected to normalize after the two signed an interim rate agreement in Hawaii where a conference among telecommunications companies worldwide is being held, The STAR learned yesterday.

The agreement will govern the rate at which AT&T will be paying PLDT for calls from the US terminating to the Philippines in the meantime that a commercial rate agreement has not been signed.

PLDT officials said that the interim agreement, however, hinges on AT&T being able to pay PLDT for charges already incurred.

In February of last year, the US Federal Communications Commission (FCC), an international bureau, ordered the US telcos not to make any payment to Phillipine carriers unless the latter rolls back its termination rates to pre-February 2003 levels.

The local carriers which include PLDT, Globe Telecom, Smart Communications, Digitel, Bayantel and Subic Telecom increased termination rate for calls from the US to landlines in the Philippines from eight to 12 cents per minute and for calls to mobile phone networks from 12 to 16 cents.

PLDT said it is hopeful that the FCC will lift the stop payment order soon.

Just recently the FCC allowed American telcos to pay Smart Communications after the latter entered into an interim rate agreement with the leading US carriers AT&T and MCI-WorldCom.

However, Smart officials told The STAR that they may sever relations with MCI when the latter refused to make payment amounting to more than $1 million.